diff --git a/packages/lexical-playground/__tests__/e2e/Links.spec.mjs b/packages/lexical-playground/__tests__/e2e/Links.spec.mjs
index 91d78d160b6..3eb5d1d4373 100644
--- a/packages/lexical-playground/__tests__/e2e/Links.spec.mjs
+++ b/packages/lexical-playground/__tests__/e2e/Links.spec.mjs
@@ -375,6 +375,57 @@ test.describe('Links', () => {
     );
   });
 
+  test(`Can create a link in a list and insert a paragraph at the start`, async ({
+    page,
+  }) => {
+    await focusEditor(page);
+    await page.keyboard.type('- hello');
+    await selectCharacters(page, 'left', 5);
+
+    // link
+    await click(page, '.link');
+
+    await moveLeft(page, 1);
+
+    await assertHTML(
+      page,
+      html`
+        <ul class="PlaygroundEditorTheme__ul">
+          <li
+            class="PlaygroundEditorTheme__listItem PlaygroundEditorTheme__ltr"
+            dir="ltr"
+            value="1">
+            <a
+              class="PlaygroundEditorTheme__link PlaygroundEditorTheme__ltr"
+              dir="ltr"
+              href="https://">
+              <span data-lexical-text="true">hello</span>
+            </a>
+          </li>
+        </ul>
+      `,
+    );
+
+    await page.keyboard.press('Enter');
+
+    await assertHTML(
+      page,
+      html`
+        <ul class="PlaygroundEditorTheme__ul">
+          <li class="PlaygroundEditorTheme__listItem" value="1"><br /></li>
+          <li class="PlaygroundEditorTheme__listItem" value="2">
+            <a
+              class="PlaygroundEditorTheme__link PlaygroundEditorTheme__ltr"
+              dir="ltr"
+              href="https://">
+              <span data-lexical-text="true">hello</span>
+            </a>
+          </li>
+        </ul>
+      `,
+    );
+  });
+
   test(`Can create a link with some text after, insert paragraph, then backspace, it should merge correctly`, async ({
     page,
   }) => {
diff --git a/packages/lexical/src/LexicalSelection.js b/packages/lexical/src/LexicalSelection.js
index a270c411808..d601f3f77d3 100644
--- a/packages/lexical/src/LexicalSelection.js
+++ b/packages/lexical/src/LexicalSelection.js
@@ -1421,7 +1421,14 @@ export class RangeSelection implements BaseSelection {
       nodesToMoveLength > 0 &&
       currentElement.isInline()
     ) {
-      currentElement.getParentOrThrow().insertBefore($createParagraphNode());
+      const parent = currentElement.getParentOrThrow();
+      const newElement = parent.insertNewAfter(this);
+      if ($isElementNode(newElement)) {
+        const children = parent.getChildren();
+        for (let i = 0; i < children.length; i++) {
+          newElement.append(children[i]);
+        }
+      }
       return;
     }
     const newElement = currentElement.insertNewAfter(this);