Russell Martin told Rangers' 'true marker' for season
The Ibrox side's upcoming Champions League qualifier against Panathinaikos will be a test, but the league should be the main priority.
Rangers will face the Greek team in a two-legged encounter starting next week.
Mr Hendry said: "The Champions League tie against Panathinaikos will be important, of course it is.
"But the true marker is what the club does in the Premiership.
"Winning the league is what truly matters."
The former player praised Martin's enthusiasm and honesty when he was just starting out at MK Dons.
He said: "Russell would have been 34 or 35 at the time and it was his first few weeks in the job at MK Dons.
"We met for an hour and I was impressed.
"He was young, he was enthusiastic and he was honest."
The ex-defender believes that Martin's stint in the English Premier League (EPL) with Southampton will benefit Rangers.
He added: "There is no doubt Russell will have learned so much from those four or five months in the EPL.
"Rangers will get the benefit of that."
However, Hendry admits that it will not be an easy task for Martin to turn Rangers into title winners.
He said: "It's a massive ask to go to Rangers and turn them into title winners.
"But that's what he has signed up for.
"He knows the level of expectation and he knows that he will need to deliver."
Reflecting on Rangers' past performances, Hendry noted that the team needs to improve on their consistency.
He said: "Last season, the team showed that they could beat Celtic.
"But it was going to Motherwell, St Mirren and Hibernian.
"They are the fixtures where they faltered."
He concluded by stating that the pressure at Rangers is not for everyone and change is necessary.
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