diff --git a/packages/block-editor/src/components/off-canvas-editor/appender.js b/packages/block-editor/src/components/off-canvas-editor/appender.js
index 0fb19df664f016..5571db2816382d 100644
--- a/packages/block-editor/src/components/off-canvas-editor/appender.js
+++ b/packages/block-editor/src/components/off-canvas-editor/appender.js
@@ -1,7 +1,7 @@
 /**
  * WordPress dependencies
  */
-import { useSelect, useDispatch } from '@wordpress/data';
+import { useSelect } from '@wordpress/data';
 import { forwardRef, useState } from '@wordpress/element';
 /**
  * Internal dependencies
@@ -10,6 +10,7 @@ import { store as blockEditorStore } from '../../store';
 import Inserter from '../inserter';
 import { LinkUI } from './link-ui';
 import { updateAttributes } from './update-attributes';
+import { useInsertedBlock } from './use-inserted-block';
 
 const BLOCKS_WITH_LINK_UI_SUPPORT = [
 	'core/navigation-link',
@@ -36,27 +37,11 @@ export const Appender = forwardRef( ( props, ref ) => {
 		};
 	}, [] );
 
-	const { insertedBlockAttributes, insertedBlockName } = useSelect(
-		( select ) => {
-			const { getBlockName, getBlockAttributes } =
-				select( blockEditorStore );
-
-			return {
-				insertedBlockAttributes: getBlockAttributes(
-					insertedBlockClientId
-				),
-				insertedBlockName: getBlockName( insertedBlockClientId ),
-			};
-		},
-		[ insertedBlockClientId ]
-	);
-
-	const { updateBlockAttributes } = useDispatch( blockEditorStore );
-
-	const setAttributes =
-		( _insertedBlockClientId ) => ( _updatedAttributes ) => {
-			updateBlockAttributes( _insertedBlockClientId, _updatedAttributes );
-		};
+	const {
+		insertedBlockAttributes,
+		insertedBlockName,
+		setInsertedBlockAttributes,
+	} = useInsertedBlock( insertedBlockClientId );
 
