The former Australian rugby league coach has led the Welsh regional side into a top-three position in the Celtic League, and he's looking forward to pitting his players against the best in Europe.
"We're happy with where we are and we're ready for the challenge," he said. "We said at the start of the season we wanted to build some momentum in the Celtic League before tackling the Heineken Cup and we've done that. Next week, I guess. we will find out exactly how good we are."
Anderson's men take on the Newcastle Falcons at Rodney Parade on Saturday and he's happy to be making his European bow on home turf.
"It's good to be starting at home, although it does add some pressure because everyone knows you have to win your home games in this competition. We're looking to get off to a positive start in front of our fans."
The Heineken Cup is obviously new territory for a man who was coaching the Cronulla Sharks rugby league side in Sydney this time last year, and Anderson is looking forward to it.
"I've seen a bit of it on TV and it's a high-class tournament. We're just hoping we can keep our form going and give it a good shot," he added.
Saturday's match sees England's World Cup hero Jonny Wilkinson up against Wales international Ceri Sweeney, with Wales Test back row forwards Colin Charvis (Newcastle) and Jason Forster going head-to-head for the first time at this level.
"I haven't seen much of Wilkinson live - and I prefer to watch players live rather than on television - but there's obviously a lot about him," Anderson said. "I don't think it's a case of targeting him - it's more a case of taking his space away and not giving him the opportunities to do what he does so well."
The Dragons have their own international star in Springbok full back Percy Montgomery, and Anderson says he's settling in well after his Tri-Nations heroics.
"Percy's great - he's a real asset to this club because of his ability and his professional attitude."
Anderson reports a relatively injury-free squad, although Wales back row forward Michael Owen is nursing a sore back.