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.
Argentine international Mariano Galarza made his Gloucester Rugby debut on Sunday afternoon, and despite a disappointing reverse to Sale Sharks, the giant Puma was just glad to be making his long-awaited bow in Cherry and White.
Having skippered Scotland to a hard fought 25-13 defeat against England at Twickenham on Saturday, Greig Laidlaw spoke of the frustrations of his side doing so many good things and making real progress as a team but still finishing on the wrong end of the scoreline.
GRTV caught up with Neil McCarthy as he was unveiled as the new Head of Academy. The ex-Gloucester front rower is looking forward to getting to work with the vast arrays of talent in the Academy and across Gloucestershire.
Although understandably disappointed to see Northampton snatch a 33-33 draw with a last gasp try on Saturday, Gareth Evans told GRTV after the game that the result shows how far Gloucester have come as a team this season.
Gloucester scrum half Greig Laidlaw spoke to GRTV after the 33-33 draw with Northampton Saints on Saturday, and the Scotsman described how the hosts played some great rugby, but will rue not holding the lead which keeps them in touch with the top seven.
Although Gloucester could take many positives from the 33-33 draw with Northampton Saints on Saturday, centre Bill Meakes admitted it was a strange feeling at the final whistle with Gloucester having probably done enough to win the game.
Speaking after the 33-33 draw with Northampton Saints on Saturday, David Humphreys admitted that he was happy with many aspects of the team's performance but regretted a missed opportunity to defeat the Premiership champions.
Having confirmed a new main partner recently in Mitsubishi Motors UK, Gloucester Rugby is delighted to confirm that XBlades Sports will become the club's new kit supplier from the 2015-16 season onwards.
Hartpury U18s won the AASE league for the sixth year in a row last week beating Filton College in the Final at Allianz Park by 50 points to nil, while Bromsgrove School won their first NatWest U18 Schools Cup.