The 64-year-old Englishman, who is now in charge of the national team, spoke ahead of his side's friendly clash with Hazard's Belgium on Saturday night.
The former Fulham boss acknowledged that the 21-year-old Chelsea-bound forward has the potential to cause his side a serious headache at Wembley.
"I also went to watch Hazard as a potential signing when I was coaching Liverpool so I know how good he is," he told reporters.
"It was a game between Lille and Monaco and he had one of those days where he electrified the stadium.
"Every time he got the ball it seemed the crowd jumped to attention because they expected something to happen."
Hodgson also commented on Hazard's proposed £35 million move to Stamford Bridge, insisting the arrival of such a talented player would benefit the English top flight.
"Wembley has a wonderful playing surface so we have to expect they are going to pull out all the stops to beat us and make a name for themselves," he continued.
"Quite simply, what Hazard will bring to the Premier League is his talent.
"That is what Chelsea have invested in and I am sure now he will be looking forward of playing in the Premier League because it is one that is followed in each country."