England maintained the commitment and desire they had shown throughout the second half to close out the last few minutes and go some way towards avenging their two losses to the Kiwis at last year's World Cup.
But more importantly the result ensures England have another chance to beat the Australians in next Saturday's final at Elland Road.
England scored 16 unanswered points in the second half against the Kangaroos at Wigan last week, but their atrocious first-half showing had already cost them the game.
The Kiwis came into this match on the back of a draw with the Kangaroos and a win over France in their two previous games.
But Stephen Kearney's physically imposing side were more than matched up front in Huddersfield, while England's inexperienced half-back pairing of Eastmond and Sam Tomkins hinted at a bright future for the national team.
During the week Smith had talked about the importance of making an immediate impact after their sluggish starts in the previous games against France and Australia.
And it was England who scored first, controlling the opening 10 minutes before running in a well-constructed try on 10 minutes.
Burgess (right) set up Eastmond (left) for England's opening try
Man-of-the-match Sinfield, who started at hooker in a late change to the initial line-up, ran from dummy half before sending Sam Burgess through with a delayed pass.
The NRL-bound forward in turn slipped an inside ball for Eastmond to cross under the posts.
England threatened again after Lance Hohaia spilled the first of a series of high kicks directed at him, but Sinfield knocked-on as he scrambled to collect the loose ball.
The Kiwis translated their first good attacking position into points, quickly working the ball out to the right and stretching the England defence as a long pass from Hohaia was collected by debutant centre Kieran Foran, who slipped the ball to Goodwin to score.
Goodwin missed the conversion but levelled the scores with a penalty after Eorl Crabtree was penalised for holding down.
An already extremely physical match grew increasingly fractious, with Tomkins and Benji Marshall squaring up while Fox and Goodwin also exchanged words.
But after an even period of play, it was England who took the contest by the scruff of the neck before half time with a period of enterprising attacking rugby that yielded 12 points.
First a superb cross-field kick from the slippery Tomkins eluded Goodwin and was touched down by Fox, with Sinfield converting superbly.
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