The 25-year-old, playing his first Test since 2012, kept Pakistan at bay with an unbeaten 74 and found an able ally in Jonny Bairstow (37 not out) as the two put on an invaluable 83 for the unbroken fifth-wicket stand at Sharjah Stadium.
That leaves England just 12 behind Pakistan's first-innings total of 234 with six wickets intact as they hope to gain a decisive lead in their bid to level the three-match series.
Pakistan lead the series 1-0 after winning the second Test in Dubai while the first Test ended in a draw in Abu Dhabi.
Taylor kept England in the hunt as he survived a keen tussle between bat and ball, with Pakistan's spin duo of Yasir Shah and Zulfiqar Babar threatening to take wickets.
But Taylor, playing his first Test since his two debut Tests against South Africa three years ago, batted with resolve, using his feet and sweeping to blunt the spin.
He pushed paceman Wahab Riaz for a single to reach his first half century off 100 balls. He has so far hit six boundaries during his 141-ball fight.
When Taylor walked in England were struggling at 97-3 after Alastair Cook (49) and Joe Root -- their two key batsmen -- had been dismissed.
Taylor added 42 for the fourth wicket with Ian Bell (40) to steady the innings as Pakistan attacked through both pace and spin.
For Pakistan Shah took 2-79 while Babar went wicket-less in his 25 overs and even a second new ball at 181-4 failed to dislodge the Taylor-Bairstow partnership.
Bell, who survived a confident caught behind appeal off Babar, was finally stumped off Shah. He hit two boundaries and a six during his three hour 37 minute innings.
Bell and Cook had steadied the innings with a 71-run stand for the second wicket.
England had added three runs to their lunch score of 87-1 when Cook fell to a soft dismissal as he pushed a Shah delivery straight into the hands of short leg fielder Azhar Ali.
Cook hit four boundaries during his 119-ball knock.
England had hoped Root would supplement Bell but the fast-rising batsman fell to a loose shot off paceman Rahat Ali and was smartly snapped low to his right by wicketkeeper Sarfraz Ahmed.
Resuming at 4-0, England lost Ali in the seventh over of the day when he miscued an aggressive shot off spinner Shoaib Malik and was caught in the slip by Younis Khan for 14.
Cook, who made an epic 263 in the drawn first Test in Abu Dhabi, looked in no trouble as he negotiated Pakistan's pace-cum-spin attack with confidence and appeared set for another half-century before he fell.
Bell smashed Babar for a six early in the innings and ably supported his skipper, adding valuable runs for the second wicket partnership with Cook.
England 135-3 in reply to Pakistan's 234
England, replying to Pakisan's first innings total of 234, were 135-3 at tea on the second day of the third and final Test in Sharjah on Monday.
Ian Bell was unbeaten on 40 and with him James Taylor was 26 not out as England, seeking to level the series, trail by 99 runs at Sharjah stadium.
England lost Alastair Cook (49) and Joe Root (four) in the post-lunch session.
Pakistan lead the three-match series 1-0 after winning the second Test in Dubai by 178 runs. The first Test ended in a draw in Abu Dhabi.
3rd Test: England steady after Ali's fall
England recovered from the early loss of opener Moeen Ali as they reached 87-1 at lunch on the second day of the third and final Test against Pakistan in Sharjah on Monday.
At the break skipper Alastair Cook was batting on a steady 48 and with him Ian Bell 24 not out as England trail Pakistan's first innings total of 234 by 147 runs with nine wickets intact.
3rd Test: Bowlers helps England dominate Pakistan on day one
Seeking to level the series after losing the second Test, England will hope to gain a big lead over Pakistan on a pitch which did not assist spinners a great deal.
Resuming at 4-0, England lost Ali in the seventh over of the day when he miscued an aggressive shot off spinner Shoaib Malik and was caught in the slip by Younis Khan for 14.
Cook, who made an epic 263 in the drawn first Test in Abu Dhabi, looked in no trouble as he negotiated Pakistan's pace-cum-spin attack with confidence, hitting four boundaries off 110 balls.
England consider third spinner option in Sharjah
Bell smashed left-arm spinner Zulfiqar Babar early in the innings and ably supported his skipper, adding 68 runs for the unbroken second wicket partnership.
James Anderson took four wickets to dismiss Pakistan for a low score of 234 on the opening day of the match.
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