diff --git a/packages/block-editor/src/components/rich-text/index.js b/packages/block-editor/src/components/rich-text/index.js
index 042082fb19fbe1..e745c322d1a680 100644
--- a/packages/block-editor/src/components/rich-text/index.js
+++ b/packages/block-editor/src/components/rich-text/index.js
@@ -9,26 +9,17 @@ import { omit } from 'lodash';
  */
 import { RawHTML, useRef, useCallback, forwardRef } from '@wordpress/element';
 import { useDispatch, useSelect } from '@wordpress/data';
-import {
-	children as childrenSource,
-	getBlockTransforms,
-	findTransform,
-} from '@wordpress/blocks';
+import { children as childrenSource } from '@wordpress/blocks';
 import { useInstanceId, useMergeRefs } from '@wordpress/compose';
 import {
 	__unstableUseRichText as useRichText,
 	__unstableCreateElement,
 	isEmpty,
-	__unstableIsEmptyLine as isEmptyLine,
-	insert,
-	__unstableInsertLineSeparator as insertLineSeparator,
 	split,
 	toHTMLString,
-	isCollapsed,
 	removeFormat,
 } from '@wordpress/rich-text';
 import deprecated from '@wordpress/deprecated';
-import { BACKSPACE, DELETE, ENTER } from '@wordpress/keycodes';
 
 /**
  * Internal dependencies
@@ -44,6 +35,7 @@ import { useMarkPersistent } from './use-mark-persistent';
 import { usePasteHandler } from './use-paste-handler';
 import { useInputRules } from './use-input-rules';
 import { useFormatTypes } from './use-format-types';
+import { useEnterDeleteHandler } from './use-enter-delete-handler';
 import FormatEdit from './format-edit';
 import { getMultilineTag, getAllowedFormats } from './utils';
 
@@ -312,93 +304,6 @@ function RichTextWrapper(
 	useCaretInFormat( hasActiveFormats );
 	useMarkPersistent( { hasActiveFormats, html: adjustedValue, value } );
 
