Webster, who famously defeated the then world number one in the 2011 tournament, showed some quality but Taylor, who averaged 102, proved to be a typically formidable opponent and won by four sets to nil.
Webster won the opening leg but lost the next three as ‘The Power’ took the first set.
The Welshman upped his game in the second set as he took out 117 to break and lead 2-1 but, after Taylor broke back, Webster missed a dart a tops for the set before his opponent bedded the same target to double his lead.
After falling behind in the next set, Webster produced a sensational 125 finish (bull, 25, bull) to break but he missed two darts at tops in pivotal third leg, which allowed Taylor to break back.
The 16-time World Champion went on to win the third set 3-1, before sealing his last 16 spot with a fourth set whitewash.