diff --git a/core/modules/layout_builder/css/layout-builder.css b/core/modules/layout_builder/css/layout-builder.css
index c920f23bd40b..047427440e30 100644
--- a/core/modules/layout_builder/css/layout-builder.css
+++ b/core/modules/layout_builder/css/layout-builder.css
@@ -85,3 +85,34 @@
   display: block;
   padding-top: 0.55em;
 }
+
+#drupal-off-canvas a.inline-block-create-button {
+  display: block;
+  padding: 24px;
+  padding-left: 44px;
+  font-size: 16px;
+  color: #EEE;
+  border-bottom: 1px solid #333;
+  background: url(../../../misc/icons/bebebe/plus.svg) transparent 16px no-repeat;
+}
+
+#drupal-off-canvas a.inline-block-create-button,
+#drupal-off-canvas .inline-block-list a {
+  margin: 0 -20px;
+  transition: background-color 0.5s;
+  background-color: #444;
+}
+
+#drupal-off-canvas a.inline-block-create-button:hover,
+#drupal-off-canvas .inline-block-list a:hover {
+  background-color: #333;
+}
+
+#drupal-off-canvas .inline-block-list {
+  margin-bottom: 15px;
+}
+
+#drupal-off-canvas .inline-block-list a {
+  display: block;
+  padding: 15px 0 15px 25px;
+}
diff --git a/core/modules/layout_builder/js/layout-builder.es6.js b/core/modules/layout_builder/js/layout-builder.es6.js
index f8f7b0be4685..7f3097336743 100644
--- a/core/modules/layout_builder/js/layout-builder.es6.js
+++ b/core/modules/layout_builder/js/layout-builder.es6.js
@@ -1,5 +1,67 @@
-(($, { ajax, behaviors }) => {
-  behaviors.layoutBuilder = {
+(($, { ajax, behaviors, debounce }) => {
+  behaviors.layoutBuilderBlockFilter = {
+    attach(context) {
+      const $input = $('input.js-layout-builder-filter', context).once('block-filter-text');
+      const $categories = $('.js-layout-builder-categories', context);
+      let $filterLinks;
+
+      /**
+       * Filters the block list.
+       *
+       * @param {jQuery.Event} e
+       *   The jQuery event for the keyup event that triggered the filter.
+       */
+      function filterBlockList(e) {
+        const query = $(e.target)
+          .val()
+          .toLowerCase();
+
+        /**
+         * Shows or hides the block entry based on the query.
+         *
+         * @param {number} index
+         *   The index in the loop, as provided by `jQuery.each`
+         * @param {HTMLElement} link
+         *   The link to add the block.
+         */
+        function toggleBlockEntry(index, link) {
+          const $link = $(link);
+          const textMatch =
+            $link
+              .text()
+              .toLowerCase()
+              .indexOf(query) !== -1;
+          $link.toggle(textMatch);
+        }
+
+        $categories.find('.js-layout-builder-category').show();
+        $filterLinks.show();
+
+        // Filter if the length of the query is at least 2 characters.
+        if (query.length >= 2) {
+          $categories.find('.js-layout-builder-category').attr('open', '');
+          $filterLinks.each(toggleBlockEntry);
+          $categories.find('.js-layout-builder-category').each(function() {
+            const hasBlocks = $(this).find('.js-layout-builder-block-link:visible').length > 0;
+            $(this).toggle(hasBlocks);
+          });
+          Drupal.announce(
+            Drupal.formatPlural(
+              $categories.find('.js-layout-builder-block-link:visible').length,
+              '1 block is available in the modified list.',
+              '@count blocks are available in the modified list.',
+            ),
+          );
+        }
+      }
+
+      if ($input.length) {
+        $filterLinks = $categories.find('.js-layout-builder-block-link');
+        $input.on('keyup', debounce(filterBlockList, 200));
+      }
+    }
+  };
+  behaviors.layoutBuilderBlockDrag = {
     attach(context) {
       $(context)
         .find('.layout-builder--layout__region')
diff --git a/core/modules/layout_builder/js/layout-builder.js b/core/modules/layout_builder/js/layout-builder.js
index 0f0de275ef6d..f0e53fac4a33 100644
--- a/core/modules/layout_builder/js/layout-builder.js
+++ b/core/modules/layout_builder/js/layout-builder.js
@@ -7,9 +7,45 @@
 
