diff --git a/src/search-modal/SearchResult.jsx b/src/search-modal/SearchResult.jsx
index 7fb4cb2599..634c12d016 100644
--- a/src/search-modal/SearchResult.jsx
+++ b/src/search-modal/SearchResult.jsx
@@ -41,7 +41,7 @@ function getItemIcon(blockType) {
 */
 function getLibraryHitUrl(hit, libraryAuthoringMfeUrl) {
   const { contextKey } = hit;
-  return `${libraryAuthoringMfeUrl}/library/${contextKey}`;
+  return `${libraryAuthoringMfeUrl}library/${contextKey}`;
 }
 
 /**
@@ -62,10 +62,20 @@ function getUnitUrlSuffix(hit) {
 function getUnitComponentUrlSuffix(hit) {
   const { breadcrumbs, contextKey, usageKey } = hit;
   if (breadcrumbs.length > 1) {
-    const parent = breadcrumbs[breadcrumbs.length - 1];
+    let parent = breadcrumbs[breadcrumbs.length - 1];
 
     if ('usageKey' in parent) {
-      return `course/${contextKey}/container/${parent.usageKey}?show=${encodeURIComponent(usageKey)}`;
+      // Handle case for library component in unit
+      let libComponentUsageKey;
+      if (parent.usageKey.includes('type@library_content') && breadcrumbs.length > 2) {
+        libComponentUsageKey = parent.usageKey;
+        parent = breadcrumbs[breadcrumbs.length - 2];
+      }
+
+      if ('usageKey' in parent) {
+        const encodedUsageKey = encodeURIComponent(libComponentUsageKey || usageKey);
+        return `course/${contextKey}/container/${parent.usageKey}?show=${encodedUsageKey}`;
+      }
     }
   }
 
@@ -96,11 +106,13 @@ function getUrlSuffix(hit) {
     return getUnitUrlSuffix(hit);
   }
 
-  // Check if the parent is a unit
+  // Check if the parent is a unit or a library component in a unit
   if (breadcrumbs.length > 1) {
     const parent = breadcrumbs[breadcrumbs.length - 1];
 
-    if ('usageKey' in parent && parent.usageKey.includes('type@vertical')) {
+    if ('usageKey' in parent && (
+      parent.usageKey.includes('type@vertical') || parent.usageKey.includes('type@library_content'))
+    ) {
       return getUnitComponentUrlSuffix(hit);
     }
   }
diff --git a/src/search-modal/SearchUI.test.jsx b/src/search-modal/SearchUI.test.jsx
index 0d5aeb697e..c653807dfb 100644
--- a/src/search-modal/SearchUI.test.jsx
+++ b/src/search-modal/SearchUI.test.jsx
@@ -290,6 +290,31 @@ describe('<SearchUI />', () => {
       );
     });
 
