diff --git a/packages/block-library/src/template-part/edit/placeholder/index.js b/packages/block-library/src/template-part/edit/placeholder/index.js
index a32d425129ed60..d5ce46f2696919 100644
--- a/packages/block-library/src/template-part/edit/placeholder/index.js
+++ b/packages/block-library/src/template-part/edit/placeholder/index.js
@@ -12,6 +12,7 @@ import { useDispatch, useSelect } from '@wordpress/data';
 import { Placeholder, Dropdown, Button, Spinner } from '@wordpress/components';
 import { serialize } from '@wordpress/blocks';
 import { store as coreStore } from '@wordpress/core-data';
+import { store as blockEditorStore } from '@wordpress/block-editor';
 
 /**
  * Internal dependencies
@@ -34,7 +35,16 @@ export default function TemplatePartPlaceholder( {
 	const { saveEntityRecord } = useDispatch( coreStore );
 	const [ step, setStep ] = useState( PLACEHOLDER_STEPS.initial );
 
-	const { areaIcon, areaLabel } = useSelect(
+	const blockNameWithArea = area
+		? `core/template-part/${ area }`
+		: 'core/template-part';
+
+	const filterPatternsFn = ( pattern ) =>
+		pattern?.blockTypes?.some?.(
+			( blockType ) => blockType === blockNameWithArea
+		);
+
+	const { areaIcon, areaLabel, availablePatterns } = useSelect(
 		( select ) => {
 			// FIXME: @wordpress/block-library should not depend on @wordpress/editor.
 			// Blocks can be loaded into a *non-post* block editor.
@@ -46,9 +56,14 @@ export default function TemplatePartPlaceholder( {
 			const selectedArea = find( definedAreas, { area } );
 			const defaultArea = find( definedAreas, { area: 'uncategorized' } );
 
+			const _availablePatterns = select( blockEditorStore )
+				.__experimentalGetAllowedPatterns?.()
+				.filter( filterPatternsFn );
+
 			return {
 				areaIcon: selectedArea?.icon || defaultArea?.icon,
 				areaLabel: selectedArea?.label || __( 'Template Part' ),
+				availablePatterns: _availablePatterns,
 			};
 		},
 		[ area ]
@@ -95,7 +110,7 @@ export default function TemplatePartPlaceholder( {
 						enableSelection
 							? sprintf(
 									// Translators: %s as template part area title ("Header", "Footer", etc.).
-									'Choose an existing %s or create a new one.',
+									'Connect this block to an existing %s or create a new one.',
 									areaLabel.toLowerCase()
 							  )
 							: sprintf(
@@ -114,32 +129,41 @@ export default function TemplatePartPlaceholder( {
 							renderToggle={ ( { isOpen, onToggle } ) => (
 								<>
 									{ enableSelection && (
-										<Button
-											variant="primary"
-											onClick={ onToggle }
-											aria-expanded={ isOpen }
-										>
-											{ __( 'Choose existing' ) }
-										</Button>
+										<>
+											<Button
+												variant="primary"
+												onClick={ onToggle }
+												aria-expanded={ isOpen }
+											>
+												{ __(
+													// Translators: Connect this placeholder block to an existing template part entity/cpt ("Header", "Footer", etc.).
+													'Connect to existing'
+												) }
+											</Button>
+											<Button
+												variant={
+													enableSelection
+														? 'tertiary'
+														: 'primary'
+												}
+												onClick={ () =>
+													setStep(
+														PLACEHOLDER_STEPS.patterns
+													)
+												}
+											>
+												{ __(
+													// Translators: Create a new template part ("Header", "Footer", etc.).
+													'Create new'
+												) }
+												{ !! availablePatterns?.length &&
+													// Translators: block patterns are available for this action.
+													__(
+														' (patterns available)'
+													) }
+											</Button>
+										</>
 									) }
-									<Button
-										variant={
-											enableSelection
-												? 'tertiary'
-												: 'primary'
-										}
-										onClick={ () =>
-											setStep(
-												PLACEHOLDER_STEPS.patterns
-											)
-										}
-									>
-										{ sprintf(
-											// Translators: %s as template part area title ("Header", "Footer", etc.).
-											'New %s',
-											areaLabel.toLowerCase()
-										) }
-									</Button>
 								</>
 							) }
 							renderContent={ ( { onClose } ) => (
@@ -155,11 +179,11 @@ export default function TemplatePartPlaceholder( {
 			) }
 			{ step === PLACEHOLDER_STEPS.patterns && (
 				<PatternsSetup
-					area={ area }
 					areaLabel={ areaLabel }
 					areaIcon={ areaIcon }
 					onCreate={ onCreate }
 					clientId={ clientId }
+					filterPatternsFn={ filterPatternsFn }
 					resetPlaceholder={ () =>
 						setStep( PLACEHOLDER_STEPS.initial )
 					}
diff --git a/packages/block-library/src/template-part/edit/placeholder/patterns-setup.js b/packages/block-library/src/template-part/edit/placeholder/patterns-setup.js
index fc4f95e89756b8..05b46e28be9a6c 100644
--- a/packages/block-library/src/template-part/edit/placeholder/patterns-setup.js
+++ b/packages/block-library/src/template-part/edit/placeholder/patterns-setup.js
@@ -14,19 +14,13 @@ import {
 } from '@wordpress/components';
 
 export default function PatternsSetup( {
-	area,
 	areaLabel,
 	areaIcon,
 	clientId,
 	onCreate,
 	resetPlaceholder,
+	filterPatternsFn,
 } ) {
-	const blockNameWithArea = area
-		? `core/template-part/${ area }`
-		: 'core/template-part';
-
-	// Restructure onCreate to set the blocks on local state.
-	// Add modal to confirm title and trigger onCreate.
 	const [ title, setTitle ] = useState( __( 'Untitled Template Part' ) );
 	const [ startingBlocks, setStartingBlocks ] = useState( [] );
 	const [ isTitleStep, setIsTitleStep ] = useState( false );
@@ -53,11 +47,7 @@ export default function PatternsSetup( {
 					/>
 				}
 				onBlockPatternSelect={ selectPattern }
-				filterPatternsFn={ ( pattern ) =>
-					pattern?.blockTypes?.some?.(
-						( blockType ) => blockType === blockNameWithArea
-					)
-				}
+				filterPatternsFn={ filterPatternsFn }
 			/>
 			{ isTitleStep && (
 				<Modal