Taylor has been listed as questionable with a bruised patellar tendon in his left knee and was considered a game-time decision by Bills coach Sean McDermott.
The Bills are 6-6 and contending for an AFC wild-card berth entering the game against the Indianapolis Colts.
Taylor was injured on the first play last Sunday against New England but remained in the game until early in the fourth quarter, when he was sacked while scrambling toward the sideline and was carted off. In his place, Peterman completed 6 of 15 passes for 50 yards.
The Bills benched Taylor before their Nov. 19 game against the Chargers in favor of Peterman, a fifth-round draft pick in 2017. Peterman threw five interceptions in the first half before being replaced by Taylor, who held on to the starting job the following week.