Lively has spoken affectionately of the director before, including when Café Society debuted at Cannes earlier this year.
"He has such a strong fingerprint, you know a Woody Allen movie," she told WHO.
Of Allen, Lively, 28, told Hamptons, "he's very empowering."
"So he'll say, 'Say the dialogue that's written and then you can improvise for a while,' " Lively shared. "And his dialogue is so specific, and it's speaking in a 1930s dialect and [with period] references, so it's intimidating to think, 'Oh, let me just improvise there and hope that my words blend seamlessly alongside Woody Allen's.' Which they clearly wouldn't and don't."
She added, "[Woody] creates a very pleasant set where everybody's just happy to be there and happy to be making a movie, and happy to be a part of film history. For him to have that confidence in you almost gives you the confidence in yourself to just go with the flow."
Café Society, which premieres on July 15, also stars Jesse Eisenberg and Kristen Stewart.