diff --git a/packages/block-directory/src/store/actions.js b/packages/block-directory/src/store/actions.js
index beea3d05ab01e..f14fb51b17745 100644
--- a/packages/block-directory/src/store/actions.js
+++ b/packages/block-directory/src/store/actions.js
@@ -66,16 +66,13 @@ export function* installBlockType( block ) {
 			throw new Error( __( 'Block has no assets.' ) );
 		}
 		yield setIsInstalling( block.id, true );
-		const response = yield apiFetch( {
+		yield apiFetch( {
 			path: '__experimental/block-directory/install',
 			data: {
 				slug: block.id,
 			},
 			method: 'POST',
 		} );
-		if ( response.success !== true ) {
-			throw new Error( __( 'Unable to install this block.' ) );
-		}
 		yield addInstalledBlockType( block );
 
 		yield loadAssets( assets );
diff --git a/packages/block-directory/src/store/resolvers.js b/packages/block-directory/src/store/resolvers.js
index d2ac2f167ce4b..5ca5f025e791a 100644
--- a/packages/block-directory/src/store/resolvers.js
+++ b/packages/block-directory/src/store/resolvers.js
@@ -1,7 +1,7 @@
 /**
  * External dependencies
  */
-import { camelCase, mapKeys } from 'lodash';
+import { camelCase, get, hasIn, includes, mapKeys } from 'lodash';
 
 /**
  * WordPress dependencies
@@ -36,21 +36,34 @@ export default {
 
 			yield receiveDownloadableBlocks( blocks, filterValue );
 		} catch ( error ) {
-			if ( error.code === 'rest_user_cannot_view' ) {
+			if ( error.code === 'rest_block_directory_cannot_view' ) {
 				yield setInstallBlocksPermission( false );
 			}
 		}
 	},
 	*hasInstallBlocksPermission() {
 		try {
-			yield apiFetch( {
-				path: `__experimental/block-directory/search?term=`,
+			const response = yield apiFetch( {
+				method: 'OPTIONS',
+				path: `__experimental/block-directory/search`,
+				parse: false,
 			} );
-			yield setInstallBlocksPermission( true );
-		} catch ( error ) {
-			if ( error.code === 'rest_user_cannot_view' ) {
-				yield setInstallBlocksPermission( false );
+
+			let allowHeader;
+			if ( hasIn( response, [ 'headers', 'get' ] ) ) {
+				// If the request is fetched using the fetch api, the header can be
+				// retrieved using the 'get' method.
+				allowHeader = response.headers.get( 'allow' );
+			} else {
+				// If the request was preloaded server-side and is returned by the
+				// preloading middleware, the header will be a simple property.
+				allowHeader = get( response, [ 'headers', 'Allow' ], '' );
 			}
+
+			const isAllowed = includes( allowHeader, 'GET' );
+			yield setInstallBlocksPermission( isAllowed );
+		} catch ( error ) {
+			yield setInstallBlocksPermission( false );
 		}
 	},
 };
diff --git a/packages/block-directory/src/store/test/actions.js b/packages/block-directory/src/store/test/actions.js
index eaac933fb0a65..4ecb769260b44 100644
--- a/packages/block-directory/src/store/test/actions.js
+++ b/packages/block-directory/src/store/test/actions.js
@@ -109,7 +109,7 @@ describe( 'actions', () => {
 				message: 'Plugin not found.',
 				data: null,
 			};
-			expect( generator.next( apiError ).value ).toMatchObject( {
+			expect( generator.throw( apiError ).value ).toMatchObject( {
 				type: 'SET_ERROR_NOTICE',
 				blockId: item.id,
 			} );
diff --git a/packages/e2e-tests/specs/experiments/block-directory-add.test.js b/packages/e2e-tests/specs/experiments/block-directory-add.test.js
index 7d21159c4b256..c3ad73ea7ea65 100644
--- a/packages/e2e-tests/specs/experiments/block-directory-add.test.js
+++ b/packages/e2e-tests/specs/experiments/block-directory-add.test.js
@@ -47,6 +47,24 @@ const MOCK_BLOCK1 = {
 	humanized_updated: '5 months ago',
 };
 
+const MOCK_INSTALLED_BLOCK_PLUGIN_DETAILS = {
+	plugin: 'block-directory-test-block',
+	status: 'active',
+	name: 'Block Directory',
+	plugin_uri: '',
+	author: 'No Author',
+	author_uri: '',
+	description: {
+		raw: 'This plugin is useful for the block.',
+		rendered: 'This plugin is useful for the block.',
+	},
+	version: '1.0',
+	network_only: false,
+	requires_wp: '',
+	requires_php: '',
+	text_domain: 'block-directory-test-block',
+};
+
 const MOCK_BLOCK2 = {
 	...MOCK_BLOCK1,
 	name: 'block-directory-test-block/secondary-block',
@@ -73,7 +91,42 @@ const block = `( function() {
 	} );
 } )();`;
 
+const MOCK_OPTIONS = {
+	namespace: '__experimental',
+	methods: [ 'GET' ],
+	endpoints: [
+		{
+			methods: [ 'GET' ],
+			args: {},
+		},
+	],
+	schema: {
+		$schema: 'http://json-schema.org/draft-04/schema#',
+		title: 'block-directory-item',
+		type: 'object',
+		properties: {},
+	},
+};
+
+const MOCK_OPTIONS_RESPONSE = {
+	match: ( request ) =>
+		matchUrl( request.url(), SEARCH_URLS ) &&
+		request.method() === 'OPTIONS',
+	onRequestMatch: async ( request ) => {
+		const response = {
+			content: 'application/json',
+			body: JSON.stringify( MOCK_OPTIONS ),
+			headers: {
+				Allow: 'GET',
+			},
+		};
+
+		return request.respond( response );
+	},
+};
+
 const MOCK_EMPTY_RESPONSES = [
+	MOCK_OPTIONS_RESPONSE,
 	{
 		match: ( request ) => matchUrl( request.url(), SEARCH_URLS ),
 		onRequestMatch: createJSONResponse( [] ),
@@ -81,6 +134,7 @@ const MOCK_EMPTY_RESPONSES = [
 ];
 
 const MOCK_BLOCKS_RESPONSES = [
+	MOCK_OPTIONS_RESPONSE,
 	{
 		// Mock response for search with the block
 		match: ( request ) => matchUrl( request.url(), SEARCH_URLS ),
@@ -89,7 +143,9 @@ const MOCK_BLOCKS_RESPONSES = [
 	{
 		// Mock response for install
 		match: ( request ) => matchUrl( request.url(), INSTALL_URLS ),
-		onRequestMatch: createJSONResponse( { success: true } ),
+		onRequestMatch: createJSONResponse(
+			MOCK_INSTALLED_BLOCK_PLUGIN_DETAILS
+		),
 	},
 	{
 		// Mock the response for the js asset once it gets injected