The former defender insists Milner has a big part to play in the Liverpool side now and in future.
The midfielder is currently out injured with a hamstring injury, having picked up the knock during the Reds' win over Rubin Kazan in the Europa League.
He subsequently missed the Premier League game against Crystal Palace, as Liverpool fell to their first defeat under Jurgen Klopp.
Milner had previously been an ever present in the Liverpool midfield this season but has struggled to hit top form. And his absence from the side was greeted with enthusiasm by some sections of the Anfield fanbase.
But Lawrenson doesn’t understand that view point, as Milner is an effective player in the side despite him merely being labeled a steady alternative over the years.
"I don't know why you could ever be glad Milner is not available," he told the Liverpool Echo.
"He is simple, effective and works very hard. He puts his foot in, his passing is good, his final ball is decent and he knows where the goal is. Just look at his stats for this season."
Milner joined from Manchester City on a free transfer in the summer, with the offer of playing in a central role for the Reds supposedly a key factor behind the move.
He was doing just that under former manager Brendan Rodgers but has since found himself back in a wide position with Klopp in charge.
That change has negatively affected his form but Lawrenson insists he still has a big part to play for the Liverpool side now and in future.
"It's clear he isn't in as good form playing on the right under Jurgen Klopp as he was at the start of the season in his preferred middle position," he added.
"Milner would sooner be playing central but at least he is playing. There's no reason to celebrate Milner being out. He will have a big part to play for us, this season and beyond."