In 1971, Dalton returned to college football as quarterbacks coach of the Colorado Buffaloes. He coached the Buffaloes' quarterbacks for two seasons before being reassigned as a recruiting officer at Colorado.
He returned to the pros in 1974 as the wide receivers coach for the Denver Broncos. In 1977, he joined Lou Saban's coaching staff, serving as the receivers coach of the Buffalo Bills. After not being retained by Chuck Knox, Dalton held the same position with the Kansas City Chiefs under Marv Levy, another former Alouettes coach. After Levy was fired, he moved to the Houston Oilers coaching staff as offensive coordinator under Ed Biles, Chuck Studley, and Hugh Campbell. In 1985, he rejoined Buffalo Bills as quarterbacks coach before returning to the Broncos the following season as special offensive assistant coach.
In 1987, he returned to his alma mater Colorado State University as the team's offensive coordinator. In 1989, he became the offensive coordinator at the University of Northern Colorado, a position he would hold for 11 years before his promotion to head coach. The Bears won Division II national championships in 1996 and 1997. Quarterback Corte McGuffey won the Harlon Hill Trophy as the NCAA Division II college football player of the year in 1999.
In 2000, Dalton was promoted to head coach when Joe Glenn accepted the same position at the University of Montana. He would guide the team through the early portion of the school's transition from Division II to Division I (I-AA in football). He was relieved of his duties December 2, 2005, by athletic directorJay Hinrichs. Dalton had a 38–31 record in six seasons as the Bears' head coach.[1]