 (function ($, _ref) {
   var ajax = _ref.ajax,
-      behaviors = _ref.behaviors;
+      behaviors = _ref.behaviors,
+      debounce = _ref.debounce;
 
-  behaviors.layoutBuilder = {
+  behaviors.layoutBuilderBlockFilter = {
+    attach: function attach(context) {
+      var $input = $('input.js-layout-builder-filter', context).once('block-filter-text');
+      var $categories = $('.js-layout-builder-categories', context);
+      var $filterLinks = void 0;
+
+      function filterBlockList(e) {
+        var query = $(e.target).val().toLowerCase();
+
+        function toggleBlockEntry(index, link) {
+          var $link = $(link);
+          var textMatch = $link.text().toLowerCase().indexOf(query) !== -1;
+          $link.toggle(textMatch);
+        }
+
+        $categories.find('.js-layout-builder-category').show();
+        $filterLinks.show();
+
+        if (query.length >= 2) {
+          $categories.find('.js-layout-builder-category').attr('open', '');
+          $filterLinks.each(toggleBlockEntry);
+          $categories.find('.js-layout-builder-category').each(function () {
+            var hasBlocks = $(this).find('.js-layout-builder-block-link:visible').length > 0;
+            $(this).toggle(hasBlocks);
+          });
+          Drupal.announce(Drupal.formatPlural($categories.find('.js-layout-builder-block-link:visible').length, '1 block is available in the modified list.', '@count blocks are available in the modified list.'));
+        }
+      }
+
+      if ($input.length) {
+        $filterLinks = $categories.find('.js-layout-builder-block-link');
+        $input.on('keyup', debounce(filterBlockList, 200));
+      }
+    }
+  };
+  behaviors.layoutBuilderBlockDrag = {
     attach: function attach(context) {
       $(context).find('.layout-builder--layout__region').sortable({
         items: '> .draggable',
diff --git a/core/modules/layout_builder/layout_builder.libraries.yml b/core/modules/layout_builder/layout_builder.libraries.yml
index 84727756365b..cfa1ecf249d6 100644
--- a/core/modules/layout_builder/layout_builder.libraries.yml
+++ b/core/modules/layout_builder/layout_builder.libraries.yml
@@ -8,3 +8,5 @@ drupal.layout_builder:
   dependencies:
     - core/jquery.ui.sortable
     - core/drupal.dialog.off_canvas
+    - core/drupal.announce
+    - core/drupal.debounce
diff --git a/core/modules/layout_builder/layout_builder.module b/core/modules/layout_builder/layout_builder.module
index 5d7c60615cf0..48f62e98cf19 100644
--- a/core/modules/layout_builder/layout_builder.module
+++ b/core/modules/layout_builder/layout_builder.module
@@ -177,7 +177,7 @@ function layout_builder_cron() {
 function layout_builder_plugin_filter_block_alter(array &$definitions, array $extra, $consumer) {
   // @todo Determine the 'inline_block' blocks should be allowed outside
   //   of layout_builder https://www.drupal.org/node/2979142.
-  if ($consumer !== 'layout_builder') {
+  if ($consumer !== 'layout_builder' || !isset($extra['list']) || $extra['list'] !== 'inline_blocks') {
     foreach ($definitions as $id => $definition) {
       if ($definition['id'] === 'inline_block') {
         unset($definitions[$id]);
diff --git a/core/modules/layout_builder/layout_builder.routing.yml b/core/modules/layout_builder/layout_builder.routing.yml
index 54c9cf25b23a..3e3ee1b0241c 100644
--- a/core/modules/layout_builder/layout_builder.routing.yml
+++ b/core/modules/layout_builder/layout_builder.routing.yml
@@ -80,6 +80,19 @@ layout_builder.add_block:
       section_storage:
         layout_builder_tempstore: TRUE
 
