Taylor, 27, who emerged untroubled from his comeback game for Edinburgh against Newport Gwent Dragons in the Magners League last weekend, will win his 47th cap. He replaces the injured captain Jason White in the only change in the pack.
Taylor had to undergo reconstructive surgery on the medial ligament in his left knee in mid-year, after he damaged it playing against Connacht in a league match in Galway in May.
In the backs there is a double change at halfback, with Chris Cusiter and Dan Parks paired. Andrew Henderson is in his familiar inside centre berth and Chris Paterson is restored to the starting line-up at full-back.
Wings Sean Lamont and Simon Webster swap beats.
Paterson will captain the side, having led Scotland previously throughout the 2004 Six Nations championship, while Scott Murray will lead the pack.
On the bench Ross Ford and Alastair Kellock are introduced to the personnel who were on duty in the 48-6 win against Romania.
Hadden said the Taylor's return will soften the blow of White's loss.
"It's obviously a blow to lose Jason [White], but to be able to call upon Simon [Taylor] means that we have proven quality and experience in our back-row.
"I know Simon well and I also trust the guidance of our medical team headed by Dr James Robson. I would never gamble on a player's fitness."
Hadden noted that the changes in the backs reflected his desire to cast his eye over players who have traditionally served their country well.
"We have scored 114 points in our last two appearances at Murrayfield. Wales had to play out of their skins to beat the Pacific Islanders last weekend. I think both sides are well set to produce an absolute cracker on Saturday," he added.
Scotland: 15 Chris Paterson (Edinburgh, captain), 14 Simon Webster (Edinburgh), 13 Marcus Di Rollo (Edinburgh), 12 Andrew Henderson (Glasgow), 11 Sean Lamont (Northampton Saints), 10 Dan Parks (Glasgow), 9 Chris Cusiter (Border Reivers), 8 Johnnie Beattie (Glasgow Warriors), 7 Kelly Brown (Border Reivers), 6 Simon Taylor (Edinburgh), 5 Scott Murray (Edinburgh), 4 Nathan Hines (Perpignan), 3 Euan Murray (Glasgow Warriors), 2 Dougie Hall (Edinburgh), 1 Gavin Kerr (Border Reivers).
Replacements: 16 Ross Ford (Border Reivers), 17 Allan Jacobsen (Edinburgh), 18 Alastair Kellock (Glasgow Warriors), 19 Dave Callam (Edinburgh), 20 Mike Blair (Edinburgh), 21 Phil Godman (Edinburgh), 22 Hugo Southwell (Edinburgh).
Date: Saturday, 18 November
Venue: Murrayfield, Edinburgh
Kick-off: 14.30 GMT
Referee: Bryce Lawrence (New Zealand)
Touch-judges: Alan Lewis and George Clancy (both Ireland)
TMO: Hugh Watkins (Wales)