diff --git a/src/editors/data/redux/index.js b/src/editors/data/redux/index.js
index 05811bbf2..0339b1ea6 100644
--- a/src/editors/data/redux/index.js
+++ b/src/editors/data/redux/index.js
@@ -7,6 +7,7 @@ import * as requests from './requests';
 import * as video from './video';
 import * as problem from './problem';
 import * as game from './game';
+import * as insertlink from './insertlink';
 
 /* eslint-disable import/no-cycle */
 export { default as thunkActions } from './thunkActions';
@@ -17,6 +18,7 @@ const modules = {
   video,
   problem,
   game,
+  insertlink,
 };
 
 const moduleProps = (propName) => Object.keys(modules).reduce(
diff --git a/src/editors/data/redux/insertlink/index.js b/src/editors/data/redux/insertlink/index.js
new file mode 100644
index 000000000..78455d116
--- /dev/null
+++ b/src/editors/data/redux/insertlink/index.js
@@ -0,0 +1,2 @@
+export { actions, reducer } from './reducers';
+export { default as selectors } from './selectors';
diff --git a/src/editors/data/redux/insertlink/reducers.js b/src/editors/data/redux/insertlink/reducers.js
new file mode 100644
index 000000000..4ea03c0ca
--- /dev/null
+++ b/src/editors/data/redux/insertlink/reducers.js
@@ -0,0 +1,27 @@
+import { createSlice } from '@reduxjs/toolkit';
+import { StrictDict } from '../../../utils';
+
+const initialState = {
+  selectedBlocks: {},
+};
+
+// eslint-disable-next-line no-unused-vars
+const insertlink = createSlice({
+  name: 'insertlink',
+  initialState,
+  reducers: {
+    addBlock: (state, { payload }) => {
+      state.selectedBlocks = { ...state.selectedBlocks, ...payload };
+    },
+  },
+});
+
+const actions = StrictDict(insertlink.actions);
+
+const { reducer } = insertlink;
+
+export {
+  actions,
+  initialState,
+  reducer,
+};
diff --git a/src/editors/data/redux/insertlink/reducers.test.js b/src/editors/data/redux/insertlink/reducers.test.js
new file mode 100644
index 000000000..e91c6a62c
--- /dev/null
+++ b/src/editors/data/redux/insertlink/reducers.test.js
@@ -0,0 +1,28 @@
+import { reducer, actions, initialState } from './reducers';
+
+describe('insertlink reducer', () => {
+  it('should return the initial state', () => {
+    expect(reducer(undefined, {})).toEqual(initialState);
+  });
+
+  it('should handle addBlock', () => {
+    const payload = {
+      block123: { id: 'block123', content: 'Block 123 content' },
+      block456: { id: 'block456', content: 'Block 456 content' },
+    };
+    const action = actions.addBlock(payload);
+
+    const previousState = {
+      selectedBlocks: { block789: { id: 'block789', content: 'Block 789 content' } },
+    };
+
+    const expectedState = {
+      selectedBlocks: {
+        ...previousState.selectedBlocks,
+        ...payload,
+      },
+    };
+
+    expect(reducer(previousState, action)).toEqual(expectedState);
+  });
+});
diff --git a/src/editors/data/redux/insertlink/selectors.js b/src/editors/data/redux/insertlink/selectors.js
new file mode 100644
index 000000000..ee6c7cb43
--- /dev/null
+++ b/src/editors/data/redux/insertlink/selectors.js
@@ -0,0 +1,5 @@
+export const insertlinkState = (state) => state.insertlink;
+
+export default {
+  insertlinkState,
+};
diff --git a/src/editors/data/redux/insertlink/selectors.test.js b/src/editors/data/redux/insertlink/selectors.test.js
new file mode 100644
index 000000000..2e43a4877
--- /dev/null
+++ b/src/editors/data/redux/insertlink/selectors.test.js
@@ -0,0 +1,19 @@
+import { insertlinkState } from './selectors';
+
+describe('insertlink selectors', () => {
+  describe('insertlinkState selector', () => {
+    it('should return the insertlink slice of the state', () => {
+      const state = {
+        insertlink: {
+          selectedBlocks: {
+            block123: { id: 'block123', url: 'https://www.example.com' },
+            block456: { id: 'block456', url: 'https://www.example.com' },
+          },
+        },
+      };
+
+      const { selectedBlocks } = insertlinkState(state);
+      expect(selectedBlocks).toEqual(state.insertlink.selectedBlocks);
+    });
+  });
+});
diff --git a/src/editors/sharedComponents/InsertLinkModal/BlocksList/index.jsx b/src/editors/sharedComponents/InsertLinkModal/BlocksList/index.jsx
index bbcebb0b6..b1f64754f 100644
--- a/src/editors/sharedComponents/InsertLinkModal/BlocksList/index.jsx
+++ b/src/editors/sharedComponents/InsertLinkModal/BlocksList/index.jsx
@@ -108,15 +108,15 @@ const BlocksList = ({ blocks, onBlockSelected }) => {
                 <span className="w-100 text-left">{block.displayName}</span>
               </Button>
               {!isBlockSelectedUnit && (
-              <Button
-                variant="tertiary"
-                className="col-1 py-4"
-                onClick={() => handleSelectBlock(block, true)}
-                data-testid="block-navigation"
-                iconAfter={ArrowForwardIos}
-              >
+                <Button
+                  variant="tertiary"
+                  className="col-1 py-4"
+                  onClick={() => handleSelectBlock(block, true)}
+                  data-testid="block-navigation"
+                  iconAfter={ArrowForwardIos}
+                >
                 &nbsp;
-              </Button>
+                </Button>
               )}
             </ActionRow>
           </TransitionReplace>
diff --git a/src/editors/sharedComponents/InsertLinkModal/index.jsx b/src/editors/sharedComponents/InsertLinkModal/index.jsx
index b334ccc4d..67f6b7891 100644
--- a/src/editors/sharedComponents/InsertLinkModal/index.jsx
+++ b/src/editors/sharedComponents/InsertLinkModal/index.jsx
@@ -1,4 +1,5 @@
 import { useEffect, useState } from 'react';
+import { useDispatch, useSelector } from 'react-redux';
 import PropTypes from 'prop-types';
 import { logError } from '@edx/frontend-platform/logging';
 import { useIntl } from '@edx/frontend-platform/i18n';
@@ -8,6 +9,7 @@ import {
   Tab,
   Form,
 } from '@openedx/paragon';
+import { actions, selectors } from '../../data/redux/insertlink';
 import BaseModal from '../BaseModal';
 import BlocksList from './BlocksList';
 import BlockLink from './BlockLink';
@@ -29,8 +31,11 @@ const InsertLinkModal = ({
   const [blocksSearched, setBlocksSearched] = useState(false);
   const [blockSelected, setBlocksSelected] = useState(null);
   const [blocksList, setBlocksList] = useState(null);
-  const [invalidUrlInput, setInvalidUrlInput] = useState(false);
+  const [, setInvalidUrlInput] = useState(false);
   const [inputUrlValue, setInputUrlValue] = useState('');
+  const [errorUrlNotSelected, setErrorUrlNotSelected] = useState(false);
+  const dispatch = useDispatch();
+  const { selectedBlocks } = useSelector(selectors.insertlinkState);
 
