diff --git a/.eslintrc.json b/.eslintrc.json
index 19f53ee97f58d..7864b2732645c 100644
--- a/.eslintrc.json
+++ b/.eslintrc.json
@@ -18,7 +18,8 @@
 		}
 	},
 	"globals": {
-		"wp": true
+		"wp": true,
+		"wpApiSettings": true
 	},
 	"plugins": [
 		"react",
diff --git a/blocks/library/embed/index.js b/blocks/library/embed/index.js
index 53f1a49c5de1b..25659caaecf83 100644
--- a/blocks/library/embed/index.js
+++ b/blocks/library/embed/index.js
@@ -1,7 +1,7 @@
 /**
  * WordPress dependencies
  */
-import { Button, Placeholder } from 'components';
+import { Button, Placeholder, HtmlEmbed, Spinner } from 'components';
 
 /**
  * Internal dependencies
@@ -34,7 +34,6 @@ registerBlockType( 'core/embed', {
 	category: 'embed',
 
 	attributes: {
-		url: attr( 'iframe', 'src' ),
 		title: attr( 'iframe', 'title' ),
 		caption: children( 'figcaption' ),
 	},
@@ -73,52 +72,130 @@ registerBlockType( 'core/embed', {
 		}
 	},
 
-	edit( { attributes, setAttributes, focus, setFocus } ) {
-		const { url, title, caption } = attributes;
+	edit: class extends wp.element.Component {
+		constructor() {
+			super( ...arguments );
+			this.doServerSideRender = this.doServerSideRender.bind( this );
+			this.state = {
+				html: '',
+				type: '',
+				error: false,
+				fetching: false,
+			};
+			this.noPreview = [
+				'facebook.com',
+			];
+			if ( this.props.attributes.url ) {
+				// if the url is already there, we're loading a saved block, so we need to render
+				this.doServerSideRender();
+			}
+		}
 
-		if ( ! url ) {
-			return (
-				<Placeholder icon="cloud" label={ wp.i18n.__( 'Embed URL' ) } className="blocks-embed">
-					<input type="url" className="placeholder__input" placeholder={ wp.i18n.__( 'Enter URL to embed here...' ) } />
-					<Button isLarge>
-						{ wp.i18n.__( 'Embed' ) }
-					</Button>
-				</Placeholder>
+		componentWillUnmount() {
+			// can't abort the fetch promise, so let it know we will unmount
+			this.unmounting = true;
+		}
+
+		doServerSideRender( event ) {
+			if ( event ) {
+				event.preventDefault();
+			}
+			const { url } = this.props.attributes;
+			const api_url = wpApiSettings.root + 'oembed/1.0/proxy?url=' + encodeURIComponent( url ) + '&_wpnonce=' + wpApiSettings.nonce;
+
+			this.setState( { error: false, fetching: true } );
+			fetch( api_url, {
+				credentials: 'include',
+			} ).then(
+				( response ) => {
+					if ( this.unmounting ) {
+						return;
+					}
+					response.json().then( ( obj ) => {
+						const { html, type } = obj;
+						if ( html ) {
+							this.setState( { html, type } );
+						} else {
+							this.setState( { error: true } );
+						}
+						this.setState( { fetching: false } );
+					} );
+				}
 			);
 		}
 
