diff --git a/packages/block-editor/src/components/inner-blocks/index.js b/packages/block-editor/src/components/inner-blocks/index.js
index 1583031a8ea18d..bc5aa86565d42c 100644
--- a/packages/block-editor/src/components/inner-blocks/index.js
+++ b/packages/block-editor/src/components/inner-blocks/index.js
@@ -75,6 +75,7 @@ function UncontrolledInnerBlocks( props ) {
 		blockType,
 		parentLock,
 		defaultLayout,
+		contentOnlyInsertion,
 	} = props;
 
 	useNestedSettingsUpdate(
@@ -89,7 +90,8 @@ function UncontrolledInnerBlocks( props ) {
 		templateLock,
 		captureToolbars,
 		orientation,
-		layout
+		layout,
+		contentOnlyInsertion
 	);
 
 	useInnerBlockTemplateSync(
diff --git a/packages/block-editor/src/components/inner-blocks/use-nested-settings-update.js b/packages/block-editor/src/components/inner-blocks/use-nested-settings-update.js
index 8417dec1dd48ff..38228995503634 100644
--- a/packages/block-editor/src/components/inner-blocks/use-nested-settings-update.js
+++ b/packages/block-editor/src/components/inner-blocks/use-nested-settings-update.js
@@ -51,6 +51,7 @@ function useShallowMemo( value ) {
  * @param {string}               orientation                The direction in which the block
  *                                                          should face.
  * @param {Object}               layout                     The layout object for the block container.
+ * @param {?boolean}             contentOnlyInsertion       Whether inner blocks can be inserted in content only mode.
  */
 export default function useNestedSettingsUpdate(
 	clientId,
@@ -64,7 +65,8 @@ export default function useNestedSettingsUpdate(
 	templateLock,
 	captureToolbars,
 	orientation,
-	layout
+	layout,
+	contentOnlyInsertion
 ) {
 	// Instead of adding a useSelect mapping here, please add to the useSelect
 	// mapping in InnerBlocks! Every subscription impacts performance.
@@ -147,6 +149,10 @@ export default function useNestedSettingsUpdate(
 			} );
 		}
 
+		if ( contentOnlyInsertion !== undefined ) {
+			newSettings.contentOnlyInsertion = contentOnlyInsertion;
+		}
+
 		// Batch updates to block list settings to avoid triggering cascading renders
 		// for each container block included in a tree and optimize initial render.
 		// To avoid triggering updateBlockListSettings for each container block
diff --git a/packages/block-editor/src/store/selectors.js b/packages/block-editor/src/store/selectors.js
index 6cf6aae296141f..75521e2d6c4482 100644
--- a/packages/block-editor/src/store/selectors.js
+++ b/packages/block-editor/src/store/selectors.js
@@ -1623,8 +1623,14 @@ const canInsertBlockTypeUnmemoized = (
 		blockType = getBlockType( blockName );
 	}
 
-	const isLocked = !! getTemplateLock( state, rootClientId );
-	if ( isLocked ) {
+	const parentBlockListSettings = getBlockListSettings( state, rootClientId );
+	const templateLock = getTemplateLock( state, rootClientId );
+	const allowsContentOnlyInsertion =
+		templateLock === 'contentOnly' &&
+		!! parentBlockListSettings?.contentOnlyInsertion;
+
+	const isLocked = !! templateLock;
+	if ( isLocked && ! allowsContentOnlyInsertion ) {
 		return false;
 	}
 
@@ -1637,8 +1643,6 @@ const canInsertBlockTypeUnmemoized = (
 		return false;
 	}
 
-	const parentBlockListSettings = getBlockListSettings( state, rootClientId );
-
 	// The parent block doesn't have settings indicating it doesn't support
 	// inner blocks, return false.
 	if ( rootClientId && parentBlockListSettings === undefined ) {
diff --git a/packages/block-library/src/list/edit.js b/packages/block-library/src/list/edit.js
index 73551cd9cdee80..bceb88a5edc60b 100644
--- a/packages/block-library/src/list/edit.js
+++ b/packages/block-library/src/list/edit.js
@@ -139,6 +139,7 @@ export default function Edit( { attributes, setAttributes, clientId, style } ) {
 			renderAppender: false,
 		} ),
 		__experimentalCaptureToolbars: true,
+		contentOnlyInsertion: true,
 	} );
 	useMigrateOnLoad( attributes, clientId );