Lallana scored twice and provided an assist on Wednesday as Liverpool returned to winning ways with a 3-0 victory over Middlesbrough.
The England international has boosted his goal return, but has also been deployed in a playmaker role, with the injured Philippe Coutinho normally leading the line alongside Roberto Firmino and Sadio Mane.
And Molby, who made over 200 appearances for the Merseyside outfit, has been impressed with Lallana’s performances this season.
Liverpool player ratings against Middlesbrough
Wed, December 14, 2016Express Sport brings you Liverpool's player ratings from their match against Middlesbrough
Simon Mignolet – 7
He's gone up a gear since being moved into this new midfield role – the No.8 role
Jurgen Klopp
“He's gone up a gear since being moved into this new midfield role – the No.8 role,” Molby told the Liverpool Echo.
“Remember when he used to create space for himself with his quick feet and his turns? And then he'd waste that space by turning one too many times or playing the ball backwards?
“Well he doesn't do that now.
“Now, he uses the space to his advantage. The best players can play in tight areas, and can pick the right pass even when under pressure.
“I played with Michael Laudrup, who was one of the best ever at doing that. Well Lallana isn't Laudrup, but he's improved that part of his game immeasurably.
“His performance at Boro showed that.”
Liverpool travel to face their Merseyside rivals at Goodison Park on Monday (8pm).