Wales were not helped by a long injury list that includes fellow Lions Jonathan Davies, Jamie Roberts and Adam Jones.
But Lydiate is confident that with the Six Nations round the corner they will only improve by blooding some of the next generation.
"We have picked up a lot of injuries during this campaign and some young players have come in and have done themselves justice," he told the South Wales Argus.
"That bodes well for the future and although we lost against Australia we can move on again and come back for the Six Nations and be ready to go."
The 30-26 defeat was the latest in a series of reversals against the Qantas Wallabies since Wales' last victory over them in 2008.
But despite the result, Lydiate admitted enjoying the experience - if not the outcome.
"It was a great game to play in and I loved every minute of it," said the 25-year-old, part of the Lions side to beat the Qantas Wallabies 2-1 in this summer's series.
"It was a classic international match which could have gone either way at the end. We are gutted.
"Looking after the ball and making correct decisions at the right time is not something we managed to do.
"We have been in this situation so many times which is so disappointing, but it shows great spirit to keep playing for 80 minutes."