The British tennis star has had limited preparation for the year's opening Grand Slam due to a foot injury but Henman thinks that reaching the last 16 in Melbourne is a "realistic" ambition for the former US Open winner.
The former tennis ace told TNT Sports: "When I think about Emma Raducanu and her progress from the end of last year into this year, she's moving in the right direction, but she's had this problem with her foot.
"To see her out on the match court is exciting. She just played one match at United Cup and I think performed well against (Maria) Sakkari, but Sakkari played very, very well.
"Raducanu is in Hobart now. So I just want her to build that physical resilience. To me, there's no question about her tennis ability. So if she builds her fitness, I would like to see her in the second week of the Australian Open. I think that's realistic.
"She, hopefully, is going to be seeded. She's been around No. 29 in the world, so that gives her a little bit of protection.
"But could she win three matches in Melbourne? Definitely. I think if I could sign a contract and she was through to the round of 16, I think that would be a great start to the year."
Henman also praised Raducanu's coach Francisco Roig and believes that the pair could enjoy a fruitful partnership together.
The former Wimbledon semi-finalist said of the Spaniard: "I really cannot speak highly enough of him. He was great, fun to be around.
"I feel his knowledge and his input on the court, practice court, match court is really excellent. And I think they're building a really good relationship.
"So I would love for Emma and Francis to keep going. I think they're making a lot of progress, building in all the right areas. And as I said, a lot of it is also in the gym to build that physical resilience."