The Magpies boss was delighted with the Frenchman's reception against Aston Villa on Saturday and believes the midfielder will rebuild his relationship with supporters on Tyneside
Cabaye was widely linked with a move away from Newcastle in the transfer window and reportedly refused to play for them while a potential switch to Arsenal was still possible.
The France international remained at St James' Park, however, and although he was booed by some sections of the club's support against Fulham on August 31, he was well received against Aston Villa on Saturday.
"It was nice to see [the applause]," Pardew told the Newcastle Evening Chronicle.
"It was important for Yohan more than anybody. The fans understand what he did. We do not all have to agree it was the right thing but we all have to move on in life.
"There is a time to forgive and forget and his performance at Villa will go some way to winning the fans back.
"I am not sure he has won everybody back with that performance, but I think over the coming weeks he will."
Cabaye played a key role in Newcastle's 2-1 away win at Villa Park - and was clapped off when substituted in the 88th minute for Sammy Ameobi.