He served with Thomas J. "Stonewall" Jackson through the Valley Campaign and the Seven Days Battles. After Brig. Gen. Charles Winder was killed at Cedar Mountain, Taliaferro took over command of the Stonewall Division. He led it for the next three weeks, but at Brawner's Farm on August 28, 1862, he was badly wounded. Taliaferro spent the next few months recuperating and resumed division command just before the Battle of Fredericksburg in December, where he did not see any significant action.