diff --git a/docs/reference-guides/data/data-core-block-editor.md b/docs/reference-guides/data/data-core-block-editor.md
index eaffc0a875ca3b..9e9c1ef140c76a 100644
--- a/docs/reference-guides/data/data-core-block-editor.md
+++ b/docs/reference-guides/data/data-core-block-editor.md
@@ -1263,7 +1263,7 @@ Action that hides the insertion point.
 
 ### insertAfterBlock
 
-Action that inserts an empty block after a given block.
+Action that inserts a default block after a given block.
 
 _Parameters_
 
@@ -1271,7 +1271,7 @@ _Parameters_
 
 ### insertBeforeBlock
 
-Action that inserts an empty block before a given block.
+Action that inserts a default block before a given block.
 
 _Parameters_
 
diff --git a/packages/block-editor/src/components/block-actions/index.js b/packages/block-editor/src/components/block-actions/index.js
index 5d942d2b25c708..760f0f4daabde9 100644
--- a/packages/block-editor/src/components/block-actions/index.js
+++ b/packages/block-editor/src/components/block-actions/index.js
@@ -20,42 +20,55 @@ export default function BlockActions( {
 	children,
 	__experimentalUpdateSelection: updateSelection,
 } ) {
-	const {
-		canInsertBlockType,
-		getBlockRootClientId,
-		getBlocksByClientId,
-		canMoveBlocks,
-		canRemoveBlocks,
-	} = useSelect( blockEditorStore );
 	const { getDefaultBlockName, getGroupingBlockName } =
 		useSelect( blocksStore );
-
-	const blocks = getBlocksByClientId( clientIds );
-	const rootClientId = getBlockRootClientId( clientIds[ 0 ] );
-
-	const canCopyStyles = blocks.every( ( block ) => {
-		return (
-			!! block &&
-			( hasBlockSupport( block.name, 'color' ) ||
-				hasBlockSupport( block.name, 'typography' ) )
-		);
-	} );
-
-	const canDuplicate = blocks.every( ( block ) => {
-		return (
-			!! block &&
-			hasBlockSupport( block.name, 'multiple', true ) &&
-			canInsertBlockType( block.name, rootClientId )
-		);
-	} );
-
-	const canInsertDefaultBlock = canInsertBlockType(
-		getDefaultBlockName(),
-		rootClientId
+	const selected = useSelect(
+		( select ) => {
+			const {
+				canInsertBlockType,
+				getBlockRootClientId,
+				getBlocksByClientId,
+				getDirectInsertBlock,
+				canMoveBlocks,
+				canRemoveBlocks,
+			} = select( blockEditorStore );
+
+			const blocks = getBlocksByClientId( clientIds );
+			const rootClientId = getBlockRootClientId( clientIds[ 0 ] );
+			const canInsertDefaultBlock = canInsertBlockType(
+				getDefaultBlockName(),
+				rootClientId
+			);
+			const directInsertBlock = rootClientId
+				? getDirectInsertBlock( rootClientId )
+				: null;
+
+			return {
+				canMove: canMoveBlocks( clientIds, rootClientId ),
+				canRemove: canRemoveBlocks( clientIds, rootClientId ),
+				canInsertBlock: canInsertDefaultBlock || !! directInsertBlock,
+				canCopyStyles: blocks.every( ( block ) => {
+					return (
+						!! block &&
+						( hasBlockSupport( block.name, 'color' ) ||
+							hasBlockSupport( block.name, 'typography' ) )
+					);
+				} ),
+				canDuplicate: blocks.every( ( block ) => {
+					return (
+						!! block &&
+						hasBlockSupport( block.name, 'multiple', true ) &&
+						canInsertBlockType( block.name, rootClientId )
+					);
+				} ),
+			};
+		},
+		[ clientIds, getDefaultBlockName ]
 	);
+	const { getBlocksByClientId, getBlocks } = useSelect( blockEditorStore );
 
