HH 262 is a group of emitting knots displaying an `hour-glass' morphology in the Hα and [SII] lines, located 3.5 arcmin to the north-east of the young stellar object L1551-IRS5, in Taurus. We present new results of the kinematics and physical conditions of HH 262 based on Integral Field Spectroscopy covering a field of ~1.5 × 3 arcmin2, which includes all the bright knots in HH 262. These data show complex kinematics and significant variations in physical conditions over the mapped region of HH 262 on a spatial scale of <=3 arcsec. A new result derived from the Integral Field Spectroscopy data is the weakness of the [NII] emission (below detection limit in most of the mapped region of HH 262), including the brightest central knots. Our data reinforce the association of HH 262 with the redshifted lobe of the evolved molecular outflow L1551-IRS5. The interaction of this outflow with a younger one, powered by L1551 NE, around the position of HH 262 could give rise to the complex morphology and kinematics of HH 262.