The Manchester United defender admits the Three Lions were left frustrated at conceding an equaliser in Podgorica, which leaves them two points behind the leaders in Group H
Wayne Rooney capped a confident start from the Three Lions by heading in a Steven Gerrard corner on six minutes, but the visitors wilted after the interval, and Dejan Damjanovic scrambled home an equaliser.
And Smalling believes it was a failure to make the most of their first-half dominance which ultimately proved the undoing of Hodgson's men.
"We're very disappointed because we felt we played very well in the first half and controlled the game," he told FATV.
"But there are some disappointed heads because it was a scrappy goal. We dominated in every position but it's a shame we just couldn't get that second goal to kill off the game."