-	const canMove = canMoveBlocks( clientIds, rootClientId );
-	const canRemove = canRemoveBlocks( clientIds, rootClientId );
+	const { canMove, canRemove, canInsertBlock, canCopyStyles, canDuplicate } =
+		selected;
 
 	const {
 		removeBlocks,
@@ -75,11 +88,9 @@ export default function BlockActions( {
 	return children( {
 		canCopyStyles,
 		canDuplicate,
-		canInsertDefaultBlock,
+		canInsertBlock,
 		canMove,
 		canRemove,
-		rootClientId,
-		blocks,
 		onDuplicate() {
 			return duplicateBlocks( clientIds, updateSelection );
 		},
@@ -104,14 +115,17 @@ export default function BlockActions( {
 			setBlockMovingClientId( clientIds[ 0 ] );
 		},
 		onGroup() {
-			if ( ! blocks.length ) {
+			if ( ! clientIds.length ) {
 				return;
 			}
 
 			const groupingBlockName = getGroupingBlockName();
 
 			// Activate the `transform` on `core/group` which does the conversion.
-			const newBlocks = switchToBlockType( blocks, groupingBlockName );
+			const newBlocks = switchToBlockType(
+				getBlocksByClientId( clientIds ),
+				groupingBlockName
+			);
 
 			if ( ! newBlocks ) {
 				return;
@@ -119,12 +133,11 @@ export default function BlockActions( {
 			replaceBlocks( clientIds, newBlocks );
 		},
 		onUngroup() {
-			if ( ! blocks.length ) {
+			if ( ! clientIds.length ) {
 				return;
 			}
 
-			const innerBlocks = blocks[ 0 ].innerBlocks;
-
+			const innerBlocks = getBlocks( clientIds[ 0 ] );
 			if ( ! innerBlocks.length ) {
 				return;
 			}
@@ -132,16 +145,13 @@ export default function BlockActions( {
 			replaceBlocks( clientIds, innerBlocks );
 		},
 		onCopy() {
-			const selectedBlockClientIds = blocks.map(
-				( { clientId } ) => clientId
-			);
-			if ( blocks.length === 1 ) {
-				flashBlock( selectedBlockClientIds[ 0 ] );
+			if ( clientIds.length === 1 ) {
+				flashBlock( clientIds[ 0 ] );
 			}
-			notifyCopy( 'copy', selectedBlockClientIds );
+			notifyCopy( 'copy', clientIds );
 		},
 		async onPasteStyles() {
-			await pasteStyles( blocks );
+			await pasteStyles( getBlocksByClientId( clientIds ) );
 		},
 	} );
 }
diff --git a/packages/block-editor/src/components/block-settings-menu/block-settings-dropdown.js b/packages/block-editor/src/components/block-settings-menu/block-settings-dropdown.js
index ae28ca6e5bad97..f3d22e6557a674 100644
--- a/packages/block-editor/src/components/block-settings-menu/block-settings-dropdown.js
+++ b/packages/block-editor/src/components/block-settings-menu/block-settings-dropdown.js
@@ -33,8 +33,12 @@ const POPOVER_PROPS = {
 	placement: 'bottom-start',
 };
 
-function CopyMenuItem( { blocks, onCopy, label } ) {
-	const ref = useCopyToClipboard( () => serialize( blocks ), onCopy );
+function CopyMenuItem( { clientIds, onCopy, label } ) {
+	const { getBlocksByClientId } = useSelect( blockEditorStore );
+	const ref = useCopyToClipboard(
+		() => serialize( getBlocksByClientId( clientIds ) ),
+		onCopy
+	);
 	const copyMenuItemLabel = label ? label : __( 'Copy' );
 	return <MenuItem ref={ ref }>{ copyMenuItemLabel }</MenuItem>;
 }
@@ -198,7 +202,7 @@ export function BlockSettingsDropdown( {
 			{ ( {
 				canCopyStyles,
 				canDuplicate,
-				canInsertDefaultBlock,
+				canInsertBlock,
 				canMove,
 				canRemove,
 				onDuplicate,
@@ -208,7 +212,6 @@ export function BlockSettingsDropdown( {
 				onCopy,
 				onPasteStyles,
 				onMoveTo,
-				blocks,
 			} ) => (
 				<DropdownMenu
 					icon={ moreVertical }
@@ -245,7 +248,7 @@ export function BlockSettingsDropdown( {
 									'core/block-editor/insert-after',
 									event
 								) &&
-								canInsertDefaultBlock
+								canInsertBlock
 							) {
 								event.preventDefault();
 								setOpenedBlockSettingsMenu( undefined );
@@ -255,7 +258,7 @@ export function BlockSettingsDropdown( {
 									'core/block-editor/insert-before',
 									event
 								) &&
-								canInsertDefaultBlock
+								canInsertBlock
 							) {
 								event.preventDefault();
 								setOpenedBlockSettingsMenu( undefined );
@@ -286,7 +289,7 @@ export function BlockSettingsDropdown( {
 									/>
 								) }
 								<CopyMenuItem
-									blocks={ blocks }
+									clientIds={ clientIds }
 									onCopy={ onCopy }
 								/>
 								{ canDuplicate && (
@@ -301,7 +304,7 @@ export function BlockSettingsDropdown( {
 										{ __( 'Duplicate' ) }
 									</MenuItem>
 								) }
-								{ canInsertDefaultBlock && (
+								{ canInsertBlock && (
 									<>
 										<MenuItem
 											onClick={ pipe(
@@ -327,7 +330,7 @@ export function BlockSettingsDropdown( {
 							{ canCopyStyles && (
 								<MenuGroup>
 									<CopyMenuItem
-										blocks={ blocks }
+										clientIds={ clientIds }
 										onCopy={ onCopy }
 										label={ __( 'Copy styles' ) }
 									/>
diff --git a/packages/block-editor/src/store/actions.js b/packages/block-editor/src/store/actions.js
index 33c76bd2f6e4cf..018c9ff9115185 100644
--- a/packages/block-editor/src/store/actions.js
+++ b/packages/block-editor/src/store/actions.js
@@ -1539,7 +1539,7 @@ export const duplicateBlocks =
 	};
 
