diff --git a/packages/block-editor/src/components/rich-text/use-paste-handler.js b/packages/block-editor/src/components/rich-text/use-paste-handler.js
index eafaba19912f61..9f10932b86a9ef 100644
--- a/packages/block-editor/src/components/rich-text/use-paste-handler.js
+++ b/packages/block-editor/src/components/rich-text/use-paste-handler.js
@@ -8,9 +8,6 @@ import {
 	pasteHandler,
 	findTransform,
 	getBlockTransforms,
-	htmlToBlocks,
-	hasBlockSupport,
-	getBlockContent,
 } from '@wordpress/blocks';
 import {
 	isEmpty,
@@ -47,15 +44,6 @@ function adjustLines( value, isMultiline ) {
 	return replace( value, new RegExp( LINE_SEPARATOR, 'g' ), '\n' );
 }
 
-function maybeInline( blocks, mode ) {
-	if ( mode !== 'AUTO' ) return blocks;
-	if ( blocks.length !== 1 ) return blocks;
-	const [ block ] = blocks;
-	if ( ! hasBlockSupport( block.name, '__unstablePasteTextInline', false ) )
-		return blocks;
-	return getBlockContent( block );
-}
-
 export function usePasteHandler( props ) {
 	const propsRef = useRef( props );
 	propsRef.current = props;
@@ -224,16 +212,17 @@ export function usePasteHandler( props ) {
 			// If the data comes from a rich text instance, we can directly use it
 			// without filtering the data. The filters are only meant for externally
 			// pasted content and remove inline styles.
-			const isInternal = !! clipboardData.getData( 'rich-text' );
-			const content = isInternal
-				? maybeInline( htmlToBlocks( html ), mode )
-				: pasteHandler( {
-						HTML: html,
-						plainText,
-						mode,
-						tagName,
-						preserveWhiteSpace,
-				  } );
+			const content = pasteHandler( {
+				HTML: html,
+				plainText,
+				mode,
+				tagName,
+				preserveWhiteSpace,
+				// If the data comes from a rich text instance, we can directly
+				// use it without filtering the data. The filters are only meant
+				// for externally pasted content and remove inline styles.
+				disableFilters: !! clipboardData.getData( 'rich-text' ),
+			} );
 
 			if ( typeof content === 'string' ) {
 				let valueToInsert = create( { html: content } );
diff --git a/packages/blocks/README.md b/packages/blocks/README.md
index de2500fc199d25..f05c4474f8be53 100644
--- a/packages/blocks/README.md
+++ b/packages/blocks/README.md
@@ -471,6 +471,7 @@ _Parameters_
 -   _options.mode_ `[string]`: Handle content as blocks or inline content. _ 'AUTO': Decide based on the content passed. _ 'INLINE': Always handle as inline content, and return string. \* 'BLOCKS': Always handle as blocks, and return array of blocks.
 -   _options.tagName_ `[Array]`: The tag into which content will be inserted.
 -   _options.preserveWhiteSpace_ `[boolean]`: Whether or not to preserve consequent white space.
+-   _options.disableFilters_ `[boolean]`:
 
 _Returns_
 
diff --git a/packages/blocks/src/api/raw-handling/paste-handler.js b/packages/blocks/src/api/raw-handling/paste-handler.js
index c4ad40e0b1f509..97f3750a390365 100644
--- a/packages/blocks/src/api/raw-handling/paste-handler.js
+++ b/packages/blocks/src/api/raw-handling/paste-handler.js
@@ -8,7 +8,6 @@ import { getPhrasingContentSchema, removeInvalidHTML } from '@wordpress/dom';
  */
 import { htmlToBlocks } from './html-to-blocks';
 import { hasBlockSupport } from '../registration';
-import { getBlockInnerHTML } from '../serializer';
 import parse from '../parser';
 import normaliseBlocks from './normalise-blocks';
 import specialCommentConverter from './special-comment-converter';
@@ -66,6 +65,37 @@ function filterInlineHTML( HTML, preserveWhiteSpace ) {
 	return HTML;
 }
 