+layout_builder.choose_inline_block:
+  path: '/layout_builder/choose/inline-block/{section_storage_type}/{section_storage}/{delta}/{region}'
+  defaults:
+    _controller: '\Drupal\layout_builder\Controller\ChooseBlockController::inlineBlockList'
+    _title: 'Add a new Inline Block'
+  requirements:
+    _permission: 'configure any layout'
+  options:
+    _admin_route: TRUE
+    parameters:
+      section_storage:
+        layout_builder_tempstore: TRUE
+
 layout_builder.update_block:
   path: '/layout_builder/update/block/{section_storage_type}/{section_storage}/{delta}/{region}/{uuid}'
   defaults:
diff --git a/core/modules/layout_builder/src/Controller/ChooseBlockController.php b/core/modules/layout_builder/src/Controller/ChooseBlockController.php
index 4f25eb09bd1b..a737fa466d97 100644
--- a/core/modules/layout_builder/src/Controller/ChooseBlockController.php
+++ b/core/modules/layout_builder/src/Controller/ChooseBlockController.php
@@ -5,10 +5,13 @@
 use Drupal\Core\Ajax\AjaxHelperTrait;
 use Drupal\Core\Block\BlockManagerInterface;
 use Drupal\Core\DependencyInjection\ContainerInjectionInterface;
+use Drupal\Core\Entity\EntityTypeManagerInterface;
+use Drupal\Core\StringTranslation\StringTranslationTrait;
 use Drupal\Core\Url;
 use Drupal\layout_builder\Context\LayoutBuilderContextTrait;
 use Drupal\layout_builder\SectionStorageInterface;
 use Symfony\Component\DependencyInjection\ContainerInterface;
+use Drupal\Core\Entity\EntityTypeRepositoryInterface;
 
 /**
  * Defines a controller to choose a new block.
@@ -19,6 +22,7 @@ class ChooseBlockController implements ContainerInjectionInterface {
 
   use AjaxHelperTrait;
   use LayoutBuilderContextTrait;
+  use StringTranslationTrait;
 
   /**
    * The block manager.
@@ -27,14 +31,34 @@ class ChooseBlockController implements ContainerInjectionInterface {
    */
   protected $blockManager;
 
+  /**
+   * The entity type manager.
+   *
+   * @var \Drupal\Core\Entity\EntityTypeManagerInterface
+   */
+  protected $entityTypeManager;
+
+  /**
+   * The entity type repository.
+   *
+   * @var \Drupal\Core\Entity\EntityTypeRepositoryInterface
+   */
+  protected $entityTypeRepository;
+
   /**
    * ChooseBlockController constructor.
    *
    * @param \Drupal\Core\Block\BlockManagerInterface $block_manager
    *   The block manager.
+   * @param \Drupal\Core\Entity\EntityTypeManagerInterface $entity_type_manager
+   *   The entity type manager.
+   * @param \Drupal\Core\Entity\EntityTypeRepositoryInterface $entity_type_repository
+   *   The entity type repository.
    */
-  public function __construct(BlockManagerInterface $block_manager) {
+  public function __construct(BlockManagerInterface $block_manager, EntityTypeManagerInterface $entity_type_manager, EntityTypeRepositoryInterface $entity_type_repository) {
     $this->blockManager = $block_manager;
+    $this->entityTypeManager = $entity_type_manager;
+    $this->entityTypeRepository = $entity_type_repository;
   }
 
   /**
@@ -42,7 +66,9 @@ public function __construct(BlockManagerInterface $block_manager) {
    */
   public static function create(ContainerInterface $container) {
     return new static(
-      $container->get('plugin.manager.block')
+      $container->get('plugin.manager.block'),
+      $container->get('entity_type.manager'),
+      $container->get('entity_type.repository')
     );
   }
 
