Oh has scored seven goals in 29 appearances in all competitions for Celtic since joining the club in the last January transfer window.
However, he has failed to nail down a place in the team and none of his eight appearances this season have come in the starting eleven.
He is down the pecking order in the striker options for Brendan Rodgers but ex- top flight attacker Dalziel is still not prepared to write the South Korean off.
He admitted that while Oh is still raw, he can still prove himself if he gets a run of games up front for Celtic and get some confidence going by scoring a few goals.
Dalziel said on Clyde 1’s Superscoreboard: “Oh is raw, he is young and he has not had the greatest amount of game time.
“I know he has doubters out there shrugging, but I still think there is a bit to come from Oh.
“Giving him the right sort of service, the right bit of confidence, getting a run going together and getting a couple of goals – I think he could be a good signing for Celtic.
“But he still has a lot to do.”
Oh will be looking for an opportunity to make an impact for Celtic this evening when they face Atletico Madrid in the Champions League.
