Should LLMs, $\textit{like}$, Generate How Users Talk? Building Dialect-Accurate Dialog[ue]s Beyond the American Default with MDial

More than 80% of the 1.6 billion English speakers do not use Standard American English (SAE) and experience higher failure rates and stereotyped responses when interacting with LLMs as a result. Yet multi-dialectal performance remains underexplored. We introduce $\textbf{MDial}$, the first large-scale framework for generating multi-dialectal conversational data encompassing the three pillars of written dialect -- lexical (vocabulary), orthographic (spelling), and morphosyntactic (grammar) features -- for nine English dialects. Partnering with native linguists, we design an annotated and scalable rule-based LLM transformation to ensure precision. Our approach challenges the assumption that models should mirror users' morphosyntactic features, showing that up to 90% of the grammatical features of a dialect should not be reproduced by models. Independent evaluations confirm data quality, with annotators preferring MDial outputs over prior methods in 98% of pairwise comparisons for dialect naturalness. Using this pipeline, we construct the dialect-parallel $\textbf{MDialBench}$mark with 50k+ dialogs, resulting in 97k+ QA pairs, and evaluate 17 LLMs on dialect identification and response generation tasks. Even frontier models achieve under 70% accuracy, fail to reach 50% for Canadian English, and systematically misclassify non-SAE dialects as American or British. As dialect identification underpins natural language understanding, these errors risk cascading failures into downstream tasks.