Suarez, who did not play in his side's shock 1-3 loss against Costa Rica, returned from a knee surgery last month to haunt the country where he plays club football for Liverpool to score in the 39th and 85th minutes and keep Uruguay afloat in the tournament. (Agencies)
England, who had lost to Italy 1-2 in their opening match, equalised through Wayne Rooney's maiden World Cup goal in his third tournament appearance and 10th match.
The dramatic match at the Arena Corinthians looked like heading for a draw -- which would have kept both the sides afloat in the tournament -- with a re-energised England after Rooney's equaliser even threatening to score the winning goal.
But it was not to be the day of England, and a mistake by captain Steven Gerrard, who could not clear a long kick by Uruguay goalkeeper Fernando Muslera properly, sent his Liverpool team-mate Suarez in the clear to send the ball past England goalie and bury it into the net.
Earlier, Suarez met a fine cross from strike partner Edinson Cavanihad with a perfect header which beat England goalie Joe Hart to his right goal.
England now face the prospect of making one of the earliest returns to home from a World Cup. They had also crashed out of the first stage in 1950 and 1958.
The first half of the match was an even contest though Suarez's goal separated the two sides at the half time.
Rooney came agonisingly close to scoring as header off a Steven Gerard free kick hit the crossbar in the 31st minute. His own free kick in the 10th minutes sailed over the Uruguay wall and also inches above the bar.
Uruguay's Cristian Rodriguez had a fierce left-footed drive in the 15th minute inside the England box which flew over the bar.
Just as the game was meandering towards a cagey encounter with both sides surrendering possession far too easily, Suarez scored to give Uruguay in the lead in the 39th minute off an assist by his strike partner Edinson Cavani.
Liverpool star Suarez, who missed Uruguay's 1-3 loss to Costa Rica in their opening match and included in the starting lineup after recovering from a knee surgery last month, had a perfect header which beat England goalie Joe Hart to hisb right goal.
Uruguay led seize of the England goal with a series of corners just after the restart and Cavani had a great chance to double the lead for his side in the 52nd minute but he shot wide from an acute angle after being challenged by England goalie Hart.
Immediately after that, England also got a chance to get the equaliser but Rooney's left footer after an excellent work down the left flank by Leighton Baines was kept out by Uruguay goalkeeper Fernando Muslera.
England pressed hard for an equaliser and Uruguay sat back and defended their citadel from around the hour mark.
The incessant England attack bore fruit with Rooney scoring his maiden World Cup goal in the 75th minute as he tucked the ball home, connecting a perfect cross by Glen Johnson after initial spadework by Daniel Sturridge at the right flank.
All of England's labour was lost in one moment of sloppy defending as Suarez pounced on the chance to score the winner five minutes from time.
Suarez, who did not play in his side's shock 1-3 loss against Costa Rica, returned from a knee surgery last month to haunt the country where he plays club football for Liverpool to score in the 39th and 85th minutes and keep Uruguay afloat in the tournament.