A maiden Test century by recalled Ross Taylor, who featured in a seventh-wicket stand of 148 with Daniel Vettori, lifted New Zealand from a middle-order slump to an impressive 470.
At stumps England were 87 for two in reply, after reaching 84 without loss, and still trailing New Zealand by 383 runs.
Taylor and Vettori breezed through the morning session and into the afternoon before Taylor fell for 120 and Vettori for 88 as New Zealand's final four wickets went in the space of 45 runs.
Evidence of the role the placid wicket played in New Zealand's innings was put in context as Michael Vaughan and Alastair Cook cruised to 84 without loss before Martin struck twice in seven balls.
Cook was first to fall for 38 when he miscued pulling a short-pitched ball and was caught at square leg by substitute fielder Nick Horsley, then nightwatchman Mathew Hoggard edged Martin to Stephen Fleming at first slip.
Vaughan who had survived a hard chance to Fleming was not out 44 with Andrew Strauss on one.
But the day belonged to Taylor and his captain Vettori who resurrected New Zealand's innings when they were 277 for six.
With the second new ball only seven overs old when play resumed, England were looking for an early breakthrough.
Instead they fed the batsmen a diet of boundaries with five fours coming off the first five overs of the day and New Zealand adding 105 runs in the first session.
Taylor, back in the New Zealand team after being dropped following a disappointing debut series in South Africa last year, brought up the New Zealand 300 with a four off Hoggard that flew over the slips cordon to the third-man boundary.
He reached his century with another boundary after playing out a patient maiden over from Monty Panesar when on 98 he pulled a short-pitched ball from the erratic Steve Harmison to the boundary.
It took an inspired bowling change by England skipper Vaughan to eventually remove Taylor who was caught and bowled when he top-edged the second ball from part-time spinner Kevin Pietersen.
Vettori was in sight of his third Test century when he tried to guide a ball from Paul Collingwood through the gully but was snapped up by Andrew Strauss, the lone slip.
Kyle Mills carried New Zealand past the 450 mark and finished unbeaten on 25 as the New Zealand innings finished with Jeetan Patel and Chris Martin dismissed by Ryan Sidebottom in consecutive balls.
Sidebottom, who will now start the New Zealand second innings sitting on a hattrick finished with four for 90 while Collingwood took two for 42.