diff --git a/packages/block-editor/src/components/rich-text/index.js b/packages/block-editor/src/components/rich-text/index.js
index 1cf2c6225afaa0..adbbdeeee7098d 100644
--- a/packages/block-editor/src/components/rich-text/index.js
+++ b/packages/block-editor/src/components/rich-text/index.js
@@ -2,7 +2,7 @@
  * External dependencies
  */
 import classnames from 'classnames';
-import { omit } from 'lodash';
+import { castArray, omit } from 'lodash';
 
 /**
  * WordPress dependencies
@@ -64,9 +64,10 @@ class RichTextWrapper extends Component {
 			} );
 
 			if ( transformation ) {
-				onReplace( [
+				onReplace( castArray(
 					transformation.transform( { content: value.text } ),
-				] );
+				) );
+				return;
 			}
 		}
 
diff --git a/packages/block-library/src/verse/edit.js b/packages/block-library/src/verse/edit.js
index ff0beac6622fc1..08d4d83dea4c46 100644
--- a/packages/block-library/src/verse/edit.js
+++ b/packages/block-library/src/verse/edit.js
@@ -13,7 +13,7 @@ import {
 	AlignmentToolbar,
 } from '@wordpress/block-editor';
 
-export default function VerseEdit( { attributes, setAttributes, className, mergeBlocks } ) {
+export default function VerseEdit( { attributes, setAttributes, className, mergeBlocks, onReplace } ) {
 	const { textAlign, content } = attributes;
 
 	return (
@@ -40,6 +40,7 @@ export default function VerseEdit( { attributes, setAttributes, className, merge
 					[ `has-text-align-${ textAlign }` ]: textAlign,
 				} ) }
 				onMerge={ mergeBlocks }
+				onReplace={ onReplace }
 			/>
 		</>
 	);
diff --git a/packages/block-library/src/verse/tranforms.js b/packages/block-library/src/verse/tranforms.js
index 240b1ac023e1d9..d4d4de9762b334 100644
--- a/packages/block-library/src/verse/tranforms.js
+++ b/packages/block-library/src/verse/tranforms.js
@@ -5,6 +5,16 @@ import { createBlock } from '@wordpress/blocks';
 
 const transforms = {
 	from: [
+		{
+			type: 'enter',
+			regExp: /\n$/,
+			transform: ( { content } ) => [
+				createBlock( 'core/verse', {
+					content: content.replace( /\n$/, '' ),
+				} ),
+				createBlock( 'core/paragraph' ),
+			],
+		},
 		{
 			type: 'block',
 			blocks: [ 'core/paragraph' ],