@@ -60,8 +86,55 @@ public static function create(ContainerInterface $container) {
    *   A render array.
    */
   public function build(SectionStorageInterface $section_storage, $delta, $region) {
-    $build['#type'] = 'container';
-    $build['#attributes']['class'][] = 'block-categories';
+    $entity_type_label = $this->getEntityFieldCategoryLabels();
+    if ($this->entityTypeManager->hasDefinition('block_content_type') && $types = $this->entityTypeManager->getStorage('block_content_type')->loadMultiple()) {
+      if (count($types) === 1) {
+        $type = reset($types);
+        $plugin_id = 'inline_block:' . $type->id();
+        if ($this->blockManager->hasDefinition($plugin_id)) {
+          $url = Url::fromRoute('layout_builder.add_block', [
+            'section_storage_type' => $section_storage->getStorageType(),
+            'section_storage' => $section_storage->getStorageId(),
+            'delta' => $delta,
+            'region' => $region,
+            'plugin_id' => $plugin_id,
+          ]);
+        }
+      }
+      else {
+        $url = Url::fromRoute('layout_builder.choose_inline_block', [
+          'section_storage_type' => $section_storage->getStorageType(),
+          'section_storage' => $section_storage->getStorageId(),
+          'delta' => $delta,
+          'region' => $region,
+        ]);
+      }
+      if (isset($url)) {
+        $build['add_block'] = [
+          '#type' => 'link',
+          '#url' => $url,
+          '#title' => $this->t('Create new content'),
+          '#attributes' => $this->getAjaxAttributes(),
+        ];
+        $build['add_block']['#attributes']['class'][] = 'inline-block-create-button';
+      }
+    }
+
+    $build['filter'] = [
+      '#type' => 'search',
+      '#title' => $this->t('Filter'),
+      '#title_display' => 'invisible',
+      '#size' => 30,
+      '#placeholder' => $this->t('Filter by block name'),
+      '#attributes' => [
+        'class' => ['js-layout-builder-filter'],
+        'title' => $this->t('Enter a part of the block name to filter by.'),
+      ],
+    ];
+
+    $block_categories['#type'] = 'container';
+    $block_categories['#attributes']['class'][] = 'block-categories';
+    $block_categories['#attributes']['class'][] = 'js-layout-builder-categories';
 
