Neil Lennon's side have been handed the toughest task imaginable after being drawn against Barcelona, AC Milan and Ajax in Group H.
But former Hoops midfielder Petrov believes the current side are capable of writing another incredible chapter in the club's story.
He said: "It's a good group but Celtic should be very confident. They have beaten these big sides before and I don't think it will be a problem.
"They are capable of beating the likes of Barcelona again, especially here at Celtic Park.
"Every team that comes here can expect to have the crowd on their backs. They will never have experienced anything like that. Every player who has played here say the crowd is so intimidating so Celtic will fancy their chances of going through."
Victor Wanyama and Tony Watt were on the mark for Celtic in last year's win against Barcelona.
But Petrov tasted his own memorable Parkhead night when he was part of the side which knocked the Spaniards out of the Uefa Cup in 2004.
Alan Thompson struck the only goal in Glasgow before the Scots held on for victory in the Nou Camp return with a goalless draw.
"The one thing I remember was that we were defending most of the time," said Petrov. "They were passing the ball round us for fun and we couldn't get near them.
"But we had an exceptional team who defended well and kept a clean sheet and managed to punish them in the end.
"It will take the same thing this time around. Against Barcelona you are never going to dominate the ball.
"But the result is what is important and Celtic are capable of hurting them, especially at the set-piece."
Petrov was on Celtic's books for their 2001 meeting with Ajax but missed the game as he recovered from a broken leg.
However, he was in the Amsterdam ArenA stands as Bobby Petta, Didier Agathe and Chris Sutton gave O'Neill's team a 3-1 first-leg lead which proved good enough to see them through to the group stages for the first time.
He said: "It is a great stadium with a great atmosphere but that won't be new for the Celtic players. They have the same thing here at Parkhead, so they will enjoy it."