Bennett has started only one of the Canaries' seven Premier League fixtures this season.
"He was outstanding at Peterborough. He has got a move now, he's playing in the Premier League and he is competing for a place," said Pearce. "He has been around our squad for a couple of matches, then he started the last game and he did extremely well, and he is one who is improving greatly.
"The more experience he gets both at club level in the Premier League and at under-21 level, the better it is for him as a player."