The Linlithgow MP was told to leave the chamber after he refused to obey Michael Martin's repeated requests to sit down as he raised points of order about the government's recent dossier on Saddam Hussein.
Mr Dalyell accused the government of misleading Parliament after admitting part of the dossier was copied from an American student's outdated thesis.
Mr Dalyell, known as the Father of the House because he is the longest serving MP, eventually left the chamber unescorted.
Later, the Speaker's Office insisted Mr Dalyell had not been suspended and had merely been issued with what was effectively a final warning.
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