Be it is career at Liverpool and Blackburn or his short stints at Newcastle and Celtic, he has always managed to sign quality players. Where others fail, his eyes can see the talent hidden in youngsters.
But of late, Liverpool fans are beginning to lose faith in his abilities. Scores of people seem to disagree with his policy of signing English talents.
With the signing of Jordan Henderson for a reportedly high fee, doubts have arisen in the fans mind. With many speculated players moving on to other clubs (eg: Sylvain Marveaux), hopes have been dwindling.
They seem to have forgotten his heroics last season. He gave us two quality players in Luis Suarez and Andy Carroll. He brought us from the brink of relegation to almost securing a Europa League spot.
Read on to find out how good he is in the transfer market.
Well, we all know everything about him don't we? The moment he set foot at Anfield, he became a star. Scoring on his debut against Stoke City, and more importantly ripping apart Manchester United, he soon became a fan favorite.
He became the club's record signing for approximately an hour and 30 minutes before Andy Carroll was signed.
Luis was previously targeted by Tottenham and other European clubs, but Kenny managed to beat stiff competitions to sign him.
Also, it is interesting to note that Ajax had an initial asking price of £30 million. Instead, Liverpool reportedly started the bidding at £14 million.
In the end, he was signed at a bargained price of £22 million. Just goes to show that Kenny isn't blind and is a damn good businessman.
He was Kenny Dalglish's first signing as a manager. And what a first signing he was!
He was initially brought in to fill the void left by Graeme Souness. He was signed from Aston Villa in September 1985 for £350,000.
Though he began his career with Everton, his boyhood club, he gave his all for Liverpool in the 204 matches he played. Even now you can hear him support Liverpool in his reviews as a media pundit.
He played an important role in Liverpool's double (League and FA Cup) that year. A hard tackler but skillful at the same time, he was one of Kenny best signings.
And how often does a manager's first signing become a hit?
The Jamaican born Englishman was one of the best left wingers in Liverpool. He was a prolific goalscorer for Watford before being snapped up by Kenny Dalglish. Barnes left Watford in June 1987 for £900,000.
His time at Liverpool was a memorable one. Linking up with first John Aldridge and then Ian Rush to form one of the most formidable attacks of the league. He scored 84 goals in 314 matches and won many awards with both Liverpool and the English team.
Barnes scored 15 league goals in his first season at Anfield, second only to John Aldridge at the club. Another one of Dalglish's signings who blended almost instantly.
The record-breaking striker was signed by King Kenny in January 1987 for £750,000. By then, he was already shining for Oxford United, having scored 72 goals in 114 games.
He was initially brought in as a replacement for the outgoing Ian Rush.
Even though Rush was bought back from Italy, Aldridge remained the first choice striker. He maintained his hot run of goal-scoring throughout his career.
He played 104 times for his boyhood favorites scoring 63 goals. And for republic of Ireland he scored 19 goals in 69 matches.
He took up the managerial task, after retiring from international football. He joined Tranmere Rovers and had a great success with them in the initial years. But he did leave them after they got they got relegated to the third division.
Yes! Newcastle's and the Premier League's record goalscorer and one of England's best ever strikers was also a Kenny Dalglish signing.
In his initial years at Southampton, he was very impressive for a youngster. Although scoring only 23 goals in 117 appearances, his talent was soon recognized.
But I am not going to make any comparisons here. Carroll still has a lot to prove, and it would be pointless to compare.
Although there was also interest from Alex Ferguson, Kenny managed to sign his man.He scored 112 goals in the 138 games he played for the Rovers. He later joined Newcastle for a world transfer record-breaking £15 million.
He also took up a career as a manager after retirement.
Kenny Dalglish knows talent when he sees it. He can sign lesser known but talented players.
He's not afraid of big money and big name signings. His leadership quality is of such high standards that many of his players ended up as managers too.