-	function onKeyDown( event ) {
-		const { keyCode } = event;
-
-		if ( event.defaultPrevented ) {
-			return;
-		}
-
-		if ( event.keyCode === ENTER ) {
-			event.preventDefault();
-
-			const _value = { ...value };
-			_value.formats = removeEditorOnlyFormats( value );
-			const canSplit = onReplace && onSplit;
-
-			if ( onReplace ) {
-				const transforms = getBlockTransforms( 'from' ).filter(
-					( { type } ) => type === 'enter'
-				);
-				const transformation = findTransform( transforms, ( item ) => {
-					return item.regExp.test( _value.text );
-				} );
-
-				if ( transformation ) {
-					onReplace( [
-						transformation.transform( {
-							content: _value.text,
-						} ),
-					] );
-					__unstableMarkAutomaticChange();
-				}
-			}
-
-			if ( multiline ) {
-				if ( event.shiftKey ) {
-					if ( ! disableLineBreaks ) {
-						onChange( insert( _value, '\n' ) );
-					}
-				} else if ( canSplit && isEmptyLine( _value ) ) {
-					splitValue( _value );
-				} else {
-					onChange( insertLineSeparator( _value ) );
-				}
-			} else {
-				const { text, start, end } = _value;
-				const canSplitAtEnd =
-					onSplitAtEnd && start === end && end === text.length;
-
-				if ( event.shiftKey || ( ! canSplit && ! canSplitAtEnd ) ) {
-					if ( ! disableLineBreaks ) {
-						onChange( insert( _value, '\n' ) );
-					}
-				} else if ( ! canSplit && canSplitAtEnd ) {
-					onSplitAtEnd();
-				} else if ( canSplit ) {
-					splitValue( _value );
-				}
-			}
-		} else if ( keyCode === DELETE || keyCode === BACKSPACE ) {
-			const { start, end, text } = value;
-			const isReverse = keyCode === BACKSPACE;
-
-			// Only process delete if the key press occurs at an uncollapsed edge.
-			if (
-				! isCollapsed( value ) ||
-				hasActiveFormats ||
-				( isReverse && start !== 0 ) ||
-				( ! isReverse && end !== text.length )
-			) {
-				return;
-			}
-
-			if ( onMerge ) {
-				onMerge( ! isReverse );
-			}
-
-			// Only handle remove on Backspace. This serves dual-purpose of being
-			// an intentional user interaction distinguishing between Backspace and
-			// Delete to remove the empty field, but also to avoid merge & remove
-			// causing destruction of two fields (merge, then removed merged).
-			if ( onRemove && isEmpty( value ) && isReverse ) {
-				onRemove( ! isReverse );
-			}
-
-			event.preventDefault();
-		}
-	}
-
 	const TagName = tagName;
 	const content = (
 		<>
@@ -439,6 +344,21 @@ function RichTextWrapper(
 						onReplace,
 					} ),
 					useUndoAutomaticChange(),
+					useEnterDeleteHandler( {
+						removeEditorOnlyFormats,
+						value,
+						onReplace,
+						onSplit,
+						__unstableMarkAutomaticChange,
+						multiline,
+						onChange,
+						disableLineBreaks,
+						splitValue,
+						onSplitAtEnd,
+						hasActiveFormats,
+						onMerge,
+						onRemove,
+					} ),
 					usePasteHandler( {
 						isSelected,
 						disableFormats,
@@ -466,10 +386,6 @@ function RichTextWrapper(
 					'rich-text'
 				) }
 				onFocus={ unstableOnFocus }
-				onKeyDown={ ( event ) => {
-					autocompleteProps.onKeyDown( event );
-					onKeyDown( event );
-				} }
 			/>
 		</>
 	);
diff --git a/packages/block-editor/src/components/rich-text/use-enter-delete-handler.js b/packages/block-editor/src/components/rich-text/use-enter-delete-handler.js
new file mode 100644
index 00000000000000..fe11636afd2d2f
--- /dev/null
+++ b/packages/block-editor/src/components/rich-text/use-enter-delete-handler.js
@@ -0,0 +1,131 @@
+/**
+ * WordPress dependencies
+ */
+import { useRef } from '@wordpress/element';
+import { useRefEffect } from '@wordpress/compose';
+import { BACKSPACE, DELETE, ENTER } from '@wordpress/keycodes';
+import {
+	isCollapsed,
+	isEmpty,
+	insert,
+	__unstableIsEmptyLine as isEmptyLine,
+	__unstableInsertLineSeparator as insertLineSeparator,
+} from '@wordpress/rich-text';
+import { getBlockTransforms, findTransform } from '@wordpress/blocks';
+
+export function useEnterDeleteHandler( props ) {
+	const propsRef = useRef( props );
+	propsRef.current = props;
+	return useRefEffect( ( element ) => {
+		function onKeyDown( event ) {
+			const { keyCode } = event;
+
+			if ( event.defaultPrevented ) {
+				return;
+			}
+
+			const {
+				removeEditorOnlyFormats,
+				value,
+				onReplace,
+				onSplit,
+				__unstableMarkAutomaticChange,
+				multiline,
+				onChange,
+				disableLineBreaks,
+				splitValue,
+				onSplitAtEnd,
+				hasActiveFormats,
+				onMerge,
+				onRemove,
+			} = propsRef.current;
+
+			if ( event.keyCode === ENTER ) {
+				event.preventDefault();
+
+				const _value = { ...value };
+				_value.formats = removeEditorOnlyFormats( value );
+				const canSplit = onReplace && onSplit;
+
+				if ( onReplace ) {
+					const transforms = getBlockTransforms( 'from' ).filter(
+						( { type } ) => type === 'enter'
+					);
+					const transformation = findTransform(
+						transforms,
+						( item ) => {
+							return item.regExp.test( _value.text );
+						}
+					);
+
+					if ( transformation ) {
+						onReplace( [
+							transformation.transform( {
+								content: _value.text,
+							} ),
+						] );
+						__unstableMarkAutomaticChange();
+					}
+				}
+
+				if ( multiline ) {
+					if ( event.shiftKey ) {
+						if ( ! disableLineBreaks ) {
+							onChange( insert( _value, '\n' ) );
+						}
+					} else if ( canSplit && isEmptyLine( _value ) ) {
+						splitValue( _value );
+					} else {
+						onChange( insertLineSeparator( _value ) );
+					}
+				} else {
+					const { text, start, end } = _value;
+					const canSplitAtEnd =
+						onSplitAtEnd && start === end && end === text.length;
+
+					if ( event.shiftKey || ( ! canSplit && ! canSplitAtEnd ) ) {
+						if ( ! disableLineBreaks ) {
+							onChange( insert( _value, '\n' ) );
+						}
+					} else if ( ! canSplit && canSplitAtEnd ) {
+						onSplitAtEnd();
+					} else if ( canSplit ) {
+						splitValue( _value );
+					}
+				}
+			} else if ( keyCode === DELETE || keyCode === BACKSPACE ) {
+				const { start, end, text } = value;
+				const isReverse = keyCode === BACKSPACE;
+
+				// Only process delete if the key press occurs at an uncollapsed edge.
+				if (
+					! isCollapsed( value ) ||
+					hasActiveFormats ||
+					( isReverse && start !== 0 ) ||
+					( ! isReverse && end !== text.length )
+				) {
+					return;
+				}
+
+				if ( onMerge ) {
+					onMerge( ! isReverse );
+				}
+
+				// Only handle remove on Backspace. This serves dual-purpose of being
+				// an intentional user interaction distinguishing between Backspace and
+				// Delete to remove the empty field, but also to avoid merge & remove
+				// causing destruction of two fields (merge, then removed merged).
+				if ( onRemove && isEmpty( value ) && isReverse ) {
+					onRemove( ! isReverse );
+				}
+
+				event.preventDefault();
+			}
+		}
+
+		element.addEventListener( 'keydown', onKeyDown );
+		return () => {
+			element.removeEventListener( 'keydown', onKeyDown );
+		};
+	}, [] );
+}
diff --git a/packages/block-editor/src/store/actions.js b/packages/block-editor/src/store/actions.js
index 69da6c75860edf..e7a31b72f201b5 100644
--- a/packages/block-editor/src/store/actions.js
+++ b/packages/block-editor/src/store/actions.js
@@ -711,7 +711,7 @@ export function* mergeBlocks( firstBlockClientId, secondBlockClientId ) {
 
