The French champion reached the quarterfinals of the competition last term, but was eliminated on away goals by Barcelona.
The Swedish striker has represented the likes of Barcelona, AC Milan and Inter in his career without winning Europe's top prize but is adamant his current club can go all the way this term.
"I have a lot of dreams and winning the Champions League is one of them," he told reporters at a press conference ahead of the clash with Benfica on Wednesday. "I think Paris Saint-Germain can do it. It is not an easy competition, but we are here to win it. Last year, other clubs were asking who we were. This year, they respect us."
Ibrahimovic went on to praise coach Laurent Blanc's work since taking over from Carlo Ancelotti in the summer after the Italian moved on to Real Madrid.
"Laurent Blanc lets us express ourselves, that's one of the main differences to last season," he continued. "The coach has given the players a lot of confidence. He trusts us and we are repaying him. He manages the personalities very well, despite the number of players and the problems that can create."
The 31-year-old has seen his goal tally go down this season since the arrival of Edinson Cavani but he feels the team are performing better as a result.
"I'm scoring less this season and I think that's positive. It's better to have many good scorers than just one. I don't think of myself and Edi is the same. We play for the one who is better placed."
Ibrahimovic has been captaining PSG during the enforced absence of regular skipper Thiago Silva but he feels the armband does not affect his game.
"I'm captain but that does not change anything. I'm the captain from Sweden and that doesn't change my game. The true captain is still Thiago Silva, I'm just replacing him during his injury."
Ibrahimovic has scored four goals in all competitions this term.