The Welsh striker completed a deadline day move back to Merseyside from Manchester City after turning down a host of other Premier League clubs, and said the chance to work under a manager he has idolised since childhood was too good to turn down.
"I've grown up with Kenny Dalglish, now to be signed by him is a massive honour,” Bellamy told liverpoolfc.tv.
"This is an exciting time. When Kenny took over, watching as a fan last season I got the buzz as well and it was great to see Liverpool end the season well.
"For me, the players they've signed this summer, there has been a lot of British which takes me back to when I started watching Liverpool. It looks so familiar to me and to be part of it is such a huge honour.
"To every Liverpool fan, Kenny is probably the best player ever to pull on the red shirt so that speaks for itself. He was the first player-manager to do the double and just how he conducted himself really.
"I know we've had bits of success since then but the club hasn't been the same since he left, so to come back in and be a part of this with the players who are here - it's a good time.”
Bellamy also admitted he was relieved to finally sort out his future after a summer in which he was frozen out of City manager Roberto Mancini’s plans.
He added: "I'm very happy. It's been a long couple of months, I had to be patient and believe something like this could happen. It has so I am over the moon."
Liverpool Director of Football Damian Comolli is in no doubt that Bellamy will prove a valuable addition to club’s attacking options.
"Both for Kenny and I [signing Bellamy] was a no-brainer and Kenny had a long conversation with Craig on Wednesday morning and we organised for him to come here,” the Frenchman told reporters.
"I think everyone knows how good a player he is. He has pace, he's a good finisher, he works hard and the timing of his runs is second to none.
"His work rate is really good and what we really liked is the fact he is so versatile. He can play wide, he can play up front, he can play off the target man, so he is an ideal complement to the squad we have built during the summer.”
