Sharma was at the crease when Mumbai needed 17 off the last over to win against Rising Pune Supergiant.
After losing Hardik Pandya in the first ball, Sharma hit a six in the second but Jaydev Unadkat pushed the third delivery wide after seeing Sharma shuffle across the stumps.
Realising that the ball was veering away from the guideline for wide deliveries, Sharma left it alone. However, umpire S Ravi didn't call it a wide.
"The ball was too far outside, to be honest, but I don't really know whether it was wide or not," Harbhajan told reporters at the post match conference.
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"If both the batsman's leg move, then bowler should get the margin, but Rohit's one leg had moved and as per me it should have been a wide. But we have to move on with the umpire's decision and they played better than us and it was great game of cricket.
Harbhajan also differed that because of that particular ball, the hosts and specially Sharma lost the momentum.
"I don't know whether momentum was lost (because of the wide not being called), Rohit was hitting nicely but unfortunately he ended up hitting the ball straight in the air. That's what happens, cricket is game, anything can happen," he said.
Harbhajan, however, admitted that the 19th over of their innings bowled by Englishman Ben Stokes brought Pune back into contention.
Strokes, the costliest buy of this IPL, conceded only 7 runs, and Mumbai eventually lost by three runs at the Wankhede stadium last night.
"Obviously, if one odd boundary would have been hit in that over, then we would have required 12-13 runs, then the match is open and there would have been a more pressure on the bowler," he added.
The off spinner took his 200th T20 wicket last night.
"It is nice to be taking those 200 wickets and still going strong. It is nice to be achieving these milestones and my job is to keep playing," said Harbhajan, who has been with Mumbai for past 10 years.
"He has gone for couple of overs, which can happen to any bowler. He is still the number one bowler in this format, no matter whether he is playing for us or Sri Lanka.
"It was his call that he needed a break and wanted to work something out for his own bowling.