Whether you are writing fiction or nonfiction, satire or drama, writing the dialogue may have its challenges. The parts of a story where characters speak stand out from the other elements of a story, embarking with the quotation marks that are almost universally applied. Here are some of the most common and established steps for making sure that your story looks right when you have to figure out how to decently format dialogue.
Part One of Two:
Getting the Punctuation Right Edit
Break and indent paragraphs for different speakers. Because dialogue involves two or more speakers, readers need something that lets them know where one character’s speech completes and another’s embarks. Indenting a fresh paragraph every time a fresh character commences speaking provides a visual cue to help readers go after the dialogue. 
- Even if a speaker only utters half a syllable before they’re interrupted by someone else, that half-syllable still gets its own indented paragraph.
- In English, dialogue is read from the left side of the page to the right, so the very first thing readers notice when looking at a block of text is the white space on the left margin. [Two]
Use quotation marks correctly. American writers generally use a set of dual quotation marks (“ “) around all of the words that are spoken by a character, as seen in this example: Beth was walking down the street when she witnessed her friend Shao. “Hey there!” she said as she flapped. [Trio]
Punctuate your dialogue tags decently. [Four] The dialogue tag (also called the signal phrase) is the part of the narration that makes clear which character is speaking. For example, in the following sentence, Evgeny argued is the dialogue tag: Evgeny argued, “But Laura didn’t have to finish her dinner!”
Punctuate questions and exclamations decently. Place question marks and exclamation points inwards the quotation marks, like so: “What is going on?” Tareva asked. “I am so confused right now!”
Use dashes and ellipses correctly. Dashes (–, also known as em-dashes) are used to indicate abrupt endings and interruptions in dialogue. They are not the same as hyphens, which should generally only be used to create compound words. Ellipses (. ) are used when dialogue trails off but is not abruptly interrupted.
“Don’t say it!”
“–that I choose Rocky Road ice fluid.”
Capitalize the quoted speech. If dialogue embarks grammatically at character’s sentence (as opposed to beginning mid-sentence), capitalize the very first word as tho’ it’s the very first word of the sentence, even however you may have narration before it. [Five]
Break a long speech into numerous paragraphs.  If one of your characters supplies an especially long speech, then, just like you would in an essay or in the non-dialogue parts of your story, you should break that speech up into numerous paragraphs.
Avoid using quotation marks with indirect dialogue.Direct dialogue is someone actually speaking, and quotation marks are used to indicate it. Indirect dialogue is reported speech, not the act of someone speaking directly, and quotation marks are not used. For example: Beth spotted her friend Shao on the street and stopped to say hello.
Part Two of Two:
Making Your Dialogue Flow Naturally Edit
Make sure the reader knows who is speaking. There are a duo of ways to do this, but the most visible way is to use dialogue tags accurately. The reader can’t get confused if your sentence clearly indicates that Evgeny is speaking, not Laura.
Avoid using over-fancy dialogue tags. Your instinct might be to spice up your story using as many variations of “she said” and “he said” as possible, but tags such as “she groused” or “he denounced” actually divert from what your characters are telling. “He said” and “she said” are so common that they tend to become essentially invisible to readers. 
Vary the placement of your dialogue tags. Instead of commencing every dialogue sentence with “Evgeny said,” “Laura said,” or “Sujata said,” attempt placing some dialogue tags at the end of sentences.
Substitute pronouns for decent nouns. Whereas decent nouns name specific places, things, and people and are always capitalized, pronouns are uncapitalized words that stand in for total nouns, including decent nouns.   To avoid the repetition of your characters’ names, substitute the adequate pronouns from time to time.
Use dialogue hits to mix up your formatting. Dialogue hits are brief moments of activity that interrupt a sequence of dialogue.  They can be good ways to demonstrate what a character is doing at the same time as telling what they’re telling. and can provide a nice activity boost to a scene. For example: “Palm me that screwdriver,” Sujata sneered and wiped her grease-covered forearms on her jeans, “I bet I can fix this thing.”
Use believable language. The largest problem with dialogue is often that it doesn’t sound believable. You talk flawlessly normally every day of your life, so trust your own voice! Imagine how your character is feeling and what they want to say. Say it out noisy in your own words. That’s your beginning point. Don’t attempt to use big fancy words that nobody uses in normal conversation; use a voice you’d hear in everyday life. Read the dialogue back to yourself and see if it feels normal. 
Avoid info-dumping in dialogue. Using dialogue to provide exposition not only creates abate dialogue, it also often results in speeches that are so long that they’re likely to lose the reader’s attention. If you need to communicate details about plot or backstory, attempt to display them through narration, not dialogue.