Warburton is poised to skipper Wales for the 33rd time in the match against France next weekend having led the Lions for the first two tests against Australia before being ruled out of the third with an injury.
Faletau played in the decisive third test on the tour and he has seen Warburton's year on year improvement first hand.
"They chucked him in quite early as captain, and he's done well," Faletau said.
"He has led by example. That is what I think he has done best. Every year, he gets better and better as a captain.
"Sam will speak about it himself, saying it was a bit weird and awkward being so young and having so many experienced boys listening to him. He has definitely grown into it, and he will only get better.
"He talks when he needs to and leads by example. On the pitch he does what he needs to, and the boys follow."
Wales travel to the Stade de France next and Faletau insists his side must concentrate if they are to beat Les Bleus.
"It is going to be tough, but the boys are hoping for another win," he said.
"France are always dangerous from everywhere, and you don't really know what is going to happen until you are on the pitch.
"They are going to be dangerous, and we have to try to match that and come away with a win."
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