 	// Only focus the previous block if it's not mergeable
 	if ( ! blockAType.merge ) {
-		yield selectBlock( blockA.clientId );
+		yield selectBlock( blockA.clientId, -1 );
 		return;
 	}
 
@@ -802,8 +802,10 @@ export function* mergeBlocks( firstBlockClientId, secondBlockClientId ) {
 		blocksWithTheSameType[ 0 ].attributes
 	);
 
+	let newAttributeKey, newOffset;
+
 	if ( canRestoreTextSelection ) {
-		const newAttributeKey = findKey(
+		newAttributeKey = findKey(
 			updatedAttributes,
 			( v ) =>
 				typeof v === 'string' &&
@@ -821,7 +823,7 @@ export function* mergeBlocks( firstBlockClientId, secondBlockClientId ) {
 			multilineWrapperTags,
 			preserveWhiteSpace,
 		} );
-		const newOffset = convertedValue.text.indexOf( START_OF_SELECTED_AREA );
+		newOffset = convertedValue.text.indexOf( START_OF_SELECTED_AREA );
 		const newValue = remove( convertedValue, newOffset, newOffset + 1 );
 		const newHtml = toHTMLString( {
 			value: newValue,
@@ -830,13 +832,6 @@ export function* mergeBlocks( firstBlockClientId, secondBlockClientId ) {
 		} );
 
