diff --git a/packages/block-library/src/editor.scss b/packages/block-library/src/editor.scss
index 012918eef54836..7b68e2d7a9ddfe 100644
--- a/packages/block-library/src/editor.scss
+++ b/packages/block-library/src/editor.scss
@@ -28,6 +28,7 @@
 @import "./navigation-link/editor.scss";
 @import "./nextpage/editor.scss";
 @import "./paragraph/editor.scss";
+@import "./post-excerpt/editor.scss";
 @import "./pullquote/editor.scss";
 @import "./quote/editor.scss";
 @import "./rss/editor.scss";
diff --git a/packages/block-library/src/post-excerpt/block.json b/packages/block-library/src/post-excerpt/block.json
index ef39be86f839cc..24a74217c547a7 100644
--- a/packages/block-library/src/post-excerpt/block.json
+++ b/packages/block-library/src/post-excerpt/block.json
@@ -1,4 +1,17 @@
 {
 	"name": "core/post-excerpt",
-	"category": "layout"
+	"category": "layout",
+	"attributes": {
+		"wordCount": {
+			"type": "number",
+			"default": 55
+		},
+		"moreText": {
+			"type": "string"
+		},
+		"showMoreOnNewLine": {
+			"type": "boolean",
+			"default": true
+		}
+	}
 }
diff --git a/packages/block-library/src/post-excerpt/edit.js b/packages/block-library/src/post-excerpt/edit.js
index 7bbeff3a979003..7b4ee53704f37a 100644
--- a/packages/block-library/src/post-excerpt/edit.js
+++ b/packages/block-library/src/post-excerpt/edit.js
@@ -2,20 +2,118 @@
  * WordPress dependencies
  */
 import { useEntityProp, useEntityId } from '@wordpress/core-data';
-import { PlainText } from '@wordpress/block-editor';
+import { useMemo } from '@wordpress/element';
+import { InspectorControls, RichText } from '@wordpress/block-editor';
+import { PanelBody, RangeControl, ToggleControl } from '@wordpress/components';
+import { __ } from '@wordpress/i18n';
 
-function PostExcerptDisplay() {
+function usePostContentExcerpt( wordCount ) {
+	const [ , , { raw: rawPostContent } ] = useEntityProp(
+		'postType',
+		'post',
+		'content'
+	);
+	return useMemo( () => {
+		if ( ! rawPostContent ) {
+			return '';
+		}
+		const excerptElement = document.createElement( 'div' );
+		excerptElement.innerHTML = rawPostContent;
+		const excerpt =
+			excerptElement.textContent || excerptElement.innerText || '';
+		return excerpt
+			.trim()
+			.split( ' ', wordCount )
+			.join( ' ' );
+	}, [ rawPostContent, wordCount ] );
+}
+
+function PostExcerptEditor( {
+	attributes: { wordCount, moreText, showMoreOnNewLine },
+	setAttributes,
+	isSelected,
+} ) {
 	const [ excerpt, setExcerpt ] = useEntityProp(
 		'postType',
 		'post',
 		'excerpt'
 	);
-	return <PlainText value={ excerpt } onChange={ setExcerpt } />;
+	const postContentExcerpt = usePostContentExcerpt( wordCount );
+	return (
+		<>
+			<InspectorControls>
+				<PanelBody title={ __( 'Post Excerpt Settings' ) }>
+					{ ! excerpt && (
+						<RangeControl
+							label={ __( 'Max words' ) }
+							value={ wordCount }
+							onChange={ ( newExcerptLength ) =>
+								setAttributes( { wordCount: newExcerptLength } )
+							}
+							min={ 10 }
+							max={ 100 }
+						/>
+					) }
+					<ToggleControl
+						label={ __( 'Show link on new line' ) }
+						checked={ showMoreOnNewLine }
+						onChange={ ( newShowMoreOnNewLine ) =>
+							setAttributes( {
+								showMoreOnNewLine: newShowMoreOnNewLine,
+							} )
+						}
+					/>
+				</PanelBody>
+			</InspectorControls>
+			<RichText
+				className={
+					! showMoreOnNewLine &&
+					'wp-block-post-excerpt__excerpt is-inline'
+				}
+				placeholder={ postContentExcerpt }
+				value={ excerpt || ( isSelected ? '' : postContentExcerpt ) }
+				onChange={ setExcerpt }
+				keepPlaceholderOnFocus
+			/>
+			{ ! showMoreOnNewLine && ' ' }
+			{ showMoreOnNewLine ? (
+				<p>
+					<RichText
+						tagName="a"
