diff --git a/packages/block-editor/src/components/block-popover/inbetween.js b/packages/block-editor/src/components/block-popover/inbetween.js
index 64f29bc3eddcd..47a0a8149863e 100644
--- a/packages/block-editor/src/components/block-popover/inbetween.js
+++ b/packages/block-editor/src/components/block-popover/inbetween.js
@@ -197,7 +197,12 @@ function BlockPopoverInbetween( {
 			) }
 			__unstableForcePosition
 		>
-			<div style={ style }>{ children }</div>
+			<div
+				className="block-editor-block-popover__inbetween-container"
+				style={ style }
+			>
+				{ children }
+			</div>
 		</Popover>
 	);
 	/* eslint-enable jsx-a11y/no-static-element-interactions, jsx-a11y/click-events-have-key-events */
diff --git a/packages/block-editor/src/components/block-popover/style.scss b/packages/block-editor/src/components/block-popover/style.scss
index df2218950999e..f8362d40ab32c 100644
--- a/packages/block-editor/src/components/block-popover/style.scss
+++ b/packages/block-editor/src/components/block-popover/style.scss
@@ -18,11 +18,15 @@
 
 		// Allow clicking through the toolbar holder.
 		pointer-events: none;
-
-		// Position the block toolbar.
-		> * {
+		> div > * {
 			pointer-events: all;
 		}
 	}
 }
 
+.block-editor-block-popover__inbetween-container {
+	pointer-events: none !important;
+	> div > * {
+		pointer-events: all;
+	}
+}