The right-back came into the starting XI in place of the ill Ritchie De Laet for Sunday’s 2-1 defeat to Aston Villa in the Barclays Premier League.
Simpson, who signed from Queens Park Rangers in the summer, had a busy afternoon at Villa Park, but went about his defensive duties well according to the City boss.
“I thought Danny Simpson did exceptionally well," Pearson said. “I thought he was a real positive for us when you consider how little football he has had for us in the first team. I thought his experience and his game understanding shone through. I thought he played very well for us.
"Ritchie was ill today, but that should pass quickly and he will be back in contention for next week.”
Pearson also commented on the fitness of City top-scorer Leonardo Ulloa, who netted his sixth goal of the 2014/15 season against Paul Lambert’s men.
He said: “It’s unfortunate that Leo was unable to continue in the second half. I expect players from both sides who are in difficult situations to be fully committed.
“It is a bit of a clash of knees and he has got a knock on his calf as well. I would think it is more bruising rather than anything more serious. We will have to see how that is.”
The result means the Foxes go into the Premier League clash with Manchester City at King Power Stadium on Saturday knowing a win could take them off the foot of the table.
Citing hard work as a catalyst for returning to winning ways, Pearson added: “We have to continue to look for the answers. It would be very easy for me to give you an answer that sounds flowery and is the right thing to say. The bottom line is you have to keep exploring different ways to come through it.
“We know that fortunes in football can change quickly but you can’t hope that they happen. It is about working through difficult times.
“The players are a good group of people. We have some talent in the ranks. We have to make our own breaks at the moment. It remains for us all to be prepared to work hard and stretch each other.
“It is nice to enjoy the good times but you have to be able to deal with and work through the more difficult times. That isn’t just football but most things in life.”