Striker Lukas Jutkiewicz gave Burnley the lead at Deepdale but goals from Alan Browne and a magnificent free-kick from Josh Brownhill late on saw the hosts run out 2-1 winners.
But despite the result, which is immaterial in pre-season, the game provided the perfect test for Dyche's squad as they edge towards the Premier League opener against Chelsea.
Dyche said: “I thought it was an excellent game and I thought that is exactly what we needed in pre-season.
“I think that’s the first proper match for our players in terms of real run out time as most of them have played the full 90 minutes.
“We felt that was important but there will be flips and changes again for Saturday.
“Overall, I think we gave a reasonable account of ourselves but it was just one mistake and an absolute wonder-strike has cost us.
“We had some very good pockets of play and it’s just that sharpness at the top end of the pitch, I think that needs to come because we produced some good play up to there and then around the box we didn’t
quite have the incisive moments which we normally have.
“But that will come with the more work we do on the training ground and the more games we play of course.
“I’ll be amazed if Preston are not in the promotion race this season. They’re looking very strong this year and that is why we wanted this game. It was great for our fitness levels as well as there was a really good tempo to it."
Burnley were backed by 1,881 vocal fans at Deepdale and keeping the pre-season games local so that fans can come and get behind the side is something Dyche feels is important.
He added: “We wanted to make sure we keep as many of our games as we can locally.
“That gives the fans a chance to come and see us again and be part of what we’re trying to achieve this year.
“It’s great to see our numbers travel again, and we’ve got another local one on Saturday against Blackpool.”