-		return (
-			<figure className="blocks-embed">
-				<div className="iframe-overlay">
-					<iframe src={ url } title={ title } />
-				</div>
-				{ ( caption && caption.length > 0 ) || !! focus ? (
-					<Editable
-						tagName="figcaption"
-						placeholder={ wp.i18n.__( 'Write caption…' ) }
-						value={ caption }
-						focus={ focus }
-						onFocus={ setFocus }
-						onChange={ ( value ) => setAttributes( { caption: value } ) }
-						inline
-						inlineToolbar
-					/>
-				) : null }
-			</figure>
-		);
+		render() {
+			const { html, type, error, fetching } = this.state;
+			const { url, caption } = this.props.attributes;
+			const { setAttributes, focus, setFocus } = this.props;
+
+			if ( ! html ) {
+				return (
+					<Placeholder icon="cloud" label={ wp.i18n.__( 'Embed URL' ) } className="blocks-embed">
+						<form onSubmit={ this.doServerSideRender }>
+							<input
+								type="url"
+								className="components-placeholder__input"
+								placeholder={ wp.i18n.__( 'Enter URL to embed here...' ) }
+								onChange={ ( event ) => setAttributes( { url: event.target.value } ) } />
+							{ ! fetching
+								? <Button
+									isLarge
+									type="submit">
+									{ wp.i18n.__( 'Embed' ) }
+								</Button>
+								: <Spinner />
+							}
+							{ error && <p className="components-placeholder__error">{ wp.i18n.__( 'Sorry, we could not embed that content.' ) }</p> }
+						</form>
+					</Placeholder>
+				);
+			}
+
+			const domain = url.split( '/' )[ 2 ].replace( /^www\./, '' );
+			const cannotPreview = this.noPreview.includes( domain );
+			let typeClassName = 'blocks-embed';
+
+			if ( 'video' === type ) {
+				typeClassName = 'blocks-embed-video';
+			}
+
+			return (
+				<figure className={ typeClassName }>
+					{ ( cannotPreview ) ? (
+						<Placeholder icon="cloud" label={ wp.i18n.__( 'Embed URL' ) }>
+							<p className="components-placeholder__error"><a href={ url }>{ url }</a></p>
+							<p className="components-placeholder__error">{ wp.i18n.__( 'Previews for this are unavailable in the editor, sorry!' ) }</p>
+						</Placeholder>
+					) : (
+						<HtmlEmbed html={ html } />
+					) }
+					{ ( caption && caption.length > 0 ) || !! focus ? (
+						<Editable
+							tagName="figcaption"
+							placeholder={ wp.i18n.__( 'Write caption…' ) }
+							value={ caption }
+							focus={ focus }
+							onFocus={ setFocus }
+							onChange={ ( value ) => setAttributes( { caption: value } ) }
+							inline
+							inlineToolbar
+						/>
+					) : null }
+				</figure>
+			);
+		}
 	},
 
 	save( { attributes } ) {
-		const { url, title, caption } = attributes;
-		const iframe = <iframe src={ url } title={ title } />;
-
+		const { url, caption } = attributes;
 		if ( ! caption || ! caption.length ) {
-			return iframe;
+			return url;
 		}
 
 		return (
 			<figure>
-				{ iframe }
+				{ url }
 				<figcaption>{ caption }</figcaption>
 			</figure>
 		);
diff --git a/blocks/library/embed/style.scss b/blocks/library/embed/style.scss
index 3b4a11df46927..7abbf2de16590 100644
--- a/blocks/library/embed/style.scss
+++ b/blocks/library/embed/style.scss
@@ -1,15 +1,16 @@
-.blocks-embed {
+.blocks-embed,
+.blocks-embed-video {
 	margin: 0;
 }
 
-.blocks-embed .iframe-overlay {
+.blocks-embed-video > div:first-child {
 	position: relative;
 	width: 100%;
 	height: 0;
 	padding-bottom: 56.25%; /* 16:9 */
 }
 
