The former Everton and Chelsea star arrived at Kenilworth Road over the summer looking to get his career back on track, something that he has done in spectacular fashion.
While Luton remain in the relegation zone, Barkley is the beating heart of Rob Edwards' side coming painfully close to success in recent weeks against Tottenham, Liverpool and Manchester United.
The Hatters then came agonisingly close to getting a result against Arsenal, only to be denied by a last-minute Declan Rice winner, before Man City came from 1-0 down to earn a 2-1 win against last season's play-off winners.
While there's work to do, Luton will be encouraged by their recent performances with Townsend heaping praise on Barkley for the quality that he has brought to the newly-promoted team.
Speaking on The Sports Breakfast, Townsend said: "Oh mate. Honestly, they've been some of the best midfield performances I've seen in my career.
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"It's just unbelievable - the calmness, the ability to get the ball off the back four and knock it past some of the world's best midfielders without a care in the world.
"We saw yesterday against Man City, Maradona was in the midfield to set up our goal - honestly, it's been a joy to watch.
"In a way he's given confidence to the rest of the players around him, including myself. Just that calmness to take the ball under pressure, it's such an underrated skill.
"He's been absolutely incredible and he's been an absolute joy to play with, but a joy to watch as well."