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Hobart: Shaun Marsh scored a brilliant 110 while Doug Bollinger picked up 4/28 to help Australia to a 46-run victory. The hosts gained a 2-0 lead in the series.
But the success in Hobart appears to have come at a cost with off-spinner Nathan Hauritz and paceman Shaun Tait suffering injuries.
Hauritz suffered a suspected dislocated shoulder while fielding the ball in the 32nd over of England's innings in his first game back in national colours for the Australian summer.
Tait felt for his groin after pulling up short following the penultimate ball of his sixth over and went straight off the ground.
The injuries took some of the gloss off what was a memorable win for Australia, inspired by recalled batsman Marsh and Doug Bollinger, who illustrated some all-round capabilities.
In the side as a replacement for the injured Michael Hussey, Marsh hit a match-winning 110 off 114 balls which lifted Australia from 8-142 to a defendable 230 total after being sent into bat by England captain Andrew Strauss.
The fact Marsh was able to make his second ODI century can be attributed to Bollinger, with the pair sharing a record ninth-wicket partnership of 88.
In the space of 55 minutes, the two left-handers frustrated the English attack during a stand that surpassed the previous ODI record for the ninth wicket of 77 set by Michael Bevan and Shane Warne against the West Indies.
Buoyed by his run-a-ball 30, Bollinger then did the damage with the ball, taking 4-28 off nine lethal overs as England were bowled out for 184 in the 45th over.
The NSW left-armer bowled with pace and fire to make the early in-roads in England's top-order, claiming the key wickets of Strauss (16) and Kevin Pietersen (golden duck) with consecutive balls to give Australia the ascendancy.
Bollinger then came back to dismiss Tim Bresnan and James Tredwell to complete his finest performance for Australia at ODI level.
Jonathan Trott and Ian Bell tried to rebuild England's innings with a 47-run stand, but the loss of both in-form batsmen within the space of four overs proved crucial.
Steve Smith illustrated his new role as a shock weapon, sending Trott on his way for 32 when the South African-born right-hander pulled the leg-spinner straight to David Hussey at mid-wicket.
Comeback kid Brett Lee was then able to entice Bell into playing a lofted cut shot taken sharply by Smith at gully to leave England reeling at 5-96.
Eoin Morgan and Michael Yardy briefly lifted English spirits with a quickfire 44-run stand, but Morgan's dismissal courtesy of an excellent overhead catch from Tait off the bowling of Shane Watson for 21 proved timely.
Earlier Shaun Marsh put his hand up for a late World Cup call-up with a solo effort to salvage a disappointing Australian batting effort.
Marsh, left out of Australia's World Cup squad named on Tuesday, posted his second one-day international century as Australia made 230 from 48.2 overs after being sent in to bat by England.
The left-hander brought up his century in the best fashion possible, lofting Michael Yardy over mid-wicket for six from the 101st delivery he faced, having hit the previous two balls for four.
Marsh was the last man to fall, caught on the boundary having faced 114 balls, hitting eight fours and two sixes.
The home side were in deep trouble at 142/8, before Marsh and number 10 Doug Bollinger rallied the cause by adding an unlikely 88, a record ninth-wicket stand for Australia in ODIs.
Not for the first time this southern hemisphere summer, Australia's top order was in early disarray, with captain Michael Clarke's atrocious season in all forms of the game continuing as he fell for just 10.
Marsh, called into Friday's team to replace the injured Mike Hussey, strode to the wicket with the home side in deep trouble at 33/4.
The left-hander struck the ball well from the time he arrived at the crease and looked a class above any of his top order teammates in a performance that will have done his chances of replacing Hussey in the World Cup squad no harm at all.
Hussey is in increasing doubt for the tournament after this week undergoing surgery to repair a severe hamstring tear.
Marsh survived a close shave on 23 from the bowling of James Tredwell, when he was given not out by the third umpire on a very close stumping appeal.
He made the most of his good fortune and teamed with Cameron White, who was struck a painful blow on the index finger of his right hand by a rising delivery from Chris Tremlett, to try to rescue the innings.
The pair put on 100, but the batting collapsed again when White was caught and bowled for 45 by Michael Yardy, as Australia lost 4-9 to slump to 142/8.
Promising paceman Ajmal Shahzad celebrated his inclusion in England's World Cup squad by claiming 3-43, including the prized wickets of openers Shane Watson (5), who made 161 not out in Sunday's first game which Australia won by six wickets, and Brad Haddin (5).
Brief scores
Australia 230 (Marsh 110, White 45, Tremlett 3-22, Shahzad 3-43)
England 184 (Trott 32, Bell 32, Bollinger 4-28)
Result Australia won by 46 runs
MOM Shaun Marsh (Australia)
