The singer-songwriter explained that a track on his upcoming 35th studio album The Tempest is about the Titanic disaster.
The 13-minute track was inspired by the Carter Family's folk song 'The Great Titanic'.
"Yeah, Leo. I don't think the song would be the same without him," he told Rolling Stone.
He added: "People are going to say, 'Well, it's not very truthful'. But a songwriter doesn't care about what's truthful. What he cares about is what should've happened, what could've happened.
"That's its own kind of truth. It's like people who read Shakespeare plays, but they never see a Shakespeare play. I think they just use his name."
The Tempest will be released on September 10.
It will mark the 50th anniversary of Dylan as a recording artist.
Bob Dylan will tour North America in the autumn with Dire Straits frontman Mark Knopfler.