diff --git a/cms/djangoapps/contentstore/utils.py b/cms/djangoapps/contentstore/utils.py
index d40a5ec7947..964f0c57e75 100644
--- a/cms/djangoapps/contentstore/utils.py
+++ b/cms/djangoapps/contentstore/utils.py
@@ -436,7 +436,7 @@ def get_library_content_picker_url(course_locator) -> str:
     content_picker_url = None
     if libraries_v2_enabled():
         mfe_base_url = get_course_authoring_url(course_locator)
-        content_picker_url = f'{mfe_base_url}/component-picker'
+        content_picker_url = f'{mfe_base_url}/component-picker?variant=published'
 
     return content_picker_url
 
diff --git a/cms/djangoapps/contentstore/views/preview.py b/cms/djangoapps/contentstore/views/preview.py
index acc5fc95dfe..aa7421bb87b 100644
--- a/cms/djangoapps/contentstore/views/preview.py
+++ b/cms/djangoapps/contentstore/views/preview.py
@@ -300,8 +300,9 @@ def _studio_wrap_xblock(xblock, view, frag, context, display_name_only=False):
             selected_groups_label = _('Access restricted to: {list_of_groups}').format(list_of_groups=selected_groups_label)  # lint-amnesty, pylint: disable=line-too-long
         course = modulestore().get_course(xblock.location.course_key)
         can_edit = context.get('can_edit', True)
+        can_add = context.get('can_add', True)
         # Is this a course or a library?
-        is_course = xblock.scope_ids.usage_id.context_key.is_course
+        is_course = xblock.context_key.is_course
         tags_count_map = context.get('tags_count_map')
         tags_count = 0
         if tags_count_map:
@@ -320,7 +321,10 @@ def _studio_wrap_xblock(xblock, view, frag, context, display_name_only=False):
             'is_selected': context.get('is_selected', False),
             'selectable': context.get('selectable', False),
             'selected_groups_label': selected_groups_label,
-            'can_add': context.get('can_add', True),
+            'can_add': can_add,
+            # Generally speaking, "if you can add, you can delete". One exception is itembank (Problem Bank)
+            # which has its own separate "add" workflow but uses the normal delete workflow for its child blocks.
+            'can_delete': can_add or (root_xblock and root_xblock.scope_ids.block_type == "itembank" and can_edit),
             'can_move': context.get('can_move', is_course),
             'language': getattr(course, 'language', None),
             'is_course': is_course,
diff --git a/cms/envs/common.py b/cms/envs/common.py
index 3942c9d68be..d23b040e669 100644
--- a/cms/envs/common.py
+++ b/cms/envs/common.py
@@ -1648,6 +1648,9 @@
     'corsheaders',
     'openedx.core.djangoapps.cors_csrf',
 
+    # Provides the 'django_markup' template library so we can use 'interpolate_html' in django templates
+    'xss_utils',
+
     # History tables
     'simple_history',
 
