diff --git a/docs/reference-guides/core-blocks.md b/docs/reference-guides/core-blocks.md
index b091f9d143b7ad..1da60d60aff08d 100644
--- a/docs/reference-guides/core-blocks.md
+++ b/docs/reference-guides/core-blocks.md
@@ -630,7 +630,7 @@ Display a post's featured image. ([Source](https://github.com/WordPress/gutenber
 -	**Name:** core/post-featured-image
 -	**Category:** theme
 -	**Supports:** align (center, full, left, right, wide), color (~~background~~, ~~text~~), spacing (margin, padding), ~~html~~
--	**Attributes:** aspectRatio, customGradient, customOverlayColor, dimRatio, gradient, height, isLink, linkTarget, overlayColor, rel, scale, sizeSlug, width
+-	**Attributes:** aspectRatio, customGradient, customOverlayColor, dimRatio, gradient, height, isLink, linkTarget, overlayColor, rel, scale, sizeSlug, useFirstImageFromPost, width
 
 ## Post Navigation Link
 
diff --git a/packages/block-library/src/post-featured-image/block.json b/packages/block-library/src/post-featured-image/block.json
index 34e3bd6b2325fa..4c4ba6919eaff6 100644
--- a/packages/block-library/src/post-featured-image/block.json
+++ b/packages/block-library/src/post-featured-image/block.json
@@ -51,6 +51,10 @@
 		},
 		"customGradient": {
 			"type": "string"
+		},
+		"useFirstImageFromPost": {
+			"type": "boolean",
+			"default": false
 		}
 	},
 	"usesContext": [ "postId", "postType", "queryId" ],
diff --git a/packages/block-library/src/post-featured-image/edit.js b/packages/block-library/src/post-featured-image/edit.js
index 843f1cf66cdfcd..26f3439964f90e 100644
--- a/packages/block-library/src/post-featured-image/edit.js
+++ b/packages/block-library/src/post-featured-image/edit.js
@@ -25,6 +25,7 @@ import {
 	store as blockEditorStore,
 	__experimentalUseBorderProps as useBorderProps,
 } from '@wordpress/block-editor';
+import { useMemo } from '@wordpress/element';
 import { __, sprintf } from '@wordpress/i18n';
 import { upload } from '@wordpress/icons';
 import { store as noticesStore } from '@wordpress/notices';
@@ -64,14 +65,44 @@ export default function PostFeaturedImageEdit( {
 		sizeSlug,
 		rel,
 		linkTarget,
+		useFirstImageFromPost,
 	} = attributes;
-	const [ featuredImage, setFeaturedImage ] = useEntityProp(
+
+	const [ storedFeaturedImage, setFeaturedImage ] = useEntityProp(
 		'postType',
 		postTypeSlug,
 		'featured_media',
 		postId
 	);
 
+	// Fallback to post content if no featured image is set.
+	// This is needed for the "Use first image from post" option.
+	const [ postContent ] = useEntityProp(
+		'postType',
+		postTypeSlug,
+		'content',
+		postId
+	);
+
+	const featuredImage = useMemo( () => {
+		if ( storedFeaturedImage ) {
+			return storedFeaturedImage;
+		}
+
+		if ( ! useFirstImageFromPost ) {
+			return;
+		}
+
+		const imageOpener =
+			/<!--\s+wp:(?:core\/)?image\s+(?<attrs>{(?:(?:[^}]+|}+(?=})|(?!}\s+\/?-->).)*)?}\s+)?-->/.exec(
+				postContent
+			);
+		const imageId =
+			imageOpener?.groups?.attrs &&
+			JSON.parse( imageOpener.groups.attrs )?.id;
+		return imageId;
+	}, [ storedFeaturedImage, useFirstImageFromPost, postContent ] );
+
 	const { media, postType, postPermalink } = useSelect(
 		( select ) => {
 			const { getMedia, getPostType, getEditedEntityRecord } =
diff --git a/packages/block-library/src/post-featured-image/index.php b/packages/block-library/src/post-featured-image/index.php
index 4a7aa2f3d8ab94..9a1fd315bb9524 100644
--- a/packages/block-library/src/post-featured-image/index.php
+++ b/packages/block-library/src/post-featured-image/index.php
@@ -54,9 +54,40 @@ function render_block_core_post_featured_image( $attributes, $content, $block )
 	}
 
 	$featured_image = get_the_post_thumbnail( $post_ID, $size_slug, $attr );
+
+	// Get the first image from the post.
+	if ( $attributes['useFirstImageFromPost'] && ! $featured_image ) {
+		$content_post = get_post( $post_ID );
+		$content      = $content_post->post_content;
+		$processor    = new WP_HTML_Tag_Processor( $content );
+
+		/*
+		 * Transfer the image tag from the post into a new text snippet.
+		 * Because the HTML API doesn't currently expose a way to extract
+		 * HTML substrings this is necessary as a workaround. Of note, this
+		 * is different than directly extracting the IMG tag:
+		 * - If there are duplicate attributes in the source there will only be one in the output.
+		 * - If there are single-quoted or unquoted attributes they will be double-quoted in the output.
+		 * - If there are named character references in the attribute values they may be replaced with their direct code points. E.g. `&hellip;` becomes `…`.
+		 * In the future there will likely be a mechanism to copy snippets of HTML from
+		 * one document into another, via the HTML Processor's `get_outer_html()` or
+		 * equivalent. When that happens it would be appropriate to replace this custom
+		 * code with that canonical code.
+		 */
+		if ( $processor->next_tag( 'img' ) ) {
+			$tag_html = new WP_HTML_Tag_Processor( '<img>' );
+			$tag_html->next_tag();
+			foreach ( $processor->get_attribute_names_with_prefix( '' ) as $name ) {
+				$tag_html->set_attribute( $name, $processor->get_attribute( $name ) );
+			}
+			$featured_image = $tag_html->get_updated_html();
+		}
+	}
+
 	if ( ! $featured_image ) {
 		return '';
 	}
+
 	if ( $is_link ) {
 		$link_target    = $attributes['linkTarget'];
 		$rel            = ! empty( $attributes['rel'] ) ? 'rel="' . esc_attr( $attributes['rel'] ) . '"' : '';
diff --git a/test/integration/fixtures/blocks/core__post-featured-image.json b/test/integration/fixtures/blocks/core__post-featured-image.json
index 158007533a3f2b..dec6e14712a3a2 100644
--- a/test/integration/fixtures/blocks/core__post-featured-image.json
+++ b/test/integration/fixtures/blocks/core__post-featured-image.json
@@ -7,7 +7,8 @@
 			"scale": "cover",
 			"rel": "",
 			"linkTarget": "_self",
-			"dimRatio": 0
+			"dimRatio": 0,
+			"useFirstImageFromPost": false
 		},
 		"innerBlocks": []
 	}