He's been named on the wing for Saturday's clash with the Rebels in Melbourne.
The outside back played a half game of club rugby a fortnight ago and declared himself fit to play for the Crusaders, but he was left out of last weekend's win over the Chiefs in Suva.
Dagg hasn't played Super Rugby since March after injuring his knee against the Reds and now has two games to prove his match fitness before the All Blacks first test of the year against Samoa.
Dagg's inclusion is one of ten changes the Crusaders coach Scott Robertson has made to the starting fifteen that beat the Chiefs last weekend, using the trip to Melbourne to rest a number of key men, including Matt Todd, Ryan Crotty, Owen Franks and Codie Taylor.
The Test quartet have all been left out of the matchday squad.
Last week's bench front row of Wyatt Crockett, Ben Funnell and Mike Alaalatoa becomes the starting front row for Saturday night.
Andrew Makalio, Joe Moody and Oli Jager will provide cover.
Lock Quinten Strange will make his first start of the season, pairing up with Sam Whitelock, while Luke Romano takes a spot on the bench.
The loose forward trio will be Heiden Bedwell-Curtis, Pete Samu and Jordan Taufua, with Jed Brown having recovered from injury to take a place in the reserves.
Manasa Mataele is on the opposite wing to Dagg with Tim Bateman stepping into the second five spot. Seta Tamanivalu will make his start at centre.
Crusaders team to play the Rebels:
1. Wyatt Crockett
2. Ben Funnell
3. Michael Alaalatoa
4. Quinten Strange
5. Sam Whitelock (C)
6. Heiden Bedwell-Curtis
7. Pete Samu
8. Jordan Taufua
9. Bryn Hall
10. Richie Mo'unga
11. Manasa Mataele
12. Tim Bateman
13. Seta Tamanivalu
14. Israel Dagg
15. David Havili
RESERVES
16. Andrew Makalio
17. Joe Moody
18. Oli Jager
19. Luke Romano
20. Jed Brown
21. Mitchell Drummond
22. Mitchell Hunt
23. George Bridge