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 Dejan Damjanovic scrambled home a deserved equaliser for the hosts after they rallied well in the second half.
Smalling believes it was a failure to make the most of their first-half dominance which ultimately proved the undoing of Hodgson's men, telling FATV: "We're very disappointed because we felt we played very well in the first half and controlled the game.
"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."
The draw leaves Montenegro two points clear at the top of Group H with four matches remaining.