The ex-Aston Villa midfielder believes that the youngster is a special talent.
The 20-year-old Birmingham native has made headlines for good and bad reasons already in his burgeoning career, having been photographed asleep on a road in Tenerife during a night out last June.
In November, he was filmed partying with friends hours after Villa's 4-0 defeat to Everton, with manager Remi Garde making him train with the club's Under-21 side for a while after that.
On the pitch, he has shown glimpses of his talent, and scored his first goal earlier this season - a wonder strike at Leicester during Tim Sherwood's Villa reign - but a lack of form and fitness has curtailed his progress somewhat.
"He's a young player who's been catapulted into the limelight and I think he's got to come to terms with the fact that it brings its pitfalls. He has to curb his actions somewhat," legendary midfielder Taylor told Newstalk's Off the Ball show.
"I've seen many players that have the talent and technique, but they don't make it because their attitude's not been right they've not done things properly.
"Local fans want a hero. They want someone to look up to and someone to cheer for and if he behaves in the right way he could be an absolute hero for Aston Villa. He's a special talent and he needs to think about his football first and foremost."
Grealish has been out of action since January with an ankle injury, and it remains to be seen where his future lies.
Garde's side sit rock bottom of the Premier League table, 12 points from safety and seemingly on the verge of being relegated, and it will be interesting to see if any clubs move to keep Grealish in the top flight.