The Clarets are 14th - two points off ninth place - and close to securing top-flight survival after being promoted last season.
"He's got promoted straight away with a club that had been relegated the year before," said Pulis.
"And they could end up in the top half of the Premier League with a small budget. He's done fantastic."
West Brom are eighth in the Premier League, despite losing their last four games, and play Burnley on Saturday.
"I won't tell you who I put down as my winner but Sean was in my top three," added Pulis.
Pulis also believes British coaches like him, Dyche, Bournemouth's Eddie Howe and Crystal Palace's Sam Allardyce, do not get the credit they deserve in the Premier League.
"There's some very good British managers in the Premier League," said Pulis.
"I think people overlook them because there are new managers, fresh managers coming in."

Butterfield has a thigh injury while Olsson suffered a concussion in their 1-0 pre-season win at Sheffield United.
"With any head injury you err on the side of caution," Pearson said.
"We could push Jacob back quickly but I don't see the point in putting him into a situation where the potential for injuring him further is there."
Pearson's Rams have six games in 20 days during August, but have few injury concerns other than Butterfield and Olsson.
"It's a long season we've got to make sure any teething problems with players are managed sensibly because I'd like a fully-fit squad to choose from every week," Pearson told BBC Radio Derby.
"I'm not going to have that but that's what the aim is. We want to keep the players in good condition and available."
Derby drew with Brighton in both league meetings last season, but the Rams boss is happy with the level of preparation going into the new campaign.
"Match days are a different entity to the rest of the week.," he said.
"We always do as much as we can whether it's enough at any given time remains to be seen."

Between April and October 103 liner visits are scheduled to Guernsey, Alderney, Sark and Herm.
In 2011 there were 91 scheduled visits, with 29 being cancelled due to bad weather and itinerary changes.
Capt Peter Gill, Guernsey's harbour master, said: "It was a very poor year in weather terms and affected virtually every aspect of our activities."
He said: "It wasn't just the cruise liners, visiting yachts as well were significantly down on previous years, in fact last year was the worst since 1987."
Investigations into plans for a cruise liner berth off Guernsey, estimated to cost between Â£60m and Â£80m, are due to form part of the harbour master plan, which is due to be released this year.
Currently passengers are ferried between the cruise liners and Guernsey on tenders carried by the ships.
Capt Gill said: "In terms of a destination port in the UK, Guernsey is the most visited, it is the most popular... the cruise liner operators have made it quite clear to us they are very keen to come here."
Burnley's Sean Dyche is in the top three Premier League managers of the year, says West Brom boss Tony Pulis.
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Derby County boss Nigel Pearson says injury may force Jacob Butterfield and Marcus Olsson to miss Saturday's season opening game against Brighton.
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Almost 150,000 cruise ship passengers are scheduled to visit the Bailiwick of Guernsey during 2013.