The French midfielder has been struggling in recent months after a very tough time trying to settle at St James' Park and attempting to force his way into the France national team but Pardew is of the belief that he is now in a positive mind space.
"Obviously we, and particularly myself, had to help him through that stage. It was difficult for him," Pardew said of Cabaye's situation.
"Physically and mentally, he hadn't coped with anything as strenuous as last year. To fight for the Champions League and become a regular in the French side and the championships took its toll on him.
"But he has certainly come out of the other side a stronger person. He is a fantastic character.
"He is one of our best players, if not our best player, and he is back to his very, very best and we are very, very lucky to have him."