Dawid Malan continued his fine form with his third consecutive fifty but once he fell, England could not press home the advantage as New Zealand secured a 12-run win.
With three games left in the tri-series, co-hosts Australia are already into the final having beaten England twice and New Zealand once.
England opener Jason Roy insists his side possess a fierce determination to retaliate following back-to-back defeats to Australia as they bid to ignite their Twenty20 tri-series campaign against New Zealand on Tuesday.
De Grandhomme went first ball after he was brilliantly caught by Chris Jordan on the boundary when the pace bowler leapt to take a one-handed catch before landing just inside the rope.
Williamson has batted at No. 3 in recent series, with limited success, and New Zealand have lost three T20s in a row - in the process dropping from No. 1 to No. 4 in the ICC rankings.
Opener Martin Guptill had earlier feasted on some inconsistent bowling, setting the tone while Williamson found his feet to score 65 off 40 balls. When Willey was run out failing to scamper a bye off the final ball of the 19th - a boneheaded play considering he needed to be on strike for the final over - getting 25 from the last six balls was always beyond Adil Rashid and the No 11 Mark Wood.
'We don't play a huge amount of worldwide Twenty20s and the boys haven't played an terrible lot of this game over the last few months so we've got to work out why we're slow in locating the rhythm needed for the shorter game.
"I thought the ball was going to roll a bit further.then it didn't", he said of his misjudged single.
"They added a lot of energy, which was great", Williamson said.
Trent Boult of New Zealand celebrates with his teammates.
Debutants Mark Chapman (20) and Tim Seifert (14 not out) kept the run rate high at the tail end of the innings. "But it was purely a balance and a role-type decision and that's why Timmy comes into the fold and it's a really exciting opportunity for himself and Mark to make their debuts for New Zealand and come out and play their natural game, which they've been doing so well in the domestic T20 comps". With a brittle middle order even with Morgan, things might get a lot worse without him.
"It's hard when you've got three teams and they are all trying to play cricket at the same time".