diff --git a/packages/block-editor/src/components/block-list/use-multi-selection.js b/packages/block-editor/src/components/block-list/use-multi-selection.js
index 3750c9334a1f61..1712970e7cbacb 100644
--- a/packages/block-editor/src/components/block-list/use-multi-selection.js
+++ b/packages/block-editor/src/components/block-list/use-multi-selection.js
@@ -147,7 +147,7 @@ export default function useMultiSelection( ref ) {
 		selectedBlockClientId,
 	] );
 
-	const onSelectionChange = useCallback( () => {
+	const onSelectionChange = useCallback( ( { isSelectionEnd } ) => {
 		const selection = window.getSelection();
 
 		// If no selection is found, end multi selection.
@@ -156,9 +156,27 @@ export default function useMultiSelection( ref ) {
 		}
 
 		const clientId = getBlockClientId( selection.focusNode );
+		const isSingularSelection = startClientId.current === clientId;
 
-		if ( startClientId.current === clientId ) {
+		if ( isSingularSelection ) {
 			selectBlock( clientId );
+
+			// If the selection is complete (on mouse up), and no multiple
+			// blocks have been selected, set focus back to the anchor element
+			// if the anchor element contains the selection. Additionally, rich
+			// text elements that were previously disabled can now be enabled
+			// again.
+			if ( isSelectionEnd ) {
+				toggleRichText( ref.current, true );
+
+				if ( selection.rangeCount ) {
+					const { commonAncestorContainer } = selection.getRangeAt( 0 );
+
+					if ( anchorElement.current.contains( commonAncestorContainer ) ) {
+						anchorElement.current.focus();
+					}
+				}
+			}
 		} else {
 			const startPath = [ ...getBlockParents( startClientId.current ), startClientId.current ];
 			const endPath = [ ...getBlockParents( clientId ), clientId ];
@@ -178,21 +196,8 @@ export default function useMultiSelection( ref ) {
 		// The browser selection won't have updated yet at this point, so wait
 		// until the next animation frame to get the browser selection.
 		rafId.current = window.requestAnimationFrame( () => {
-			onSelectionChange();
+			onSelectionChange( { isSelectionEnd: true } );
 			stopMultiSelect();
-			toggleRichText( ref.current, true );
-
-			const selection = window.getSelection();
-
-			// If the anchor element contains the selection, set focus back to
-			// the anchor element.
-			if ( selection.rangeCount ) {
-				const { commonAncestorContainer } = selection.getRangeAt( 0 );
-
-				if ( anchorElement.current.contains( commonAncestorContainer ) ) {
-					anchorElement.current.focus();
-				}
-			}
 		} );
 	}, [ onSelectionChange, stopMultiSelect ] );
 
diff --git a/packages/e2e-tests/specs/editor/various/__snapshots__/multi-block-selection.test.js.snap b/packages/e2e-tests/specs/editor/various/__snapshots__/multi-block-selection.test.js.snap
index e3125d7972ea80..68f5047e1bc9c0 100644
--- a/packages/e2e-tests/specs/editor/various/__snapshots__/multi-block-selection.test.js.snap
+++ b/packages/e2e-tests/specs/editor/various/__snapshots__/multi-block-selection.test.js.snap
@@ -52,6 +52,20 @@ exports[`Multi-block selection should only trigger multi-selection when at the e
 <!-- /wp:paragraph -->"
 `;
 
+exports[`Multi-block selection should preserve dragged selection on move 1`] = `
+"<!-- wp:paragraph -->
+<p>2</p>
+<!-- /wp:paragraph -->
+
+<!-- wp:paragraph -->
+<p>3</p>
+<!-- /wp:paragraph -->
+
+<!-- wp:paragraph -->
+<p>1</p>
+<!-- /wp:paragraph -->"
+`;
+
 exports[`Multi-block selection should return original focus after failed multi selection attempt 1`] = `
 "<!-- wp:paragraph -->
 <p>2</p>
diff --git a/packages/e2e-tests/specs/editor/various/multi-block-selection.test.js b/packages/e2e-tests/specs/editor/various/multi-block-selection.test.js
index 8eaf697fb5d3c0..cd7b19f264666c 100644
--- a/packages/e2e-tests/specs/editor/various/multi-block-selection.test.js
+++ b/packages/e2e-tests/specs/editor/various/multi-block-selection.test.js
@@ -7,6 +7,7 @@ import {
 	pressKeyWithModifier,
 	pressKeyTimes,
 	getEditedPostContent,
+	clickBlockToolbarButton,
 } from '@wordpress/e2e-test-utils';
 
 async function getSelectedFlatIndices() {
@@ -408,4 +409,44 @@ describe( 'Multi-block selection', () => {
 
 		expect( await getEditedPostContent() ).toMatchSnapshot();
 	} );
+
+	it( 'should preserve dragged selection on move', async () => {
+		await clickBlockAppender();
+		await page.keyboard.type( '1' );
+		await page.keyboard.press( 'Enter' );
+		await page.keyboard.type( '2' );
+		await page.keyboard.press( 'Enter' );
+		await page.keyboard.type( '3' );
+
+		const [ coord1, coord2 ] = await page.evaluate( () => {
+			const elements = Array.from( document.querySelectorAll( '.wp-block-paragraph' ) );
+			const rect1 = elements[ 2 ].getBoundingClientRect();
+			const rect2 = elements[ 1 ].getBoundingClientRect();
+			return [
+				{
+					x: rect1.x + ( rect1.width / 2 ),
+					y: rect1.y + ( rect1.height / 2 ),
+				},
+				{
+					x: rect2.x + ( rect2.width / 2 ),
+					y: rect2.y + ( rect2.height / 2 ),
+				},
+			];
+		} );
+
+		await page.mouse.move( coord1.x, coord1.y );
+		await page.mouse.down();
+		await page.mouse.move( coord2.x, coord2.y );
+		await page.mouse.up();
+
+		await testNativeSelection();
+		expect( await getSelectedFlatIndices() ).toEqual( [ 2, 3 ] );
+
+		await clickBlockToolbarButton( 'Move up' );
+
+		await testNativeSelection();
+		expect( await getSelectedFlatIndices() ).toEqual( [ 1, 2 ] );
+
+		expect( await getEditedPostContent() ).toMatchSnapshot();
+	} );
 } );