diff --git a/packages/block-editor/src/hooks/background.js b/packages/block-editor/src/hooks/background.js
index d093d3da55c8d6..9524564b487ecb 100644
--- a/packages/block-editor/src/hooks/background.js
+++ b/packages/block-editor/src/hooks/background.js
@@ -18,6 +18,7 @@ import {
 	__experimentalVStack as VStack,
 	DropZone,
 	FlexItem,
+	FocalPointPicker,
 	MenuItem,
 	VisuallyHidden,
 	__experimentalItemGroup as ItemGroup,
@@ -59,13 +60,17 @@ export function hasBackgroundImageValue( style ) {
 
 /**
  * Checks if there is a current value in the background size block support
- * attributes.
+ * attributes. Background size values include background size as well
+ * as background position.
  *
  * @param {Object} style Style attribute.
  * @return {boolean}     Whether or not the block has a background size value set.
  */
 export function hasBackgroundSizeValue( style ) {
-	return style?.background?.backgroundSize !== undefined;
+	return (
+		style?.background?.backgroundPosition !== undefined ||
+		style?.background?.backgroundSize !== undefined
+	);
 }
 
 /**
@@ -130,6 +135,7 @@ function resetBackgroundSize( style = {}, setAttributes ) {
 			...style,
 			background: {
 				...style?.background,
+				backgroundPosition: undefined,
 				backgroundRepeat: undefined,
 				backgroundSize: undefined,
 			},
@@ -367,6 +373,26 @@ function backgroundSizeHelpText( value ) {
 	return __( 'Set a fixed width.' );
 }
 
+export const coordsToBackgroundPosition = ( value ) => {
+	if ( ! value || isNaN( value.x ) || isNaN( value.y ) ) {
+		return undefined;
+	}
+
+	return `${ value.x * 100 }% ${ value.y * 100 }%`;
+};
+
+export const backgroundPositionToCoords = ( value ) => {
+	if ( ! value ) {
+		return { x: undefined, y: undefined };
+	}
+
+	let [ x, y ] = value.split( ' ' ).map( ( v ) => parseFloat( v ) / 100 );
+	x = isNaN( x ) ? undefined : x;
+	y = isNaN( y ) ? x : y;
+
+	return { x, y };
+};
+
 function BackgroundSizePanelItem( {
 	clientId,
 	isShownByDefault,
@@ -446,6 +472,18 @@ function BackgroundSizePanelItem( {
 		} );
 	};
 
+	const updateBackgroundPosition = ( next ) => {
+		setAttributes( {
+			style: cleanEmptyObject( {
+				...style,
+				background: {
+					...style?.background,
+					backgroundPosition: coordsToBackgroundPosition( next ),
+				},
+			} ),
+		} );
+	};
+
 	const toggleIsRepeated = () => {
 		setAttributes( {
 			style: cleanEmptyObject( {
@@ -471,6 +509,16 @@ function BackgroundSizePanelItem( {
 			resetAllFilter={ resetAllFilter }
 			panelId={ clientId }
 		>
+			<FocalPointPicker
+				__nextHasNoMarginBottom
+				__next40pxDefaultSize
+				label={ __( 'Position' ) }
+				url={ style?.background?.backgroundImage?.url }
+				value={ backgroundPositionToCoords(
+					style?.background?.backgroundPosition
+				) }
+				onChange={ updateBackgroundPosition }
+			/>
 			<ToggleGroupControl
 				__nextHasNoMarginBottom
 				size={ '__unstable-large' }
diff --git a/packages/block-editor/src/hooks/test/background.js b/packages/block-editor/src/hooks/test/background.js
new file mode 100644
index 00000000000000..cbc9033c2256f6
--- /dev/null
+++ b/packages/block-editor/src/hooks/test/background.js
@@ -0,0 +1,50 @@
+/**
+ * Internal dependencies
+ */
+
+import {
+	backgroundPositionToCoords,
+	coordsToBackgroundPosition,
+} from '../background';
+
+describe( 'backgroundPositionToCoords', () => {
+	it( 'should return the correct coordinates for a percentage value using 2-value syntax', () => {
+		expect( backgroundPositionToCoords( '25% 75%' ) ).toEqual( {
+			x: 0.25,
+			y: 0.75,
+		} );
+	} );
+
+	it( 'should return the correct coordinates for a percentage using 1-value syntax', () => {
+		expect( backgroundPositionToCoords( '50%' ) ).toEqual( {
+			x: 0.5,
+			y: 0.5,
+		} );
+	} );
+
+	it( 'should return undefined coords in given an empty value', () => {
+		expect( backgroundPositionToCoords( '' ) ).toEqual( {
+			x: undefined,
+			y: undefined,
+		} );
+	} );
+
+	it( 'should return undefined coords in given a string that cannot be converted', () => {
+		expect( backgroundPositionToCoords( 'apples' ) ).toEqual( {
+			x: undefined,
+			y: undefined,
+		} );
+	} );
+} );
+
+describe( 'coordsToBackgroundPosition', () => {
+	it( 'should return the correct background position for a set of coordinates', () => {
+		expect( coordsToBackgroundPosition( { x: 0.25, y: 0.75 } ) ).toBe(
+			'25% 75%'
+		);
+	} );
+
+	it( 'should return undefined if no coordinates are provided', () => {
+		expect( coordsToBackgroundPosition( {} ) ).toBeUndefined();
+	} );
+} );
diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index 94f69636b3e053..3c4dd1e29476c5 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -9,6 +9,7 @@
 
