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.
Gloucester look to build upon the local derby win over Bath last weekend with Harlequins the visitors to Kingsholm on Saturday (kick off 3pm). Director of Rugby David Humphreys is expecting a close game with the two teams well matched, although it may not be a 78 point thriller like the last time the two teams met.
Named Man of the Match by BT Sport, scrum-half Willi Heinz said after the 15-11 win at Bath on Friday evening that it was a pretty happy Gloucester dressing room and reward for a lot of hard work put in during the week leading up to the game.
Speaking after the 15-11 win over Bath at the Rec on Friday evening, David Humphreys heaped praise on his players, pointing out how they had bounced back after last week's tough defeat to overcome a rough start before controlling the game and earning the win.
Gloucester Rugby hooker Richard Hibbard spoke to the local media this week as the Cherry and Whites prepare to face Bath Rugby in the Aviva Premiership. The Welshman is ready to bounce back at The Rec.
Speaking to the local media about the local derby against Bath at the Rec on Friday evening, Director of Rugby David Humphreys acknowledged that it will be a tough encounter but hugely exciting at the same time and one the squad are looking forward to.
A visibly disappointed Billy Twelvetrees admitted that it was a very sombre Gloucester dressing room as a last minute try and conversion condemned the Cherry and Whites to an 18-19 defeat against Leicester Tigers on Saturday.
A disappointed Tom Savage told GRTV, after the 18-19 defeat at home to the Leicester Tigers, that the whole Gloucester team had put in a fantastic effort, but just couldn't find the extra one or two percent necessary to put away a top side.
Speaking after the narrow loss to Leicester Tigers on Saturday afternoon, David Humphreys says despite there being a lot of good in Gloucester's performance, he rued the failure to close the game out, as well as thanking the home support
After a disappointing opening weekend loss to their Scottish counterparts, England U20s will be eager to bounce back in Italy this evening, with Gloucester flyer Mat Protheroe set to pull the strings from fly half.
Gloucester Rugby make just the one change to the starting line up that won at Bath last Friday evening, flanker Matt Kvesic restored to the starting XV as the Cherry and Whites welcome Harlequins to Kingsholm in the Aviva Premiership on Saturday (kick off 3pm).
The Early Bird deadline for ticket purchases for the Aviva Premiership fixture against Harlequins on Saturday will expire at 6:30pm on Thursday evening, with tickets already limited for one area of Kingsholm.