Scrabble Dictionary

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Yes, dialogue is playable

...and is worth 13 points.

Found in the following dictionaries

Enable (Words with friends)
SOWPODS (Collins Scrabble Words)
OTCWL2014 (NASPA Word List 2014)
TWL06 (NASPA List 2006)

"Dialogue" Definition

noun

A conversation between two or more people.
A literary work written in the form of a conversation: the dialogues of Plato.
An exchange of ideas or opinions: achieving constructive dialogue with all political elements.
Conversation between characters in a drama or narrative.
Music A composition or passage for two or more parts, suggestive of conversational interplay.

verb-intransitive

To converse in a dialogue.
Usage Problem To engage in an informal exchange of views.

verb-transitive

To express as or in a dialogue.

verb

To express in dialogue.
To take part in a dialogue .