+						placeholder={ __( 'Read more…' ) }
+						value={ moreText }
+						onChange={ ( newMoreText ) =>
+							setAttributes( { moreText: newMoreText } )
+						}
+					/>
+				</p>
+			) : (
+				<RichText
+					tagName="a"
+					placeholder={ __( 'Read more…' ) }
+					value={ moreText }
+					onChange={ ( newMoreText ) =>
+						setAttributes( { moreText: newMoreText } )
+					}
+				/>
+			) }
+		</>
+	);
 }
 
-export default function PostExcerptEdit() {
+export default function PostExcerptEdit( {
+	attributes,
+	setAttributes,
+	isSelected,
+} ) {
 	if ( ! useEntityId( 'postType', 'post' ) ) {
 		return 'Post Excerpt Placeholder';
 	}
-	return <PostExcerptDisplay />;
+	return (
+		<PostExcerptEditor
+			attributes={ attributes }
+			setAttributes={ setAttributes }
+			isSelected={ isSelected }
+		/>
+	);
 }
diff --git a/packages/block-library/src/post-excerpt/editor.scss b/packages/block-library/src/post-excerpt/editor.scss
new file mode 100644
index 00000000000000..8d36110746aef4
--- /dev/null
+++ b/packages/block-library/src/post-excerpt/editor.scss
@@ -0,0 +1,3 @@
+.wp-block-post-excerpt__excerpt.is-inline {
+	display: inline-block;
+}
diff --git a/packages/block-library/src/post-excerpt/index.php b/packages/block-library/src/post-excerpt/index.php
index 06d1b9726468fc..c3f1755d0422f0 100644
--- a/packages/block-library/src/post-excerpt/index.php
+++ b/packages/block-library/src/post-excerpt/index.php
@@ -8,14 +8,39 @@
 /**
  * Renders the `core/post-excerpt` block on the server.
  *
+ * @param array $attributes The block attributes.
+ *
  * @return string Returns the filtered post excerpt for the current post wrapped inside "p" tags.
  */
-function render_block_core_post_excerpt() {
+function render_block_core_post_excerpt( $attributes ) {
 	$post = gutenberg_get_post_from_context();
 	if ( ! $post ) {
 		return '';
 	}
-	return '<p>' . get_the_excerpt( $post ) . '</p>';
+
+	$more_text = isset( $attributes['moreText'] ) ? '<a href="' . esc_url( get_the_permalink( $post ) ) . '">' . $attributes['moreText'] . '</a>' : '';
+
+	$filter_excerpt_length = function() use ( $attributes ) {
+		return isset( $attributes['wordCount'] ) ? $attributes['wordCount'] : 55;
+	};
+	add_filter(
+		'excerpt_length',
+		$filter_excerpt_length
+	);
+
+	$output = '<p>' . get_the_excerpt( $post );
+	if ( ! isset( $attributes['showMoreOnNewLine'] ) || $attributes['showMoreOnNewLine'] ) {
+		$output .= '</p>' . '<p>' . $more_text . '</p>';
+	} else {
+		$output .= ' ' . $more_text . '</p>';
+	}
+
+	remove_filter(
+		'excerpt_length',
+		$filter_excerpt_length
+	);
+
+	return $output;
 }
 
 /**
@@ -25,6 +50,19 @@ function register_block_core_post_excerpt() {
 	register_block_type(
 		'core/post-excerpt',
 		array(
+			'attributes'      => array(
+				'wordCount'         => array(
+					'type'    => 'number',
+					'default' => 55,
+				),
+				'moreText'          => array(
+					'type' => 'string',
+				),
+				'showMoreOnNewLine' => array(
+					'type'    => 'boolean',
+					'default' => true,
+				),
+			),
 			'render_callback' => 'render_block_core_post_excerpt',
 		)
 	);
diff --git a/packages/core-data/src/entity-provider.js b/packages/core-data/src/entity-provider.js
index 03454425ccb315..3a73e5a79c280a 100644
--- a/packages/core-data/src/entity-provider.js
+++ b/packages/core-data/src/entity-provider.js
@@ -85,12 +85,18 @@ export function useEntityId( kind, type ) {
 export function useEntityProp( kind, type, prop ) {
 	const id = useEntityId( kind, type );
 
-	const value = useSelect(
+	const { value, fullValue } = useSelect(
 		( select ) => {
 			const { getEntityRecord, getEditedEntityRecord } = select( 'core' );
-			getEntityRecord( kind, type, id ); // Trigger resolver.
