Midfielder Kightly joined the Hornets from Wolves on an initial one-month contract, following in the footsteps of Tom Cleverley and Henri Lansbury who also enjoyed loan spells at Vicarage Road.
Dyche told the Watford Observer: "Mick (McCarthy, Wolves manager) was more than happy to send him here because the good thing is that we have built a reputation for treating players properly and helping them on their pathway, no matter if that is an old player or a young player.
"We are always interested in quality and we have had the chance to bring Michael here which will help us and help him.
"We will have to see where we use him, it is another nice conundrum I have as manager.
"He is a good player to have because he does have a few different options in his locker. He is predominantly a wide man but can behind the striker, in the hole or at the top of a diamond."
Source: Team Talk
Source: Team Talk