Gerrard is available to face Fulham tomorrow night after completing his three match ban following his red card against Man Utd in the FA Cup. Dalglish says the return of the captain will give the whole squad a boost.
"Having Steven back is fantastic for everybody," said the boss.
"We had a great result and performance at Molineux on Saturday and we've got a very difficult game coming up against Fulham on Wednesday, so for us to have Steven back on the back of the performance and result we got at the weekend is a great boost for everybody.
"Certainly he's more influential wearing a red shirt more than any other colour, so we'll play him where we think it is best to play him. He is a fantastic footballer, he's served this club unbelievably well and we will certainly ride along on the back of that.
"Your captain being available after missing three games will be a fantastic lift for everybody."