The Cherries have re-signed the 27-year-old forward from Norwich City on a three-and-a-half-year deal and Howe believes he will be returning to Dorset a more refined player to the one that scored 35 goals over two seasons between 2012 and 2014.
"We're really pleased to be bringing Grabbs back to Bournemouth," Howe told the club's official website.
"It was such a long drawn out transfer but we're delighted it's been done.
"He had such a good time for us, scored goals, worked incredibly hard and it's a good fit for us.
"He'll bring enthusiasm and the benefit of Grabbs is that he knows how we play.
"I think we'll be getting a better Lewis Grabban, but he'll realise that we've got better as well and he will have to adapt too. But we're in no doubt we're getting a good player back.
"He's also someone who was popular in the dressing room, behind the scenes he's a strong motivator and we're delighted to be bringing him back."
Grabban joined Bournemouth for a reported fee of around £7million to become the club's third signing of the January transfer window following AS Roma loanee Juan Manuel Iturbe and striker Benik Afobe who has arrived from Wolves.