Sinclair initially impressed after moving north of the boarder two years ago, however he has come in for criticism this season and started fewer than half of Celtic's matches so far this season, with Brendan Rodgers' side struggling in fifth in the Scottish Premiership.
Sinclair scored the winner for Celtic at the weekend, with Walker insisting that he needs to replicate similar performances more often.
He told 'Sky Sports News': "I think the criticism was deserved. This is a player that is capable of so much more.
"He was practically unplayable in his first season at Celtic and it's been a downward spiral ever since then.
"He's got the ability, he's got the pace to take on players at will. Too often he just gives up that responsibility.
"It was good to see him get a goal. You saw what it meant to him. It was a really big win for Celtic because Aberdeen played well.
"Scott Sinclair is capable of a lot more goals and assists."
Celtic face RB Salzburg in the Europa League on Thursday.