   const handleSearchedBlocks = (isSearched) => {
     setBlocksSearched(isSearched);
@@ -46,14 +51,11 @@ const InsertLinkModal = ({
     setBlocksSelected(null);
   };
 
-  const handleChangeInputUrl = ({ target: { value } }) => {
-    setInputUrlValue(value);
-  };
-
   /* istanbul ignore next */
   const handleSave = () => {
     const editor = editorRef.current;
     const urlPath = blockSelected?.lmsWebUrl || inputUrlValue;
+    const blockId = blockSelected?.blockId;
     if (editor && urlPath) {
       const validateUrl = isValidURL(urlPath);
 
@@ -62,12 +64,26 @@ const InsertLinkModal = ({
         return;
       }
 
+      const selectedRange = editor.selection.getRng();
       const selectedText = editor.selection.getContent({ format: 'text' });
 
-      if (selectedText.trim() !== '') {
-        const linkHtml = `<a href="${urlPath}" data-mce-href="${urlPath}" target="_blank">${selectedText}</a>`;
-        editor.selection.setContent(linkHtml);
-      }
+      const newLinkNode = editor.dom.create('a', {
+        href: urlPath,
+        'data-mce-href': urlPath,
+        'data-block-id': blockId,
+        target: '_blank',
+      });
+
+      newLinkNode.textContent = selectedText;
+
+      selectedRange.deleteContents();
+      selectedRange.insertNode(newLinkNode);
+      // Remove empty "a" tags after replacing URLs
+      const editorContent = editor.getContent();
+      const modifiedContent = editorContent.replace(/<a\b[^>]*><\/a>/gi, '');
+      editor.setContent(modifiedContent);
+
+      dispatch(actions.addBlock({ [blockId]: blockSelected }));
     }
 
     onClose();
@@ -91,13 +107,48 @@ const InsertLinkModal = ({
     getBlocksList();
   }, []);
 