     // @todo Explicitly cast delta to an integer, remove this in
     //   https://www.drupal.org/project/drupal/issues/2984509.
@@ -72,35 +145,171 @@ public function build(SectionStorageInterface $section_storage, $delta, $region)
       'delta' => $delta,
       'region' => $region,
     ]);
-    foreach ($this->blockManager->getGroupedDefinitions($definitions) as $category => $blocks) {
-      $build[$category]['#type'] = 'details';
-      $build[$category]['#open'] = TRUE;
-      $build[$category]['#title'] = $category;
-      $build[$category]['links'] = [
-        '#theme' => 'links',
+    $field_block_category_weight = -200;
+    $non_view_configurable_field_links = [];
+    $links = [];
+    $grouped_definitions = $this->blockManager->getGroupedDefinitions($definitions);
+    foreach ($grouped_definitions as $category => $blocks) {
+      $block_categories[$category]['#type'] = 'details';
+      $block_categories[$category]['#attributes']['class'][] = 'js-layout-builder-category';
+      $block_categories[$category]['#open'] = FALSE;
+      $block_categories[$category]['#title'] = $category;
+      $this->addBlockLinks($block_categories[$category], $section_storage, $delta, $region, $blocks);
+    }
+    $build['block_categories'] = $block_categories;
+    return $build;
+  }
+
+  /**
+   * Provides the UI for choosing a new inline block.
+   *
+   * @param \Drupal\layout_builder\SectionStorageInterface $section_storage
+   *   The section storage.
+   * @param int $delta
+   *   The delta of the section to splice.
+   * @param string $region
+   *   The region the block is going in.
+   *
+   * @return array
+   *   A render array.
+   */
+  public function inlineBlockList(SectionStorageInterface $section_storage, $delta, $region) {
+    $definitions = $this->blockManager->getFilteredDefinitions('layout_builder', $this->getAvailableContexts($section_storage), [
+      'section_storage' => $section_storage,
+      'region' => $region,
+      'list' => 'inline_blocks',
+    ]);
+    $blocks = $this->blockManager->getGroupedDefinitions($definitions);
+    $build = [];
+    if (isset($blocks['Inline blocks'])) {
+      $this->addBlockLinks($build, $section_storage, $delta, $region, $blocks['Inline blocks']);
+      $build['links']['#attributes']['class'][] = 'inline-block-list';
+      $build['back_button'] = [
+        '#type' => 'link',
+        '#url' => Url::fromRoute('layout_builder.choose_block',
+          [
+            'section_storage_type' => $section_storage->getStorageType(),
+            'section_storage' => $section_storage->getStorageId(),
+            'delta' => $delta,
+            'region' => $region,
+          ]
+        ),
+        '#title' => $this->t('Back'),
+        '#attributes' => $this->getAjaxAttributes(),
+      ];
+    }
+    return $build;
+  }
+
+  /**
+   * Adds a render array of block links.
+   *
+   * @param array $render_array
+   *   Render array to add links to.
+   * @param \Drupal\layout_builder\SectionStorageInterface $section_storage
+   *   The section storage.
+   * @param int $delta
+   *   The delta of the section to splice.
+   * @param string $region
+   *   The region the block is going in.
+   * @param array $blocks
+   *   The information for each block.
+   *
+   * @return array
+   *   The block links render array.
+   */
+  protected function addBlockLinks(&$render_array, SectionStorageInterface $section_storage, $delta, $region, array $blocks) {
+    static $field_block_category_weight = -200;
+    $links = [];
+    $category = NULL;
+    foreach ($blocks as $block_id => $block) {
+      if (!$category) {
+        $category = $block['category'];
+      }
+      $attributes = $this->getAjaxAttributes();
+      $attributes['class'][] = 'js-layout-builder-block-link';
+      $link = [
+        'title' => $block['admin_label'],
+        'url' => Url::fromRoute('layout_builder.add_block',
+          [
+            'section_storage_type' => $section_storage->getStorageType(),
+            'section_storage' => $section_storage->getStorageId(),
+            'delta' => $delta,
+            'region' => $region,
+            'plugin_id' => $block_id,
+          ]
+        ),
+        'attributes' => $attributes,
       ];
-      foreach ($blocks as $block_id => $block) {
-        $link = [
-          'title' => $block['admin_label'],
-          'url' => Url::fromRoute('layout_builder.add_block',
-            [
-              'section_storage_type' => $section_storage->getStorageType(),
-              'section_storage' => $section_storage->getStorageId(),
-              'delta' => $delta,
-              'region' => $region,
-              'plugin_id' => $block_id,
-            ]
-          ),
+      if ($block['id'] === 'field_block' && empty($block['_is_view_configurable'])) {
+        $non_view_configurable_field_links[] = $link;
+      }
+      else {
+        $links[] = $link;
+      }
+    }
+    if ($non_view_configurable_field_links) {
+      if (empty($links)) {
+        // If no other links exist add these links as top level links for the
+        // category.
+        $links = $non_view_configurable_field_links;
+      }
+      else {
+        $render_array['more_fields'] = [
+          '#type' => 'details',
+          '#title' => $this->t('More+'),
+          '#open' => FALSE,
+          'links' => [
+            '#theme' => 'links',
+            '#links' => $non_view_configurable_field_links,
+          ],
+          '#weight' => 100,
         ];
-        if ($this->isAjax()) {
-          $link['attributes']['class'][] = 'use-ajax';
-          $link['attributes']['data-dialog-type'][] = 'dialog';
-          $link['attributes']['data-dialog-renderer'][] = 'off_canvas';
-        }
-        $build[$category]['links']['#links'][] = $link;
       }
     }
-    return $build;
+    // If this a entity category and there are links besides non 'view'
+    // configurable field blocks move the category to the top and open it.
+    if (in_array($category, $this->getEntityFieldCategoryLabels()) && $links) {
+      $render_array['#open'] = TRUE;
+      $render_array['#weight'] = $field_block_category_weight;
+      $field_block_category_weight += 10;
+    }
+    $render_array['links'] = [
+      '#theme' => 'links',
+      '#links' => $links,
+    ];
+  }
+
+  /**
+   * Get dialog attributes if an ajax request.
+   *
+   * @return array
+   *   The attributes array.
+   */
+  protected function getAjaxAttributes() {
+    if ($this->isAjax()) {
+      return [
+        'class' => ['use-ajax'],
+        'data-dialog-type' => 'dialog',
+        'data-dialog-renderer' => 'off_canvas',
+      ];
+    }
+    return [];
+  }
+
+  /**
+   * Gets the category labels used for entity fields.
+   *
+   * @return string[]
+   *   The category labels.
+   */
+  protected function getEntityFieldCategoryLabels() {
+    $entity_type_labels = $this->entityTypeRepository->getEntityTypeLabels();
+    foreach ($entity_type_labels as &$entity_type_label) {
+      $entity_type_label = $this->t('@entity fields', ['@entity' => $entity_type_label])
+        ->render();
+    }
+    return $entity_type_labels;
   }
 
