Faletau struggled during the opening weeks of the season and was criticised by Darren Edwards for his below par performances.
But Edwards has a hailed the Wales No.8 for his display against Edinburgh on Friday – the same game in which Lydiate fractured his ankle.
“I thought Toby was outstanding,” said Edwards.
“That was the best game I’ve ever seen him play for the Dragons in the contact area.
“And attitude-wise, there were some amazing cover-back tackles from him.
“Some of his shots, the collisions were outstanding. He was really good.
“What you are seeing is a 21-year-old really becoming a force. His game is coming together really well.
“We could do with Toby firing on all cylinders and, with Dan out, there’s another element to his game now that we need to happen.
“I think he’s up for the challenge.”
Edwards has also paid tribute to Faletau’s attitude in training following a delayed start to pre-season training following the hand injury he suffered in Wales summer tour of Australia.
“He had a delayed start to pre-season and it was a bit of catch-up at the start,” added Edawards.
“He only had 20 minutes in one pre-season friendly.
“It’s pleasing for me to see Toby playing so well now. You sometimes forget he is only 21.
“He’s up there in that world scene, which is great, but there’s so much more to come from him, in a good way.
“The guy’s attitude is fantastic and there’s so much in him to come out. So it’s great for us and Wales.”
