Kuyt believes the Scot's return has commanded instant respect from the squad and supporters alike.
"He's a legend for all of us and for the supporters," Kuyt, who scored in Sunday's 2-2 derby draw with Everton, told BBC Radio Merseyside.
"It means a lot for all of us that Kenny has come back to the club as a manager to help the players."
Dalglish has failed to win in his first three games back in charge of the Reds and Liverpool's last win was on 1 January when they beat Bolton 2-1 at Anfield.
Sunday's derby draw with local rivals Everton was the first point under Dalglish in his second spell at Anfield, after Kuyt scored from the penalty spot to level the score at 2-2.
The Dutchman says the supporters have been lifted by the Scot's return and hopes they can play their part in lifting the club into the top half of the Premier League.
"The way they supported us [in the derby] was unbelievable," Kuyt continued. "The results so far aren't going to make them happy, but they're still behind us.
"That's very important for us and I hope they will do it for the rest of the season as I think that will give us some points."
Next up for the Reds is a trip to Molineux to face Wolves, a side that beat Liverpool 1-0 at Anfield on 29 December.
Kuyt, who has six goals for the five-time European champions this season, says his side need to improve their consistency.
"One thing we can take from the game against Everton is that if we keep performing and playing as we did in the first half, we don't have to be afraid of Wolves.
"We just have to go there and play with the same effort and the same quality we showed in the first half. We have to keep going for 90 minutes."
Source: BBC Sport