 ### Bug Fix
 
+-   `FocalPointPicker`: Allow `PointerCircle` to render in a default centered position when x and y coordinates are undefined ([#58592](https://github.com/WordPress/gutenberg/pull/58592)).
 -   `DateTime`: Add a timezone offset value for display purposes. ([#56682](https://github.com/WordPress/gutenberg/pull/56682)).
 -   `Placeholder`: Fix Placeholder component padding when body text font size is changed ([#58323](https://github.com/WordPress/gutenberg/pull/58323)).
 -   `Placeholder`: Fix Global Styles typography settings bleeding into placeholder component ([#58303](https://github.com/WordPress/gutenberg/pull/58303)).
diff --git a/packages/components/src/focal-point-picker/index.tsx b/packages/components/src/focal-point-picker/index.tsx
index 1b4c4d9dff9665..33fd505f67fe17 100644
--- a/packages/components/src/focal-point-picker/index.tsx
+++ b/packages/components/src/focal-point-picker/index.tsx
@@ -217,8 +217,8 @@ export function FocalPointPicker( {
 	};
 
 	const focalPointPosition = {
-		left: x * bounds.width,
-		top: y * bounds.height,
+		left: x !== undefined ? x * bounds.width : 0.5 * bounds.width,
+		top: y !== undefined ? y * bounds.height : 0.5 * bounds.height,
 	};
 
 	const classes = classnames(
diff --git a/packages/style-engine/src/styles/background/index.ts b/packages/style-engine/src/styles/background/index.ts
index b9879ad2032a17..8ce8c7d577fb28 100644
--- a/packages/style-engine/src/styles/background/index.ts
+++ b/packages/style-engine/src/styles/background/index.ts
@@ -40,6 +40,18 @@ const backgroundImage = {
 	},
 };
 
+const backgroundPosition = {
+	name: 'backgroundRepeat',
+	generate: ( style: Style, options: StyleOptions ) => {
+		return generateRule(
+			style,
+			options,
+			[ 'background', 'backgroundPosition' ],
+			'backgroundPosition'
+		);
+	},
+};
+
 const backgroundRepeat = {
 	name: 'backgroundRepeat',
 	generate: ( style: Style, options: StyleOptions ) => {
@@ -89,4 +101,9 @@ const backgroundSize = {
 	},
 };
 
-export default [ backgroundImage, backgroundRepeat, backgroundSize ];
+export default [
+	backgroundImage,
+	backgroundPosition,
+	backgroundRepeat,
+	backgroundSize,
+];
diff --git a/packages/style-engine/src/test/index.js b/packages/style-engine/src/test/index.js
index 1727ed535897bc..b679775d3f37f4 100644
--- a/packages/style-engine/src/test/index.js
+++ b/packages/style-engine/src/test/index.js
@@ -229,6 +229,7 @@ describe( 'getCSSRules', () => {
 							source: 'file',
 							url: 'https://example.com/image.jpg',
 						},
+						backgroundPosition: '50% 50%',
 						backgroundRepeat: 'no-repeat',
 						backgroundSize: '300px',
 					},
@@ -384,6 +385,11 @@ describe( 'getCSSRules', () => {
 				key: 'backgroundImage',
 				value: "url( 'https://example.com/image.jpg' )",
 			},
+			{
+				selector: '.some-selector',
+				key: 'backgroundPosition',
+				value: '50% 50%',
+			},
 			{
 				selector: '.some-selector',
 				key: 'backgroundRepeat',