Carragher believes working under the greatest player ever to play for Liverpool will have an inspiring effect on Torres, as well as Dalglish's natural abilities as a manager.
"Against Blackpool he got the goal and there was a big difference in his performance," said the Reds vice-captain.
"He was chasing down, he brought a couple of balls down, played a great ball through for Dirk Kuyt early in the first half and it looked as though there were signs he was coming back.
"Hopefully that's credit to the manager as well for whatever he's been doing on the training pitch or maybe chatting to him.
"There was a definite difference. I was at the game myself and saw the full game and it was like looking at the old Torres."