The 38-year-old striker, who has scored 108 top-flight goals in his career, joined the Clarets from Stoke City until the end of the season on deadline day.
Crouch has scored just one goal in 23 Championship appearances for the Potters this season, but Carragher believes he still possesses the ability to cause problems for Premier League defences.
“It will be interesting how much he is used at Burnley,” he told Sky Sports.
“Sean Dyche likes a physical centre-forward and sometimes uses one, sometimes two. He might be an impact player coming on late in games to cause problems; which he will.
“It's great to have Crouch back in the Premier League. He's very underrated.
“We always think of his height and aerial ability but some of the goals he's scored - volleys and overhead kicks - shows he has a lot more ability than people give him credit for.”
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