diff --git a/packages/block-library/src/navigation-link/edit.js b/packages/block-library/src/navigation-link/edit.js
index 09fc6ae3726738..dba8be942346d7 100644
--- a/packages/block-library/src/navigation-link/edit.js
+++ b/packages/block-library/src/navigation-link/edit.js
@@ -251,6 +251,7 @@ function NavigationLinkEdit( {
 									title: newTitle = '',
 									url: newURL = '',
 									opensInNewTab: newOpensInNewTab,
+									type,
 									id,
 								} = {} ) =>
 									setAttributes( {
@@ -278,6 +279,7 @@ function NavigationLinkEdit( {
 											return escape( normalizedURL );
 										} )(),
 										opensInNewTab: newOpensInNewTab,
+										type,
 										id,
 									} )
 								}
diff --git a/packages/block-library/src/navigation/index.php b/packages/block-library/src/navigation/index.php
index 355aa989701cd8..3850b2a6928050 100644
--- a/packages/block-library/src/navigation/index.php
+++ b/packages/block-library/src/navigation/index.php
@@ -209,10 +209,22 @@ function block_core_navigation_build_html( $attributes, $block, $colors, $font_s
 			'<a class="wp-block-navigation-link__content"';
 
 		// Start appending HTML attributes to anchor tag.
-		if ( isset( $block['attrs']['url'] ) ) {
+		if (
+			isset( $block['attrs']['url'] ) &&
+			isset( $block['attrs']['type'] ) &&
+			'URL' === $block['attrs']['type']
+		) {
 			$html .= ' href="' . esc_url( $block['attrs']['url'] ) . '"';
 		}
 
+		if (
+			isset( $block['attrs']['type'] ) &&
+			isset( $block['attrs']['id'] ) &&
+			'URL' !== $block['attrs']['type']
+		) {
+			$html .= ' href="' . get_permalink( $block['attrs']['id']  ) . '"';
+		}
+
 		if ( isset( $block['attrs']['opensInNewTab'] ) && true === $block['attrs']['opensInNewTab'] ) {
 			$html .= ' target="_blank"  ';
 		}