The Blues play Schalke on Wednesday in Gelsenkirchen in the first leg of our last-16 tie having topped Group F back in December.
The furthest the Blues have made in the competition is the semi-finals back in 2016, a source of frustration for some who believe we could have fared better.
Guardiola is bullish about City’s chances this term, but warned winning the competitions, which he managed twice in four seasons as manager of Barcelona, requires something special.
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“I believe the team can do better things than the first season,” he said.
“We know each other much better. But this competition is special. The teams are good.
“You have to control your emotions. You have to suffer and survive the bad moments. But we are confident.
“We have many dreams in our head. It’s important to score goals - the minimum one goal.
“You can’t go through if you are not yourself. If you don’t do your best performance.
“If you want to dream, go through to the last stages, every single second you have to be incredible: impose your game.
“To be ourselves, that is what i want to feel”
Meanwhile, Guardiola says the injuries to John Stones and Gabriel Jesus are not serious.
The pair missed Tuesday’s open training session at the CFA and were left in Manchester as the rest of the squad departed for Germany.
“John has a groin problem. Jesus has a hamstring problem,” he said.
“I don’t think it is a big, big problem but enough for them not to come.”