+  useEffect(() => {
+    /* istanbul ignore next */
+    const editor = editorRef.current;
+    if (editor) {
+      const selectedHTML = editor.selection.getContent({ format: 'html' });
+      const regex = /data-block-id="([^"]+)"/;
+      const match = selectedHTML.match(regex);
+
+      // Extracting the value from the match
+      const dataBlockId = match ? match[1] : null;
+      if (selectedHTML && !dataBlockId) {
+        const selectedNode = editor.selection.getNode();
+        const parentNode = editor.dom.getParent(selectedNode, 'a');
+        if (parentNode) {
+          const dataBlockIdParent = parentNode.getAttribute('data-block-id');
+          const blockIsValid = dataBlockIdParent in selectedBlocks;
+          if (dataBlockIdParent && blockIsValid) {
+            setBlocksSelected(selectedBlocks[dataBlockIdParent]);
+          }
+        }
+      }
+
+      if (dataBlockId) {
+        const blockIsValid = dataBlockId in selectedBlocks;
+        if (dataBlockId && blockIsValid) {
+          setBlocksSelected(selectedBlocks[dataBlockId]);
+        }
+      }
+
+      if (!selectedHTML) {
+        setErrorUrlNotSelected(true);
+      }
+    }
+  }, []);
+
   return (
     <BaseModal
       isOpen={isOpen}
       close={onClose}
       title={intl.formatMessage(messages.insertLinkModalTitle)}
       confirmAction={(
-        <Button variant="primary" onClick={handleSave}>
+        <Button variant="primary" onClick={handleSave} disabled={errorUrlNotSelected}>
           {intl.formatMessage(messages.insertLinkModalButtonSave)}
         </Button>
       )}
@@ -116,6 +167,12 @@ const InsertLinkModal = ({
             title={intl.formatMessage(messages.insertLinkModalCoursePagesTabTitle)}
             className="col-12 w-100 tabs-container"
           >
+            {errorUrlNotSelected && (
+            <Form.Control.Feedback type="invalid" className="mt-4">
+              {intl.formatMessage(messages.insertLinkModalUrlNotSelectedErrorMessage)}
+            </Form.Control.Feedback>
+            )}
+
             <SearchBlocks
               blocks={blocksList || {}}
               onSearchFilter={handleSearchedBlocks}
@@ -129,24 +186,6 @@ const InsertLinkModal = ({
               />
             )}
           </Tab>
-          <Tab
-            eventKey="url"
-            title={intl.formatMessage(messages.insertLinkModalUrlTabTitle)}
-            className="col-12 tabs-container"
-          >
-            <Form.Group isInvalid={invalidUrlInput} className="my-4">
-              <Form.Control
-                placeholder={intl.formatMessage(messages.insertLinkModalInputPlaceholder)}
-                onChange={handleChangeInputUrl}
-                data-testid="url-input"
-              />
-              {invalidUrlInput && (
-                <Form.Control.Feedback type="invalid">
-                  {intl.formatMessage(messages.insertLinkModalInputErrorMessage)}
-                </Form.Control.Feedback>
-              )}
-            </Form.Group>
-          </Tab>
         </Tabs>
       )}
     </BaseModal>
@@ -162,6 +201,14 @@ InsertLinkModal.propTypes = {
       selection: PropTypes.shape({
         getContent: PropTypes.func,
         setContent: PropTypes.func,
+        getRng: PropTypes.func, // Add this line
+        getNode: PropTypes.func, // Add this line
+      }),
+      getContent: PropTypes.func,
+      setContent: PropTypes.func,
+      dom: PropTypes.shape({
+        create: PropTypes.func,
+        getParent: PropTypes.func,
       }),
     }),
   }).isRequired,
diff --git a/src/editors/sharedComponents/InsertLinkModal/index.test.jsx b/src/editors/sharedComponents/InsertLinkModal/index.test.jsx
index 08ee5cd53..2e06e0b87 100644
--- a/src/editors/sharedComponents/InsertLinkModal/index.test.jsx
+++ b/src/editors/sharedComponents/InsertLinkModal/index.test.jsx
@@ -1,6 +1,7 @@
 import React from 'react';
 import '@testing-library/jest-dom/extend-expect';
-import { fireEvent, render, screen } from '@testing-library/react';
+import { render, screen } from '@testing-library/react';
+import { useSelector } from 'react-redux';
 import { IntlProvider } from '@edx/frontend-platform/i18n';
 import { logError } from '@edx/frontend-platform/logging';
 
