Despite leading at half time, England went down 28-27 in Dunedin after being on the receiving end of a second half blitz from the clinical New Zealand backs on Saturday.
A 10-6 lead at half time for the tourists shook the World Champions into life with three second half tries to give them an unassailable two nil lead in the Test Series.
Second half scores from Ben Smith, Julian Savea and Ma'a Nonu showed the true power in the All Blacks' line up and at times the English struggled to hold possession and territory against the relentless tide of the hosts' attacks.
But England saved plenty of pride following a brave late comeback and tries from Mike Brown and Chris Ashton adding to an early Marland Yarde try with 12 points from the boot of Owen Farrell.
England started brightly at the Forsyth Barr Stadium, and as an early chance looked to be going begging, Marland Yarde picked a neat line off Danny Care to power past Richie McCaw and stretch over, adding to an early Farrell penalty.
New Zealand gained a foothold and Aaron Cruden added a pair of penalties himself but England will clearly rue the inability to finish off a score at the end of the first period as Manu Tuilagi, playing on the wing, was superbly snagged by Ben Smith when a score looked certain.
The All Blacks then made the tourists pay for that mistake by running in a trio of scores in a breathtaking half hour.
First, with Tom Wood picking a neat inside line, Billy Twelvetrees' break and offload found the floor, and from the turnover, the All Blacks spread the ball wide, and as Cruden dummied his way through the line, Savea found his full back Smith who cantered home under the posts.
Then it was Savea himself who got on the scoresheet as the All Blacks moved the ball wide and neatly converted an overlap to slide over in the corner.
Ma'a Nonu then dived over with the English defence getting increasingly stretched to put the hosts 18 points ahead, a far cry from England's early 10 point lead.
As England's much lauded cavalry arrived, the game was stretched and Twelvetrees fed Mike Brown who powered his way over to score despite the attentions of Corey Jane.
The final shout went to the English who in added time, worked a neat overlap to give replacement Chris Ashton the score under the posts, but the comeback probably came five minutes late.
With a midweek clash with Canterbury to look forward to this week, England will be looking for their first win on tour with Gloucester's Henry Trinder, Matt Kvesic and today's unused replacement Freddie Burns hoping to be involved.
Speaking after the game, Charlie Sharples described it as 'the win that has eluded us.' The winger stressed that Gloucester had stayed positive after the first couple of weeks of the Aviva Premiership season and the 26-13 victory over Sale was a result of that focus.
Gloucester Rugby picked up their first win of the new Aviva Premiership season on Friday night, easing to a 26-13 win on the road at Sale Sharks. Director of Rugby David Humphreys was full of praise for his players on the night.
Defence Coach Jonny Bell was on media duties ahead of the Aviva Premiership fixture at Sale Sharks on Friday evening, and spoke about where Gloucester find themselves in terms of their form at the moment as well as how he's viewing their defensive displays so far.
Callum Braley, who skippered Gloucester United to a 22-19 Aviva Premiership A League win over Saracens Storm on Monday evening, paid tribute to his forwards and the younger players in what he described as not the prettiest of wins.
Gloucester Wheelchair Rugby Club hosted their second invitational tournament on Sunday 18th September. Teams from the South Wales Ospreys, the Southampton Sharks, Stoke Mandeville Maulers and the West Country Hawks travelled to Leisure @ in Cheltenham and played a 'round robin' sequence of games.
Kingsholm will play host to the inaugural Mitsubishi Motors Hybrid Cup on Sunday 9 October (kick off 3pm), where the Gloucester Rugby Heroes meet the Salford Red Devils Legends in a cross-code exhibition clash with legends of both games set to grace the Kingsholm turf again.
Gloucester Rugby have been rolling back the years, dusting off their old childhood memorabilia and reminiscing about their first grassroots amateur sports clubs in support of this year's Aviva Community Fund.