He engaged in battle with the Seminole Indians in the Christmas Day Battle of Lake Okeechobee, among the largest U.S.–Indian battles of the 19th century; as a result, he was promoted to brigadier general. In May 1838, Jesup stepped down and placed Taylor in command of all American troops in Florida, a position he held for two years—his reputation as a military leader was growing and he became known as "Old Rough and Ready."[55][56] Taylor was criticized for using bloodhounds in order to track Seminole.[31]
After his long-requested relief was granted, Taylor spent a comfortable year touring the nation with his family and meeting with military leaders. During this period, he began to be interested in politics and corresponded with President William Henry Harrison. He was made commander of the Second Department of the Army's Western Division in May 1841. The sizable territory ran from the Mississippi River westward, south of the 37th parallel north. Stationed in Arkansas, Taylor enjoyed several uneventful years, spending as much time attending to his land speculation as to military matters.