Taylor was ultimately assigned to the Royal Army Service Corps of the Expeditionary Forces Canteen Service, stationed at Dunkirk, and promoted to the temporary grade of lieutenant on 15 January 1919. At the end of April 1919, Taylor reached his final billet at Bergues, France, as Major Taylor, Company D, Royal Fusiliers. Upon returning to Los Angeles on 14 May 1919, Taylor was honoured by the Motion Picture Directors Association with a formal banquet at the Los Angeles Athletic Club.
After returning from military service, Taylor went on to direct some of the most popular stars of the era, including Mary Pickford, Wallace Reid, Dustin Farnum and his protégée, Mary Miles Minter, who starred in the 1919 version of Anne of Green Gables. By this time, Taylor's ex-wife and daughter were aware that he was working in Hollywood. In 1918, while watching the film Captain Alvarez, they saw Taylor appear on the screen. Ethel responded, "That's your father!" In response, Ethel Daisy wrote Taylor in care of the studio. In 1921, Taylor visited his ex-wife and daughter in New York City and made Ethel Daisy his legal heir.