Ian Rush believes Liverpool boss Jurgen Klopp should strengthen his squad this summer
Klopp led Liverpool to a fourth placed finish in his first full season in charge at Anfield.
The Reds have only been in Europe's elite club competition once since 2010, in 2014-15, and on both occasions failed to qualify out of the group stage.
Rush, who scored 346 goals in two spells at Liverpool, says it's great to see the five-time European Cup winners back in the tournament.
"I think it's where we belong and that's what it's all about," he said on Sky Sports.
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That's where the best atmosphere is, Liverpool supporters miss it and it's great to see them back
Ian Rush on Liverpool being back in the Champions League
"The atmosphere when at Anfield, these European nights are incredible there.
"That's where the best atmosphere is, Liverpool supporters miss it and it's great to see them back."
Rush admits Klopp must now think about what changes he needs to make to the squad this summer, both in and out of the club.
But believes improvement have to be made if they are going to challenge in the Champions League.
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Ian Rush is pleased to see Liverpool back in the Champions League
"I think that's down to him," he added.
"Now we're in the Champions League we've got to strengthen the squad.
"I'm sure players will come and go but at the end of the day that's down to the manager.
"He knows what he wants and hopefully he gets them."