Lampard goes into Sunday's FA Cup fourth-round clash with Luton with his future coming under intense scrutiny.
But Hiddink told the Mirror: “Frank is a very honest and direct person.
“He was such a big player for Chelsea, but he will understand that what you did as a player counts for very little when you become a manager.
“When you suffer some losses, then it is natural to become worried.
“But I don't see Frank panicking in this situation. He is a very stable person who believes totally in himself.
“He is also very honest and very direct. Every coach wants to be given time to put their ideas in place – and it is even more important when you are young.
“Frank has proved himself. He did a good job in his first appointment at Derby and in his first season at Chelsea he qualified for the Champions League.
“He is going through a difficult time at the moment, but this is when things have to remain stable."