+    test('click lib component in unit result navigates to the context of encompassing lib component', async () => {
+      const { findAllByRole } = rendered;
+
+      const [resultItem] = await findAllByRole('button', { name: /Text block in Lib Component/ });
+
+      // Clicking the "Open in new window" button should open the result in a new window:
+      const { open } = window;
+      window.open = jest.fn();
+      fireEvent.click(within(resultItem).getByRole('button', { name: 'Open in new window' }));
+
+      expect(window.open).toHaveBeenCalledWith(
+        '/course/course-v1:SampleTaxonomyOrg1+STC1+2023_1/container/block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@vertical+block@aaf8b8eb86b54281aeeab12499d2cb0b'
+        + '?show=block-v1%3ASampleTaxonomyOrg1%2BSTC1%2B2023_1%2Btype%40library_content%2Bblock%40427e5cd03fbe431d9d551c67d4e280ae',
+        '_blank',
+      );
+      window.open = open;
+
+      // Clicking in the result should navigate to the result's URL:
+      fireEvent.click(resultItem);
+      expect(mockNavigate).toHaveBeenCalledWith(
+        '/course/course-v1:SampleTaxonomyOrg1+STC1+2023_1/container/block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@vertical+block@aaf8b8eb86b54281aeeab12499d2cb0b'
+        + '?show=block-v1%3ASampleTaxonomyOrg1%2BSTC1%2B2023_1%2Btype%40library_content%2Bblock%40427e5cd03fbe431d9d551c67d4e280ae',
+      );
+    });
+
     test('click lib component result navigates to the context', async () => {
       const data = generateGetStudioHomeDataApiResponse();
       data.redirectToLibraryAuthoringMfe = true;
diff --git a/src/search-modal/__mocks__/search-result.json b/src/search-modal/__mocks__/search-result.json
index 86a2eeeb15..9e60dfaa93 100644
--- a/src/search-modal/__mocks__/search-result.json
+++ b/src/search-modal/__mocks__/search-result.json
@@ -262,6 +262,76 @@
             "org": "SampleTaxonomyOrg1",
             "access_id": "6"
           }
+        },
+        {
+          "display_name": "Text block in Lib Component",
+          "block_id": "b654d61248bcc1f84c08",
+          "content": {
+            "html_content": " This is a text block lib component. "
+          },
+          "id": "block-v1sampletaxonomyorg1stc12023_1typehtmlblockb654d61248bcc1f84c08-77f1f658",
+          "type": "course_block",
+          "breadcrumbs": [
+            {
+              "display_name": "Sample Taxonomy Course"
+            },
+            {
+              "display_name": "Section 1",
+              "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@chapter+block@c7077c8cafcf420dbc0b440bf27bad04"
+            },
+            {
+              "display_name": "Subsection 1.1",
+              "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@sequential+block@92e3e9ca156c44fa8a735f0e9e7c854f"
+            },
+            {
+              "display_name": "Unit 1.1.1",
+              "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@vertical+block@aaf8b8eb86b54281aeeab12499d2cb0b"
+            },
+            {
+              "display_name": "Randomized Content Block",
+              "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@library_content+block@427e5cd03fbe431d9d551c67d4e280ae"
+            }
+          ],
+          "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@html+block@b654d61248bcc1f84c08",
+          "block_type": "html",
+          "context_key": "course-v1:SampleTaxonomyOrg1+STC1+2023_1",
+          "org": "SampleTaxonomyOrg1",
+          "access_id": 6,
+          "_formatted": {
+            "display_name": "Text block in Lib Component",
+            "block_id": "b654d61248bcc1f84c08",
+            "content": {
+              "html_content": " This is a text block lib component. "
+            },
+            "id": "block-v1sampletaxonomyorg1stc12023_1typehtmlblockb654d61248bcc1f84c08-77f1f658",
+            "type": "course_block",
+            "breadcrumbs": [
+              {
+                "display_name": "Sample Taxonomy Course"
+              },
+              {
+                "display_name": "Section 1",
+                "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@chapter+block@c7077c8cafcf420dbc0b440bf27bad04"
+              },
+              {
+                "display_name": "Subsection 1.1",
+                "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@sequential+block@92e3e9ca156c44fa8a735f0e9e7c854f"
+              },
+              {
+                "display_name": "Unit 1.1.1",
+                "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@vertical+block@aaf8b8eb86b54281aeeab12499d2cb0b"
+              },
+              {
+                "display_name": "Randomized Content Block",
+                "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@library_content+block@427e5cd03fbe431d9d551c67d4e280ae"
+              }
+            ],
+            "usage_key": "block-v1:SampleTaxonomyOrg1+STC1+2023_1+type@html+block@b654d61248bcc1f84c08",
+            "block_type": "html",
+            "context_key": "course-v1:SampleTaxonomyOrg1+STC1+2023_1",
+            "org": "SampleTaxonomyOrg1",
+            "access_id": "6"
+          }
         }
       ],
       "query": "learn",
diff --git a/src/studio-home/factories/mockApiResponses.jsx b/src/studio-home/factories/mockApiResponses.jsx
index ae110e8f6f..30615ba8d5 100644
--- a/src/studio-home/factories/mockApiResponses.jsx
+++ b/src/studio-home/factories/mockApiResponses.jsx
@@ -32,7 +32,7 @@ export const generateGetStudioHomeDataApiResponse = () => ({
   inProcessCourseActions: [],
   libraries: [],
   librariesEnabled: true,
-  libraryAuthoringMfeUrl: 'http://localhost:3001',
+  libraryAuthoringMfeUrl: 'http://localhost:3001/',
   optimizationEnabled: false,
   redirectToLibraryAuthoringMfe: false,
   requestCourseCreatorUrl: '/request_course_creator',