The former Tottenham Hotspur boss has praised the Belgian but wasn't happy with some of the north London side's defending against Anderlecht.
Mauricio Pochettino's men won the Europa League group-stage clash thanks to the 28-year-old's late strike from distance and Hoddle thinks his impact demonstrates just how good Tottenham's squad now is.
Indeed, the former coach feels Dembele can go on to score more goals now that he has netted twice in two games.
Hoddle said during ITV Football's Europa League highlights show: "Dembele comes on and does things like that showing exactly what kind of squad Tottenham have.
"If he gets in an around the penalty area, he’ll score a bagful of goals. Perhaps that will give him the confidence."
However, Hoddle did slam Tottenham's 'reallly poor' defending for the Anderlecht equaliser. The ex-coach highlighted Jan Vertonghen and Ben Davies's role in conceding the goal that almost cost the north London side two points.
He added: "This is really poor defending from Vertonghen and Davies. They don’t get out quick enough, they’ve got to be out to the 18-yard box."
Jermaine Jenas took to Twittter to laud Vertonghen and centre-back partner Toby Alderweireld during the Spurs game on Thursday night.
But the ex-Tottenham midfielder inadvertently 'jinxed' the duo, with the former erring for Anderlecht's equaliser minutes later.
The north London side suffered a similar lapse in concentration against Aston Villa on Monday night and will want to avoid such mistakes against Arsenal during Sunday's derby.