Costinha spares Portugal blushes
Smith had made only two prior appearances for The Three Lions, both as a substitute, but scored a superb goal on 40 minutes after an excellent cross from the right by Lee Bowyer, who was also making his debut.
Despite making a bright start to the encounter Sven Goran Eriksson's men faded in the second period, with Portugal deservedly levelling matters through Costinha late on.
As early on as the second minute Smith was creating problems for the visitors. The Leeds United hit-man shrugged off the challenge of Fernando Couto and feed Bowyer, however the midfielder's shot was saved by Baia.
After absorbing all of England's early efforts, the visitors slowly by surely started to exert themselves onto the encounter. The likes of Real Madrid's Luis Figo and Sergio Conceicao started creating time and space forcing England onto the back foot.
Nicky Butt almost scored his first goal in an England shirt, however the Manchester United star fluffed his shot, after good work by Smith and Emile Heskey allowed the midfielder to burst into the box.
David James then saved well at the feet of Figo, before a deflected cross by Bowyer almost caught Baia out at the near post.
Just when it looked like the sides might go in level at the break Smith grabbed the vital goal. James started a swift break involving Heskey and Owen, before Bowyer crossed superbly for Smith.
Despite hoping to play his star players for as long as possible coach Sven Goran Eriksson made numerous changes bringing on Jonathon Woodgate, Wayne Bridge, Owen Hargreaves and David Dunn.
The changes seemed to disrupt the rhythm of the home side, whilst Portugal, who made nine changes of their own, started to create goal scoring chances of their own.
Twice in a matter of minutes Portugal could have found themselves back on lever terms. Firstly Nicky Butt inadvertently directed a corner onto his cross bar, whilst substitute Nuno Gomes should have done better with a free header at the back post.
Meanwhile, with the likes of Dunn, and now Joe Cole on the field, England kept probing for a decisive second goal. Cole burst into the box, after a clever pass from Dunn, however Heskey failed to make any real connection at the near post on 65 minutes.
Only second later Portugal could and should have been level. A superb quick break involving substitutes Luis Boa Morte and the influential Hugo Viana sent the visitors away, however Capucho failed to play in a telling cross with England stretched at the back.
Moments after Joe Cole tested Baia's replacement Pereira, Portugal had struck an equaliser. Costinha shrugged off his marker Wayne Bridge and headed over Hargreaves at the near post for a fully deserved goal.
England pushed forward for a late winner, however they never looked like regaining the advantage. Despite failing to hang on to the win Eriksson will have been pleased with some of the new players in his squad ahead of the sides' start to their Euro 2004 Championship qualifying campaign.
Match Player Ratings:
England: D James 6; A Cole 7 (W Bridge 6), R Ferdinand 7 (Woodgate 6), G Southgate, D Mills 7 (Hargreaves 6); E Heskey, N Butt 7 (J Cole 6), S Gerrard 7 (Dunn 6) L Bowyer 7 (T Sinclair 6); A Smith 8, M Owen 6 (D Murphy 6).