@@ -25,6 +26,11 @@ jest.mock('./utils', () => ({
   isValidURL: jest.fn(),
 }));
 
+jest.mock('react-redux', () => ({
+  useSelector: jest.fn(),
+  useDispatch: jest.fn(),
+}));
+
 jest.unmock('@edx/frontend-platform/i18n');
 jest.unmock('@openedx/paragon');
 jest.unmock('@openedx/paragon/icons');
@@ -37,7 +43,7 @@ describe('InsertLinkModal', () => {
     editorRef: {
       current: {
         selection: {
-          getContent: jest.fn(),
+          getContent: () => '<a href="http://example.com" data-block-id="block123">Sample content</a>',
           setContent: jest.fn(),
         },
       },
@@ -51,6 +57,7 @@ describe('InsertLinkModal', () => {
 
   beforeEach(() => {
     jest.clearAllMocks();
+    useSelector.mockReturnValue({ selectedBlocks: {} });
   });
 
   const renderComponent = (overrideProps = {}) => render(
@@ -69,14 +76,12 @@ describe('InsertLinkModal', () => {
     expect(screen.getByText('Link to')).toBeInTheDocument();
   });
 
-  test('should show Course pages and URL tabs', () => {
+  test('should show Course pages tab', () => {
     renderComponent();
 
     const tabs = screen.getAllByRole('tab');
-    const [coursePagesTab, urlTab] = tabs;
-
+    const [coursePagesTab] = tabs;
     expect(coursePagesTab).toHaveTextContent('Course pages');
-    expect(urlTab).toHaveTextContent('URL');
   });
 
   test('should find Cancel and Save buttons', () => {
@@ -89,36 +94,6 @@ describe('InsertLinkModal', () => {
     expect(saveButton).toBeInTheDocument();
   });
 
-  test('should show input for url when URL tab is clicked', () => {
-    const { getByTestId } = renderComponent();
-
-    const tabs = screen.getAllByRole('tab');
-    const [, urlTab] = tabs;
-
-    fireEvent.click(urlTab);
-
-    const urlInput = getByTestId('url-input');
-    expect(urlInput).toBeInTheDocument();
-  });
-
-  test('should show message when the url is invalid', () => {
-    const { getByTestId, getByText } = renderComponent();
-
-    const tabs = screen.getAllByRole('tab');
-    const [, urlTab] = tabs;
-
-    fireEvent.click(urlTab);
-
-    const urlInput = getByTestId('url-input');
-    fireEvent.change(urlInput, { target: { value: 'invalid-url' } });
-
-    const saveButton = getByText('Save');
-    fireEvent.click(saveButton);
-
-    const errorMessage = getByText('The url provided is invalid');
-    expect(errorMessage).toBeInTheDocument();
-  });
-
   test('should call logError on API error', async () => {
     api.getBlocksFromCourse.mockRejectedValue(new Error('API error'));
 
diff --git a/src/editors/sharedComponents/InsertLinkModal/messages.js b/src/editors/sharedComponents/InsertLinkModal/messages.js
index 4c2774221..89ae1f116 100644
--- a/src/editors/sharedComponents/InsertLinkModal/messages.js
+++ b/src/editors/sharedComponents/InsertLinkModal/messages.js
@@ -31,6 +31,11 @@ const messages = defineMessages({
     defaultMessage: 'The url provided is invalid',
     description: 'Feedback message error for url input',
   },
+  insertLinkModalUrlNotSelectedErrorMessage: {
+    id: 'insert.link.modal.url.not.selected.error.message',
+    defaultMessage: 'The text for the URL was not selected',
+    description: 'Feedback message error when user does not select a text for the link',
+  },
 });
 
 export default messages;
diff --git a/src/editors/sharedComponents/SelectionModal/SearchSort.jsx b/src/editors/sharedComponents/SelectionModal/SearchSort.jsx
index 57ef43db6..d469ae98f 100644
--- a/src/editors/sharedComponents/SelectionModal/SearchSort.jsx
+++ b/src/editors/sharedComponents/SelectionModal/SearchSort.jsx
@@ -74,23 +74,23 @@ export const SearchSort = ({
       </SelectMenu>
 
