diff --git a/core/modules/layout_builder/layout_builder.module b/core/modules/layout_builder/layout_builder.module
index 4631de2547..3684c6098b 100644
--- a/core/modules/layout_builder/layout_builder.module
+++ b/core/modules/layout_builder/layout_builder.module
@@ -207,6 +207,17 @@ function layout_builder_entity_presave(EntityInterface $entity) {
   }
 }
 
+/**
+ * Implements hook_entity_insert().
+ */
+function layout_builder_entity_insert(EntityInterface $entity) {
+  if (\Drupal::moduleHandler()->moduleExists('block_content')) {
+    /** @var \Drupal\layout_builder\InlineBlockEntityOperations $entity_operations */
+    $entity_operations = \Drupal::classResolver(InlineBlockEntityOperations::class);
+    $entity_operations->handleInsert($entity);
+  }
+}
+
 /**
  * Implements hook_entity_delete().
  */
diff --git a/core/modules/layout_builder/src/InlineBlockEntityOperations.php b/core/modules/layout_builder/src/InlineBlockEntityOperations.php
index ad255cd6fe..f59a947532 100644
--- a/core/modules/layout_builder/src/InlineBlockEntityOperations.php
+++ b/core/modules/layout_builder/src/InlineBlockEntityOperations.php
@@ -155,7 +155,7 @@ public function handlePreSave(EntityInterface $entity) {
     if (!$this->isLayoutCompatibleEntity($entity)) {
       return;
     }
-    $duplicate_blocks = FALSE;
+    $duplicate_blocks = $entity->isNew();
 
     if ($sections = $this->getEntitySections($entity)) {
       if ($this->originalEntityUsesDefaultStorage($entity)) {
@@ -174,6 +174,29 @@ public function handlePreSave(EntityInterface $entity) {
     $this->removeUnusedForEntityOnSave($entity);
   }
 
+  /**
+   * Handles parent entity insert.
+   *
+   * @param \Drupal\Core\Entity\EntityInterface $entity
+   *   The parent entity.
+   */
+  public function handleInsert(EntityInterface $entity) {
+    if (!$this->isLayoutCompatibleEntity($entity)) {
+      return;
+    }
+
+    // If the parent entity is created with already-associated blocks (e.g. a
+    // clone or duplicate of the existing entity), those blocks must be added
+    // after the entity is saved.
+    if ($sections = $this->getEntitySections($entity)) {
+      foreach ($this->getInlineBlockComponents($sections) as $component) {
+        $plugin = $component->getPlugin();
+        $block_id = $this->getPluginBlockId($plugin);
+        $this->usage->addUsage($block_id, $entity);
+      }
+    }
+  }
+
   /**
    * Gets a block ID for an inline block plugin.
    *
@@ -254,7 +277,7 @@ protected function saveInlineBlockComponent(EntityInterface $entity, SectionComp
     $pre_save_configuration = $plugin->getConfiguration();
     $plugin->saveBlockContent($new_revision, $duplicate_blocks);
     $post_save_configuration = $plugin->getConfiguration();
-    if ($duplicate_blocks || (empty($pre_save_configuration['block_revision_id']) && !empty($post_save_configuration['block_revision_id']))) {
+    if ($entity->id() !== NULL && ($duplicate_blocks || (empty($pre_save_configuration['block_revision_id']) && !empty($post_save_configuration['block_revision_id'])))) {
       $this->usage->addUsage($this->getPluginBlockId($plugin), $entity);
     }
     $component->setConfiguration($post_save_configuration);
diff --git a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
index bbcd3cf512..26a09132dd 100644
--- a/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
+++ b/core/modules/layout_builder/tests/src/FunctionalJavascript/InlineBlockTest.php
@@ -658,4 +658,88 @@ public function testEditInlineBlocksPermission() {
     $assert($permissions, TRUE);
   }
 
+  /**
+   * Tests that Inline Blocks are added to duplicated entities.
+   */
+  public function testDuplicateEntityInlineBlockUsage() {
+    /** @var \Drupal\Core\Cron $cron */
+    $cron = \Drupal::service('cron');
+    /** @var \Drupal\layout_builder\InlineBlockUsageInterface $usage */
+    $usage = \Drupal::service('inline_block.usage');
+    $this->drupalLogin($this->drupalCreateUser([
+      'administer content types',
+      'access contextual links',
+      'configure any layout',
+      'administer node display',
+      'administer node fields',
+      'administer nodes',
+      'bypass node access',
+      'create and edit custom blocks',
+    ]));
+
+    $assert_session = $this->assertSession();
+    $page = $this->getSession()->getPage();
+
+    // Enable layout builder.
+    $this->drupalPostForm(
+      static::FIELD_UI_PREFIX . '/display/default',
+      ['layout[enabled]' => TRUE],
+      'Save'
+    );
+    $this->clickLink('Manage layout');
+    $assert_session->addressEquals(static::FIELD_UI_PREFIX . '/display/default/layout');
+
+    // Enable overrides.
+    $this->drupalPostForm(static::FIELD_UI_PREFIX . '/display/default', ['layout[allow_custom]' => TRUE], 'Save');
+    $this->drupalGet('node/1/layout');
+
+    // Add a basic block with the body field set.
+    $this->drupalGet('node/1/layout');
+    $this->addInlineBlockToLayout('New Block title', 'New block body');
+    $this->assertSaveLayout();
+    $node_1_block_id = $this->getLatestBlockEntityId();
+    $this->drupalGet('node/1');
+    $assert_session->pageTextContains('New Block title');
+    $assert_session->pageTextContains('New block body');
+
+    /** @var \Drupal\node\NodeStorageInterface $node_storage */
+    $node_storage = $this->container->get('entity_type.manager')->getStorage('node');
+
+    /** @var \Drupal\node\NodeInterface $node_1 */
+    $node_1 = $node_storage->load(1);
+
+    // Clone node 1.
+    $cloned = $node_1->createDuplicate();
+    $cloned->save();
+
+    // Confirm inline blocks exist on clone.
+    $new_id = $cloned->id();
+    $this->drupalGet('node/' . $new_id);
+    $cloned_block_id = $this->getLatestBlockEntityId();
+    $cloned_usage = $usage->getUsage($cloned_block_id);
+    $this->assertNotEmpty($cloned_usage);
+
+    // Confirm cloned inline block has the right layout entity.
+    $this->assertNotEmpty($cloned_usage->layout_entity_id);
+    $this->assertEqual($new_id, $cloned_usage->layout_entity_id);
+    $this->assertNotEmpty($cloned_usage->layout_entity_type);
+
+    $assert_session->pageTextContains('New Block title');
+    $assert_session->pageTextContains('New block body');
+
+    // Delete the original.
+    $this->assertNotEmpty($usage->getUsage($node_1_block_id));
+    $this->drupalGet('node/1');
+    $this->drupalGet('node/1/delete');
+    $page->pressButton('Delete');
+    $this->drupalGet('node/1');
+    $this->assertNull($node_storage->loadUnchanged(1));
+    $cron->run();
+
+    // Ensure entity block was kept for clone.
+    $this->assertNull($this->blockStorage->load($node_1_block_id));
+    $this->assertFalse($usage->getUsage($node_1_block_id));
+    $this->assertCount(1, $this->blockStorage->loadMultiple());
+  }
+
 }