Arsenal have been without a permanent skipper since Laurent Koscielny forced through a move to Bordeaux last month.
And Gunners boss Emery has defended Xhaka ahead of Sunday’s trip to Watford.
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The midfielder divides opinion in the Arsenal fan base and did his popularity no favours after giving away a needless penalty in a 2-2 draw with Tottenham earlier this month.
But the 26-year-old has been a regular starter since Emery replaced Arsene Wenger last summer.
Emery said: “We’ve been speaking – mistake, recognise that mistake, learn, correct, improve and after repeat with success.
“Every player makes mistakes, only some are magnified because the consequence is more.
“But I am really focused on the good things, on the positive performances and Xhaka has a big character and is very important for us.
“He played a very good match against Tottenham, he made a mistake that was a penalty, he knows and we are working to improve, to change that mistake in one process.”
Xhaka joined Arsenal in a £35million deal from Borussia Monchengladbach in 2016.
And Emery has reinforced the Switzerland captain’s importance to his team.