The furore surrounding diving has always been a hot topic but Monday's events have brought the matter back into the spotlight.
McFadden's Scotland team-mate Kevin Kyle suggested earlier this week he would be prepared to take a dive to benefit his nation if a place at a major tournament was at stake.
But McFadden held a much different opinion when asked whether it is something he would consider.
"No way, no. No way, no," he said. "I find it hard, I couldn't dive.
"Sometimes you go down when someone hasn't touched you but that's not necessarily a dive.
"I wouldn't ever deliberately dive and try to con a penalty for any benefit because in the end you look stupid.
"You might win that game but you look stupid.
"Look at the incident on Monday night, it was embarrassing.
"Liverpool got the draw but everybody knows it was a dive. It's not nice to see it."
He continued: "It's frustrating because it's the difference between winning and losing.
"It happens in the game but it's not nice when it happens against you."
A strong-minded McFadden even went one step further than that.
The former Everton man suggested he would maybe even be prepared to hold his hands up and admit to a referee he was not fouled should a penalty be awarded in his favour when no contact was made.
"I think I'd maybe say to the ref 'look, he never touched me'," said the Scotland man. "I've been booked for diving before when I wasn't diving, but I wasn't even appealing for anything.
"I said to the referee that I wasn't diving but the referee has got to call it as they see it and they have got a difficult job."