diff --git a/blocks/editable/index.js b/blocks/editable/index.js
index ec0ae2fb5c2b6..8d1529593a76f 100644
--- a/blocks/editable/index.js
+++ b/blocks/editable/index.js
@@ -86,7 +86,7 @@ export default class Editable extends wp.element.Component {
 	onSetup( editor ) {
 		this.editor = editor;
 		editor.on( 'init', this.onInit );
-		editor.on( 'focusout', this.onChange );
+		editor.on( 'change', this.onChange );
 		editor.on( 'NewBlock', this.onNewBlock );
 		editor.on( 'focusin', this.onFocus );
 		editor.on( 'nodechange', this.onNodeChange );
@@ -130,8 +130,13 @@ export default class Editable extends wp.element.Component {
 		}
 
 		this.savedContent = this.getContent();
-		this.editor.save();
 		this.props.onChange( this.savedContent );
+
+		// Save contents to the element, but avoid events since by default the
+		// save function will incur another `change` event
+		this.editor.save( {
+			no_events: true,
+		} );
 	}
 
 	getRelativePosition( node ) {
diff --git a/blocks/library/text/index.js b/blocks/library/text/index.js
index 870d260cefe7e..4fcfda89a4c82 100644
--- a/blocks/library/text/index.js
+++ b/blocks/library/text/index.js
@@ -17,10 +17,6 @@ registerBlock( 'core/text', {
 		content: children(),
 	},
 
-	defaultAttributes: {
-		content: <p />,
-	},
-
 	merge( attributes, attributesToMerge ) {
 		return {
 			content: wp.element.concatChildren( attributes.content, attributesToMerge.content ),
diff --git a/editor/inserter/index.js b/editor/inserter/index.js
index 81ca096d19fd2..b1e7ec15067f8 100644
--- a/editor/inserter/index.js
+++ b/editor/inserter/index.js
@@ -3,6 +3,7 @@
  */
 import clickOutside from 'react-click-outside';
 import { connect } from 'react-redux';
+import classnames from 'classnames';
 
 /**
  * WordPress dependencies
@@ -65,10 +66,11 @@ class Inserter extends wp.element.Component {
 
 	render() {
 		const { opened } = this.state;
-		const { position } = this.props;
+		const { position, className } = this.props;
+		const classes = classnames( 'editor-inserter', className );
 
 		return (
-			<div className="editor-inserter">
+			<div className={ classes }>
 				<IconButton
 					icon="insert"
 					label={ wp.i18n.__( 'Insert block' ) }
@@ -96,5 +98,12 @@ export default connect(
 				block: wp.blocks.createBlock( slug ),
 			} );
 		},
+	} ),
+	// In `mergeProps`, we flip the order to enable a rendering component to
+	// override the default `onInsertBlock` behavior
+	( stateProps, dispatchProps, ownProps ) => ( {
+		...stateProps,
+		...dispatchProps,
+		...ownProps,
 	} )
 )( clickOutside( Inserter ) );
diff --git a/editor/modes/visual-editor/block.js b/editor/modes/visual-editor/block.js
index 788f98189ccfa..3040c04726c89 100644
--- a/editor/modes/visual-editor/block.js
+++ b/editor/modes/visual-editor/block.js
@@ -9,6 +9,7 @@ import { partial } from 'lodash';
 /**
  * WordPress dependencies
  */
+import { createBlock } from 'blocks';
 import Toolbar from 'components/toolbar';
 
 /**
@@ -16,11 +17,13 @@ import Toolbar from 'components/toolbar';
  */
 import BlockMover from '../../block-mover';
 import BlockSwitcher from '../../block-switcher';
+import Inserter from '../../inserter';
 import {
 	getPreviousBlock,
 	getBlock,
 	getBlockFocus,
 	getBlockOrder,
+	isNewBlock,
 	isBlockHovered,
 	isBlockSelected,
 	isTypingInBlock,
@@ -36,6 +39,7 @@ class VisualEditorBlock extends wp.element.Component {
 		this.maybeStartTyping = this.maybeStartTyping.bind( this );
 		this.removeOnBackspace = this.removeOnBackspace.bind( this );
 		this.mergeWithPrevious = this.mergeWithPrevious.bind( this );
+		this.replaceNewBlock = this.replaceNewBlock.bind( this );
 		this.previousOffset = null;
 	}
 
@@ -146,6 +150,13 @@ class VisualEditorBlock extends wp.element.Component {
 		);
 	}
 
+	replaceNewBlock( slug ) {
+		// When choosing block from inserter for a new empty block, override
+		// insert behavior to replace current block instead
+		const { uid, replaceBlocks } = this.props;
+		replaceBlocks( [ uid ], [ createBlock( slug ) ] );
+	}
+
 	componentDidUpdate( prevProps ) {
 		if ( this.previousOffset ) {
 			window.scrollTo(
@@ -180,7 +191,7 @@ class VisualEditorBlock extends wp.element.Component {
 			return null;
 		}
 