 /**
- * Action that inserts an empty block before a given block.
+ * Action that inserts a default block before a given block.
  *
  * @param {string} clientId
  */
@@ -1555,16 +1555,34 @@ export const insertBeforeBlock =
 			return;
 		}
 
-		const firstSelectedIndex = select.getBlockIndex( clientId );
-		return dispatch.insertDefaultBlock(
-			{},
-			rootClientId,
-			firstSelectedIndex
-		);
+		const blockIndex = select.getBlockIndex( clientId );
+		const directInsertBlock = rootClientId
+			? select.getDirectInsertBlock( rootClientId )
+			: null;
+
+		if ( ! directInsertBlock ) {
+			return dispatch.insertDefaultBlock( {}, rootClientId, blockIndex );
+		}
+
+		const copiedAttributes = {};
+		if ( directInsertBlock.attributesToCopy ) {
+			const attributes = select.getBlockAttributes( clientId );
+			directInsertBlock.attributesToCopy.forEach( ( key ) => {
+				if ( attributes[ key ] ) {
+					copiedAttributes[ key ] = attributes[ key ];
+				}
+			} );
+		}
+
+		const block = createBlock( directInsertBlock.name, {
+			...directInsertBlock.attributes,
+			...copiedAttributes,
+		} );
+		return dispatch.insertBlock( block, blockIndex, rootClientId );
 	};
 
 /**
- * Action that inserts an empty block after a given block.
+ * Action that inserts a default block after a given block.
  *
  * @param {string} clientId
  */
@@ -1580,12 +1598,34 @@ export const insertAfterBlock =
 			return;
 		}
 
-		const firstSelectedIndex = select.getBlockIndex( clientId );
-		return dispatch.insertDefaultBlock(
-			{},
-			rootClientId,
-			firstSelectedIndex + 1
-		);
+		const blockIndex = select.getBlockIndex( clientId );
+		const directInsertBlock = rootClientId
+			? select.getDirectInsertBlock( rootClientId )
+			: null;
+
+		if ( ! directInsertBlock ) {
+			return dispatch.insertDefaultBlock(
+				{},
+				rootClientId,
+				blockIndex + 1
+			);
+		}
+
+		const copiedAttributes = {};
+		if ( directInsertBlock.attributesToCopy ) {
+			const attributes = select.getBlockAttributes( clientId );
+			directInsertBlock.attributesToCopy.forEach( ( key ) => {
+				if ( attributes[ key ] ) {
+					copiedAttributes[ key ] = attributes[ key ];
+				}
+			} );
+		}
+
+		const block = createBlock( directInsertBlock.name, {
+			...directInsertBlock.attributes,
+			...copiedAttributes,
+		} );
+		return dispatch.insertBlock( block, blockIndex + 1, rootClientId );
 	};
 
 /**