Lampard was dropped for Friday's qualifier in Bulgaria after starting every competitive international he had been available for during the previous four years.
It was a stark message from head coach Fabio Capello that reputations count for nothing and Terry admitted in Sofia no senior player is guaranteed a spot after the influx of youngsters into the squad.
But he is adamant Chelsea team-mate Lampard will bounce back in positive fashion from his setback and prove he is still a major force for his country.
Terry said: "I don't buy into this thing about people writing Frank off because of his age (33) and things like that. Write him off at your peril.
"He was naturally disappointed at being left out but will certainly be back in this England side for sure.
"He has got an awful lot to give still.
"I've known Frank a long time. He has been a world class player for England and Chelsea which I've seen day in and day out.
"He is also a very fit guy, trains incredibly hard every day.
"His achievements for his country have been incredible, his goal ratio to his appearances is fantastic.
"He is also always the one who steps up and takes the penalties at crucial times.
"Frank has been incredible, a great professional, and he will certainly bounce back."
Terry claims complacency amongst senior players about being assured of their place has never been an issue.
He said: "People say we took it for granted about taking the shirt but I can assure you that has never been the case since I've been involved with England.
"We are all very proud to wear the England shirt and very fortunate to do so."
Terry believes England are reaping the benefits of a more relaxed atmosphere amongst the players and Capello and learnt the lessons of last summer's World Cup when they were isolated in a training camp.
He said: "I feel the manager is more relaxed. I feel all the players do. We've been to a tournament and suffered that as well.
"I think we've all had to look at ourselves and maybe the manager has done that, about where we can all improve.
""We've done that as a group of players as well. Just in and around the camp, it is a little bit more relaxed which is a nice feel.
"We've got to know him and he's got to know us a little bit better, the way we like things on a daily basis and the way we have things on a daily basis at clubs.
"That's what we've tried to replicate. It is something that Franco (Baldini) and Fabio wanted from day one.
"So the research, when Gary Lewin and the doctors went around to the clubs to find what makes the players tick on a daily basis, whether that be the gym equipment and things like that, all certainly helps."
England have a 100% away record in their qualifying group but have gone four games and 12 months without a win at Wembley.
But Terry is adamant that sequence of results in front of their own fans is not a major issue.
He said: "I don't think there is any real logic to that. It is not becoming a concern although it will be nice to change that sooner rather than later.
"People can look too much into that. I think at times in my career, I've gone long spells without winning at home and away from home.
"It chops and changes. It is just one of those things we are going through.
"Ideally tomorrow night it is important we pick up the three points and put in a good performance for the fans."