diff --git a/packages/block-library/src/template-part/edit/index.js b/packages/block-library/src/template-part/edit/index.js
index b7934216f61d4..4dc0b89640c8e 100644
--- a/packages/block-library/src/template-part/edit/index.js
+++ b/packages/block-library/src/template-part/edit/index.js
@@ -12,7 +12,7 @@ import {
 } from '@wordpress/components';
 import { __ } from '@wordpress/i18n';
 import { chevronUp, chevronDown } from '@wordpress/icons';
-
+import { serialize } from '@wordpress/blocks';
 /**
  * Internal dependencies
  */
@@ -27,44 +27,64 @@ export default function TemplatePartEdit( {
 	setAttributes,
 	clientId,
 } ) {
-	const initialPostId = useRef( _postId );
 	const initialSlug = useRef( slug );
 	const initialTheme = useRef( theme );
+	const initialContent = useRef();
 
 	// Resolve the post ID if not set, and load its post.
 	const postId = useTemplatePartPost( _postId, slug, theme );
 
-	// Set the post ID, once found, so that edits persist,
-	// but wait until the third inner blocks change,
-	// because the first 2 are just the template part
-	// content loading.
-	const { innerBlocks } = useSelect(
+	// Set the postId block attribute if it did not exist,
+	// but wait until the inner blocks have loaded to allow
+	// new edits to trigger this.
+	const { innerBlocks, expectedContent } = useSelect(
 		( select ) => {
 			const { getBlocks } = select( 'core/block-editor' );
+			const entityRecord = select( 'core' ).getEntityRecord(
+				'postType',
+				'wp_template_part',
+				postId
+			);
+
 			return {
 				innerBlocks: getBlocks( clientId ),
+				expectedContent: entityRecord?.content.raw,
 			};
 		},
-		[ clientId ]
+		[ clientId, postId ]
 	);
 	const { editEntityRecord } = useDispatch( 'core' );
-	const blockChanges = useRef( 0 );
 	useEffect( () => {
-		if ( blockChanges.current < 4 ) blockChanges.current++;
+		// If postId (entity) has not resolved or _postId (block attr) is set,
+		// then we have no need for this effect.
+		if ( ! postId || _postId ) {
+			return;
+		}
+
+		const innerContent = serialize( innerBlocks );
+
+		// If we havent set initialContent, check if innerBlocks are loaded.
+		if ( ! initialContent.current ) {
+			// If the content of innerBlocks and the content from entity match,
+			// then we can consider innerBlocks as loaded and set initialContent.
+			if ( innerContent === expectedContent ) {
+				initialContent.current = innerContent;
+			}
+			// Continue to return early until this effect is triggered
+			// with innerBlocks already loaded (as denoted by initialContent being set).
+			return;
+		}
 
-		if (
-			blockChanges.current === 3 &&
-			( initialPostId.current === undefined ||
-				initialPostId.current === null ) &&
-			postId !== undefined &&
-			postId !== null
-		) {
+		// After initialContent is set and the content is updated, we can set the
+		// postId block attribute and set the post status to 'publish'.
+		// After this is done the hook will no longer run due to the first return above.
+		if ( initialContent.current !== innerContent ) {
 			setAttributes( { postId } );
 			editEntityRecord( 'postType', 'wp_template_part', postId, {
 				status: 'publish',
 			} );
 		}
-	}, [ innerBlocks ] );
+	}, [ innerBlocks, expectedContent ] );
 
 	const blockProps = useBlockProps();