Two continental heavyweights are set to go head-to-head over the course of two legs for the right to move one step closer to major silverware.
Madrid are the current holders of European football’s biggest prize and will not surrender that crown without a fight.
Bayern will provide stiff opposition, as the dominant force in German football, but Kroos says there is no fear within the Spanish camp.
Instead, the Germany international is excited by the prospect of facing his former club and helping to remove another obstacle from Madrid’s path.
He said in Marca: "I'm not scared of Bayern Munich.
"If you want to win the Champions League, you have to beat Bayern or Barcelona anyway.
"I've always liked big challenges in football and playing against the best."
Kroos has also discussed the differences between the two bosses that will engage in tactical warfare when Madrid face Bayern.
The World Cup winner has worked under Carlo Ancelotti and Zinedine Zidane during his time in the Spanish capital, with both considered to be leaders in their field.
Kroos added: "Zidane transmits a very clear idea to the players.
"He doesn't need to give a 20 minute motivational talk, he doesn't need it.
"With his presence alone he achieves what he wants - his personality is synonymous with success.
"Ancelotti speaks a lot with his players, creates a very close-knit atmosphere and the Real Madrid dressing room was very sad when he left."