diff --git a/packages/block-editor/src/components/inserter/hooks/use-insertion-point.js b/packages/block-editor/src/components/inserter/hooks/use-insertion-point.js
index 8252de58b49d51..0dae090578ab4f 100644
--- a/packages/block-editor/src/components/inserter/hooks/use-insertion-point.js
+++ b/packages/block-editor/src/components/inserter/hooks/use-insertion-point.js
@@ -11,6 +11,7 @@ import { useCallback } from '@wordpress/element';
  * Internal dependencies
  */
 import { store as blockEditorStore } from '../../../store';
+import { unlock } from '../../../lock-unlock';
 
 /**
  * @typedef WPInserterConfig
@@ -86,10 +87,23 @@ function useInsertionPoint( {
 		insertBlocks,
 		showInsertionPoint,
 		hideInsertionPoint,
-	} = useDispatch( blockEditorStore );
+		setLastFocus,
+	} = unlock( useDispatch( blockEditorStore ) );
 
 	const onInsertBlocks = useCallback(
 		( blocks, meta, shouldForceFocusBlock = false ) => {
+			// When we are trying to move focus or select a new block on insert, we also
+			// need to clear the last focus to avoid the focus being set to the wrong block
+			// when tabbing back into the canvas if the block was added from outside the
+			// editor canvas.
+			if (
+				shouldForceFocusBlock ||
+				shouldFocusBlock ||
+				selectBlockOnInsert
+			) {
+				setLastFocus( null );
+			}
+
 			const selectedBlock = getSelectedBlock();
 
 			if (
diff --git a/packages/block-editor/src/components/writing-flow/use-tab-nav.js b/packages/block-editor/src/components/writing-flow/use-tab-nav.js
index 818a2cdbbda029..1394fbbd37e258 100644
--- a/packages/block-editor/src/components/writing-flow/use-tab-nav.js
+++ b/packages/block-editor/src/components/writing-flow/use-tab-nav.js
@@ -45,7 +45,16 @@ export default function useTabNav() {
 		} else if ( hasMultiSelection() ) {
 			container.current.focus();
 		} else if ( getSelectedBlockClientId() ) {
-			getLastFocus()?.current.focus();
+			if ( getLastFocus()?.current ) {
+				getLastFocus().current.focus();
+			} else {
+				// Handles when the last focus has not been set yet, or has been cleared by new blocks being added via the inserter.
+				container.current
+					.querySelector(
+						`[data-block="${ getSelectedBlockClientId() }"]`
+					)
+					.focus();
+			}
 		} else {
 			setNavigationMode( true );