1. Basic Dialogue Punctuation Rules
Go to a new line and indent every time a new character speaks
WRONG: Blah blah blah. “Blah blah,” said Joe. “Blah blah blah?” asked Sally.
RIGHT: Blah blah blah. “Blah blah,” said Joe.
“Blah blah blah?” asked Sally.

2. Basic Dialogue Punctuation Rules
Dialogue needs commas.
Commas need to go before quotations if the dialogue has part of sentence before it.
He turned and said, “Blah blah blah!”
Commas take the place of periods within the quotations if there is more sentence after the end of the quote.
“Blah blah blah,” said Joe as he walked towards the car.
No comma is needed at the end of dialogue which uses an exclamation point or question mark.

3. Basic Dialogue Capitalization Rules
The first word in a new quotation of dialogue must be capitalized – always.

4. For example… Wrong Right
Joe and Sally walked along the path in the moonlight. “my darling, you’re ever more lovely.” said Joe. “Oh Joe, I’d always dreamed I’d be this in love!,” replied Sally. Joe turned suddenly and said “Will you run away with me tonight, my dearest heart?”.
Joe and Sally walked along the path in the moonlight. “My darling, you’re ever more lovely,” said Joe. “Oh Joe, I’d always dreamed I’d be this in love!” replied Sally. Joe turned suddenly and said, “Will you run away with me tonight, my dearest heart?”