The Toon bowed out of the competition at the quarter-final stage 4-2 on aggregate after drawing 1-1 at St James’ Park as Eduardo Salvio cancelled out Papiss Cisse’s 71st minute opener.
Newcastle gave everything they could in the second leg after giving Benfica a 3-1 lead from the first leg and despite the exit, Pardew was a happy man.
"They are a good side - you can't let them get a lead against you," said Pardew.
"In the first half we kept it tight and looked to nick a goal - and almost did before half-time.
"We had two or three big chances at 1-0 but you can't ask for anything more from the crowd, the players.
"You've got to respect the opposition - technically they are a superb side. I am so proud of the performance - we couldn't have done any more.
"We've got some very good players - when we get them all back we've got a very good side."