The Scot is confident the 23-year-old will start next season better than he began the current one whether or not he is involved this summer for either Roy Hodgson's squad or Great Britain's Olympic team.
Carroll has shown a marked improvement in the last couple of months, as Dalglish himself predicted just over a year ago, and on Tuesday gave former England captain John Terry a torrid night during the 4-1 win over Chelsea.
And Dalglish thinks the £35million record signing has finally settled in properly at Anfield.
"Andy will benefit from the fact he has been here for a year and has not had any problems with injuries," he said.
"But the quality in the last couple of games has been fantastic and he has been building up to that for the whole season.
"I'm sure he will come back next season very much encouraged by his performances and starting afresh.
"We don't know what is going to happen with Andy yet - whether he is going to be away with England in the championships or chosen for the Olympics.
"I am not going to pick either Stuart Pearce's or Roy's team but if you want to play for your national side - and he does - or the Olympics - and he would do if he was picked - the best way to is to produce the goods on the pitch.
"The players will be judged by the performances and the better they play the more chance they have got."
Yesterday [Thursday] it was revealed Manchester United had contacted the Football Association to state none of their over-age players apart from Ryan Giggs would be available for this summer's Olympics.
Only those not selected for the European Championships will be considered by Pearce and while there is no mandate on clubs to release players Dalglish is happy for any members of his squad to accept a call-up.
"If the players want to go it is not a problem for us," he added.
One of the other talking points surrounding this summer concerns who will captain the national team at Euro 2012.
Reports today suggested Hodgson, who will name his first squad next week, has spoken to Steven Gerrard about the tournament but there is no indication he has made a decision on who should wear the armband.
Dalglish did not want to enter the debate on who should take the armband but he spoke of his admiration for Gerrard as a captain and the pride the midfielder would have in leading his country again.
"All we can speak about is Steven and his time at Liverpool Football Club and the service he has given us and the way he has led the club many times by example on and off the pitch," said Dalglish.
"He's a real credit to the club.
"We cannot speak highly enough of Steven but that is our opinion, if someone differs from that then that is up to them.
"I am sure if he was asked (to be captain) he'd be very proud."
Off the field Fenway Sports Group have continued their restructuring at Liverpool after director of communications Ian Cotton left the club.
Last month the departures of director of football Damien Comolli and head of sports medicine and sports science Peter Brukner were announced.
Press Association Sport understands Cotton was informed on Tuesday of the decision and although his 16-year spell at Anfield officially ends on Sunday's last day of the season Cotton is no longer involved at the club.
"We would like to thank Ian for the important contribution he has made to the club during his long career here," managing director Ian Ayre told liverpoolfc.tv.
"He has played a key role as a member of the executive team in managing our relationships with key external stakeholders in the media and in the community.
"We wish Ian every success in his future career."
Cotton added: "It has been a privilege to be at Liverpool FC for the last 16 years.
"I would like to thank everyone I have worked with for all their support during that time and wish this great club all the best for the future."
Liverpool have had a difficult time public relations-wise after their handling of the Luis Suarez-Patrice Evra racism row was widely criticised earlier this season.
Players and manager wearing T-shirts in support of the Uruguay international, who was subsequently banned for eight matches, was generally viewed as a particularly poor PR decision.