Short made almost 150 appearances for Rovers during a distinguished playing career, before cutting his teeth in management with Hungarian club Ferencvaros and Notts County.
He returned to Rovers earlier this month to take up a key role in Gary Bowyer's backroom team and Dunny was quick to point out the qualities he will bring.
"I've kept in contact with Craig since I played with him and I think he could turn out to be the best signing we make this summer," said the midfield ace, who signed a new one-year deal with the club this week.
"It's not just about having Blackburn Rovers people behind the scenes, because it's easy to be sentimental, but it's about people who can actually make a difference - and be Blackburn Rovers people - and I think Craig will do just that.
"He's a top lad, he's obviously very passionate about the club, he had a great spell here, he's disciplined, he played at the top level for a number of years, he's very experienced, he's a good coach and he's managed as well, so I'm sure Gary will be tapping into his knowledge.
"It will be good to see him out on the training pitch and I think he will complement Gary, Terry (McPhillips) and Tony (Grant) very well."
Dunny has also welcomed a couple of other familiar faces to the club, in the form of midfield duo Alan Judge and Chris Taylor.
Academy graduate Judge returns to Rovers from Notts County, while Taylor joins from fellow Championship club Millwall.
"I obviously know Judger well and I know Chris relatively well from playing against him and through one of my friends at Oldham," Dunny added.
"Chris was obviously a bit of a pain in the backside to play against - he's very lively and has a lot of energy.
"Little Judger, in my opinion, I thought was very unlikely not to break through and play some games during his first time here.
"I think he did really well, but unfortunately just couldn't make that progression into the first team under Sam (Allardyce), but he was certainly very close. I think he was very disappointed to have left, so he'll be over the moon I'm sure about re-signing here."
With two more midfielders joining Rovers' ranks, Dunny insists the competition for places should bring the best out of the players.
"I'm sure it will be very good, but I think as a professional footballer you should thrive on competition," he said.
"It keeps you on your toes, it gives you that edge. Likewise, it's going to be important that everyone sticks together. Hopefully everyone can play a part and hopefully everyone can get behind each other and encourage everyone to perform as well as they can."