The national team coach did not read too much into the Azzurri's defeat to the Three Lions, and instead focused on the positives rather than the result
Daniele De Rossi gave the Euro 2012 finalists an early lead, but goals from Phil Jagielka and Jermain Defoe eventually proved too much for the Azzurri.
"We showed character and we have to continue along this path. I really liked our performance," Prandelli told Rai Sport.
"Defeats are still defeats, also in friendlies, but I saw plenty of positives. This was a useful game as we're preparing for the World Cup qualifiers.
"It is important to gain an insight into which young players have the quality to play for the national team already.
"Obviously those who played at Euro 2012 will be important for the team, but we have to think about the future as well."
Italy start their World Cup qualifying campaign with an away game against Bulgaria on September 6.