Hughton worked with Sherwood when they were at White Hart Lane and the pair are now set to go head to head in opposite dugouts for Sunday's Barclays Premier League clash at Carrow Road.
Sherwood - who also spent time at Norwich as a player before moving on to Blackburn, where he won the title in 1995 and then signing for Spurs - was handed an 18-month contract after replacing Andre Villas-Boas in December.
At 44, Sherwood is one of the youngest managers in the Premier League, taking over a leading club in his first senior appointment, but he has enjoyed a decent start in the post.
However, while things are looking promising now, it is impossible to know what the future holds for Sherwood, with Hughton saying: "Tim has gone in and taken over a top quality team and time will tell with Tim.
"He was there (at Spurs) as a player when I was a coach and he has certainly started well with a talented squad."
Hughton was on Spurs' backroom staff from 1993 to 2007 after retiring, and took his own first steps into management at Newcastle, where he was controversially sacked in December 2010 despite having taken the Magpies back to the top flight.
The 55-year-old - whose position at Norwich has come under scrutiny following a poor run of results - accepts everyone must find their own way in what is one of the most precarious sporting professions.
"For every person it is different," said Hughton, appointed at Carrow Road in the summer of 2012 following Paul Lambert's departure for Aston Villa.
"My apprenticeship was a far longer period. I spent something like 14 years as a coach before going to Newcastle and then into management.
"That allowed me to gain the experience on different aspects of coaching and seeing how other managers worked and their methods and that helped me immensely when I took the first step into management.
"I think there are some who are capable of making that step earlier, but for me, the longer period of time suited me.
"You do have to pull yourself away as a manager at times and maybe not get as close to the players as you can do as a coach.
"You have to make those tough decisions at the end of the week when it comes to games or a player's future."
Norwich are embroiled in a battle for survival, following a run of just one victory from the last 11 matches.
Hughton, who for now at least retains the support of the boardroom, feels his side have the ingredients to get themselves out of trouble over the final dozen matches - with dates against Liverpool, Chelsea, Manchester United and Arsenal to wrap up the campaign.
"Everyone is very conscious that in the last few games we haven't got the results that we wanted to get, but the level of performance has been good," Hughton said.
"We want to turn performances into wins and that is very much our focus at the moment."