"He's a wonderful player Doogs," Blues coach Laurie Daley said.
"I've coached him a couple of times.
"He's a good kid. A very talented kid.
"He obviously had some issues at the very start of the year but ... he's consistently been (the Dragons') best.
"That gives us great confidence."
Daley confirmed Dugan was under an injury cloud, but said he was very confident of lining up for the potentially series-deciding clash.
Wests Tigers youngster Aaron Woods will make his Origin debut after being thrust into the front-row in place of the suspended James Tamou.
He will line up alongside skipper Paul Gallen who remains in the front-row after a starring role in game one.
The Blues hold a 1-0 lead in the series and will be aiming to end Queensland's seven-year dominance when the two teams clash at Suncorp Stadium.
Squad: Josh Dugan, Brett Morris, Michael Jennings, Josh Morris, Blake Ferguson, James Maloney, Mitchell Pearce, Paul Gallen (capt), Robbie Farah, Aaron Woods, Ryan Hoffman, Luke Lewis, Greg Bird. Bench: Andrew Fifita, Trent Merrin, Josh Reynolds, Anthony Watmough.