 }
diff --git a/core/modules/layout_builder/src/Plugin/Derivative/FieldBlockDeriver.php b/core/modules/layout_builder/src/Plugin/Derivative/FieldBlockDeriver.php
index 57d2c1ec7c45..b7a686a5f082 100644
--- a/core/modules/layout_builder/src/Plugin/Derivative/FieldBlockDeriver.php
+++ b/core/modules/layout_builder/src/Plugin/Derivative/FieldBlockDeriver.php
@@ -118,6 +118,11 @@ public function getDerivativeDefinitions($base_plugin_definition) {
           // unavailable to place in the block UI.
           $derivative['_block_ui_hidden'] = !$field_definition->isDisplayConfigurable('view');
 
+          // Mark as view configurable or not to enable highlighting of view
+          // configurable fields in the 'Add Block' listing of the layout
+          // builder.
+          $derivative['_is_view_configurable'] = $field_definition->isDisplayConfigurable('view');
+
           $context_definition = EntityContextDefinition::fromEntityTypeId($entity_type_id)->setLabel($entity_type_labels[$entity_type_id]);
           $context_definition->addConstraint('Bundle', [$bundle]);
           $derivative['context'] = [
diff --git a/core/modules/layout_builder/tests/src/FunctionalJavascript/AjaxBlockTest.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/AjaxBlockTest.php
index 653185fe8964..0b9cd701ead6 100644
--- a/core/modules/layout_builder/tests/src/FunctionalJavascript/AjaxBlockTest.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/AjaxBlockTest.php
@@ -2,14 +2,12 @@
 
 namespace Drupal\Tests\layout_builder\FunctionalJavascript;
 
-use Drupal\FunctionalJavascriptTests\WebDriverTestBase;
-
 /**
  * Ajax blocks tests.
  *
  * @group layout_builder
  */
-class AjaxBlockTest extends WebDriverTestBase {
+class AjaxBlockTest extends LayoutBuilderTestBase {
 
   /**
    * {@inheritdoc}
@@ -71,7 +69,8 @@ public function testAddAjaxBlock() {
     $assert_session->linkExists('Add Block');
     $this->clickLink('Add Block');
     $assert_session->assertWaitOnAjaxRequest();
-    $assert_session->linkExists('TestAjax');
+    $this->clickBlockCategory('Test');
+    $this->assertBlockLinkVisible('TestAjax');
     $this->clickLink('TestAjax');
     $assert_session->assertWaitOnAjaxRequest();
     // Find the radio buttons.
diff --git a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php
index 05892bd31473..481247e0b638 100644
--- a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockPrivateFilesTest.php
@@ -192,8 +192,8 @@ protected function addInlineFileBlockToLayout($title, File $file) {
     $page = $this->getSession()->getPage();
     $page->clickLink('Add Block');
     $assert_session->assertWaitOnAjaxRequest();
-    $this->assertNotEmpty($assert_session->waitForElementVisible('css', '.block-categories details:contains(Create new block)'));
-    $this->clickLink('Basic block');
+    $this->assertNotEmpty($assert_session->waitForLink('Create new content'));
+    $this->clickLink('Create new content');
     $assert_session->assertWaitOnAjaxRequest();
     $assert_session->fieldValueEquals('Title', '');
     $page->findField('Title')->setValue($title);
diff --git a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
index 9fdc8fdd3cca..270e88b9bbfb 100644
--- a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
@@ -428,4 +428,73 @@ public function testAccess() {
     $assert_session->pageTextNotContains('You are not authorized to access this page');
   }
 
