Bruce's Hull stand in Wednesday's way of a Premier League place.
The Tigers secured a Wembley date with their Yorkshire rivals by the skin of their teeth, losing 2-0 at home to Derby County on Tuesday, following a 3-0 first-leg win.
Though only the sixth best team in the Championship this season, Carlos Carvalhal's men showed they were no pushovers by overcoming third-placed Brighton & Hove Albion 3-1 on aggregate in their semi-final.
And Bruce knows all about Wednesday's capabilities, with his side having drawn both their league matches against the Owls.
"I said back in October it’s the best Sheffield team I’ve seen for a while," the 55-year-old told the Alan Brazil Sports Breakfast show on Wednesday (c. 08:50).
"They’ve very quietly gone about their business, brought in some very, very good players, especially the boy Forestieri from Watford - he’s been terrific all season.
"They’ve got the nucleus of a very, very decent side."
Bruce, who once managed Wednesday's city rivals Sheffield United, has faced the Owls at Wembley once before - during Manchester United's shock League Cup final defeat in 1991.
However, the Tigers boss acted out his revenge in style two years later, scoring two late goals to inflict defeat on Trevor Francis' team en route to the Premier League title.
Wednesday dropped out of the top flight seven years later and are yet to return - twice dropping down to the third tier in that time.