Suarez, wearing the same No.7 shirt that legendary Dalglish made his own at Anfield, is now regarded as one of the best players on the planet.
On the same day as Suarez was unveiled on Merseyside, so was Andy Carroll. He cost £12m more than the Uruguayan - but flopped.
Carroll found the net 11 times for the Reds at a cost of more than £3m a goal.
Suarez, meanwhile, has 65 - and a stunning 14 Premier League goals already in a season where he missed the first six games through suspension.
The star striker's brilliance couldn't keep Dalglish in his job and he sacked in May 2012.
But now he's back at Anfield as a director and is loving watching the man he splashed the cash on.
Dalglish said: "Luis has been fantastic. He's a great entertainer and he's a humble guy.
"He's somebody that really enjoys working in training, he is never a problem in training. And he's fantastic on the pitch.
"It's a real joy to see him play sometimes. The goals he has scored have been hugely influential on the position that Liverpool are holding in the league at the moment."
While Scotland were missing from the World Cup draw last week, Dalglish was watching on with interest as Uruguay were paired with England.
Italy and Costa Rica make up the group of death and Dalglish said: "I would have thought that when the World Cup draw was made, there were a few English defenders thinking 'Oh no, I've got to play him again - it's bad enough twice during the season.'
"You couldn't write the script."