On 15 March 2008 Hansen entered Dream's 16-man 2008 Lightweight Grand-Prix tournament. In the first round of the tournament he faced and defeated Japanese fighter Kotetsu Boku by unanimous decision at "Dream 1". The win set him up for a quarterfinal bout against Eddie Alvarez, at "Dream 3". Hansen and Alvarez were given a standing ovation for their "outstanding fights" by the entire crowd after their match. After a close fight Alvarez was awarded a unanimous decision and advanced to the Dream 5: Lightweight Grand Prix 2008 Final Round. The fight was described by MMAWeekly as "a fifteen-minute war" and that it would be a "fight of the year candidate", while Sherdog called it a "riveting 15-minute war" and an "epic battle".