 	const maybeSetInsertedBlockOnInsertion = ( _insertedBlock ) => {
 		if ( ! _insertedBlock?.clientId ) {
@@ -81,7 +66,7 @@ export const Appender = forwardRef( ( props, ref ) => {
 				onChange={ ( updatedValue ) => {
 					updateAttributes(
 						updatedValue,
-						setAttributes( insertedBlockClientId ),
+						setInsertedBlockAttributes,
 						insertedBlockAttributes
 					);
 					setInsertedBlockClientId( null );
diff --git a/packages/block-editor/src/components/off-canvas-editor/test/use-inserted-block.js b/packages/block-editor/src/components/off-canvas-editor/test/use-inserted-block.js
new file mode 100644
index 00000000000000..f4e6746581e008
--- /dev/null
+++ b/packages/block-editor/src/components/off-canvas-editor/test/use-inserted-block.js
@@ -0,0 +1,108 @@
+/**
+ * Internal dependencies
+ */
+import { useInsertedBlock } from '../use-inserted-block';
+
+/**
+ * WordPress dependencies
+ */
+import { useDispatch, useSelect } from '@wordpress/data';
+
+/**
+ * External dependencies
+ */
+import { act, renderHook } from '@testing-library/react';
+
+jest.mock( '@wordpress/data/src/components/use-select', () => {
+	// This allows us to tweak the returned value on each test.
+	const mock = jest.fn();
+	return mock;
+} );
+
+jest.mock( '@wordpress/data/src/components/use-dispatch', () => ( {
+	useDispatch: jest.fn(),
+} ) );
+
+describe( 'useInsertedBlock', () => {
+	const mockUpdateBlockAttributes = jest.fn();
+
+	it( 'returns undefined values when called without a block clientId', () => {
+		useSelect.mockImplementation( () => ( {
+			insertedBlockAttributes: {
+				'some-attribute': 'some-value',
+			},
+			insertedBlockName: 'core/navigation-link',
+		} ) );
+
+		useDispatch.mockImplementation( () => ( {
+			updateBlockAttributes: mockUpdateBlockAttributes,
+		} ) );
+
+		const { result } = renderHook( () => useInsertedBlock() );
+
+		const {
+			insertedBlockName,
+			insertedBlockAttributes,
+			setInsertedBlockAttributes,
+		} = result.current;
+
+		expect( insertedBlockName ).toBeUndefined();
+		expect( insertedBlockAttributes ).toBeUndefined();
+		expect(
+			setInsertedBlockAttributes( { 'some-attribute': 'new-value' } )
+		).toBeUndefined();
+	} );
+
+	it( 'returns name and attributes when called with a block clientId', () => {
+		useSelect.mockImplementation( () => ( {
+			insertedBlockAttributes: {
+				'some-attribute': 'some-value',
+			},
+			insertedBlockName: 'core/navigation-link',
+		} ) );
+
+		useDispatch.mockImplementation( () => ( {
+			updateBlockAttributes: mockUpdateBlockAttributes,
+		} ) );
+
+		const { result } = renderHook( () =>
+			useInsertedBlock( 'some-client-id-here' )
+		);
+
+		const { insertedBlockName, insertedBlockAttributes } = result.current;
+
+		expect( insertedBlockName ).toBe( 'core/navigation-link' );
+		expect( insertedBlockAttributes ).toEqual( {
+			'some-attribute': 'some-value',
+		} );
+	} );
+
+	it( 'dispatches updateBlockAttributes on provided client ID with new attributes when setInsertedBlockAttributes is called', () => {
+		useSelect.mockImplementation( () => ( {
+			insertedBlockAttributes: {
+				'some-attribute': 'some-value',
+			},
+			insertedBlockName: 'core/navigation-link',
+		} ) );
+
+		useDispatch.mockImplementation( () => ( {
+			updateBlockAttributes: mockUpdateBlockAttributes,
+		} ) );
+
+		const clientId = '123456789';
+
+		const { result } = renderHook( () => useInsertedBlock( clientId ) );
+
+		const { setInsertedBlockAttributes } = result.current;
+
+		act( () => {
+			setInsertedBlockAttributes( {
+				'some-attribute': 'new-value',
+			} );
+		} );
+
+		expect( mockUpdateBlockAttributes ).toHaveBeenCalledWith( clientId, {
+			'some-attribute': 'new-value',
+		} );
+	} );
+} );
diff --git a/packages/block-editor/src/components/off-canvas-editor/use-inserted-block.js b/packages/block-editor/src/components/off-canvas-editor/use-inserted-block.js
new file mode 100644
index 00000000000000..0e5a25c980a1c3
--- /dev/null
+++ b/packages/block-editor/src/components/off-canvas-editor/use-inserted-block.js
@@ -0,0 +1,47 @@
+/**
+ * WordPress dependencies
+ */
+import { useSelect, useDispatch } from '@wordpress/data';
+
+/**
+ * Internal dependencies
+ */
+import { store as blockEditorStore } from '../../store';
+
+export const useInsertedBlock = ( insertedBlockClientId ) => {
+	const { insertedBlockAttributes, insertedBlockName } = useSelect(
+		( select ) => {
+			const { getBlockName, getBlockAttributes } =
+				select( blockEditorStore );
+
+			return {
+				insertedBlockAttributes: getBlockAttributes(
+					insertedBlockClientId
+				),
+				insertedBlockName: getBlockName( insertedBlockClientId ),
+			};
+		},
+		[ insertedBlockClientId ]
+	);
+
+	const { updateBlockAttributes } = useDispatch( blockEditorStore );
+
+	const setInsertedBlockAttributes = ( _updatedAttributes ) => {
+		if ( ! insertedBlockClientId ) return;
+		updateBlockAttributes( insertedBlockClientId, _updatedAttributes );
+	};
+
+	if ( ! insertedBlockClientId ) {
+		return {
+			insertedBlockAttributes: undefined,
+			insertedBlockName: undefined,
+			setInsertedBlockAttributes,
+		};
+	}
+
+	return {
+		insertedBlockAttributes,
+		insertedBlockName,
+		setInsertedBlockAttributes,
+	};
+};