Arrow's Origin future was clouded after he was axed from camp Maroon last season for breaching COVID-19 protocols.
The South Sydney workhorse was 18th man for the Maroons' Origin I victory in Sydney, but has been included as one of two additions to Billy Slater's side to play at Optus Stadium on Sunday.
Powerful North Queensland winger Taulagi is the other change, the 23-year-old in for injured Melbourne flyer Xavier Coates.
Arrow will replace Pat Carrigan on the bench, who has the task of filling the void left by injured lock Reuben Cotter, whose herculean 80-minute effort in the middle on debut helped set up Queensland's 16-10 upset win.
The South Sydney forward's decision to invite a woman into the team's Gold Coast camp last year breached the NRL's strict COVID-19 protocols and prompted a fine and suspension from Origin III.
However new coach Slater absolved Arrow of his sins during a pre-series heart-to-heart and the 26-year-old is now poised to play the 10th game for his state.
Brisbane winger Corey Oates and underrated Gold Coast backrower Beau Fermor have been added to the extended squad, Slater's only changes forced by injuries in stark contrast to his NSW opposite.
Despite the narrow margin in the series opener, the Blues have made seven changes to their squad and are poised to make five changes to their 17 for the Optus Stadium rematch.
The win in Sydney was Queensland's first since 2017 and has put them in the box seat to blunt any notion of a Blues Origin stranglehold with a second series victory in five years.
QUEENSLAND TEAM FOR ORIGIN II: Kalyn Ponga, Selywn Cobbo, Valentine Holmes, Dane Gagai, Murray Taulagi, Cameron Munster, Daly Cherry-Evans (capt), Tino Fa'asuamaleaui, Ben Hunt, Josh Papalii, Kurt Capewell, Felise Kaufusi, Pat Carrigan. Interchange: Harry Grant, Lindsay Collins, Jai Arrow, Jeremiah Nanai. Reserves: Tom Dearden, Beau Fermor, Thomas Flegler, Hamiso Tabuai-Fidow, Corey Oates.
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