diff --git a/cms/static/js/views/modals/select_v2_library_content.js b/cms/static/js/views/modals/select_v2_library_content.js
new file mode 100644
index 00000000000..87523679678
--- /dev/null
+++ b/cms/static/js/views/modals/select_v2_library_content.js
@@ -0,0 +1,68 @@
+/**
+ * Provides utilities to open and close the library content picker.
+ *
+ */
+define(['jquery', 'underscore', 'gettext', 'js/views/modals/base_modal'],
+function($, _, gettext, BaseModal) {
+    'use strict';
+
+    var SelectV2LibraryContent = BaseModal.extend({
+        options: $.extend({}, BaseModal.prototype.options, {
+            modalName: 'add-component-from-library',
+            modalSize: 'lg',
+            view: 'studio_view',
+            viewSpecificClasses: 'modal-add-component-picker confirm',
+            // Translators: "title" is the name of the current component being edited.
+            titleFormat: gettext('Add library content'),
+            addPrimaryActionButton: false,
+        }),
+
+        initialize: function() {
+            BaseModal.prototype.initialize.call(this);
+            // Add event listen to close picker when the iframe tells us to
+            const handleMessage = (event) => {
+                if (event.data?.type === 'pickerComponentSelected') {
+                    var requestData = {
+                        library_content_key: event.data.usageKey,
+                        category: event.data.category,
+                    }
+                    this.callback(requestData);
+                    this.hide();
+                }
+            };
+            this.messageListener = window.addEventListener("message", handleMessage);
+            this.cleanupListener = () => { window.removeEventListener("message", handleMessage) };
+        },
+
+        hide: function() {
+            BaseModal.prototype.hide.call(this);
+            this.cleanupListener();
+        },
+
+        /**
+         * Adds the action buttons to the modal.
+         */
+        addActionButtons: function() {
+            this.addActionButton('cancel', gettext('Cancel'));
+        },
+
+        /**
+         * Show a component picker modal from library.
+         * @param contentPickerUrl Url for component picker
+         * @param callback A function to call with the selected block(s)
+         */
+        showComponentPicker: function(contentPickerUrl, callback) {
+            this.contentPickerUrl = contentPickerUrl;
+            this.callback = callback;
+
+            this.render();
+            this.show();
+        },
+
+        getContentHtml: function() {
+            return `<iframe src="${this.contentPickerUrl}" onload="this.contentWindow.focus()" frameborder="0" style="width: 100%; height: 100%;"/>`;
+        },
+    });
+
+    return SelectV2LibraryContent;
+});
diff --git a/cms/static/js/views/pages/container.js b/cms/static/js/views/pages/container.js
index c49c2439473..6a849aebe6f 100644
--- a/cms/static/js/views/pages/container.js
+++ b/cms/static/js/views/pages/container.js
@@ -8,7 +8,8 @@ define(['jquery', 'underscore', 'backbone', 'gettext', 'js/views/pages/base_page
     'js/models/xblock_info', 'js/views/xblock_string_field_editor', 'js/views/xblock_access_editor',
     'js/views/pages/container_subviews', 'js/views/unit_outline', 'js/views/utils/xblock_utils',
     'common/js/components/views/feedback_notification', 'common/js/components/views/feedback_prompt',
-    'js/views/utils/tagging_drawer_utils', 'js/utils/module', 'js/views/modals/preview_v2_library_changes'
+    'js/views/utils/tagging_drawer_utils', 'js/utils/module', 'js/views/modals/preview_v2_library_changes',
+    'js/views/modals/select_v2_library_content'
 ],
 function($, _, Backbone, gettext, BasePage,
     ViewUtils, ContainerView, XBlockView,
@@ -16,7 +17,7 @@ function($, _, Backbone, gettext, BasePage,
     XBlockInfo, XBlockStringFieldEditor, XBlockAccessEditor,
     ContainerSubviews, UnitOutlineView, XBlockUtils,
     NotificationView, PromptView, TaggingDrawerUtils, ModuleUtils,
-    PreviewLibraryChangesModal) {
+    PreviewLibraryChangesModal, SelectV2LibraryContent) {
     'use strict';
 
     var XBlockContainerPage = BasePage.extend({
@@ -30,6 +31,7 @@ function($, _, Backbone, gettext, BasePage,
             'click .move-button': 'showMoveXBlockModal',
             'click .delete-button': 'deleteXBlock',
             'click .library-sync-button': 'showXBlockLibraryChangesPreview',
+            'click .problem-bank-v2-add-button': 'showSelectV2LibraryContent',
             'click .show-actions-menu-button': 'showXBlockActionsMenu',
             'click .new-component-button': 'scrollToNewComponentButtons',
             'click .save-button': 'saveSelectedLibraryComponents',
@@ -255,6 +257,7 @@ function($, _, Backbone, gettext, BasePage,
                     } else {
                         // The thing in the clipboard can be pasted into this unit:
                         const detailsPopupEl = this.$(".clipboard-details-popup")[0];
+                        if (!detailsPopupEl) return; // This happens on the Problem Bank container page - no paste button is there anyways
                         detailsPopupEl.querySelector(".detail-block-name").innerText = data.content.display_name;
                         detailsPopupEl.querySelector(".detail-block-type").innerText = data.content.block_type_display;
                         detailsPopupEl.querySelector(".detail-course-name").innerText = data.source_context_title;
@@ -435,6 +438,43 @@ function($, _, Backbone, gettext, BasePage,
             });
         },
 
