The former England goalkeeper believes that the current defence in Roy Hodgson's side have been making too many errors - mistakes they will not be able to afford in Group D against Uruguay, Italy and Costa Rica.
Speaking at a World Cup Draw event with England team sponsor Vauxhall, Shilton said: "Even if it is only a short-term measure we should bring John Terry back in just for the World Cup to give the squad a little bit of experience.
"I think at the back we have been making too many errors, Gary Cahill has made a few elementary errors, and we lack a bit of experience at the back.
"I know it's unlikely to happen as the FA would say it's a backward step, but sometimes for one tournament it is the right step for the team. People would learn from him and you always have to have experience and leaders in a squad and we are lacking that somewhat."
Shilton added that Hodgson needed Joe Hart to reclaim his Manchester City place in order to rely on his regular number one.
He said: "He has to be playing regular Premier League football before he goes to the World Cup.
"He's had a bit of bad spell but I hope he comes out of it a better player and gets back in the Man City team and it's always a key position for England."
Shilton believes Italy's innate caution will play into England's hands for their opening match.
He added: "The draw could have been better but it could have been worse and in a World Cup you expect some difficult matches.
"The first game is in a tropical climate in Manaus but at least they will be fresh, while Italy notoriously don't want to lose the first game so they won't be too adventurous."
Mark Chamberlain, who played for England against Brazil in that historic 2-0 win in the Maracana in 1984, said he was pleased with the draw.
He said: "I'm quite happy with that draw, we know all about Italy and played them in the Euros, and we know about Suarez too - even though he's on fire at the moment.
"I would just like to see England be more adventurous but the young lads in the squad are all a year older so maybe Roy will trust them a bit more.
"I'm quite sure we will get through that group - I don't see an outstanding team to stop us. Then who knows..."