Nagelsmann's men won all six group games to finish top of Group C, including home and away victories over Inter and Barcelona, becoming the first side in competition history to be victorious in all of their group matches in back-to-back seasons.
Despite this, Tuesday's (AEDT) draw pitted Bayern against French champion PSG, which boasts the likes of Lionel Messi, Neymar and Kylian Mbappe in its squad.
Nagelsmann believes his team have not received the full benefit for their group-stage heroics, telling reporters: "PSG are a difficult opponent.
"The perfect group phase is not rewarded with [drawing that opponent] - they have a lot of world-class players just like we do.
"But this is the Champions League, so it's normal that there are no easy opponents in the round of 16."
PSG itself went undefeated in the group stage, winning four and drawing two of its matches.
But a remarkable 6-1 win for Benfica over Maccabi Haifa on the final matchday saw Christophe Galtier's team have top spot snatched off them by virtue of the Portuguese side scoring more away goals.
Bayern CEO Oliver Kahn echoed Nagelsmann's sentiments on the difficulty of the draw, but also spoke of his excitement over watching two of Europe's elite clubs face off in a repeat of the 2019-1920 final, which the Bavarian side won 1-0 thanks to a Kingsley Coman winner.
"We can look forward to two great games with the best players in Europe," Kahn said. "I think these will be two highly attractive games."