diff --git a/xmodule/modulestore/inheritance.py b/xmodule/modulestore/inheritance.py
index bf05a192ec59..91ad17f2f701 100644
--- a/xmodule/modulestore/inheritance.py
+++ b/xmodule/modulestore/inheritance.py
@@ -287,7 +287,12 @@ def compute_inherited_metadata(descriptor):
                 # inherited_settings values are json repr
                 parent_metadata[field.name] = field.read_json(descriptor)
 
-        for child in descriptor.get_children():
+        get_children_kwargs = {}  # @medality_custom start
+
+        if descriptor.category == "select_from_library":
+            get_children_kwargs["context"] = "course_import"
+
+        for child in descriptor.get_children(**get_children_kwargs):  # @medality_custom end
             inherit_metadata(child, parent_metadata)
             compute_inherited_metadata(child)
 
diff --git a/xmodule/modulestore/xml.py b/xmodule/modulestore/xml.py
index 0830281ba426..7801e2a1cc08 100644
--- a/xmodule/modulestore/xml.py
+++ b/xmodule/modulestore/xml.py
@@ -204,7 +204,12 @@ def fallback_name(orig_name=None):
             xmlstore.modules[course_id][descriptor.scope_ids.usage_id] = descriptor
 
             if descriptor.has_children:
-                for child in descriptor.get_children():
+                get_children_kwargs = {}  # @medality_custom start
+
+                if descriptor.category == "select_from_library":
+                    get_children_kwargs["context"] = "course_import"
+
+                for child in descriptor.get_children(**get_children_kwargs):  # @medality_custom end
                     # parent is alphabetically least
                     if child.parent is None or child.parent > descriptor.scope_ids.usage_id:
                         child.parent = descriptor.location
diff --git a/xmodule/modulestore/xml_importer.py b/xmodule/modulestore/xml_importer.py
index d7824f5edd99..ce15e9c17484 100644
--- a/xmodule/modulestore/xml_importer.py
+++ b/xmodule/modulestore/xml_importer.py
@@ -489,7 +489,12 @@ def depth_first(subtree):
             Import top down just so import code can make assumptions about parents always being available
             """
             if subtree.has_children:
-                for child in subtree.get_children():
+                get_children_kwargs = {}  # @medality_custom start
+
+                if subtree.category == "select_from_library":
+                    get_children_kwargs["context"] = "course_import"
+
+                for child in subtree.get_children(**get_children_kwargs):  # @medality_custom end
                     try:
                         all_locs.remove(child.location)
                     except KeyError:
@@ -858,7 +863,9 @@ def _convert_ref_fields_to_new_namespace(reference):
     fields = _update_module_references(module, source_course_id, dest_course_id)
     asides = module.get_asides() if isinstance(module, XModuleMixin) else None
 
-    if module.location.block_type == 'library_content':
+    lib_content_block_already_published = False  # @medality_custom
+
+    if module.location.block_type == 'library_content' or module.location.block_type == 'library_content':  # @medality_custom
         with store.branch_setting(branch_setting=ModuleStoreEnum.Branch.published_only):
             lib_content_block_already_published = store.has_item(module.location)
 
@@ -875,7 +882,7 @@ def _convert_ref_fields_to_new_namespace(reference):
     # Special case handling for library content blocks. The fact that this is
     # in Modulestore code is _bad_ and breaks abstraction barriers, but is too
     # much work to factor out at this point.
-    if block.location.block_type == 'library_content':
+    if block.location.block_type == 'library_content' or block.location.block_type == 'select_from_library':  # @medality_custom
         # If library exists, update source_library_version and children
         # according to this existing library and library content block.
         if block.source_library_id and store.get_library(block.source_library_key):