Grayson, who has previously played for and managed the Tangerines, described the rivalry between the teams as "fierce".
He told the club's official website: "The rivalry is as fierce as any up and down the country. I didn't realise that until I came to Deepdale and got absolutely battered by all the fans and saw how much it meant to the Blackpool fans as well.
"We need to be composed on the ball and play the game not the occasion, but we also need that intense rivalry inside our bellies which fires us up for another game of football.
"There is going to be no love lost on the pitch, off the pitch, plenty of stick flying around and it will have all the ingredients of being a great cup tie."
The two sides meet in the competition on Monday evening, with kickoff scheduled for 7.45pm.