James made his comeback from injury in the second half of Chelsea's match against Liverpool at Anfield, coming on in midfield and quickly settling alongside Moises Caicedo. McFarlane said the decision to bring him on was about control in a key moment of the game.
"We felt like we needed him in that moment in the game, and it was great to have him back," said McFarlane. "Andrey did really well, but we just wanted to freshen it up in midfield. Reece and Moi have played together in that position loads of times, and you can see the connection."
He added that James had trained strongly during the week and was in a good place ahead of the final against Manchester City.
"Reece is a massive player for this team and England. The amount of positions he can play, his skillset in and out of possession. He's one of the best for me."
McFarlane also confirmed a positive injury update on Robert Sanchez, Alejandro Garnacho and Pedro Neto, but ruled out young winger Estevao Willian for the rest of the season due to a hamstring injury suffered against Manchester United last month.
"Estevao has gone back to Brazil to recover. He's not going to be fit for us from now until the end of the season.
"He's a top talent, really good to work with, but our focus is on the next games and supporting his recovery."