+  /**
+   * Tests the workflow for adding an inline block depending on number of types.
+   *
+   * @throws \Behat\Mink\Exception\ElementNotFoundException
+   * @throws \Behat\Mink\Exception\ExpectationException
+   */
+  public function testAddWorkFlow() {
+    $assert_session = $this->assertSession();
+    $page = $this->getSession()->getPage();
+    $type_storage = $this->container->get('entity_type.manager')->getStorage('block_content_type');
+    foreach ($type_storage->loadByProperties() as $type) {
+      $type->delete();
+    }
+
+    $this->drupalLogin($this->drupalCreateUser([
+      'access contextual links',
+      'configure any layout',
+      'administer node display',
+      'administer node fields',
+    ]));
+
+    // Enable layout builder and overrides.
+    $this->drupalPostForm(
+      static::FIELD_UI_PREFIX . '/display/default',
+      ['layout[enabled]' => TRUE, 'layout[allow_custom]' => TRUE],
+      'Save'
+    );
+
+    $layout_default_path = 'admin/structure/types/manage/bundle_with_section_field/display-layout/default';
+    $this->drupalGet($layout_default_path);
+    // Add a basic block with the body field set.
+    $page->clickLink('Add Block');
+    $assert_session->assertWaitOnAjaxRequest();
+    // Confirm that with no block content types the link does not appear.
+    $assert_session->linkNotExists('Create new content');
+
+    $this->createBlockContentType('basic', 'Basic block');
+
+    $this->drupalGet($layout_default_path);
+    // Add a basic block with the body field set.
+    $page->clickLink('Add Block');
+    $assert_session->assertWaitOnAjaxRequest();
+    // Confirm with only 1 type the "Create new content" link goes directly to block
+    // add form.
+    $assert_session->linkNotExists('Basic block');
+    $this->clickLink('Create new content');
+    $assert_session->assertWaitOnAjaxRequest();
+    $assert_session->fieldExists('Title');
+
+    $this->createBlockContentType('advanced', 'Advanced block');
+
+    $this->drupalGet($layout_default_path);
+    // Add a basic block with the body field set.
+    $page->clickLink('Add Block');
+    // Confirm more than 1 type exists "Create new content" shows a list block types.
+    $assert_session->assertWaitOnAjaxRequest();
+    $assert_session->linkNotExists('Basic block');
+    $assert_session->linkNotExists('Advanced block');
+    $this->clickLink('Create new content');
+    $assert_session->assertWaitOnAjaxRequest();
+    $assert_session->fieldNotExists('Title');
+    $assert_session->linkExists('Basic block');
+    $assert_session->linkExists('Advanced block');
+
+    $this->clickLink('Advanced block');
+    $assert_session->assertWaitOnAjaxRequest();
+    $assert_session->fieldExists('Title');
+  }
+
 }
diff --git a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php
index 6c99c6c39f10..4bd24d754c88 100644
--- a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTestBase.php
@@ -3,13 +3,12 @@
 namespace Drupal\Tests\layout_builder\FunctionalJavascript;
 
 use Drupal\block_content\Entity\BlockContentType;
-use Drupal\FunctionalJavascriptTests\WebDriverTestBase;
 use Drupal\Tests\contextual\FunctionalJavascript\ContextualLinkClickTrait;
 
 /**
  * Base class for testing inline blocks.
  */
-abstract class InlineBlockTestBase extends WebDriverTestBase {
+abstract class InlineBlockTestBase extends LayoutBuilderTestBase {
 
   use ContextualLinkClickTrait;
 
@@ -71,13 +70,7 @@ protected function setUp() {
         ],
       ],
     ]);
-    $bundle = BlockContentType::create([
-      'id' => 'basic',
-      'label' => 'Basic block',
-      'revision' => 1,
-    ]);
-    $bundle->save();
-    block_content_add_body_field($bundle->id());
+    $this->createBlockContentType('basic', 'Basic block');
 
     $this->blockStorage = $this->container->get('entity_type.manager')->getStorage('block_content');
   }
@@ -146,8 +139,8 @@ protected function addInlineBlockToLayout($title, $body) {
     $page = $this->getSession()->getPage();
     $page->clickLink('Add Block');
     $assert_session->assertWaitOnAjaxRequest();
-    $this->assertNotEmpty($assert_session->waitForElementVisible('css', '.block-categories details:contains(Create new block)'));
-    $this->clickLink('Basic block');
+    $this->assertNotEmpty($assert_session->waitForLink('Create new content'));
+    $this->clickLink('Create new content');
     $assert_session->assertWaitOnAjaxRequest();
     $textarea = $assert_session->waitForElement('css', '[name="settings[block_form][body][0][value]"]');
     $this->assertNotEmpty($textarea);
@@ -219,4 +212,22 @@ protected function assertDialogClosedAndTextVisible($text, $css_locator = NULL)
     }
   }
 
+  /**
+   * Creates a block content type.
+   *
+   * @param string $id
+   *   The block type id.
+   * @param string $label
+   *   The block type label.
+   */
+  protected function createBlockContentType($id, $label) {
+    $bundle = BlockContentType::create([
+      'id' => $id,
+      'label' => $label,
+      'revision' => 1,
+    ]);
+    $bundle->save();
+    block_content_add_body_field($bundle->id());
+  }
+
 }