-		const { isHovered, isSelected, isTyping, focus } = this.props;
+		const { isHovered, isSelected, isNew, isTyping, focus } = this.props;
 		const className = classnames( 'editor-visual-editor__block', {
 			'is-selected': isSelected && ! isTyping,
 			'is-hovered': isHovered,
@@ -212,7 +223,14 @@ class VisualEditorBlock extends wp.element.Component {
 				tabIndex="0"
 				{ ...wrapperProps }
 			>
-				{ ( ( isSelected && ! isTyping ) || isHovered ) && <BlockMover uid={ block.uid } /> }
+				{ isNew && isSelected && (
+					<Inserter
+						onInsertBlock={ this.replaceNewBlock }
+						className="editor-visual-editor__empty-block-inserter" />
+				) }
+				{ ! isNew && ( ( isSelected && ! isTyping ) || isHovered ) && (
+					<BlockMover uid={ block.uid } />
+				) }
 				{ isSelected && ! isTyping &&
 					<div className="editor-visual-editor__block-controls">
 						<BlockSwitcher uid={ block.uid } />
@@ -260,6 +278,7 @@ export default connect(
 			block: getBlock( state, ownProps.uid ),
 			isSelected: isBlockSelected( state, ownProps.uid ),
 			isHovered: isBlockHovered( state, ownProps.uid ),
+			isNew: isNewBlock( state, ownProps.uid ),
 			focus: getBlockFocus( state, ownProps.uid ),
 			isTyping: isTypingInBlock( state, ownProps.uid ),
 			order: getBlockOrder( state, ownProps.uid ),
diff --git a/editor/modes/visual-editor/index.js b/editor/modes/visual-editor/index.js
index 7e85e8dbb6d1f..aa8280fe81cba 100644
--- a/editor/modes/visual-editor/index.js
+++ b/editor/modes/visual-editor/index.js
@@ -19,7 +19,9 @@ function VisualEditor( { blocks } ) {
 			{ blocks.map( ( uid ) => (
 				<VisualEditorBlock key={ uid } uid={ uid } />
 			) ) }
-			<Inserter position="top right" />
+			<Inserter
+				position="top right"
+				className="editor-visual-editor__inserter" />
 		</div>
 	);
 }
diff --git a/editor/modes/visual-editor/style.scss b/editor/modes/visual-editor/style.scss
index 5e4793d7ec90b..c935c51eefca6 100644
--- a/editor/modes/visual-editor/style.scss
+++ b/editor/modes/visual-editor/style.scss
@@ -19,7 +19,8 @@
 }
 
 /* "Hassle-free full bleed" from CSS Tricks */
-.editor-visual-editor > *:not( [data-align="wide"] ) {
+.editor-post-title,
+.editor-visual-editor__block:not( [data-align="wide"] ) {
 	max-width: $visual-editor-max-width;
 	margin-left: auto;
 	margin-right: auto;
@@ -107,6 +108,16 @@
 	display: inline-flex;
 }
 
-.editor-visual-editor .editor-inserter {
+.editor-visual-editor__empty-block-inserter {
+	position: absolute;
+	top: 10px;
+	left: -10px;
+
+	&:not( :hover ) {
+		opacity: 0.8;
+	}
+}
+
+.editor-visual-editor__inserter {
 	margin: $item-spacing $item-spacing $item-spacing calc( 50% - #{ $visual-editor-max-width / 2 } );	// account for full-width trick
 }
diff --git a/editor/selectors.js b/editor/selectors.js
index ddacc7b185124..ee1e08fd58345 100644
--- a/editor/selectors.js
+++ b/editor/selectors.js
@@ -69,6 +69,32 @@ export function getBlockOrder( state, uid ) {
 	return state.editor.blockOrder.indexOf( uid );
 }
 
+/**
+ * Returns true if the block is empty, null if the block is not known, or null
+ * otherwise.
+ *
+ * @param  {Object}   state Current application state
+ * @param  {string}   uid   Block UID
+ * @return {?Boolean}       Whether block is empty, or null if unknown
+ */
+export function isNewBlock( state, uid ) {
+	const block = getBlock( state, uid );
+	if ( ! block ) {
+		return null;
+	}
+
+	// A block is considered new if it's a text block without content. Usually
+	// we'd avoid engrained knowledge of specific block types, but the behavior
+	// of text as the default new inserted block is a special case. Regardless,
+	// that we abstract this behind a generic selector enables us to refactor
+	// in the future to one with fewer specific implementation details.
+
+	return (
+		'core/text' === block.blockType &&
+		! block.attributes.content
+	);
+}
+
 export function isFirstBlock( state, uid ) {
 	return first( state.editor.blockOrder ) === uid;
 }
diff --git a/editor/test/selectors.js b/editor/test/selectors.js
index d1d7c3d7ab323..3b24a4ae99ba3 100644
--- a/editor/test/selectors.js
+++ b/editor/test/selectors.js
@@ -20,6 +20,7 @@ import {
 	getBlocks,
 	getBlockUids,
 	getBlockOrder,
+	isNewBlock,
 	isFirstBlock,
 	isLastBlock,
 	getPreviousBlock,
@@ -267,6 +268,52 @@ describe( 'selectors', () => {
 		} );
 	} );
 
+	describe( 'isNewBlock()', () => {
+		it( 'returns null if unknown', () => {
+			const state = {
+				editor: {
+					blocksByUid: {},
+				},
+			};
+
+			expect( isNewBlock( state, 23 ) ).to.be.null();
+		} );
+
+		it( 'returns true if new', () => {
+			const state = {
+				editor: {
+					blocksByUid: {
+						23: {
+							blockType: 'core/text',
+							attributes: {
+								content: undefined,
+							},
+						},
+					},
+				},
+			};
+
+			expect( isNewBlock( state, 23 ) ).to.be.true();
+		} );
+
+		it( 'returns false if not new', () => {
+			const state = {
+				editor: {
+					blocksByUid: {
+						23: {
+							blockType: 'core/text',
+							attributes: {
+								content: {},
+							},
+						},
+					},
+				},
+			};
+
+			expect( isNewBlock( state, 23 ) ).to.be.false();
+		} );
+	} );
+
 	describe( 'isFirstBlock', () => {
 		it( 'should return true when the block is first', () => {
 			const state = {