+        showSelectV2LibraryContent: function(event, options) {
+            event.preventDefault();
+
+            const xblockElement = this.findXBlockElement(event.target);
+            const modal = new SelectV2LibraryContent(options);
+            const courseAuthoringMfeUrl = this.model.attributes.course_authoring_url;
+            const itemBankBlockId = xblockElement.data("locator");
+            const pickerUrl = courseAuthoringMfeUrl + '/component-picker?variant=published';
+
+            modal.showComponentPicker(pickerUrl, (selectedBlockData) => {
+                const createData = {
+                    parent_locator: itemBankBlockId,
+                    // The user wants to add this block from the library to the Problem Bank:
+                    library_content_key: selectedBlockData.library_content_key,
+                    category: selectedBlockData.category,
+                };
+                let doneAddingBlock = () => { this.refreshXBlock(xblockElement, false); };
+                if (this.model.id === itemBankBlockId) {
+                    // We're on the detailed view, showing all the components inside the problem bank.
+                    // Create a placeholder that will become the new block(s)
+                    const $placeholderEl = $(this.createPlaceholderElement());
+                    const $insertSpot = xblockElement.find('.insert-new-lib-blocks-here');
+                    const placeholderElement = $placeholderEl.insertBefore($insertSpot);
+                    const scrollOffset = ViewUtils.getScrollOffset($placeholderEl);
+                    doneAddingBlock = (addResult) => {
+                        ViewUtils.setScrollOffset(placeholderElement, scrollOffset);
+                        placeholderElement.data('locator', addResult.locator);
+                        return this.refreshXBlock(placeholderElement, true);
+                    };
+                }
+                // Now we actually add the block:
+                ViewUtils.runOperationShowingMessage(gettext('Adding'), () => {
+                    return $.postJSON(this.getURLRoot() + '/', createData, doneAddingBlock);
+                });
+            });
+        },
+
         /**
          * If the new "Actions" menu is enabled, most XBlock actions like
          * Duplicate, Move, Delete, Manage Access, etc. are moved into this
diff --git a/cms/templates/studio_xblock_wrapper.html b/cms/templates/studio_xblock_wrapper.html
index d69ddea6687..14685963c90 100644
--- a/cms/templates/studio_xblock_wrapper.html
+++ b/cms/templates/studio_xblock_wrapper.html
@@ -197,8 +197,7 @@
                                             </li>
                                         % endif
                                     % endif
-                                    % if can_add:
-                                        <!-- If we can add, we can delete. -->
+                                    % if can_delete:
                                         <li class="nav-item">
                                             <a class="delete-button" href="#" role="button">${_("Delete")}</a>
                                         </li>
diff --git a/xmodule/item_bank_block.py b/xmodule/item_bank_block.py
index 88a2c658af2..7adf935e48e 100644
--- a/xmodule/item_bank_block.py
+++ b/xmodule/item_bank_block.py
@@ -17,7 +17,9 @@
 from xblock.completable import XBlockCompletionMode
 from xblock.core import XBlock
 from xblock.fields import Boolean, Integer, List, Scope, String
+from xblock.utils.resources import ResourceLoader
 