 		updatedAttributes[ newAttributeKey ] = newHtml;
-
-		yield selectionChange(
-			blockA.clientId,
-			newAttributeKey,
-			newOffset,
-			newOffset
-		);
 	}
 
 	yield* replaceBlocks(
@@ -852,6 +847,15 @@ export function* mergeBlocks( firstBlockClientId, secondBlockClientId ) {
 			...blocksWithTheSameType.slice( 1 ),
 		]
 	);
+
+	if ( canRestoreTextSelection ) {
+		yield selectionChange(
+			blockA.clientId,
+			newAttributeKey,
+			newOffset,
+			newOffset
+		);
+	}
 }
 
 /**
diff --git a/packages/block-editor/src/store/test/actions.js b/packages/block-editor/src/store/test/actions.js
index 6433f15e6523e7..0fc931602e7382 100644
--- a/packages/block-editor/src/store/test/actions.js
+++ b/packages/block-editor/src/store/test/actions.js
@@ -1187,7 +1187,7 @@ describe( 'actions', () => {
 			fulfillment.next();
 			expect( fulfillment.next( blockA ) ).toEqual( {
 				done: false,
-				value: selectBlock( 'chicken' ),
+				value: selectBlock( 'chicken', -1 ),
 			} );
 			expect( fulfillment.next( blockA ).done ).toEqual( true );
 		} );
@@ -1236,15 +1236,6 @@ describe( 'actions', () => {
 				attributeKey: 'content',
 				offset: 0,
 			} );
-			// selectionChange
-			fulfillment.next(
-				selectionChange(
-					blockA.clientId,
-					'content',
-					'chicken'.length + 1,
-					'chicken'.length + 1
-				)
-			);
 			fulfillment.next();
 			fulfillment.next();
 			expect( fulfillment.next( blockA ).value ).toMatchObject( {
@@ -1258,6 +1249,15 @@ describe( 'actions', () => {
 					},
 				],
 			} );
+			fulfillment.next();
+			expect( fulfillment.next().value ).toEqual(
+				selectionChange(
+					blockA.clientId,
+					'content',
+					'chicken'.length + 1,
+					'chicken'.length + 1
+				)
+			);
 		} );
 
 		it( 'should not merge the blocks have different types without transformation', () => {
@@ -1382,22 +1382,11 @@ describe( 'actions', () => {
 				storeKey: blockEditorStoreName,
 				type: '@@data/SELECT',
 			} );
-			expect(
-				fulfillment.next( {
-					clientId: blockB.clientId,
-					attributeKey: 'content2',
-					offset: 0,
-				} ).value
-			).toEqual(
-				selectionChange(
-					blockA.clientId,
-					'content',
-					'chicken'.length + 1,
-					'chicken'.length + 1
-				)
-			);
-
-			fulfillment.next();
+			fulfillment.next( {
+				clientId: blockB.clientId,
+				attributeKey: 'content2',
+				offset: 0,
+			} );
 			fulfillment.next();
 			fulfillment.next();
 			expect( fulfillment.next( blockA ).value ).toMatchObject( {
@@ -1411,6 +1400,15 @@ describe( 'actions', () => {
 					},
 				],
 			} );
+			fulfillment.next();
+			expect( fulfillment.next().value ).toEqual(
+				selectionChange(
+					blockA.clientId,
+					'content',
+					'chicken'.length + 1,
+					'chicken'.length + 1
+				)
+			);
 		} );
 	} );
 