-			const entity = getEditedEntityRecord( kind, type, id );
-			return entity && entity[ prop ];
+			const entity = getEntityRecord( kind, type, id ); // Trigger resolver.
+			const editedEntity = getEditedEntityRecord( kind, type, id );
+			return (
+				entity &&
+				editedEntity && {
+					value: editedEntity[ prop ],
+					fullValue: entity[ prop ],
+				}
+			);
 		},
 		[ kind, type, id, prop ]
 	);
@@ -105,7 +111,7 @@ export function useEntityProp( kind, type, prop ) {
 		[ kind, type, id, prop ]
 	);
 
-	return [ value, setValue ];
+	return [ value, setValue, fullValue ];
 }
 
 /**
diff --git a/packages/e2e-tests/fixtures/blocks/core__post-excerpt.json b/packages/e2e-tests/fixtures/blocks/core__post-excerpt.json
index 67bee1bd83f275..44a38831ec996e 100644
--- a/packages/e2e-tests/fixtures/blocks/core__post-excerpt.json
+++ b/packages/e2e-tests/fixtures/blocks/core__post-excerpt.json
@@ -3,7 +3,10 @@
         "clientId": "_clientId_0",
         "name": "core/post-excerpt",
         "isValid": true,
-        "attributes": {},
+        "attributes": {
+            "wordCount": 55,
+            "showMoreOnNewLine": true
+        },
         "innerBlocks": [],
         "originalContent": ""
     }
diff --git a/test/integration/full-content/server-registered.json b/test/integration/full-content/server-registered.json
index 3fae2b82a0e4ea..95514917078471 100644
--- a/test/integration/full-content/server-registered.json
+++ b/test/integration/full-content/server-registered.json
@@ -1 +1 @@
-{"core\/archives":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"displayAsDropdown":{"type":"boolean","default":false},"showPostCounts":{"type":"boolean","default":false}}},"core\/block":{"attributes":{"ref":{"type":"number"}}},"core\/calendar":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"month":{"type":"integer"},"year":{"type":"integer"}}},"core\/categories":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"displayAsDropdown":{"type":"boolean","default":false},"showHierarchy":{"type":"boolean","default":false},"showPostCounts":{"type":"boolean","default":false}}},"core\/latest-comments":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"commentsToShow":{"type":"number","default":5,"minimum":1,"maximum":100},"displayAvatar":{"type":"boolean","default":true},"displayDate":{"type":"boolean","default":true},"displayExcerpt":{"type":"boolean","default":true}}},"core\/latest-posts":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"categories":{"type":"string"},"postsToShow":{"type":"number","default":5},"displayPostContent":{"type":"boolean","default":false},"displayPostContentRadio":{"type":"string","default":"excerpt"},"excerptLength":{"type":"number","default":55},"displayPostDate":{"type":"boolean","default":false},"postLayout":{"type":"string","default":"list"},"columns":{"type":"number","default":3},"order":{"type":"string","default":"desc"},"orderBy":{"type":"string","default":"date"},"displayFeaturedImage":{"type":"boolean","default":false},"featuredImageAlign":{"type":"string","enum":["left","center","right"]},"featuredImageSizeSlug":{"type":"string","default":"thumbnail"},"featuredImageSizeWidth":{"type":"number","default":null},"featuredImageSizeHeight":{"type":"number","default":null}}},"core\/legacy-widget":{"attributes":{"widgetClass":{"type":"string"},"id":{"type":"string"},"idBase":{"type":"string"},"number":{"type":"number"},"instance":{"type":"object"}}},"core\/navigation":{"attributes":{"className":{"type":"string"},"textColor":{"type":"string"},"customTextColor":{"type":"string"},"rgbTextColor":{"type":"string"},"backgroundColor":{"type":"string"},"customBackgroundColor":{"type":"string"},"rgbBackgroundColor":{"type":"string"},"fontSize":{"type":"string"},"customFontSize":{"type":"number"},"itemsJustification":{"type":"string"},"showSubmenuIcon":{"type":"boolean","default":true}}},"core\/post-comments-count":{"attributes":{"className":{"type":"string"}}},"core\/rss":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"columns":{"type":"number","default":2},"blockLayout":{"type":"string","default":"list"},"feedURL":{"type":"string","default":""},"itemsToShow":{"type":"number","default":5},"displayExcerpt":{"type":"boolean","default":false},"displayAuthor":{"type":"boolean","default":false},"displayDate":{"type":"boolean","default":false},"excerptLength":{"type":"number","default":55}}},"core\/search":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"label":{"type":"string","default":"Search"},"placeholder":{"type":"string","default":""},"buttonText":{"type":"string","default":"Search"}}},"core\/tag-cloud":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"taxonomy":{"type":"string","default":"post_tag"},"showTagCounts":{"type":"boolean","default":false}}},"core\/template-part":{"attributes":{"postId":{"type":"number"},"slug":{"type":"string"},"theme":{"type":"string"}}}}
+{"core\/archives":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"displayAsDropdown":{"type":"boolean","default":false},"showPostCounts":{"type":"boolean","default":false}}},"core\/block":{"attributes":{"ref":{"type":"number"}}},"core\/calendar":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"month":{"type":"integer"},"year":{"type":"integer"}}},"core\/categories":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"displayAsDropdown":{"type":"boolean","default":false},"showHierarchy":{"type":"boolean","default":false},"showPostCounts":{"type":"boolean","default":false}}},"core\/latest-comments":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"commentsToShow":{"type":"number","default":5,"minimum":1,"maximum":100},"displayAvatar":{"type":"boolean","default":true},"displayDate":{"type":"boolean","default":true},"displayExcerpt":{"type":"boolean","default":true}}},"core\/latest-posts":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"categories":{"type":"string"},"postsToShow":{"type":"number","default":5},"displayPostContent":{"type":"boolean","default":false},"displayPostContentRadio":{"type":"string","default":"excerpt"},"excerptLength":{"type":"number","default":55},"displayPostDate":{"type":"boolean","default":false},"postLayout":{"type":"string","default":"list"},"columns":{"type":"number","default":3},"order":{"type":"string","default":"desc"},"orderBy":{"type":"string","default":"date"},"displayFeaturedImage":{"type":"boolean","default":false},"featuredImageAlign":{"type":"string","enum":["left","center","right"]},"featuredImageSizeSlug":{"type":"string","default":"thumbnail"},"featuredImageSizeWidth":{"type":"number","default":null},"featuredImageSizeHeight":{"type":"number","default":null}}},"core\/legacy-widget":{"attributes":{"widgetClass":{"type":"string"},"id":{"type":"string"},"idBase":{"type":"string"},"number":{"type":"number"},"instance":{"type":"object"}}},"core\/navigation":{"attributes":{"className":{"type":"string"},"textColor":{"type":"string"},"customTextColor":{"type":"string"},"rgbTextColor":{"type":"string"},"backgroundColor":{"type":"string"},"customBackgroundColor":{"type":"string"},"rgbBackgroundColor":{"type":"string"},"fontSize":{"type":"string"},"customFontSize":{"type":"number"},"itemsJustification":{"type":"string"},"showSubmenuIcon":{"type":"boolean","default":true}}},"core\/post-comments-count":{"attributes":{"className":{"type":"string"}}},"core\/post-excerpt":{"attributes":{"wordCount":{"type":"number","default":55},"moreText":{"type":"string"},"showMoreOnNewLine":{"type":"boolean","default":true}}},"core\/rss":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"columns":{"type":"number","default":2},"blockLayout":{"type":"string","default":"list"},"feedURL":{"type":"string","default":""},"itemsToShow":{"type":"number","default":5},"displayExcerpt":{"type":"boolean","default":false},"displayAuthor":{"type":"boolean","default":false},"displayDate":{"type":"boolean","default":false},"excerptLength":{"type":"number","default":55}}},"core\/search":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"label":{"type":"string","default":"Search"},"placeholder":{"type":"string","default":""},"buttonText":{"type":"string","default":"Search"}}},"core\/tag-cloud":{"attributes":{"align":{"type":"string","enum":["left","center","right","wide","full"]},"className":{"type":"string"},"taxonomy":{"type":"string","default":"post_tag"},"showTagCounts":{"type":"boolean","default":false}}},"core\/template-part":{"attributes":{"postId":{"type":"number"},"slug":{"type":"string"},"theme":{"type":"string"}}}}