+from xmodule.block_metadata_utils import display_name_with_default
 from xmodule.mako_block import MakoTemplateBlockBase
 from xmodule.studio_editable import StudioEditableBlock
 from xmodule.util.builtin_assets import add_webpack_js_to_fragment
@@ -33,6 +35,7 @@
 _ = lambda text: text
 
 logger = logging.getLogger(__name__)
+loader = ResourceLoader(__name__)
 
 
 @XBlock.needs('mako')
@@ -461,9 +464,9 @@ def validate(self):
         validation = super().validate()
         if not isinstance(validation, StudioValidation):
             validation = StudioValidation.copy(validation)
-        if not validation.empty:
-            pass  # If there's already a validation error, leave it there.
-        elif self.max_count < -1 or self.max_count == 0:
+        if not validation.empty:  # If there's already a validation error, leave it there.
+            return validation
+        if self.max_count < -1 or self.max_count == 0:
             validation.set_summary(
                 StudioValidationMessage(
                     StudioValidationMessage.ERROR,
@@ -475,7 +478,7 @@ def validate(self):
                     action_label=_("Edit the problem bank configuration."),
                 )
             )
-        elif len(self.children) < self.max_count:
+        elif 0 < len(self.children) < self.max_count:
             validation.set_summary(
                 StudioValidationMessage(
                     StudioValidationMessage.WARNING,
@@ -484,7 +487,7 @@ def validate(self):
                         "but only {actual} have been selected."
                     ).format(count=self.max_count, actual=len(self.children)),
                     action_class='edit-button',
-                    action_label=_("Edit the problem bank configuration."),
+                    action_label=_("Edit the problem bank configuration.")
                 )
             )
         return validation
@@ -498,20 +501,29 @@ def author_view(self, context):
         fragment = Fragment()
         root_xblock = context.get('root_xblock')
         is_root = root_xblock and root_xblock.usage_key == self.usage_key
-        # User has clicked the "View" link. Show a preview of all possible children:
-        if is_root and self.children:  # pylint: disable=no-member
-            fragment.add_content(self.runtime.service(self, 'mako').render_cms_template(
-                "library-block-author-preview-header.html", {
-                    'max_count': self.max_count if self.max_count >= 0 else len(self.children),
-                    'display_name': self.display_name or self.url_name,
-                }))
+        if is_root and self.children:
+            # User has clicked the "View" link. Show a preview of all possible children:
             context['can_edit_visibility'] = False
             context['can_move'] = False
             context['can_collapse'] = True
             self.render_children(context, fragment, can_reorder=False, can_add=False)
-        context['is_loading'] = False
-
-        fragment.initialize_js('LibraryContentAuthorView')
+        else:
+            # We're just on the regular unit page, or we're on the "view" page but no children exist yet.
+            # Show a summary message and instructions.
+            summary_html = loader.render_django_template('templates/item_bank/author_view.html', {
+                # Due to template interpolation limitations, we have to pass some HTML for the link here:
+                "view_link": f'<a href="/container/{self.usage_key}">',
+                "blocks": [
+                    {"display_name": display_name_with_default(child)}
+                    for child in self.get_children()
+                ],
+                "block_count": len(self.children),
+                "max_count": self.max_count,
+            })
+            fragment.add_content(summary_html)
+        # Whether on the main author view or the detailed children view, show a button to add more from the library:
+        add_html = loader.render_django_template('templates/item_bank/author_view_add.html', {})
+        fragment.add_content(add_html)
         return fragment
 
