"He's definitely a good manager. Does their start surprise me? Yes, it did, especially their away form because last year they waited until March or whenever to beat Palace away and get that first away win," said Bilic.
"It's a big achievement and it did surprise me, but they now have experience of the Premier League and have confidence and play with more bravery and more freedom when they have the ball, but they didn't lose the steeliness and compactness that is still the core of their philosophy.
"They are a very good team and all the credit goes to Sean Dyche."
When asked if Dyche could become England manager in the future, Bilic added: "Why not, definitely.
"It is always good for the national team to have a domestic manager. It is not a club - you have to understand the whole nation and the culture, the history, the legacy, the expectations.
"He is definitely one of them that has it. He is young, he looks strong and he's got that voice! I'm joking, but he is doing a really good job.
"Last year his success was a bit underrated and he is still at Burnley, which makes it easier in a daily job because you can afford some bad games.
"But on the other hand it makes it harder to get that ultimate recognition."