diff --git a/docs/designers-developers/developers/data/data-core-block-editor.md b/docs/designers-developers/developers/data/data-core-block-editor.md
index 03929e3671685d..fb3f337dd59cd2 100644
--- a/docs/designers-developers/developers/data/data-core-block-editor.md
+++ b/docs/designers-developers/developers/data/data-core-block-editor.md
@@ -980,6 +980,17 @@ specified client ID is to be removed.
  * selectPrevious: True if the previous block should be
                                 selected when a block is removed.
 
+### replaceInnerBlocks
+
+Returns an action object used in signalling that the inner blocks with the
+specified client ID should be replaced.
+
+*Parameters*
+
+ * rootClientId: Client ID of the block whose InnerBlocks will re replaced.
+ * blocks: Block objects to insert as new InnerBlocks
+ * updateSelection: If true block selection will be updated. If false, block selection will not change. Defaults to true.
+
 ### toggleBlockMode
 
 Returns an action object used to toggle the block editing mode between
diff --git a/packages/block-editor/src/store/actions.js b/packages/block-editor/src/store/actions.js
index a2a1bc6e6e628c..8fe1c600857a0b 100644
--- a/packages/block-editor/src/store/actions.js
+++ b/packages/block-editor/src/store/actions.js
@@ -420,6 +420,26 @@ export function removeBlock( clientId, selectPrevious ) {
 	return removeBlocks( [ clientId ], selectPrevious );
 }
 
+/**
+ * Returns an action object used in signalling that the inner blocks with the
+ * specified client ID should be replaced.
+ *
+ * @param {string}   rootClientId    Client ID of the block whose InnerBlocks will re replaced.
+ * @param {Object[]} blocks          Block objects to insert as new InnerBlocks
+ * @param {?boolean} updateSelection If true block selection will be updated. If false, block selection will not change. Defaults to true.
+ *
+ * @return {Object} Action object.
+ */
+export function replaceInnerBlocks( rootClientId, blocks, updateSelection ) {
+	return {
+		type: 'REPLACE_INNER_BLOCKS',
+		rootClientId,
+		blocks,
+		updateSelection,
+		time: Date.now(),
+	};
+}
+
 /**
  * Returns an action object used to toggle the block editing mode between
  * visual and HTML modes.
diff --git a/packages/block-editor/src/store/reducer.js b/packages/block-editor/src/store/reducer.js
index 007c5f4a8f6d4b..51fa67ce82ba9b 100644
--- a/packages/block-editor/src/store/reducer.js
+++ b/packages/block-editor/src/store/reducer.js
@@ -296,6 +296,38 @@ const withBlockReset = ( reducer ) => ( state, action ) => {
 	return reducer( state, action );
 };
 
+/**
+ * Higher-order reducer which targets the combined blocks reducer and handles
+ * the `REPLACE_INNER_BLOCKS` action. When dispatched, this action the state should become equivalent
+ * to the execution of a `REMOVE_BLOCKS` action containing all the child's of the root block followed by
+ * the execution of `INSERT_BLOCKS` with the new blocks.
+ *
+ * @param {Function} reducer Original reducer function.
+ *
+ * @return {Function} Enhanced reducer function.
+ */
+const withReplaceInnerBlocks = ( reducer ) => ( state, action ) => {
+	if ( action.type !== 'REPLACE_INNER_BLOCKS' ) {
+		return reducer( state, action );
+	}
+	let stateAfterBlocksRemoval = state;
+	if ( state.order[ action.rootClientId ] ) {
+		stateAfterBlocksRemoval = reducer( stateAfterBlocksRemoval, {
+			type: 'REMOVE_BLOCKS',
+			clientIds: state.order[ action.rootClientId ],
+		} );
+	}
+	let stateAfterInsert = stateAfterBlocksRemoval;
+	if ( action.blocks.length ) {
+		stateAfterInsert = reducer( stateAfterInsert, {
+			...action,
+			type: 'INSERT_BLOCKS',
+			index: 0,
+		} );
+	}
+	return stateAfterInsert;
+};
+
 /**
  * Higher-order reducer which targets the combined blocks reducer and handles
  * the `SAVE_REUSABLE_BLOCK_SUCCESS` action. This action can't be handled by
@@ -343,6 +375,7 @@ const withSaveReusableBlock = ( reducer ) => ( state, action ) => {
  */
 export const blocks = flow(
 	combineReducers,
+	withReplaceInnerBlocks, // needs to be before withInnerBlocksRemoveCascade
 	withInnerBlocksRemoveCascade,
 	withBlockReset,
 	withSaveReusableBlock,
@@ -713,6 +746,7 @@ export function blockSelection( state = {
 				end: action.clientId,
 				initialPosition: action.initialPosition,
 			};
+		case 'REPLACE_INNER_BLOCKS': // REPLACE_INNER_BLOCKS and INSERT_BLOCKS should follow the same logic.
 		case 'INSERT_BLOCKS': {
 			if ( action.updateSelection ) {
 				return {
diff --git a/packages/editor/src/components/inner-blocks/index.js b/packages/editor/src/components/inner-blocks/index.js
index eba0122e688561..b7a81e48e11c09 100644
--- a/packages/editor/src/components/inner-blocks/index.js
+++ b/packages/editor/src/components/inner-blocks/index.js
@@ -1,7 +1,7 @@
 /**
  * External dependencies
  */
-import { pick, isEqual, map } from 'lodash';
+import { pick, isEqual } from 'lodash';
 import classnames from 'classnames';
 
 /**
@@ -144,20 +144,14 @@ InnerBlocks = compose( [
 	} ),
 	withDispatch( ( dispatch, ownProps ) => {
 		const {
-			replaceBlocks,
-			insertBlocks,
+			replaceInnerBlocks,
 			updateBlockListSettings,
 		} = dispatch( 'core/block-editor' );
 		const { block, clientId, templateInsertUpdatesSelection = true } = ownProps;
 
 		return {
 			replaceInnerBlocks( blocks ) {
-				const clientIds = map( block.innerBlocks, 'clientId' );
-				if ( clientIds.length ) {
-					replaceBlocks( clientIds, blocks );
-				} else {
-					insertBlocks( blocks, undefined, clientId, templateInsertUpdatesSelection );
-				}
+				replaceInnerBlocks( clientId, blocks, block.innerBlocks.length === 0 && templateInsertUpdatesSelection );
 			},
 			updateNestedSettings( settings ) {
 				dispatch( updateBlockListSettings( clientId, settings ) );