Foden’s two sublime finishes came just in time to remind England manager Thomas Tuchel of his quality before the German names his final squad of the year on Friday.
Named captain for the night, Haaland led from the front and showed no mercy to his former employers with his 27th goal for club and country in just 17 games this season.
Waldemar Anton’s consolation was the least Dortmund deserved for a late rally but Rayan Cherki rounded off the scoring for City in stoppage time.
A first European defeat of the campaign leaves the German giants down in 14th.
Haaland was handed the armband by Pep Guardiola as Bernardo Silva and Ruben Dias dropped to the bench with one eye on Liverpool’s visit to the Etihad on Sunday.
Dortmund had only lost once in their 14 previous games this season, 2-1 at Bayern Munich last month.
However, the visitors were undone by City’s quality in the final third to continue the trend of Premier League domination so far in this season’s Champions League.
For the first time one nation has six sides in Europe’s elite competition and all of City, Liverpool, Arsenal, Newcastle, Tottenham and Chelsea are among the top 12 halfway through the league phase.
Meanwhile, Spanish giants Barcelona needed to come from behind three times to earn a 3-3 draw at Club Brugge.
Teenage winger Lamine Yamal was back to his best for Hansi Flick’s side to help them earn a point in a gripping clash in Belgium.
Barca’s defence was shredded on multiple occasions by the hosts as Brugge winger Carlos Forbs struck twice and set one up for Nicolo Tresoldi.
Ferran Torres, Yamal and a Christos Tzolis own goal saved Barcelona from what would have been a humiliating defeat, even though they have several players out injured.
Barcelona have been in shaky form in recent weeks, including a Clasico defeat by rivals Real Madrid in La Liga. (AFP)
