diff --git a/core/modules/layout_builder/layout_builder.module b/core/modules/layout_builder/layout_builder.module
index 5d7c60615c..348b0b44a3 100644
--- a/core/modules/layout_builder/layout_builder.module
+++ b/core/modules/layout_builder/layout_builder.module
@@ -69,6 +69,14 @@ function layout_builder_form_entity_form_display_edit_form_alter(&$form, FormSta
   }
 }
 
+/**
+ * Implements hook_entity_bundle_create().
+ */
+function layout_builder_entity_bundle_create($entity_type_id, $bundle) {
+  // Clear the list of blocks when a new bundle is created.
+  \Drupal::service('plugin.manager.block')->clearCachedDefinitions();
+}
+
 /**
  * Implements hook_field_config_insert().
  */
diff --git a/core/modules/layout_builder/tests/src/Functional/LayoutTaxonomyTest.php b/core/modules/layout_builder/tests/src/Functional/LayoutTaxonomyTest.php
new file mode 100644
index 0000000000..cd41ce0af7
--- /dev/null
+++ b/core/modules/layout_builder/tests/src/Functional/LayoutTaxonomyTest.php
@@ -0,0 +1,53 @@
+<?php
+
+namespace Drupal\Tests\layout_builder\Functional;
+
+use Drupal\Core\Entity\Entity\EntityViewDisplay;
+use Drupal\Tests\BrowserTestBase;
+use Drupal\Tests\taxonomy\Functional\TaxonomyTestTrait;
+
+/**
+ * Defines a class for testing layout_builder with taxonomy.
+ *
+ * @group layout_builder
+ */
+class LayoutTaxonomyTest extends BrowserTestBase {
+
+  use TaxonomyTestTrait;
+
+  /**
+   * {@inheritdoc}
+   */
+  protected static $modules = [
+    'views',
+    'layout_builder',
+    'taxonomy',
+  ];
+
+  /**
+   * Tests layout builder interaction with taxonomy.
+   */
+  public function testTaxonomyLayoutBuilderInteraction() {
+    $assert_session = $this->assertSession();
+
+    // Prime the block definition cache.
+    $this->container->get('plugin.manager.block')->getDefinitions();
+
+    $vocabulary = $this->createVocabulary();
+    EntityViewDisplay::create([
+      'targetEntityType' => 'taxonomy_term',
+      'bundle' => $vocabulary->id(),
+      'mode' => 'default',
+      'status' => TRUE,
+    ])
+      ->enableLayoutBuilder()
+      ->save();
+
+    $term = $this->createTerm($vocabulary);
+    $this->drupalGet($term->toUrl());
+    $assert_session->statusCodeEquals(200);
+    $this->assertNotEmpty($this->cssSelect('.layout--onecol'));
+    $assert_session->pageTextContains($term->getDescription());
+  }
+
+}