diff --git a/core/modules/layout_builder/src/Plugin/Block/InlineBlock.php b/core/modules/layout_builder/src/Plugin/Block/InlineBlock.php
index 01f64eb37f..2e1881a7ed 100644
--- a/core/modules/layout_builder/src/Plugin/Block/InlineBlock.php
+++ b/core/modules/layout_builder/src/Plugin/Block/InlineBlock.php
@@ -9,6 +9,7 @@
 use Drupal\Core\Block\BlockBase;
 use Drupal\Core\Entity\Entity\EntityFormDisplay;
 use Drupal\Core\Entity\EntityDisplayRepositoryInterface;
+use Drupal\Core\Entity\EntityRepositoryInterface;
 use Drupal\Core\Entity\EntityTypeManagerInterface;
 use Drupal\Core\Form\FormStateInterface;
 use Drupal\Core\Form\SubformStateInterface;
@@ -61,6 +62,13 @@ class InlineBlock extends BlockBase implements ContainerFactoryPluginInterface,
    */
   protected $isNew = TRUE;
 
+  /**
+   * The entity repository.
+   *
+   * @var \Drupal\Core\Entity\EntityRepositoryInterface
+   */
+  protected $entityRepository;
+
   /**
    * The current user.
    *
@@ -83,8 +91,10 @@ class InlineBlock extends BlockBase implements ContainerFactoryPluginInterface,
    *   The entity display repository.
    * @param \Drupal\Core\Session\AccountInterface $current_user
    *   The current user.
+   * @param \Drupal\Core\Entity\EntityRepositoryInterface $entity_repository
+   *   The entity repository.
    */
-  public function __construct(array $configuration, $plugin_id, $plugin_definition, EntityTypeManagerInterface $entity_type_manager, EntityDisplayRepositoryInterface $entity_display_repository, AccountInterface $current_user = NULL) {
+  public function __construct(array $configuration, $plugin_id, $plugin_definition, EntityTypeManagerInterface $entity_type_manager, EntityDisplayRepositoryInterface $entity_display_repository, AccountInterface $current_user = NULL, EntityRepositoryInterface $entity_repository = NULL) {
     parent::__construct($configuration, $plugin_id, $plugin_definition);
 
     $this->entityTypeManager = $entity_type_manager;
@@ -98,6 +108,11 @@ public function __construct(array $configuration, $plugin_id, $plugin_definition
       $current_user = \Drupal::currentUser();
     }
     $this->currentUser = $current_user;
+    if (!$entity_repository) {
+      @trigger_error('The entity.repository service must be passed to InlineBlock::__construct(), it is required before Drupal 9.0.0.', E_USER_DEPRECATED);
+      $entity_repository = \Drupal::service('entity.repository');
+    }
+    $this->entityRepository = $entity_repository;
   }
 
   /**
@@ -110,7 +125,8 @@ public static function create(ContainerInterface $container, array $configuratio
       $plugin_definition,
       $container->get('entity_type.manager'),
       $container->get('entity_display.repository'),
-      $container->get('current_user')
+      $container->get('current_user'),
+      $container->get('entity.repository')
     );
   }
 
@@ -130,6 +146,10 @@ public function defaultConfiguration() {
    */
   public function blockForm($form, FormStateInterface $form_state) {
     $block = $this->getEntity();
+    if (!$this->isNew && !$block->isNew()) {
+      // Get the active block for editing purposes.
+      $block = $this->entityRepository->getActive('block_content', $block->id());
+    }
 
     // Add the entity form display in a process callback so that #parents can
     // be successfully propagated to field widgets.
diff --git a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
index a256b25399..3c1fdf4508 100644
--- a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
@@ -36,7 +36,23 @@ public function testInlineBlocks() {
     $this->clickLink('Manage layout');
     $assert_session->addressEquals(static::FIELD_UI_PREFIX . '/display/default/layout');
     // Add a basic block with the body field set.
-    $this->addInlineBlockToLayout('Block title', 'The DEFAULT block body');
+    $this->addInlineBlockToLayout('Block title', 'The first block body');
+    $this->assertSaveLayout();
+
+    // Save the block outside of Layout Builder to ensure that latest active
+    // version is loaded in Layout Builder.
+    $this->assertCount(1, $this->blockStorage->loadMultiple());
+    $default_block_id = $this->getLatestBlockEntityId();
+    /** @var \Drupal\block_content\Entity\BlockContent $block */
+    $block = $this->blockStorage->load($default_block_id);
+    $this->drupalGet($block->url());
+    $page->pressButton('Save');
+    $assert_session->pageTextContains('Basic block Block title has been updated.');
+
+    $this->drupalGet(static::FIELD_UI_PREFIX . '/display/default');
+    $this->clickLink('Manage layout');
+    $assert_session->addressEquals(static::FIELD_UI_PREFIX . '/display/default/layout');
+    $this->configureInlineBlock('The first block body', 'The DEFAULT block body');
     $this->assertSaveLayout();
 
     $this->drupalGet('node/1');