diff --git a/packages/block-library/src/list/v2/edit.js b/packages/block-library/src/list/v2/edit.js
index fc885cca7eb31..6bffee6844357 100644
--- a/packages/block-library/src/list/v2/edit.js
+++ b/packages/block-library/src/list/v2/edit.js
@@ -134,6 +134,7 @@ function Edit( { attributes, setAttributes, clientId } ) {
 	const innerBlocksProps = useInnerBlocksProps( blockProps, {
 		allowedBlocks: [ 'core/list-item' ],
 		template: TEMPLATE,
+		templateInsertUpdatesSelection: true,
 	} );
 	useMigrateOnLoad( attributes, clientId );
 	const { ordered, reversed, start } = attributes;