+/**
+ * If we're allowed to return inline content, and there is only one inlineable
+ * block, and the original plain text content does not have any line breaks,
+ * then treat it as inline paste.
+ *
+ * @param {Object} options
+ * @param {Array}  options.blocks
+ * @param {string} options.plainText
+ * @param {string} options.mode
+ */
+function maybeConvertParagraphToInline( { blocks, plainText, mode } ) {
+	if (
+		mode === 'AUTO' &&
+		blocks.length === 1 &&
+		hasBlockSupport( blocks[ 0 ].name, '__unstablePasteTextInline', false )
+	) {
+		const trimRegex = /^[\n]+|[\n]+$/g;
+		// Don't catch line breaks at the start or end.
+		const trimmedPlainText = plainText.replace( trimRegex, '' );
+
+		if (
+			trimmedPlainText !== '' &&
+			trimmedPlainText.indexOf( '\n' ) === -1
+		) {
+			return blocks[ 0 ].attributes.content;
+		}
+	}
+
+	return blocks;
+}
+
 /**
  * Converts an HTML string to known blocks. Strips everything else.
  *
@@ -79,6 +109,7 @@ function filterInlineHTML( HTML, preserveWhiteSpace ) {
  * @param {Array}   [options.tagName]            The tag into which content will be inserted.
  * @param {boolean} [options.preserveWhiteSpace] Whether or not to preserve consequent white space.
  *
+ * @param {boolean} [options.disableFilters]
  * @return {Array|string} A list of blocks or a string, depending on `handlerMode`.
  */
 export function pasteHandler( {
@@ -87,6 +118,7 @@ export function pasteHandler( {
 	mode = 'AUTO',
 	tagName,
 	preserveWhiteSpace,
+	disableFilters,
 } ) {
 	// First of all, strip any meta tags.
 	HTML = HTML.replace( /<meta[^>]+>/g, '' );
@@ -121,6 +153,17 @@ export function pasteHandler( {
 		HTML = HTML.normalize();
 	}
 
+	if ( disableFilters ) {
+		// If the data comes from a rich text instance, we can directly use it
+		// without filtering the data. The filters are only meant for externally
+		// pasted content and remove inline styles.
+		return maybeConvertParagraphToInline( {
+			blocks: htmlToBlocks( HTML, pasteHandler ),
+			plainText,
+			mode,
+		} );
+	}
+
 	// Parse Markdown (and encoded HTML) if:
 	// * There is a plain text version.
 	// * There is no HTML version, or it has no formatting.
@@ -222,25 +265,6 @@ export function pasteHandler( {
 	// If we're allowed to return inline content, and there is only one
 	// inlineable block, and the original plain text content does not have any
 	// line breaks, then treat it as inline paste.
-	if (
-		mode === 'AUTO' &&
-		blocks.length === 1 &&
-		hasBlockSupport( blocks[ 0 ].name, '__unstablePasteTextInline', false )
-	) {
-		const trimRegex = /^[\n]+|[\n]+$/g;
-		// Don't catch line breaks at the start or end.
-		const trimmedPlainText = plainText.replace( trimRegex, '' );
-
-		if (
-			trimmedPlainText !== '' &&
-			trimmedPlainText.indexOf( '\n' ) === -1
-		) {
-			return removeInvalidHTML(
-				getBlockInnerHTML( blocks[ 0 ] ),
-				phrasingContentSchema
-			).replace( trimRegex, '' );
-		}
-	}
 
-	return blocks;
+	return maybeConvertParagraphToInline( { blocks, plainText, mode } );
 }
diff --git a/packages/e2e-tests/specs/editor/various/__snapshots__/rich-text.test.js.snap b/packages/e2e-tests/specs/editor/various/__snapshots__/rich-text.test.js.snap
index bad38bd526ccf4..51e892511fc21b 100644
--- a/packages/e2e-tests/specs/editor/various/__snapshots__/rich-text.test.js.snap
+++ b/packages/e2e-tests/specs/editor/various/__snapshots__/rich-text.test.js.snap
@@ -26,11 +26,11 @@ exports[`RichText should apply multiple formats when selection is collapsed 1`]
 
 exports[`RichText should copy/paste heading 1`] = `
 "<!-- wp:heading -->
-<h2 class=\\"wp-block-heading\\">Heading</h2>
+<h2 class="wp-block-heading">Heading</h2>
 <!-- /wp:heading -->
 
 <!-- wp:heading -->
-<h2 class=\\"wp-block-heading\\">Heading</h2>
+<h2 class="wp-block-heading">Heading</h2>
 <!-- /wp:heading -->"
 `;