The big striker has so far struggled to justify the Reds investment in January 2011, but Dalglish is convinced over time he will start reproduce the kind of form that he had done for the Magpies.
In all, Carroll has netted just five goals in the Premier League since his arrival at Anfield, while at the same time slipping out of contention for a England shirt.
However, his manager doesn't believe he deserves half the stick he has been getting and won't be told it was a bad deal, as he gets set to go back to the Sports Direct Arena for the first time in this weekend's top-flight clash between the two clubs.
Dalglish told reporters: "There are always going to be people saying it was good or bad. But that doesn't make any difference really. For me, we were delighted to get him and we're still very pleased to have him.
"We have said all along about the boys who have come in that some settle in quicker than others - and in the environment away from football, too.
"The quicker you settle in, the better chance you're going to give yourself. I think Andy's settled in the area, and he's worked really hard to progress his career."
Dalglish, who himself is a former Newcastle manager, is unsure what kind of reception he will get from the Toon Army as they were known to be upset with the forward at the time of his departure. Whatever happens, the Reds boss is confident Carroll will handle the occasion in the correct way.
He added: "I'm not sure he will get abuse, because what happened was outside his control. It's up to them what they want to do. They pay their entrance money and if they want to give him stick, they will give him stick.
"But I don't think he ever did anything other than give of his best for Newcastle, and then they got £35m into the bargain. That's not bad, is it?"