The 25-year-old was at fault for both the goals Tottenham conceded against Southampton at White Hart Lane, first misjudging a header and then giving the ball straight to Rickie Lambert for the Saints' second.
But Spurs boss Sherwood felt the need to single Naughton out for praise, despite an error-strewn first-half performance.
According to the Tottenham manager, the full-back deserves "massive credit" for "standing tall" after the break.
"I want to give credit to Kyle Naughton," Sherwood said in the post-match press conference.
"Everyone makes mistakes and he made two of them. But not everyone can stand tall in the second half and I think he did that. I give him massive credit for that.
"You only learn from playing in games like that. He typified what I want from my players. Anyone can make mistakes, you've just got to get on with it."
The 45-year-old also heaped praise on striker Roberto Soldado, who impressed him for similar reasons. Sherwood reiterated his belief that the Spaniard has been unlucky in recent weeks - and was delighted with his performance in the absence of Emmanuel Adebayor.
"I thought he was great," he said. "You can't always score but the one things the fan want is 100 per cent work rate.
"He gets appreciated because he runs around. He knew he had to step up in Ade's absence and I thought he led the line well for us today."
Meanwhile, Southampton boss Mauricio Pochettino was disappointed with some his side's individual errors in north London. The visitors went 2-0 up inside half an hour but ultimately left White Hart Lane empty handed.
"All managers are worried and concerned when you lose. Of course we're disappointed," he said.
"Of course we made mistakes. It's clear that we made some mistakes that are quite difficult to accept. We need to improve, especially individually. That's part of football. You always need to improve."