McPhail made his first start for a year in the draw against Chelsea, after spending three months on loan at Nottingham Forest.
"I put him on the bench against Charlton because I feel he can bring something to the side and because he had been performing well at Nottingham Forest," said Gray in the Yorkshire Post.
"He struggled a little bit when he last played for Leeds a year ago but he had not been playing much football at the time and he needed regular games to get that match fitness up to a decent level.
"Stephen will never be the quickest but he is a good athlete and he can run and he can pass the ball very well.
"I find it funny when you are talking about a particular player and you hear people saying 'he is a good athlete' instead of saying 'he is a top-quality footballer'. Some people seem to forget that Stephen played at the highest level for us in Europe three years ago. He may have lost his way a little bit with his injury problems but he is a quality player."
McPhail said: ''I have known Eddie Gray since I was in the youth team and I know how good a coach he is and how much belief he gives the players.''
So much did he impress against Chelsea, the Irish midfielder may even keep the returning David Batty out of the side on Sunday against Fulham.