diff --git a/packages/block-library/src/gallery/edit.js b/packages/block-library/src/gallery/edit.js
index afe8af17a8743..3100a3293e96c 100644
--- a/packages/block-library/src/gallery/edit.js
+++ b/packages/block-library/src/gallery/edit.js
@@ -2,7 +2,7 @@
  * External dependencies
  */
 import classnames from 'classnames';
-import { isEmpty, concat, differenceBy, some, find } from 'lodash';
+import { isEmpty, concat, find } from 'lodash';
 
 /**
  * WordPress dependencies
@@ -23,7 +23,6 @@ import {
 	InspectorControls,
 	useBlockProps,
 } from '@wordpress/block-editor';
-import { store as coreStore } from '@wordpress/core-data';
 import { Platform, useEffect, useMemo } from '@wordpress/element';
 import { __, sprintf } from '@wordpress/i18n';
 import { useSelect, useDispatch } from '@wordpress/data';
@@ -51,6 +50,8 @@ import {
 } from './constants';
 import useImageSizes from './use-image-sizes';
 import useShortCodeTransform from './use-short-code-transform';
+import useGetNewImages from './use-get-new-images';
+import useGetMedia from './use-get-media';
 
 const MAX_COLUMNS = 8;
 const linkOptions = [
@@ -122,35 +123,27 @@ function GalleryEdit( props ) {
 	const images = useMemo(
 		() =>
 			innerBlockImages?.map( ( block ) => ( {
+				clientId: block.clientId,
 				id: block.attributes.id,
 				url: block.attributes.url,
 				attributes: block.attributes,
+				fromSavedContent: Boolean( block.originalContent ),
 			} ) ),
 		[ innerBlockImages ]
 	);
 
-	const imageData = useSelect(
-		( select ) => {
-			if (
-				! innerBlockImages?.length ||
-				some(
-					innerBlockImages,
-					( imageBlock ) => ! imageBlock.attributes.id
-				)
-			) {
-				return imageData;
-			}
+	const imageData = useGetMedia( innerBlockImages );
 
-			const imageIds = innerBlockImages.map(
-				( imageBlock ) => imageBlock.attributes.id
-			);
+	const newImages = useGetNewImages( images, imageData );
 
-			const getMediaItems = select( coreStore ).getMediaItems;
-
-			return getMediaItems( { include: imageIds } );
-		},
-		[ innerBlockImages ]
-	);
+	useEffect( () => {
+		newImages?.forEach( ( newImage ) => {
+			updateBlockAttributes( newImage.clientId, {
+				...buildImageAttributes( false, newImage ),
+				id: newImage.id,
+			} );
+		} );
+	}, [ newImages ] );
 
 	const shortCodeImages = useShortCodeTransform( shortCodeTransforms );
 
@@ -241,17 +234,22 @@ function GalleryEdit( props ) {
 		const existingImageBlocks = ! newFileUploads
 			? innerBlockImages.filter( ( block ) =>
 					processedImages.find(
-						( img ) => img.url === block.attributes.url
+						( img ) => img.id === block.attributes.id
 					)
 			  )
 			: innerBlockImages;
 
-		const newImages = differenceBy( processedImages, images, 'url' );
+		const newImageList = processedImages.filter(
+			( img ) =>
+				! existingImageBlocks.find(
+					( existingImg ) => img.id === existingImg.attributes.id
+				)
+		);
 
-		const newBlocks = newImages.map( ( image ) => {
+		const newBlocks = newImageList.map( ( image ) => {
 			return createBlock( 'core/image', {
-				...buildImageAttributes( false, image ),
 				id: image.id,
+				url: image.url,
 			} );
 		} );
 
diff --git a/packages/block-library/src/gallery/use-get-media.js b/packages/block-library/src/gallery/use-get-media.js
new file mode 100644
index 0000000000000..fc04e070f9617
--- /dev/null
+++ b/packages/block-library/src/gallery/use-get-media.js
@@ -0,0 +1,55 @@
+/**
+ * External dependencies
+ */
+import { some } from 'lodash';
+
+/**
+ * WordPress dependencies
+ */
+import { useState } from '@wordpress/element';
+import { useSelect } from '@wordpress/data';
+import { store as coreStore } from '@wordpress/core-data';
+
+export default function useGetMedia( innerBlockImages ) {
+	const [ currentImageMedia, setCurrentImageMedia ] = useState( [] );
+
+	const imageMedia = useSelect(
+		( select ) => {
+			if (
+				! innerBlockImages?.length ||
+				some(
+					innerBlockImages,
+					( imageBlock ) => ! imageBlock.attributes.id
+				)
+			) {
+				return currentImageMedia;
+			}
+
+			const imageIds = innerBlockImages.map(
+				( imageBlock ) => imageBlock.attributes.id
+			);
+
+			if ( imageIds.length === 0 ) {
+				return currentImageMedia;
+			}
+			const getMedia = select( coreStore ).getMedia;
+			const newImageMedia = imageIds.map( ( img ) => {
+				return getMedia( img );
+			} );
+
+			if ( newImageMedia.some( ( img ) => ! img ) ) {
+				return currentImageMedia;
+			}
+
+			return newImageMedia;
+		},
+		[ innerBlockImages ]
+	);
+
+	if ( imageMedia?.length !== currentImageMedia.length ) {
+		setCurrentImageMedia( imageMedia );
+		return imageMedia;
+	}
+
+	return currentImageMedia;
+}
diff --git a/packages/block-library/src/gallery/use-get-new-images.js b/packages/block-library/src/gallery/use-get-new-images.js
new file mode 100644
index 0000000000000..25ac5a15560ee
--- /dev/null
+++ b/packages/block-library/src/gallery/use-get-new-images.js
@@ -0,0 +1,56 @@
+/**
+ * WordPress dependencies
+ */
+import { useMemo, useState } from '@wordpress/element';
+
+export default function useGetNewImages( images, imageData ) {
+	const [ currentImages, setCurrentImages ] = useState( [] );
+
+	return useMemo( () => getNewImages(), [ images, imageData ] );
+
+	function getNewImages() {
+		let imagesUpdated = false;
+
+		// First lets check if any images have been deleted.
+		const newCurrentImages = currentImages.filter( ( currentImg ) =>
+			images.find( ( img ) => {
+				return currentImg.clientId === img.clientId;
+			} )
+		);
+
+		if ( newCurrentImages.length < currentImages.length ) {
+			imagesUpdated = true;
+		}
+
+		// Now lets see if we have any images hydrated from saved content and if so
+		// add them to currentImages state.
+		images.forEach( ( image ) => {
+			if (
+				image.fromSavedContent &&
+				! newCurrentImages.find(
+					( currentImage ) => currentImage.id === image.id
+				)
+			) {
+				imagesUpdated = true;
+				newCurrentImages.push( image );
+			}
+		} );
+
+		// Now check for any new images that have been added to InnerBlocks and for which
+		// we have the imageData we need for setting default block attributes.
+		const newImages = images.filter(
+			( image ) =>
+				! newCurrentImages.find(
+					( currentImage ) => image.id && currentImage.id === image.id
+				) &&
+				imageData?.find( ( img ) => img.id === image.id ) &&
+				! image.fromSavedConent
+		);
+
+		if ( imagesUpdated || newImages?.length > 0 ) {
+			setCurrentImages( [ ...newCurrentImages, ...newImages ] );
+		}
+
+		return newImages.length > 0 ? newImages : null;
+	}
+}