     def format_block_keys_for_analytics(self, block_keys: list[tuple[str, str]]) -> list[dict]:
diff --git a/xmodule/templates/item_bank/author_view.html b/xmodule/templates/item_bank/author_view.html
new file mode 100644
index 00000000000..92c289b6f0f
--- /dev/null
+++ b/xmodule/templates/item_bank/author_view.html
@@ -0,0 +1,46 @@
+{% load i18n %}
+{% load django_markup %}
+<div style="padding: 1em">
+    {% if block_count > 0 %}
+        {% if max_count == -1 %}
+            <p>
+                {% filter force_escape %}
+                {% blocktrans count num_selected=block_count %}
+                Learners will see the selected component:
+                {% plural %}
+                Learners will see all of the {{ num_selected }} selected components, in random order:
+                {% endblocktrans %}
+                {% endfilter %}
+            </p>
+        {% else %}
+            <p>
+                {% filter force_escape %}
+                {% blocktrans with max_count=max_count count num_selected=block_count %}
+                Learners will see the selected component:
+                {% plural %}
+                Learners will see {{ max_count }} of the {{ num_selected }} selected components:
+                {% endblocktrans %}
+                {% endfilter %}
+            </p>
+        {% endif %}
+        <ol style="list-style: decimal; margin-left: 2em;">
+            {% for block in blocks %}
+                <li>{{ block.display_name }}</li>
+            {% endfor %}
+        </ol>
+        <p style="color: var(--gray);">
+            {% blocktrans trimmed asvar view_msg %}
+            Press {link_start}View{link_end} to preview, sync/update, and/or remove the selected components.
+            {% endblocktrans %}
+            {% interpolate_html view_msg link_start=view_link|safe link_end='</a>'|safe %}
+        </p>
+        <p style="color: var(--gray);">
+            {% blocktrans trimmed asvar edit_msg %}
+            Press {link_start}Edit{link_end} to configure how many will be shown and other settings.
+            {% endblocktrans %}
+            {% interpolate_html edit_msg link_start='<a role="button" href="#" class="edit-button action-button">'|safe link_end='</a>'|safe %}
+        </p>
+    {% else %}
+        <p>{% trans "You have not selected any components yet." as tmsg %}{{tmsg|force_escape}}</p>
+    {% endif %}
+</div>
\ No newline at end of file
diff --git a/xmodule/templates/item_bank/author_view_add.html b/xmodule/templates/item_bank/author_view_add.html
new file mode 100644
index 00000000000..2927fd47b20
--- /dev/null
+++ b/xmodule/templates/item_bank/author_view_add.html
@@ -0,0 +1,14 @@
+{% load i18n %}
+{% load django_markup %}
+<div class="insert-new-lib-blocks-here"></div>
+<div class="xblock-header-secondary">
+    {% comment %}
+    How this button works: An event handler in cms/static/js/views/pages/container.js
+    will watch for clicks and then display the SelectV2LibraryContent modal and process
+    the list of selected blocks returned from the modal.
+    {% endcomment %}
+    {% blocktrans trimmed asvar tmsg %}
+    {button_start}Add components{button_end} from a content library to this problem bank.
+    {% endblocktrans %}
+    {% interpolate_html tmsg button_start='<button class="btn btn-primary problem-bank-v2-add-button"><span class="icon fa fa-plus" aria-hidden="true"></span> '|safe button_end='</button>'|safe %}
+</div>
diff --git a/xmodule/tests/test_item_bank.py b/xmodule/tests/test_item_bank.py
index 8817f580e6b..c27412c8b70 100644
--- a/xmodule/tests/test_item_bank.py
+++ b/xmodule/tests/test_item_bank.py
@@ -192,10 +192,11 @@ def test_author_view(self):
         """ Test author view rendering """
         self._bind_course_block(self.item_bank)
         rendered = self.item_bank.render(AUTHOR_VIEW, {})
-        assert '' == rendered.content
-        # content should be empty
-        assert 'LibraryContentAuthorView' == rendered.js_init_fn
-        # but some js initialization should happen
+        assert 'Learners will see 1 of the 4 selected components' in rendered.content
+        assert '<li>My Item 0</li>' in rendered.content
+        assert '<li>My Item 1</li>' in rendered.content
+        assert '<li>My Item 2</li>' in rendered.content
+        assert '<li>My Item 3</li>' in rendered.content
 
 
 @skip_unless_lms