England could only add 57 runs to their overnight score of 176-4 as Australia moved a step closer to taking back the Ashes.
England's notable recovery from an abject first innings with the bat has set up an intriguing final day in Adelaide.
Chris Woakes and James Anderson take two wickets apiece before stumps at the Adelaide Oval after Australia decide not to enforce the follow-on leading by 215 runs.
A century from Shaun Marsh puts Australia in control of the second Ashes Test in Adelaide as rain forced an early stoppage on day 2.
Australia lose their two most influential batsmen on day one of the second Ashes Test in Adelaide, but England take just four total wickets after Joe Root elects to bowl first.
Ben Stokes has flown to New Zealand to play domestic cricket as his participation in the Ashes series continues to hang in the balance.
England coach Trevor Bayliss unhappy with incident and blames his players for "making dumb decisions time after time".
Root says the margin of defeat was harsh on England after they were neck-and-neck with Australia for the first three days of the match at the Gabba.
England had started day four at 33 for two but failed to make any sort of headway as wickets kept falling at regular intervals.
Steven Smith scored an unbeaten 141 to help Australia to a 26-run lead, putting in a performance deserving of top billing at the Gabba.
Australia edged to 165 for 4 at the end of the second day, trailing England by 137 runs with six wickets in hand.
James Vince made 83 before he was run out in the final session as England closed on 196-4 against Australia.
Australia and England are braced to contest the 71st Ashes series this week - but how do you follow a series played at night? IBTimes UK explains all.
England have won just one of the last five Ashes series in Australia and were whitewashed in 2013-14.
England face an uphill task to regain the Women's Ashes despite securing a draw in the one-off Test against Australia.