Dalglish believes there is plenty of talent in McMahon's side and is willing to give them a go in the first team, as evidenced by his three team selections so far.
"Martin Kelly has done really well for us and he is in the team on merit," said the boss.
"Last week we had Jay Spearing and Daniel Pacheco who did really well for the reserves. They both needed games and they both showed a really good attitude and commitment.
"Dani scored one and made the other and Jay did really well in the middle of the pitch. He then played on Sunday and can be really proud of his performance.
"Danny Wilson has looked excellent in training and Jonjo Shelvey has come on off the bench and done well .
"Sometimes it's very difficult to put the young players in before we are ready to receive them but they are knocking at the door and want to play.
"They are confident and convinced they can do a job but we've also got to be realistic on our appraisals.
"In saying that it's great they want to play, and by the way from the evidence I have seen they have every right to be."