diff --git a/src/generic/clipboard/hooks/useCopyToClipboard.js b/src/generic/clipboard/hooks/useCopyToClipboard.js
index 86303fab95..ce911c6b36 100644
--- a/src/generic/clipboard/hooks/useCopyToClipboard.js
+++ b/src/generic/clipboard/hooks/useCopyToClipboard.js
@@ -1,6 +1,9 @@
+// @ts-check
 import { useEffect, useState } from 'react';
-import { useSelector } from 'react-redux';
+import { useDispatch, useSelector } from 'react-redux';
 
+import { getClipboard } from '../../data/api';
+import { updateClipboardData } from '../../data/slice';
 import { CLIPBOARD_STATUS, STRUCTURAL_XBLOCK_TYPES, STUDIO_CLIPBOARD_CHANNEL } from '../../../constants';
 import { getClipboardData } from '../../data/selectors';
 
@@ -14,6 +17,7 @@ import { getClipboardData } from '../../data/selectors';
  * @property {Object} sharedClipboardData - The shared clipboard data object.
  */
 const useCopyToClipboard = (canEdit = true) => {
+  const dispatch = useDispatch();
   const [clipboardBroadcastChannel] = useState(() => new BroadcastChannel(STUDIO_CLIPBOARD_CHANNEL));
   const [showPasteUnit, setShowPasteUnit] = useState(false);
   const [showPasteXBlock, setShowPasteXBlock] = useState(false);
@@ -30,6 +34,22 @@ const useCopyToClipboard = (canEdit = true) => {
     setShowPasteUnit(!!isPasteableUnit);
   };
 
+  // Called on initial render to fetch and populate the initial clipboard data in redux state.
+  // Without this, the initial clipboard data redux state is always null.
+  useEffect(() => {
+    const fetchInitialClipboardData = async () => {
+      try {
+        const userClipboard = await getClipboard();
+        dispatch(updateClipboardData(userClipboard));
+      } catch (error) {
+        // eslint-disable-next-line no-console
+        console.error(`Failed to fetch initial clipboard data: ${error}`);
+      }
+    };
+
+    fetchInitialClipboardData();
+  }, [dispatch]);
+
   useEffect(() => {
     // Handle updates to clipboard data
     if (canEdit) {
diff --git a/src/library-authoring/add-content/AddContentContainer.tsx b/src/library-authoring/add-content/AddContentContainer.tsx
index 9af31593cb..dab3bca92e 100644
--- a/src/library-authoring/add-content/AddContentContainer.tsx
+++ b/src/library-authoring/add-content/AddContentContainer.tsx
@@ -1,4 +1,5 @@
 import React, { useContext } from 'react';
+import { useSelector } from 'react-redux';
 import {
   Stack,
   Button,
@@ -12,10 +13,13 @@ import {
   ThumbUpOutline,
   Question,
   VideoCamera,
+  ContentPaste,
 } from '@openedx/paragon/icons';
 import { v4 as uuid4 } from 'uuid';
 import { useParams } from 'react-router-dom';
 import { ToastContext } from '../../generic/toast-context';
+import { useCopyToClipboard } from '../../generic/clipboard';
+import { getCanEdit } from '../../course-unit/data/selectors';
 import { useCreateLibraryBlock } from '../data/apiHooks';
 import messages from './messages';
 
@@ -24,6 +28,8 @@ const AddContentContainer = () => {
   const { libraryId } = useParams();
   const createBlockMutation = useCreateLibraryBlock();
   const { showToast } = useContext(ToastContext);
+  const canEdit = useSelector(getCanEdit);
+  const { showPasteXBlock } = useCopyToClipboard(canEdit);
 
   const contentTypes = [
     {
@@ -64,6 +70,18 @@ const AddContentContainer = () => {
     },
   ];
 
+  // Include the 'Paste from Clipboard' button if there is an Xblock in the clipboard
+  // that can be pasted
+  if (showPasteXBlock) {
+    const pasteButton = {
+      name: intl.formatMessage(messages.pasteButton),
+      disabled: false,
+      icon: ContentPaste,
+      blockType: 'paste',
+    };
+    contentTypes.push(pasteButton);
+  }
+
   const onCreateContent = (blockType: string) => {
     if (libraryId) {
       createBlockMutation.mutateAsync({
diff --git a/src/library-authoring/add-content/messages.ts b/src/library-authoring/add-content/messages.ts
index 6024e144c1..72314a67a8 100644
--- a/src/library-authoring/add-content/messages.ts
+++ b/src/library-authoring/add-content/messages.ts
@@ -40,6 +40,11 @@ const messages = defineMessages({
     defaultMessage: 'Advanced / Other',
     description: 'Content of button to create a Advanced / Other component.',
   },
+  pasteButton: {
+    id: 'course-authoring.library-authoring.add-content.buttons.paste',
+    defaultMessage: 'Paste From Clipboard',
+    description: 'Content of button to paste from clipboard.',
+  },
   successCreateMessage: {
     id: 'course-authoring.library-authoring.add-content.success.text',
     defaultMessage: 'Content created successfully.',