diff --git a/backport-changelog/6.8/8015.md b/backport-changelog/6.8/8015.md
new file mode 100644
index 00000000000000..214705518a0e72
--- /dev/null
+++ b/backport-changelog/6.8/8015.md
@@ -0,0 +1,3 @@
+https://github.com/WordPress/wordpress-develop/pull/8015
+
+* https://github.com/WordPress/gutenberg/pull/68058
diff --git a/lib/compat/wordpress-6.8/blocks.php b/lib/compat/wordpress-6.8/blocks.php
index 8e176e58c8d7f5..dc8747c04aec2f 100644
--- a/lib/compat/wordpress-6.8/blocks.php
+++ b/lib/compat/wordpress-6.8/blocks.php
@@ -170,7 +170,7 @@ function gutenberg_apply_block_hooks_to_post_content( $content ) {
  * @return WP_REST_Response The response object.
  */
 function gutenberg_insert_hooked_blocks_into_rest_response( $response, $post ) {
-	if ( empty( $response->data['content']['raw'] ) || empty( $response->data['content']['rendered'] ) ) {
+	if ( empty( $response->data['content']['raw'] ) ) {
 		return $response;
 	}
 
@@ -185,6 +185,8 @@ function gutenberg_insert_hooked_blocks_into_rest_response( $response, $post ) {
 
 	if ( 'wp_navigation' === $post->post_type ) {
 		$wrapper_block_type = 'core/navigation';
+	} elseif ( 'wp_block' === $post->post_type ) {
+		$wrapper_block_type = 'core/block';
 	} else {
 		$wrapper_block_type = 'core/post-content';
 	}
@@ -206,6 +208,11 @@ function gutenberg_insert_hooked_blocks_into_rest_response( $response, $post ) {
 
 	$response->data['content']['raw'] = $content;
 
+	// If the rendered content was previously empty, we leave it like that.
+	if ( empty( $response->data['content']['rendered'] ) ) {
+		return $response;
+	}
+
 	// No need to inject hooked blocks twice.
 	$priority = has_filter( 'the_content', 'apply_block_hooks_to_content' );
 	if ( false !== $priority ) {
@@ -224,6 +231,7 @@ function gutenberg_insert_hooked_blocks_into_rest_response( $response, $post ) {
 }
 add_filter( 'rest_prepare_page', 'gutenberg_insert_hooked_blocks_into_rest_response', 10, 2 );
 add_filter( 'rest_prepare_post', 'gutenberg_insert_hooked_blocks_into_rest_response', 10, 2 );
+add_filter( 'rest_prepare_wp_block', 'gutenberg_insert_hooked_blocks_into_rest_response', 10, 2 );
 
 /**
  * Updates the wp_postmeta with the list of ignored hooked blocks
@@ -272,6 +280,8 @@ function gutenberg_update_ignored_hooked_blocks_postmeta( $post ) {
 
 	if ( 'wp_navigation' === $post->post_type ) {
 		$wrapper_block_type = 'core/navigation';
+	} elseif ( 'wp_block' === $post->post_type ) {
+		$wrapper_block_type = 'core/block';
 	} else {
 		$wrapper_block_type = 'core/post-content';
 	}
@@ -311,3 +321,4 @@ function gutenberg_update_ignored_hooked_blocks_postmeta( $post ) {
 }
 add_filter( 'rest_pre_insert_page', 'gutenberg_update_ignored_hooked_blocks_postmeta' );
 add_filter( 'rest_pre_insert_post', 'gutenberg_update_ignored_hooked_blocks_postmeta' );
+add_filter( 'rest_pre_insert_wp_block', 'gutenberg_update_ignored_hooked_blocks_postmeta' );
diff --git a/packages/block-library/src/block/index.php b/packages/block-library/src/block/index.php
index 8beef975fad6f3..e8075115cabda4 100644
--- a/packages/block-library/src/block/index.php
+++ b/packages/block-library/src/block/index.php
@@ -87,6 +87,26 @@ function render_block_core_block( $attributes ) {
 		add_filter( 'render_block_context', $filter_block_context, 1 );
 	}
 
+	$ignored_hooked_blocks = get_post_meta( $attributes['ref'], '_wp_ignored_hooked_blocks', true );
+	if ( ! empty( $ignored_hooked_blocks ) ) {
+		$ignored_hooked_blocks  = json_decode( $ignored_hooked_blocks, true );
+		$attributes['metadata'] = array(
+			'ignoredHookedBlocks' => $ignored_hooked_blocks,
+		);
+	}
+
+	// Wrap in "Block" block so the Block Hooks algorithm can insert blocks
+	// that are hooked as first or last child of `core/block`.
+	$content = get_comment_delimited_block_content(
+		'core/block',
+		$attributes,
+		$content
+	);
+	// Apply Block Hooks.
+	$content = apply_block_hooks_to_content( $content, $reusable_block );
+	// Remove block wrapper.
+	$content = remove_serialized_parent_block( $content );
+
 	$content = do_blocks( $content );
 	unset( $seen_refs[ $attributes['ref'] ] );