The Reds started the season as relegation contenders according to the bookies and pundits after losing a number of key stars last season.
But the fresh-faced squad have defied the odds so far this term – regularly performing better than their league position suggests.
Seven points from a possible nine heading before the international break moved Paul Heckingbottom’s men in to 16th with a game in hand over their immediate rivals.
And Isgrove said: “This team definitely has the capability of being higher up the table.
“We’ve done okay so far this season but I know we’re going to get better and keep climbing the table.
“We definitely deserve a few more points then we’ve got at this stage. We’ve played well and not got what we’ve deserved sometimes.
“This league is tough, for me it’s stronger than it’s ever been. We’re one of the smaller teams so in my mind we’re definitely one of the underdogs.”
Heckingbottom is frank in his desire to keep this group of players together for a good few years so that hopefully they reach their peak at Barnsley.
And Isgrove believes the scope for progress within the squad is huge.
He added: “It’s a different squad this season, but we’ve just got to adapt and get on with it.
“We’ve got a good young squad, with competition for places all over.
“The ability is there because I train with the lads day-in and day-out, so I know we’ve got it.”