The 20-year-old completes a season-long loan move to Bescot having regularly found the net for the Potters' under-23s since joining them from Salford City in 2020.
James-Taylor has scored 16 goals in 35 Premier League 2 matches and grabbed a seven-minute hat-trick against Southend United in the Premier League Cup last year.
He also had loan spells at National League side Wealdstone and National League North outfit AFC Fylde last season – notching twice for the latter.
“As someone who wants to try and achieve things in football, a league loan is a huge thing for me and hopefully I will be successful,” said James-Taylor.
“It’s another step up, so I have now got to push myself even harder and see what I can do with the club.
“I would say that I am powerful, I am fast and I am strong. I like to think that I am good at finishing and scoring goals as well.”
Saddlers chief Michael Flynn says James-Taylor can be used as either a centre-forward or winger.
"Douglas is coming in and is a very exciting player,” added Flynn.
“He’s scored goals and had men’s football out on loan, he’s got a fantastic attitude and he’s a very bright young man.
“He’s coming in with the right attitude to provide competition up front and out wide.”