It has been a memorable year for Ronaldo as he added a third Champions League trophy to his collection before leading Portugal to Euro 2016 glory.
The 31-year-old is widely regarded as one of the best players in the game after years of success in Madrid and Manchester (with United), but Figo feels there is still more to come from the prolific attacker.
"The best is yet to come from Cristiano Ronaldo, the match against Atletico Madrid was proof of that," Figo told ABC.
"Cristiano is a competitive animal. He has won it all and remains ambitious."
Ronaldo received his fair share of criticism after an underwhelming start to the season, but silenced his critics with a hat-trick in Madrid's 3-0 derby win over Atletico at the weekend and Figo feels he deserves more credit for his achievements.
"When people are used to you playing at a very high level, there is going to be discontent at the slightest dip in form," he added.
"This has happened to Cristiano at Madrid. Some people only remember your last game."
Ronaldo is among the favourites to win the Ballon d'Or following a successful 2016 and Figo is convinced the Madrid ace will take home the prestigious individual award.
"There is little doubt Cristiano should win the Ballon d'Or this year," Figo concluded.
"He won the Champions League and the Euros, playing a key role in both tournaments."
Ronaldo returns to his former club Sporting Lisbon in the Champions League on Tuesday and a special welcome is being prepared for him, according to president Bruno de Carvalho.
"We have prepared something to welcome Cristiano, but we will have to wait and see how much we can do with the UEFA rules," De Carvalho told COPE.
"He is a Sporting man and he will feel our support whenever he returns here. I think it will be beautiful and that the people will appreciate what we are going to do for one of our own.
"Cristiano is like a son to us and we would love to have him back at some stage.