-.blocks-embed iframe {
+.blocks-embed-video > div > iframe {
 	position: absolute;
 	top: 0;
 	left: 0;
@@ -55,6 +56,5 @@ div[data-type="core/embed"] {
 			margin-left: auto;
 			margin-right: auto;
 		}
-
 	}
 }
diff --git a/blocks/test/fixtures/core-embed-youtube-caption.html b/blocks/test/fixtures/core-embed-youtube-caption.html
index 3e6f600b254d6..784220eab0a20 100644
--- a/blocks/test/fixtures/core-embed-youtube-caption.html
+++ b/blocks/test/fixtures/core-embed-youtube-caption.html
@@ -1,3 +1,3 @@
 <!-- wp:core/embed url="https://www.youtube.com/watch?v=Nl6U7UotA-M" -->
-<figure><iframe src="//www.youtube.com/embed/Nl6U7UotA-M" frameborder="0" allowfullscreen></iframe><figcaption>State of the Word 2016</figcaption></figure>
-<!-- /wp:core/embed -->
+<figure>https://www.youtube.com/embed/Nl6U7UotA-M"<figcaption>State of the Word 2016</figcaption></figure>
+<!-- /wp:core/embed -->
\ No newline at end of file
diff --git a/blocks/test/fixtures/core-embed-youtube-caption.json b/blocks/test/fixtures/core-embed-youtube-caption.json
index 81689a7432fd0..104b854351cf9 100644
--- a/blocks/test/fixtures/core-embed-youtube-caption.json
+++ b/blocks/test/fixtures/core-embed-youtube-caption.json
@@ -3,7 +3,7 @@
         "uid": "_uid_0",
         "name": "core/embed",
         "attributes": {
-            "url": "//www.youtube.com/embed/Nl6U7UotA-M",
+            "url": "https://www.youtube.com/watch?v=Nl6U7UotA-M",
             "caption": [
                 "State of the Word 2016"
             ]
diff --git a/blocks/test/fixtures/core-embed-youtube-caption.serialized.html b/blocks/test/fixtures/core-embed-youtube-caption.serialized.html
index bde2a8c300104..f75c6cc292c51 100644
--- a/blocks/test/fixtures/core-embed-youtube-caption.serialized.html
+++ b/blocks/test/fixtures/core-embed-youtube-caption.serialized.html
@@ -1,5 +1,5 @@
-<!-- wp:core/embed -->
-<figure><iframe src="//www.youtube.com/embed/Nl6U7UotA-M"></iframe>
+<!-- wp:core/embed url="https://www.youtube.com/watch?v=Nl6U7UotA-M" -->
+<figure>https://www.youtube.com/watch?v=Nl6U7UotA-M
     <figcaption>State of the Word 2016</figcaption>
 </figure>
 <!-- /wp:core/embed -->
diff --git a/components/html-embed/index.js b/components/html-embed/index.js
new file mode 100644
index 0000000000000..c4e113f13e54d
--- /dev/null
+++ b/components/html-embed/index.js
@@ -0,0 +1,33 @@
+// When embedding HTML from the WP oEmbed proxy, we need to insert it
+// into a div and make sure any scripts get run. This component takes
+// HTML and puts it into a div element, and creates and adds new script
+// elements so all scripts get run as expected.
+
+export default class HtmlEmbed extends wp.element.Component {
+
+	componentDidMount() {
+		const body = this.node;
+		const { html = '' } = this.props;
+
+		body.innerHTML = html;
+
+		const scripts = body.getElementsByTagName( 'script' );
+		const newScripts = Array.from( scripts ).map( ( script ) => {
+			const newScript = document.createElement( 'script' );
+			if ( script.src ) {
+				newScript.src = script.src;
+			} else {
+				newScript.innerHTML = script.innerHTML;
+			}
+			return newScript;
+		} );
+
+		newScripts.forEach( ( script ) => body.appendChild( script ) );
+	}
+
+	render() {
+		return (
+			<div ref={ ( node ) => this.node = node } />
+		);
+	}
+}
diff --git a/components/index.js b/components/index.js
index 50ca974a39f10..1582340f6b380 100644
--- a/components/index.js
+++ b/components/index.js
@@ -1,6 +1,7 @@
 export { default as Button } from './button';
 export { default as Dashicon } from './dashicon';
 export { default as FormToggle } from './form-toggle';
+export { default as HtmlEmbed } from './html-embed';
 export { default as IconButton } from './icon-button';
 export { default as Panel } from './panel';
 export { default as PanelHeader } from './panel/header';
diff --git a/components/placeholder/style.scss b/components/placeholder/style.scss
index d28fea95f215c..cb1f1aee0fcb8 100644
--- a/components/placeholder/style.scss
+++ b/components/placeholder/style.scss
@@ -22,7 +22,8 @@
 	}
 }
 
-.components-placeholder__fieldset {
+.components-placeholder__fieldset,
+.components-placeholder__fieldset form {
 	display: flex;
 	flex-direction: row;
 	justify-content: center;
diff --git a/post-content.js b/post-content.js
index 7313647c435d3..185280888e2c5 100644
--- a/post-content.js
+++ b/post-content.js
@@ -41,7 +41,7 @@ window._wpGutenbergPost = {
 			'<!-- /wp:core/text -->',
 
 			'<!-- wp:core/embed url="https://www.youtube.com/watch?v=Nl6U7UotA-M" -->',
-			'<figure><iframe src="//www.youtube.com/embed/Nl6U7UotA-M" frameborder="0" allowfullscreen></iframe><figcaption>State of the Word 2016</figcaption></figure>',
+			'<figure>https://www.youtube.com/watch?v=Nl6U7UotA-M<figcaption>State of the Word 2016</figcaption></figure>',
 			'<!-- /wp:core/embed -->',
 
 			'<!-- wp:core/heading -->',