diff --git a/packages/block-editor/src/store/reducer.js b/packages/block-editor/src/store/reducer.js
index 85e87a4191974..d4de54308ac5d 100644
--- a/packages/block-editor/src/store/reducer.js
+++ b/packages/block-editor/src/store/reducer.js
@@ -597,6 +597,7 @@ const withBlockReset = ( reducer ) => ( state, action ) => {
 			order: mapBlockOrder( action.blocks ),
 			parents: new Map( mapBlockParents( action.blocks ) ),
 			controlledInnerBlocks: {},
+			autoInsertedBlocks: action?.autoInsertedBlocks || {},
 		};
 
 		newState.tree = new Map( state?.tree );
@@ -751,14 +752,20 @@ const withResetControlledBlocks = ( reducer ) => ( state, action ) => {
  * @return {Function} Enhanced reducer function.
  */
 const withAutoInsertBlocks = ( reducer ) => ( state, action ) => {
-	if ( action.type === 'RESET_BLOCKS' ) {
+	const {
+		autoInsertedBlocks,
+		blocks: originalBlocks,
+		rootClientId = '',
+		type,
+	} = action;
+	if (
+		originalBlocks?.length &&
+		( 'RESET_BLOCKS' === type || 'REPLACE_INNER_BLOCKS' === type )
+	) {
 		const autoInsertBlockTypes = select( blocksStore )
 			.getBlockTypes()
 			.filter( ( { autoInsert } ) => {
-				return (
-					autoInsert?.after?.length > 0 ||
-					autoInsert?.before?.length > 0
-				);
+				return autoInsert?.after?.length > 0;
 			} )
 			.reduce( ( autoInsertAccumulator, { name, autoInsert } ) => {
 				return autoInsert.after.reduce(
@@ -776,19 +783,48 @@ const withAutoInsertBlocks = ( reducer ) => ( state, action ) => {
 				);
 			}, {} );
 
-		const result = [];
-		action.blocks.forEach( ( block ) => {
-			result.push( block );
+		const previouslyAutoInsertedBlockNames = new Set(
+			autoInsertedBlocks
+				? autoInsertedBlocks?.[ rootClientId ]
+				: state?.autoInsertedBlocks?.[ rootClientId ]
+		);
+		const newAutoInsertedBlockNames = new Set();
+		const updatedBlocks = [];
+		originalBlocks.forEach( ( block ) => {
+			updatedBlocks.push( block );
 			if ( block.name in autoInsertBlockTypes ) {
 				autoInsertBlockTypes[ block.name ].after.forEach(
 					( autoInsertBlockName ) => {
-						result.push( createBlock( autoInsertBlockName ) );
+						if (
+							! previouslyAutoInsertedBlockNames.has(
+								autoInsertBlockName
+							)
+						) {
+							updatedBlocks.push(
+								createBlock( autoInsertBlockName )
+							);
+							newAutoInsertedBlockNames.add(
+								autoInsertBlockName
+							);
+						}
 					}
 				);
 			}
 		} );
 
-		return reducer( state, { ...action, blocks: result } );
+		const newState = reducer( state, {
+			...action,
+			blocks: updatedBlocks,
+		} );
+		if ( newAutoInsertedBlockNames.size === 0 ) {
+			return newState;
+		}
+
+		return reducer( newState, {
+			type: 'UPDATE_AUTO_INSERTED_BLOCKS',
+			rootClientId,
+			newAutoInsertedBlockNames,
+		} );
 	}
 
 	return reducer( state, action );
@@ -1237,6 +1273,22 @@ export const blocks = pipe(
 		}
 		return state;
 	},
+
+	autoInsertedBlocks(
+		state = {},
+		{ type, rootClientId = '', newAutoInsertedBlockNames }
+	) {
+		if ( 'UPDATE_AUTO_INSERTED_BLOCKS' === type ) {
+			return {
+				...state,
+				[ rootClientId ]: [
+					...( state[ rootClientId ] || [] ),
+					...newAutoInsertedBlockNames,
+				],
+			};
+		}
+		return state;
+	},
 } );
 
 /**
diff --git a/packages/block-editor/src/store/test/reducer.js b/packages/block-editor/src/store/test/reducer.js
index fc7903d011ac5..59d04b985bd8c 100644
--- a/packages/block-editor/src/store/test/reducer.js
+++ b/packages/block-editor/src/store/test/reducer.js
@@ -311,6 +311,7 @@ describe( 'state', () => {
 						} )
 					),
 					controlledInnerBlocks: {},
+					autoInsertedBlocks: {},
 				} );
 				expect( state.tree.get( 'chicken' ) ).not.toBe(
 					existingState.tree.get( 'chicken' )
@@ -411,6 +412,7 @@ describe( 'state', () => {
 						} )
 					),
 					controlledInnerBlocks: {},
+					autoInsertedBlocks: {},
 				} );
 				expect( state.tree.get( 'chicken' ) ).not.toBe(
 					existingState.tree.get( 'chicken' )
@@ -576,6 +578,7 @@ describe( 'state', () => {
 						} )
 					),
 					controlledInnerBlocks: {},
+					autoInsertedBlocks: {},
 				} );
 
 				expect( state.tree.get( '' ).innerBlocks[ 0 ] ).toBe(
@@ -703,6 +706,7 @@ describe( 'state', () => {
 						} )
 					),
 					controlledInnerBlocks: {},
+					autoInsertedBlocks: {},
 				} );
 
 				// The block object of the parent should be updated.
@@ -724,6 +728,7 @@ describe( 'state', () => {
 				isIgnoredChange: false,
 				tree: new Map(),
 				controlledInnerBlocks: {},
+				autoInsertedBlocks: {},
 			} );
 		} );
 
@@ -2373,7 +2378,7 @@ describe( 'state', () => {
 			} );
 		} );
 
-		describe.only( 'automatically inserted blocks', () => {
+		describe( 'automatically inserted blocks', () => {
 			beforeAll( () => {
 				registerBlockType( 'core/auto-inserted-block', {
 					save: noop,
@@ -2404,7 +2409,46 @@ describe( 'state', () => {
 				} );
 
 				expect( state.byClientId.size ).toBe( 2 );
-				console.log( state.order );
+				expect( Array.from( state.byClientId.values() ) ).toEqual( [
+					{
+						clientId: 'chicken',
+						name: 'core/test-block',
+					},
+					expect.objectContaining( {
+						name: 'core/auto-inserted-block',
+					} ),
+				] );
+				expect( state.autoInsertedBlocks ).toEqual( {
+					'': [ 'core/auto-inserted-block' ],
+				} );
+			} );
+
+			it( 'should not automatically insert a previously inserted block', () => {
+				const state = blocks( undefined, {
+					type: 'RESET_BLOCKS',
+					blocks: [
+						{
+							clientId: 'chicken',
+							name: 'core/test-block',
+							attributes: {},
+							innerBlocks: [],
+						},
+					],
+					autoInsertedBlocks: {
+						'': [ 'core/auto-inserted-block' ],
+					},
+				} );
+
+				expect( state.byClientId.size ).toBe( 1 );
+				expect( Array.from( state.byClientId.values() ) ).toEqual( [
+					{
+						clientId: 'chicken',
+						name: 'core/test-block',
+					},
+				] );
+				expect( state.autoInsertedBlocks ).toEqual( {
+					'': [ 'core/auto-inserted-block' ],
+				} );
 			} );
 		} );
 	} );