The 28-year-old feels Biton has settled perfectly with the SPL champions.
Mulgrew has praised the 23-year-old for his adaptability after entering the world of Scottish football.
And he feels Biton is playing good football for Ronny Deila's side, aiding Celtic's ability to keep possession.
"Nir has done well since he came into the side," Mulgrew is quoted as saying by the Glasgow Evening Times. "He is made perfectly for the holding midfield role. He keeps the ball well and sees a pass.
"Sometimes, when you come to Scottish football, things can be a bit quick. The tempo is a lot higher but he has adjusted well to that now and is playing some good football."
Biton arrived at Celtic in 2013 and has been used in the holding midfield role this season by Deila, who has looked to a number of different options during what has proven a challenging campaign thus far.
The Bhoys have qualified for the knockout stages of the Europa League, while a League Cup semi-final against Rangers also awaits.
The race for the SPL title has so far provided a stern test for Deila's men, however, with Celtic currently second to Aberdeen - although they have two games in hand over the Dons.
Most recently, Celtic have been in Gran Canaria for a warm-weather training camp during the winter break. Their SPL season resumes this Saturday at Hamilton Academical.