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Taylor met MMA veteran Chris Lytle at UFC 89 which took place at the National Indoor Arena in Birmingham, England. Lytle won a unanimous decision (29-28, 29-28, 30-27). The decision resulted in loud boos and Taylor was surprised at Lytle being awarded the judges’ decision. Sherdog, MMAWeekly and MMAJunkie thought Taylor had won the decision. The fight was awarded Fight of the Night honors and both fighters received $40,000 following their exciting, action packed fight. Although this was Taylor's third defeat in the octagon, he had won Fight of the Night awards on three occasions when he had been defeated in the UFC.

Taylor was expected to return from the extended hiatus and the bout with Njokuani scheduled for a third time on 26 October 2013 at UFC Fight Night 30. However, Taylor was forced to pull out of the bout once again with another injury and was replaced this time by Al Iaquinta. After the most recent withdrawal, the UFC announced that Taylor has retired from MMA.

Taylor/Njokuani was expected to take place on 11 July 2012 at UFC on Fuel TV: Munoz vs. Weidman. However, Taylor was forced out of the bout with yet another injury, and replaced by Rafael dos Anjos.

Taylor next faced Gabe Ruediger on 5 February 2011 at UFC 126. Taylor won via KO after landing a head kick and follow up punches in the second round.

Taylor was expected to face John Makdessi on 14 August 2011 at UFC on Versus 5. However, Makdessi was forced from the bout with an injury and replaced by Donald Cerrone. However it was later revealed that Taylor had broken his foot and was forced out of his scheduled bout and replaced by Charles Oliveira.

Taylor was expected to face Anthony Njokuani on 5 November 2011 at UFC 138. However, just days before the event, Taylor sustained a whiplash injury during a minor traffic collision forcing him from the bout. With no time to find a suitable replacement the bout was scrapped.

Taylor was expected to make his lightweight debut against John Gunderson on 10 April 2010 at UFC 112. However, due to complications after making the weight cut, Taylor was not medically cleared to fight.

Taylor next faced Sam Stout on 23 October 2010 at UFC 121. The fight saw both fighters attempt kicks. The first round saw Stout bloody Taylor's nose and successfully gain a takedown. Taylor came back in the second, catching Stout on the inside. Stout went on to win a split decision (29-28, 28-29, 30-27).

Paul Simon Taylor (born 15 December 1979) is a retired English professional mixed martial artist who formerly competed in the Lightweight division of the Ultimate Fighting Championship. A professional competitor from 2002 until 2013, Taylor also competed for Cage Rage.