diff --git a/packages/lexical-html/src/index.ts b/packages/lexical-html/src/index.ts
index 2ef1ebbdad5..858c5fdf0c2 100644
--- a/packages/lexical-html/src/index.ts
+++ b/packages/lexical-html/src/index.ts
@@ -31,6 +31,7 @@ import {
   $isTextNode,
   ArtificialNode__DO_NOT_USE,
   ElementNode,
+  isInlineDomNode,
 } from 'lexical';
 
 /**
@@ -294,9 +295,16 @@ function $createNodesFromDOM(
   }
 
   if (currentLexicalNode == null) {
-    // If it hasn't been converted to a LexicalNode, we hoist its children
-    // up to the same level as it.
-    lexicalNodes = lexicalNodes.concat(childLexicalNodes);
+    if (childLexicalNodes.length > 0) {
+      // If it hasn't been converted to a LexicalNode, we hoist its children
+      // up to the same level as it.
+      lexicalNodes = lexicalNodes.concat(childLexicalNodes);
+    } else {
+      if (isBlockDomNode(node) && isDomNodeBetweenTwoInlineNodes(node)) {
+        // Empty block dom node that hasnt been converted, we replace it with a linebreak if its between inline nodes
+        lexicalNodes = lexicalNodes.concat($createLineBreakNode());
+      }
+    }
   } else {
     if ($isElementNode(currentLexicalNode)) {
       // If the current node is a ElementNode after conversion,
@@ -359,3 +367,12 @@ function $unwrapArtificalNodes(
     node.remove();
   }
 }
+
+function isDomNodeBetweenTwoInlineNodes(node: Node): boolean {
+  if (node.nextSibling == null || node.previousSibling == null) {
+    return false;
+  }
+  return (
+    isInlineDomNode(node.nextSibling) && isInlineDomNode(node.previousSibling)
+  );
+}
diff --git a/packages/lexical-utils/src/__tests__/unit/LexicalEventHelpers.test.tsx b/packages/lexical-utils/src/__tests__/unit/LexicalEventHelpers.test.tsx
index 4847d838d5b..4ab0ea03d91 100644
--- a/packages/lexical-utils/src/__tests__/unit/LexicalEventHelpers.test.tsx
+++ b/packages/lexical-utils/src/__tests__/unit/LexicalEventHelpers.test.tsx
@@ -678,6 +678,42 @@ describe('LexicalEventHelpers', () => {
           ],
           name: 'two lines and br in spans',
         },
+        {
+          expectedHTML:
+            '<ol class="editor-list-ol"><li value="1" class="editor-listitem"><span data-lexical-text="true">1</span><br><span data-lexical-text="true">2</span></li><li value="2" class="editor-listitem"><br></li><li value="3" class="editor-listitem"><span data-lexical-text="true">3</span></li></ol>',
+          inputs: [
+            pasteHTML('<ol><li>1<div></div>2</li><li></li><li>3</li></ol>'),
+          ],
+          name: 'empty block node in li behaves like a line break',
+        },
+        {
+          expectedHTML:
+            '<p class="editor-paragraph"><span data-lexical-text="true">1</span><br><span data-lexical-text="true">2</span></p>',
+          inputs: [pasteHTML('<div>1<div></div>2</div>')],
+          name: 'empty block node in div behaves like a line break',
+        },
+        {
+          expectedHTML:
+            '<p class="editor-paragraph"><span data-lexical-text="true">12</span></p>',
+          inputs: [pasteHTML('<div>1<text></text>2</div>')],
+          name: 'empty inline node does not behave like a line break',
+        },
+        {
+          expectedHTML:
+            '<p class="editor-paragraph"><span data-lexical-text="true">1</span></p><p class="editor-paragraph"><span data-lexical-text="true">2</span></p>',
+          inputs: [pasteHTML('<div><div>1</div><div></div><div>2</div></div>')],
+          name: 'empty block node between non inline siblings does not behave like a line break',
+        },
+        {
+          expectedHTML:
+            '<p class="editor-paragraph" dir="ltr"><span data-lexical-text="true">a</span></p><p class="editor-paragraph" dir="ltr"><span data-lexical-text="true">b b</span></p><p class="editor-paragraph" dir="ltr"><span data-lexical-text="true">c</span></p><p class="editor-paragraph" dir="ltr"><span data-lexical-text="true">z</span></p><p class="editor-paragraph" dir="ltr"><span data-lexical-text="true">d e</span></p><p class="editor-paragraph" dir="ltr"><span data-lexical-text="true">fg</span></p>',
+          inputs: [
+            pasteHTML(
+              `<div>a<div>b b<div>c<div><div></div>z</div></div>d e</div>fg</div>`,
+            ),
+          ],
+          name: 'nested divs',
+        },
       ];
 
       suite.forEach((testUnit, i) => {
diff --git a/packages/lexical/src/__tests__/unit/HTMLCopyAndPaste.test.ts b/packages/lexical/src/__tests__/unit/HTMLCopyAndPaste.test.ts
index 014681abf43..b146548383c 100644
--- a/packages/lexical/src/__tests__/unit/HTMLCopyAndPaste.test.ts
+++ b/packages/lexical/src/__tests__/unit/HTMLCopyAndPaste.test.ts
@@ -51,25 +51,6 @@ describe('HTMLCopyAndPaste tests', () => {
               456
             </div>`,
         },
-        {
-          expectedHTML: `<p dir="ltr"><span data-lexical-text="true">a</span></p><p dir="ltr"><span data-lexical-text="true">b b</span></p><p dir="ltr"><span data-lexical-text="true">c</span></p><p dir="ltr"><span data-lexical-text="true">z </span></p><p dir="ltr"><span data-lexical-text="true">d e </span></p><p dir="ltr"><span data-lexical-text="true">fg</span></p>`,
-          name: 'nested divs',
-          pastedHTML: `<div>
-            a
-            <div>
-              b b
-              <div>
-                c
-                <div>
-                  <div></div>
-                  z
-                </div>
-              </div>
-              d e
-            </div>
-            fg
-          </div>`,
-        },
         {
           expectedHTML: `<p dir="ltr"><span data-lexical-text="true">a b c d e</span></p><p dir="ltr"><span data-lexical-text="true">f g h</span></p>`,
           name: 'multiple nested spans and divs',