diff --git a/packages/block-library/src/gallery/edit.js b/packages/block-library/src/gallery/edit.js
index d0ba808946d7a9..41240ac6c48be6 100644
--- a/packages/block-library/src/gallery/edit.js
+++ b/packages/block-library/src/gallery/edit.js
@@ -187,10 +187,30 @@ function GalleryEdit( props ) {
 				? `is-style-${ preferredStyle }`
 				: undefined;
 		}
+
+		let newLinkTarget;
+		if ( imageAttributes.linkTarget || imageAttributes.rel ) {
+			// When transformed from image blocks, the link destination and rel attributes are inherited.
+			newLinkTarget = {
+				linkTarget: imageAttributes.linkTarget,
+				rel: imageAttributes.rel,
+			};
+		} else {
+			// When an image is added, update the link destination and rel attributes according to the gallery settings
+			newLinkTarget = getUpdatedLinkTargetSettings(
+				linkTarget,
+				attributes
+			);
+		}
+
 		return {
 			...pickRelevantMediaFiles( image, sizeSlug ),
-			...getHrefAndDestination( image, linkTo ),
-			...getUpdatedLinkTargetSettings( linkTarget, attributes ),
+			...getHrefAndDestination(
+				image,
+				linkTo,
+				imageAttributes?.linkDestination
+			),
+			...newLinkTarget,
 			className: newClassName,
 			sizeSlug,
 			caption: imageAttributes.caption || image.caption?.raw,
diff --git a/packages/block-library/src/gallery/transforms.js b/packages/block-library/src/gallery/transforms.js
index 553596f91a8cb7..1be5815c69ab17 100644
--- a/packages/block-library/src/gallery/transforms.js
+++ b/packages/block-library/src/gallery/transforms.js
@@ -144,6 +144,9 @@ const transforms = {
 
 				if ( isGalleryV2Enabled() ) {
 					const innerBlocks = validImages.map( ( image ) => {
+						// Gallery images can't currently be resized so make sure height and width are undefined.
+						image.width = undefined;
+						image.height = undefined;
 						return createBlock( 'core/image', image );
 					} );
 
@@ -302,26 +305,36 @@ const transforms = {
 						return innerBlocks.map(
 							( {
 								attributes: {
-									id,
 									url,
 									alt,
 									caption,
+									title,
+									href,
+									rel,
+									linkClass,
+									id,
 									sizeSlug: imageSizeSlug,
 									linkDestination,
-									href,
 									linkTarget,
+									anchor,
+									className,
 								},
 							} ) =>
 								createBlock( 'core/image', {
-									id,
+									align,
 									url,
 									alt,
 									caption,
+									title,
+									href,
+									rel,
+									linkClass,
+									id,
 									sizeSlug: imageSizeSlug,
-									align,
 									linkDestination,
-									href,
 									linkTarget,
+									anchor,
+									className,
 								} )
 						);
 					}
diff --git a/packages/block-library/src/gallery/utils.js b/packages/block-library/src/gallery/utils.js
index 71da9db0b7fc24..15f2062ea943da 100644
--- a/packages/block-library/src/gallery/utils.js
+++ b/packages/block-library/src/gallery/utils.js
@@ -15,18 +15,22 @@ import {
 } from '../image/constants';
 
 /**
- * Determines new href and linkDestination values for an image block from the
- * supplied Gallery link destination.
+ * Determines new href and linkDestination values for an Image block from the
+ * supplied Gallery link destination, or falls back to the Image blocks link.
  *
- * @param {Object} image       Gallery image.
- * @param {string} destination Gallery's selected link destination.
+ * @param {Object} image              Gallery image.
+ * @param {string} galleryDestination Gallery's selected link destination.
+ * @param {Object} imageDestination   Image blocks attributes.
  * @return {Object}            New attributes to assign to image block.
  */
-export function getHrefAndDestination( image, destination ) {
+export function getHrefAndDestination(
+	image,
+	galleryDestination,
+	imageDestination
+) {
 	// Gutenberg and WordPress use different constants so if image_default_link_type
 	// option is set we need to map from the WP Core values.
-
-	switch ( destination ) {
+	switch ( imageDestination ? imageDestination : galleryDestination ) {
 		case LINK_DESTINATION_MEDIA_WP_CORE:
 		case LINK_DESTINATION_MEDIA:
 			return {