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.
Ben Vellacott was one of the standout performers in last week's pool stages and, ahead of Friday evening's Singha Premiership Rugby 7s Finals, told GRTV that he and his team mates will just try and play their own game once again.
Gloucester Rugby number eight Ben Morgan was today named in England's squad for Rugby World Cup 2015, a reward for eight months of hard work recuperating from a serious injury suffered back in January. Ben was one of a number of players who spoke at a press conference following the squad announcement.
Steph Reynolds led from the front once again as Gloucester kicked off their Singha Premiership Rugby 7s campaign in style on Thursday evening. The flyer scored three tries but admitted that he left most of the team talk duties to others.
Olly Morgan led the Cherry and Whites to three wins out of three in Group B of the Singha Premiership Rugby 7s and he expressed his delight in the young members of the squad in excelling in front of a bumper Kingsholm crowd.
Olly Morgan leads the Gloucester Rugby Sevens squad this Thursday in the Singha Premiership Rugby 7s Series at Kingsholm, and he is backing the young side to take the opportunity with both hands as they take to the field.
Speaking to the local media this week, Henry Purdy explained the opportunity available for the Gloucester Rugby to lay down a marker in this summer's Singha Premiership Sevens Series, which kicks off at Kingsholm Stadium on Thursday 20 August.