"His consistency levels are fantastic," he said. "I was slightly surprised he wasn't included in the Scotland squad.
"James is a manager's dream, his work ethic and commitment on the pitch are second to none."
McArthur, 21, missed a good chance at New St Mirren Park but Reid is confident the midfielder's stock will continue to rise.
"I think he's good enough to do that. His time will come, there's just a couple of things he has to brush up on, in front of goal and in the final third," said the Accies boss.
"If he can add that to his game he'll be worth a fortune. He's about to turn 22 and has played 170 games in senior football; he'll move on to another level."
Focusing on the draw with St Mirren, Reid said Accies did enough to win the game.
"I think that, as the away team, I thought we started the game really well."
Over the 90 minutes we probably shaded the game but there wasn't a lot in it
Hamilton manager Billy Reid
"We should've scored early on and we've had one or two fantastic chances, with McArthur's being the most obvious.
"Goals change games, with the effort and commitment we put in, looking solid at the back, we limited St Mirren to long-range efforts.
"Over the 90 minutes we probably shaded the game but there wasn't a lot in it."
Reid said he did not believe his 3-4-3 formation against St Mirren was much of a surprise.
"They had been playing 3-5-2 so I was intrigued to see if they would change their back three. I was surprised they didn't change it and I thought early doors they got away with it.
"But we should've punished them and we didn't."
On Falkirk's defeat by Dundee United at Tannadice, Reid said: "We can't focus on what other clubs are doing.
"It was an away tie, one we felt we could've won. It wasn't to be but we go into four home games on the bounce and these four home games will determine our season."
Source: BBC Sport
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