Australia thumped England by 64 runs to go 2-0 ahead in the five-match series of one-day internationals although victory came with a large slice of controversy at Lord's on Saturday.
England were 141 for three, chasing a daunting 310 to win, when Ben Stokes was given out by the TV umpire for 10 'obstructing the field' for stopping paceman Mitchell Starc's shy at the stumps with his left glove while out of his crease.
The Stokes decision, and another middle-order collapse that included a duck for Jos Buttler and Moeen Ali's cheap dismissal, left England in trouble but a riled Morgan responded in dazzling fashion with a flurry of huge hits before holing for 85 to end the match.
Pat Cummins had the England skipper caught by Glenn Maxwell as the paceman finished with figures of four for 56.
After a rain-delayed start that reduced the match to 49 overs per side, Australia suffered an early blow when opener David Warner was struck on the thumb by a venemous Steven Finn ball in the opening over and was forced off.
Warner suffered a fracture and will miss the last three matches.
Finn bowled Joe Burns through the gate for 22 before George Bailey and Smith set about building a solid platform.
The pair had put on 99 for the second wicket when Bailey went for 54, bowled by a Moeen delivery that turned sharply.
Smith was out for 70 but his dismissal merely released Australia's big hitters and Maxwell, Marsh and Shane Watson smashed England's bowlers all round the ground as 96 runs came off the last 10 overs.
Marsh was particularly cavalier, belting seven fours and three sixes in a 31-ball 64 before being caught off the last delivery of the innings.
Stokes was the pick of England's attack with three for 60.
