Milicic coached the tournament hosts in 2019-20 and took them to the last 16 of the 2019 Women's World Cup in France before cutting short his contract to return to club football in the men's A-League.
The 51-year-old joined China in 2024 after they failed to qualify for the Paris Olympics, and has already made his mark at the Asian Cup by punching their ticket to next year's World Cup in Brazil.
Many of Milicic's 2019 World Cup squad remain in the current Matildas setup, including captain Sam Kerr, forward Mary Fowler and goalkeeper Mackenzie Arnold.
So it will not be for a lack of data if China are unable to beat the 2023 World Cup semi-finalists at Perth Stadium.
Milicic said on Monday he would always follow the fortunes of the Australian players he coached but would not let his personal feelings get in the way of the job at hand.
"I had great memories from my time there, but ultimately I'm enjoying this journey now with China," Milicic told reporters in Perth.
"I'm a better coach, better person, and I'm just really looking forward to the occasion, more than anything.
"To be able to lead China here tomorrow night against Australia at home in a semi-final - that's a dream."
China, 17th in the world rankings, have barely put a foot wrong in the 12-nation tournament.
They saw off highly-fancied North Korea in a tense 2-1 win during the group stage before racking up their third clean sheet from four games in the 2-0 quarter-final win over Taiwan.
They will need to find a way to beat 15th-ranked Australia without veteran winger Wang Shuang, who will miss the match due to suspension from accumulated yellow cards.
Australia have reinforcements available, with coach Joe Montemurro confirming on Monday that mainstay defender Steph Catley and forward Hayley Raso are in the mix after passing concussion tests, having missed the 2-1 quarter-final win over North Korea.
Midfielder Emily van Egmond can move past Clare Polkinghorne and become Australia's most capped player with a 170th appearance for the Matildas on Tuesday.
"The most important thing is getting the job done," said the 32-year-old.
"We’ve worked hard to reach the semi-finals and it’s all about team performance.
"Personally, it’s something to be proud of (reaching 170 caps) but most importantly we want to get the win."