diff --git a/packages/block-editor/src/components/rich-text/index.js b/packages/block-editor/src/components/rich-text/index.js
index 25bbcf9b47955..3b8bd06ca5ee8 100644
--- a/packages/block-editor/src/components/rich-text/index.js
+++ b/packages/block-editor/src/components/rich-text/index.js
@@ -28,6 +28,7 @@ import {
 import { withFilters, IsolatedEventContainer } from '@wordpress/components';
 import { createBlobURL } from '@wordpress/blob';
 import deprecated from '@wordpress/deprecated';
+import { isURL } from '@wordpress/url';
 
 /**
  * Internal dependencies
@@ -129,6 +130,7 @@ class RichTextWrapper extends Component {
 			tagName,
 			canUserUseUnfilteredHTML,
 			multiline,
+			__unstableEmbedURLOnPaste,
 		} = this.props;
 
 		if ( image && ! html ) {
@@ -138,12 +140,11 @@ class RichTextWrapper extends Component {
 				mode: 'BLOCKS',
 				tagName,
 			} );
-			const shouldReplace = onReplace && isEmpty( value );
 
 			// Allows us to ask for this information when we get a report.
 			window.console.log( 'Received item:\n\n', file );
 
-			if ( shouldReplace ) {
+			if ( onReplace && isEmpty( value ) ) {
 				onReplace( content );
 			} else {
 				this.onSplit( value, content );
@@ -152,15 +153,14 @@ class RichTextWrapper extends Component {
 			return;
 		}
 
-		const canReplace = onReplace && isEmpty( value );
-		const canSplit = onReplace && onSplit;
-
-		let mode = 'INLINE';
+		let mode = onReplace && onSplit ? 'AUTO' : 'INLINE';
 
-		if ( canReplace ) {
+		if (
+			__unstableEmbedURLOnPaste &&
+			isEmpty( value ) &&
+			isURL( plainText.trim() )
+		) {
 			mode = 'BLOCKS';
-		} else if ( canSplit ) {
-			mode = 'AUTO';
 		}
 
 		const content = pasteHandler( {
@@ -182,7 +182,7 @@ class RichTextWrapper extends Component {
 
 			onChange( insert( value, valueToInsert ) );
 		} else if ( content.length > 0 ) {
-			if ( canReplace ) {
+			if ( onReplace && isEmpty( value ) ) {
 				onReplace( content );
 			} else {
 				this.onSplit( value, content );
diff --git a/packages/block-library/src/paragraph/edit.js b/packages/block-library/src/paragraph/edit.js
index c40fae904906f..0d41efd5c2683 100644
--- a/packages/block-library/src/paragraph/edit.js
+++ b/packages/block-library/src/paragraph/edit.js
@@ -195,6 +195,7 @@ class ParagraphBlock extends Component {
 					onRemove={ onReplace ? () => onReplace( [] ) : undefined }
 					aria-label={ content ? __( 'Paragraph block' ) : __( 'Empty block; start writing or type forward slash to choose a block' ) }
 					placeholder={ placeholder || __( 'Start writing or type / to choose a block' ) }
+					__unstableEmbedURLOnPaste
 				/>
 			</>
 		);