Spurs have won four matches out of five in the Premier League since Sherwood took charge following the 2-0 victory over Crystal Palace at White Hart Lane on Saturday.
Dembele has been impressed with Sherwood and believes he can steer Tottenham to a top-four finish and a Champions League place.
"He gives us a lot of confidence," Dembele said of the 44-year-old.
"Everyone likes this. We didn't have a lot of time to train too much together because of the amount of games but you can see already that our style is good.
"He tells us to attack more but not with too much risk.
"But we still need to do better first half and if we do that then we can do some great things in the second half of the season."
Toronto-bound Jermain Defoe was on target against Palace and Dembele admits the England striker will be a big loss to Tottenham when he departs to the MLS at the end of February.
"For us he's very important. I think everyone knows his quality and of course we will miss him, for sure," said Dembele.
"It was nice for him to score, though. We are happy for him."
With a squad our size, with players of the talent we have in it, talk of a 'surge' means nothing more than an admission of previous slacking, tbh.- Darraghmac