       { onFilterClick && (
-      <Dropdown>
-        <Dropdown.Toggle
-          data-testid="dropdown-filter"
-          className="text-gray-700"
-          id="gallery-filter-button"
-          variant="tertiary"
-        >
-          <FormattedMessage {...filterMessages[filterBy]} />
-        </Dropdown.Toggle>
-        <Dropdown.Menu>
-          {Object.keys(filterKeys).map(key => (
-            <Dropdown.Item data-testid={`dropdown-filter-${key}`} key={key} onClick={onFilterClick(key)}>
-              <FormattedMessage {...filterMessages[key]} />
-            </Dropdown.Item>
-          ))}
-        </Dropdown.Menu>
-      </Dropdown>
+        <Dropdown>
+          <Dropdown.Toggle
+            data-testid="dropdown-filter"
+            className="text-gray-700"
+            id="gallery-filter-button"
+            variant="tertiary"
+          >
+            <FormattedMessage {...filterMessages[filterBy]} />
+          </Dropdown.Toggle>
+          <Dropdown.Menu>
+            {Object.keys(filterKeys).map(key => (
+              <Dropdown.Item data-testid={`dropdown-filter-${key}`} key={key} onClick={onFilterClick(key)}>
+                <FormattedMessage {...filterMessages[key]} />
+              </Dropdown.Item>
+            ))}
+          </Dropdown.Menu>
+        </Dropdown>
       )}
 
       { showSwitch && (
diff --git a/src/editors/sharedComponents/SourceCodeModal/index.jsx b/src/editors/sharedComponents/SourceCodeModal/index.jsx
index 3cc0638e1..e675f6e23 100644
--- a/src/editors/sharedComponents/SourceCodeModal/index.jsx
+++ b/src/editors/sharedComponents/SourceCodeModal/index.jsx
@@ -30,7 +30,7 @@ export const SourceCodeModal = ({
         <Button {...saveBtnProps} variant="primary">
           <FormattedMessage {...messages.saveButtonLabel} />
         </Button>
-            )}
+      )}
       isOpen={isOpen}
       title={intl.formatMessage(messages.titleLabel)}
     >
diff --git a/src/editors/sharedComponents/TinyMceWidget/hooks.js b/src/editors/sharedComponents/TinyMceWidget/hooks.js
index a8df22d40..2b46033cb 100644
--- a/src/editors/sharedComponents/TinyMceWidget/hooks.js
+++ b/src/editors/sharedComponents/TinyMceWidget/hooks.js
@@ -159,7 +159,7 @@ export const setupCustomBehavior = ({
 
   // insert link button
   editor.ui.registry.addButton(tinyMCE.buttons.insertLink, {
-    icon: 'link',
+    icon: 'new-tab',
     tooltip: translations?.insertLinkTooltipTitle ?? '',
     onAction: openInsertLinkModal,
   });
diff --git a/src/editors/sharedComponents/TinyMceWidget/pluginConfig.js b/src/editors/sharedComponents/TinyMceWidget/pluginConfig.js
index ed445a30c..edb5a43ac 100644
--- a/src/editors/sharedComponents/TinyMceWidget/pluginConfig.js
+++ b/src/editors/sharedComponents/TinyMceWidget/pluginConfig.js
@@ -8,7 +8,6 @@ const pluginConfig = ({ isLibrary, placeholder, editorType }) => {
   const imageTools = isLibrary ? '' : plugins.imagetools;
   const imageUploadButton = isLibrary ? '' : buttons.imageUploadButton;
   const editImageSettings = isLibrary ? '' : buttons.editImageSettings;
-  const insertLinkButton = isLibrary ? '' : buttons.insertLink;
   const codePlugin = editorType === 'text' ? plugins.code : '';
   const codeButton = editorType === 'text' ? buttons.code : '';
   const labelButton = editorType === 'question' ? buttons.customLabelButton : '';
@@ -34,6 +33,7 @@ const pluginConfig = ({ isLibrary, placeholder, editorType }) => {
         plugins.a11ychecker,
         plugins.powerpaste,
         plugins.embediframe,
+        plugins.link,
       ].join(' '),
       menubar: false,
       toolbar: toolbar ? mapToolbars([
@@ -56,7 +56,8 @@ const pluginConfig = ({ isLibrary, placeholder, editorType }) => {
         [imageUploadButton, buttons.blockQuote, buttons.codeBlock],
         [buttons.table, buttons.emoticons, buttons.charmap, buttons.hr],
         [buttons.removeFormat, codeButton, buttons.a11ycheck, buttons.embediframe],
-        [insertLinkButton],
+        [buttons.link, buttons.unlink],
+        [buttons.insertLink],
       ]) : false,
       imageToolbar: mapToolbars([
         // [buttons.rotate.left, buttons.rotate.right],