Van Gerwen's incredible 2015 continued as the world number one followed up his previous Masters, UK Open, World Matchplay and European Championship victories by scooping the £100,000 first prize at the Wolverhampton Civic Hall.
After trailing 4-1 and 7-3, van Gerwen punished missed doubles from the Stoke legend to win six straight legs and move 9-7 up during an enthralling contest.
Taylor levelled at nine-all, but van Gerwen took the next three to pull into a lead he would never give up as he closed out the win on double 18, hitting 14 180s and maintaining his record of averaging over 100 in all seven wins during the week.
"I had two main targets this year which were the World Matchplay and the Grand Slam of Darts and I've won them both," said van Gerwen. "I'm a very happy man and I'm really pleased because it means a lot to me.
"To beat Phil in the final is a great honour for me and I'm so happy to have won this title. Phil's a fantastic player but he didn't play his best game.
"Phil was playing really good darts at the beginning, and I couldn't find my own speed. It was difficult for me and I wasn't happy, but Phil gave me a finger and I took his hand, and that made me come back in the game.
"When you get in front you don't want to give it away, and I'm really glad that I took my chances.
"I've won every major now and it means a lot to me. I played an absolutely fantastic tournament this week, with good averages, good finishing and the only thing I missed I think was a nine-darter."
Taylor made a perfect start to the game with a 180 on his opening visit, and he also added a 177 as he landed an 11-dart leg to claim the opener before finishing double 16 and 81 to move three legs clear.
Van Gerwen got off the mark in the fourth leg, only for Taylor to take out 131 on double 16 as he restored his cushion, and after the next two were shared the pair traded 11-darts before the Stoke ace finished 106 for a 7-3 lead.
Van Gerwen, though, took out 105 to reply and punished missed doubles from Taylor in four legs out of six as he turned the game around to power into a 9-7 advantage.
A 12-darter saw Taylor hit back and he then levelled on double ten, but van Gerwen broke throw by finishing 121 for a 12-darter and stepped in following four further misses from his rival in the next two legs to establish a 12-9 cushion.
Taylor stepped in to win the next two as he cut the gap to 12-11, but he was unable to break throw as the four more legs went with the throw to leave van Gerwen on the brink of victory at 15-13 before double 18 sealed glory.
Taylor admitted: "I missed too many doubles and it's my own fault, but I'm proud to have reached the final but I'm disappointed that I lost.
"I gave him chances and he took them, and fair play to him - it's set him up now for the rest of the year. He's a phenomenal darts player."
Van Gerwen took home £102,500 as the champion, including a Group Winner Bonus, while Taylor pocketed £52,500 in prize money and Dave Chisnall scooped a £30,000 bonus for his brilliant nine-dart finish last Sunday evening.
SINGHA Beer Grand Slam of Darts
Sunday November 15
Michael van Gerwen 16-13 Phil Taylor
Best of 31 legs
Michael van Gerwen v Phil Taylor
0-1 - Taylor kicks off with six perfect darts of 180 and 177 before landing double three for an 11-dart opening leg.
0-2 - Both players initially miss two darts at doubles before Taylor returns on double 16 to break throw immediately.
0-3 - Taylor finishes 81 to continue his brilliant start.
1-3 - Taylor wires double 16 for a 68 finish, and van Gerwen hits the same bed to claim his first leg of the final.
1-4 - Taylor checks out a brilliant 131 finish on double 16 to regain his three-leg lead.
2-4 - van Gerwen hits a 180 and double ten to respond.
2-5 - Taylor fires in a maximum of his own and double eight.
3-5 - Both players open with 180s and Taylor adds a 165 score to leave 16 after nine darts, only to see van Gerwen finish 48 for an 11-darter to hit back.
3-6 - Taylor fires in an 11-darter of his own, after both players land further maximums in the leg.
3-7 - van Gerwen misses five darts at doubles to win the leg, and Taylor takes out 106 for a break of throw to move four legs clear.
4-7 - The roles are reversed as Taylor misses double 12 and six, and van Gerwen follows a 180 with a 105 checkout to break back immediately.
5-7 - van Gerwen opens with his fifth 180 of the game, and is given a let-off for two misses at tops when Taylor is unable to land two darts at double ten.
6-7 - Both players hit maximums, but Taylor misses three further doubles to allow van Gerwen in for another break of throw on double ten, winning his third successive leg.
7-7 - van Gerwen takes out 66 on double 18 as he levels the game.
8-7 - van Gerwen wins his fifth successive leg, punishing two further missed doubles from Taylor by taking out 78 on double ten.
9-7 - Double 16 sees van Gerwen win a sixth straight leg, moving two clear of Taylor.
9-8 - Both players land 180s once again before Taylor finishes double 16 for a 12-darter to respond.
9-9 - Taylor fires in a 180, and is given a let-off for a miss at tops as van Gerwen misses the same bed to take out 74, allowing the reigning champion back in on double ten.
10-9 - van Gerwen breaks throw with a superb 12-darter, opening with scores of 180 and 140 before finishing 121 on double 14 to move back in front.
11-9 - Taylor hits a 180, but misses three darts at doubles across two visits to allow van Gerwen back in on tops to open up a two-leg lead.
12-9 - van Gerwen hits his ninth maximum, and when Taylor misses double top for a 118 finish, the Dutchman breaks throw once more on double 18.
12-10 - Taylor this time capitalises on a miss from his opponent, hitting a 180 and stepping in on double 16 after van Gerwen was unable to land tops.
12-11 - Both players hit 180s, and when van Gerwen misses three darts at doubles 18 and nine Taylor steps in to take out 94 on tops as he cuts the gap to one leg.
13-11 - van Gerwen opens with a maximum and finishes double 16 to regain some breathing space.
13-12 - Both players once more hit 180s - taking the match tally to 23 between the duo - before Taylor's 81 finish on double six sees him hit back once again.
14-12 - Double eight sees van Gerwen regain his cushion.
14-13 - van Gerwen opens with 180 and 140, but misses four doubles to break throw as Taylor lands double eight.
15-13 - van Gerwen hits a 14th 180 before double 16 moves him to the brink of victory.
16-13 - van Gerwen pulls clear before landing double 18 to claim the win and complete a full set of PDC major titles.