England were bowled out for 156 by Pakistan on day five in Sharjah, collapsing inside two sessions, to lose by 127 runs.
England lost four wickets for 11 runs in the morning session, with Joe Root the first to go, for six, lbw to Yasir Shah (4-44) in the second over of the day.
James Taylor fell for two, edging Zulfiqar Babar (2-31) to slip, before Jonny Bairstow and Samit Patel were both out lbw for ducks.
Alastair Cook (63) notched a 46th Test fifty to prolong the inevitable a little longer, but fell stumped to Shoaib Malik (3-26) soon after lunch as England slipped to a 2-0 series defeat.
England began the day 46-2, with cause for optimism despite still needing a further 238 to win, with their two best batsman of the series - Cook and Root - at the crease.
But Root was trapped in front of his leg stump, playing back to one that kept low from Yasir, while Taylor, Bairstow and Patel all fell inside a calamitous three-over spell.
Taylor was out prodding forward to one from Zulfiqar, with Younus taking a sharp catch at slip. Bairstow used up England's remaining review with his lbw decision, as Yasir hit him on the front pad with a good stride in sweeping, before Patel then became the third wicket of the morning to fall in such a manner, out first ball, playing for turn with one that just went on with the arm from Zulfiqar.
Cook and Adil Rashid (22) played nicely, putting on 49 for the seventh wicket before the latter was bowled playing a loose drive to one that just nipped back from Rahat Ali (1-23) and sent his stumps splattering.
Cook went through to fifty shortly before the break, but Stuart Broad (20), Cook and Ben Stokes (12) fell inside eight overs after the re-start to end the Test and series emphatically in Pakistan's favour.
Broad top-edged an attempted sweep off Yasir to square leg, while Cook and Stokes were both out stumped.
Cook was Shoaib's final wicket in Test cricket, having announced his retirement from the longer format earlier in the game, and Stokes - who batted bravely despite a collarbone joint injury that ruled him out of bowling in the Test - became Yasir's fourth victim to close proceedings.
Watch highlights of the fifth and final day of the third Test between Pakistan and England on Sky Sports 2 from 3pm, followed by The Verdict on the same channel at 4pm.