In chemical processes, Bayesian network (BN)-based approaches have been extensively applied for process fault diagnosis. Generally, BN is learned using score and search algorithms where search algorithms create candidate networks whose fitness to data is measured by scores. However, existing approaches cannot utilize cyclic loop knowledge while learning BN. Since cyclic loops are prevalent in chemical processes, their unaccountability results in inaccurate BN and reduces diagnosis accuracy. Therefore, for accurate diagnosis, we propose direct transfer entropy (DTE)-based multiblock BN to discover cyclic loops while learning BN. First, the process is segmented into multiple blocks. Next, block-level BNs are learned using DTE-based score and Greedy search. By eliminating the common source variable effect, DTE finds correct causality between process variables and obtains accurate block-level BNs, which are fused to discover significant cyclic loops that were otherwise unachievable when finding BN. The performance of the developed methodology is demonstrated through a benchmark process.