diff --git a/packages/components/src/autocomplete/index.js b/packages/components/src/autocomplete/index.js
index 100672f811d444..87dd92eac26332 100644
--- a/packages/components/src/autocomplete/index.js
+++ b/packages/components/src/autocomplete/index.js
@@ -24,7 +24,12 @@ import {
 	BACKSPACE,
 } from '@wordpress/keycodes';
 import { __, _n, sprintf } from '@wordpress/i18n';
-import { useInstanceId, useDebounce } from '@wordpress/compose';
+import {
+	useInstanceId,
+	useDebounce,
+	useMergeRefs,
+	useRefEffect,
+} from '@wordpress/compose';
 import {
 	create,
 	slice,
@@ -565,15 +570,26 @@ function useAutocomplete( {
 
 export function useAutocompleteProps( options ) {
 	const ref = useRef();
+	const onKeyDownRef = useRef();
 	const { popover, listBoxId, activeId, onKeyDown } = useAutocomplete( {
 		...options,
 		contentRef: ref,
 	} );
-
+	onKeyDownRef.current = onKeyDown;
 	return {
-		ref,
+		ref: useMergeRefs( [
+			ref,
+			useRefEffect( ( element ) => {
+				function _onKeyDown( event ) {
+					onKeyDownRef.current( event );
+				}
+				element.addEventListener( 'keydown', _onKeyDown );
+				return () => {
+					element.removeEventListener( 'keydown', _onKeyDown );
+				};
+			}, [] ),
+		] ),
 		children: popover,
-		onKeyDown,
 		'aria-autocomplete': listBoxId ? 'list' : undefined,
 		'aria-owns': listBoxId,
 		'aria-activedescendant': activeId,
diff --git a/packages/rich-text/src/component/index.js b/packages/rich-text/src/component/index.js
index c671633d54c4ea..047e669b4b11d6 100644
--- a/packages/rich-text/src/component/index.js
+++ b/packages/rich-text/src/component/index.js
@@ -74,6 +74,11 @@ export function useRichText( {
 	// Internal values are updated synchronously, unlike props and state.
 	const _value = useRef( value );
 	const record = useRef();
+	const previousRecord = useRef( {} );
+
+	useLayoutEffect( () => {
+		previousRecord.current = record.current;
+	}, [ record.current ] );
 
 	function setRecordFromProps() {
 		_value.current = value;
@@ -93,8 +98,22 @@ export function useRichText( {
 		record.current.end = selectionEnd;
 	}
 
+	function applyFromProps( { domOnly } = {} ) {
+		setRecordFromProps();
+		applyRecord( record.current, { domOnly } );
+	}
+
 	if ( ! record.current ) {
 		setRecordFromProps();
+	} else if (
+		selectionStart !== record.current.start ||
+		selectionEnd !== record.current.end
+	) {
+		if ( isSelected ) {
+			applyFromProps();
+		} else {
+			setRecordFromProps();
+		}
 	}
 
 	/**
@@ -139,11 +158,6 @@ export function useRichText( {
 		setActiveFormats( newActiveFormats );
 	}
 
-	function applyFromProps( { domOnly } = {} ) {
-		setRecordFromProps();
-		applyRecord( record.current, { domOnly } );
-	}
-
 	const didMount = useRef( false );
 
 	// Value updates must happen synchonously to avoid overwriting newer values.
@@ -153,27 +167,6 @@ export function useRichText( {
 		}
 	}, [ value ] );
 
-	// Value updates must happen synchonously to avoid overwriting newer values.
-	useLayoutEffect( () => {
-		if ( ! didMount.current ) {
-			return;
-		}
-
-		if (
-			isSelected &&
-			( selectionStart !== record.current.start ||
-				selectionEnd !== record.current.end )
-		) {
-			applyFromProps();
-		} else {
-			record.current = {
-				...record.current,
-				start: selectionStart,
-				end: selectionEnd,
-			};
-		}
-	}, [ selectionStart, selectionEnd, isSelected ] );
-
 	function focus() {
 		ref.current.focus();
 		applyRecord( record.current );