The scoreline of 20-15 in favour of the World Champions only told half the story, as the English were the better team throughout, but will rue the failure to convert try-scoring opportunities against the All Blacks.
Gloucester Rugby trio Ben Morgan, Jonny May and the departing Freddie Burns put in massive shifts and the England squad on the whole, without their Aviva Premiership finalists, deserved more from a brave performance in Auckland.
Burns kicked four penalties out of four, whilst Morgan and May made plenty of sparkling breaks against their illustrious opponents, and all looked well at home in the top class test arena.
England started the brighter in Auckland, and a sharp break from Chris Robshaw saw Ma'a Nonu cynically pull back James Haskell in support, surely a yellow was deserved, but Burns confidently chipped over from the tee.
That was then cancelled out as the All Blacks' pivot Aaron Cruden kicked a three points of his own with England offside from a neat Ben Smith break.
Shortly after, Manu Tuilagi had to be alert to cover as Smith chipped through for Dagg as the game was played at a blistering pace and England's combinations began to click.
Burns then notched himself a pair of penalties from impressive range to put the tourists into a 3-9 lead, as the All Blacks struggled to cope with England's tempo of play.
Cruden then reduced the deficit to 6-9 after Robshaw infringed at the breakdown and the sparring match continued. The outside half from Waikato then repeated the trick to level the scores at nine apiece going into the break.
With the All Blacks looking rusty on their first outing of 2014, England sensed a real opportunity and the second half was a real tussle, littered with handling errors and picky decision making which stifled any continuity.
With England under pressure near their own try line after Jerome Kaino knocked on with a score imminent, Ben Morgan made a stunning break off the base to make 30m, which gave Kyle Eastmond the chance to scuttle brilliantly past Nonu but the Bath Rugby man's pass found no one with a score looking certain.
On the hour mark, Burns and May combined and the winger chipped ahead to blitz away and capitalise on Beauden Barrett's slip, the All Blacks cynically killed the ball and didn't realise the England wing, and Burns knocked over his fourth penalty although no yellow card was forthcoming for the hosts.
Cruden, then almost immediately responded with a penalty of his own to level the scores at twelve apiece, and then the Kiwis upped the tempo to earn another chance from the tee, which saw Marland Yarde sinbinned, and Cruden obliged.
With Burns withdrawn from the action, Danny Cipriani's sharp break was rewarded with a penalty and the returning pivot confidently levelled the scores.
The All Blacks then forced Joe Marler to hold on in English territory, and Cruden caught England napping for a quick tap. As England scrambled, Wyatt Crockett's short range effort was just short, but from the next scrum, the ball was neatly worked to Conrad Smith who dived over in the corner.
Although Cruden failed to convert, there was only seconds on the clock and the All Blacks saw out time to scrape the win however, with the cavalry arriving for next week's test in Dunedin, it would be the English camp feeling slightly happier.
Jonny May's superb late score capped a thrilling 40-32 European play-off win over Connacht on Sunday. The winger spoke afterwards of his team's character and spirit as he looked ahead to one more week of rugby.
Speaking to GRTV this afternoon, Director of Rugby David Humphreys hailed the 'never say die' attitude of the team, after despite not being at their best, fighting back to take a 40-32 win after extra time over Connacht.
Jonny May continues on the wing on Sunday as Connacht come to town, and the England wing explains to the local media this week that he is delighted with his form and is looking forward to taking on Pat Lam's men.
Speaking to the local media this week, front rower John Afoa is familiar with the challenge of Connacht from his time in Belfast, and the World Cup winner is fully aware of the challenge they pose ahead of Sunday's meeting in the Champions Cup play off
Speaking ahead of Gloucester's European Rugby Champions play-off against Connacht on Sunday (Kingsholm, 3:30pm), Director of Rugby David Humphreys admitted that he's glad to have more players available than in recent weeks ahead of a tough fixture.
Nick Wood captained the Cherry and Whites on Saturday afternoon, and the experienced front rower expressed his pride in the young squad in defeat to Bath on the final day of the Aviva Premiership season.
Lewis Ludlow scored Gloucester's opening try in the 30-50 defeat at Bath on Saturday, part of an impressive performance by the young back row forward. Speaking after the game, he paid tribute to the young Gloucester side who went toe to toe with the Aviva Premiership semi-finalists.
Speaking to the local media after the game, Director of Rugby David Humphreys gave an honest assessment of the game, and expressed his pride in the way his young charges had performed against the title-chasing hosts.
Speaking to the local media this week, Gloucester Rugby scrum half Callum Braley is excited by the challenge of the West Country Derby, and the ex-Bristol man reveals the squad will be giving their all.
It was a thriller at Kingsholm on Sunday afternoon, as Gloucester snatched victory from the jaws of defeat, leveling the scores in the final minute before triumphing in extra time over a spirited Connacht side.
Having defeated Connacht Rugby in dramatic fashion in the first play-off for the final spot in the 2015-16 European Rugby Champions Cup, Gloucester Rugby can confirm ticketing details for next Sunday's game against Bordeaux-Begles at Sixways.
Gloucester snatched victory from the jaws of defeat and move on to next weekend's European Champions Cup final play-off against Bordeaux-Begles after a dramatic extra time win over a valiant Connacht side.