England, needing just 35 runs with four wickets in hand, suffered a dramatic collapse to lose by six runs, handing India a thrilling victory and ensuring the five-match series ended level at 2-2.
The turning point came late on Day 4, with England well placed at 301/3 as Harry Brook and Joe Root looked set to guide them to a win. But Brook was caught by Mohammed Siraj off Akash Deep, triggering a late-day wobble. Root soon followed, and England's collapse was completed on the final day.
"...Ben Stokes in that team, England would've won this Test match. He plays such a big role in this team, the mentality... England did panic (on the fifth morning)," Vaughan told BBC's Test Match Special.
"They just needed one partnership. They panicked in the way that they play, [where] they play with a huge amount of aggressiveness.
"Yesterday (Sunday) afternoon, the Harry Brook dismissal did cause that collapse, but it's the way England play."
Stokes missed the match due to a shoulder injury, while pacers Jofra Archer and Brydon Carse were also rested. Despite England's strong position, the lower order couldn't hold firm against a determined Indian attack.
Akash Deep, who dismissed Brook, and Siraj, who took a key catch, played vital roles in India's comeback. The match ended on a Monday, though the location was not specified.
The series now turns England's focus towards the upcoming Ashes, scheduled to begin in November 2025 in Australia.
"We'll arrive in Perth for that first Test and know the top seven. It's just a matter of the bowling attack and getting that right," added Vaughan.
"Clearly, Ben Stokes is going to have to get fit. With Ben Stokes in the England side, they can beat anybody. Without him, they can lose to anybody."
Stephen Fleming says he would "love to be in charge of the number one Test team in the world" as he steps in to become England's head coach in the longest format of the game.
England completed a clean sweep of victories in the three-match T20I series against Sri Lanka after a convincing eight-wicket win in the final clash at Old Trafford on Sunday.
Brendon McCullum has issued a warning to Brydon Carse to get his "house in order" if he wants to resurrect his international career with England.
England Test coach Stephen Fleming will join the white-ball squad for the T20I series against Sri Lanka that starts in Southampton on Tuesday.
