For a dictionary, you should use the dictionary type which maps keys to values and is much more efficient for lookups. I also made some other changes to your code, keep them if you wish:
engToEstDict = {}
# The with statement automatically closes the file afterwards. Furthermore, one shouldn't
# overwrite builtin names like "file", "dict" and so on (even though it's possible).
with open("dictionary.txt", "r") as f:
for line in f:
if not line:
break
# Map the Estonian to the English word in the dictionary-typed variable
pair = lines.split("\t")
engToEstDict[pair[0]] = pair[1]
# Then, lookup of Estonian words is simple
print engToEstDict["hello"] # should probably print "tere", says Google Translator
Mind that the reverse lookup (Estonian to English) is not so easy. If you need that, too, you might be better off creating a second dictionary variable with the reversed key-value mapping (estToEngDict[pair[1]] = pair[0]
) because lookup will be a lot faster than your list-based approach.