diff --git a/blocks/canvas/ew-panel-extensions/helpers.js b/blocks/canvas/ew-panel-extensions/helpers.js
index 057d8d976..b013af80f 100644
--- a/blocks/canvas/ew-panel-extensions/helpers.js
+++ b/blocks/canvas/ew-panel-extensions/helpers.js
@@ -470,7 +470,29 @@ function createVersioningView() {
   };
 }
 
-function extensionToPanelView(ext, section) {
+export function extensionToPanelView(ext, section) {
+  // Block library opens its own dedicated modal (used by the slash menu and
+  // outline "+" button) rather than the generic inline panel or iframe dialog.
+  if (ext.name === 'blocks') {
+    return {
+      id: ext.name,
+      label: ext.title,
+      section,
+      firstParty: ext.ootb,
+      experience: 'modal',
+      icon: ext.icon,
+      openModal: async () => {
+        const { openBlockLibraryModal } = await import('../ew-block-library-modal/ew-block-library-modal.js');
+        openBlockLibraryModal({
+          onInsert: (dom) => {
+            const { view } = getExtensionsBridge();
+            if (view) insertBlock(view, dom);
+          },
+        });
+      },
+    };
+  }
+
   const view = {
     id: ext.name,
     label: ext.title,
@@ -530,8 +552,7 @@ function extensionToPanelView(ext, section) {
  */
 export async function getCanvasToolPanelViews({ org, site }) {
   const extensions = await fetchExtensions(org, site);
-  const library = sortLibraryExtensions(extensions.filter(isLibraryExtension))
-    .filter((ext) => ext.name !== 'blocks');
+  const library = sortLibraryExtensions(extensions.filter(isLibraryExtension));
   const thirdParty = extensions.filter((ext) => !isLibraryExtension(ext));
 
   return [
diff --git a/blocks/canvas/ew-tool-panel/tool-panel.js b/blocks/canvas/ew-tool-panel/tool-panel.js
index 242f888cc..3a5f8cb23 100644
--- a/blocks/canvas/ew-tool-panel/tool-panel.js
+++ b/blocks/canvas/ew-tool-panel/tool-panel.js
@@ -52,7 +52,8 @@ class EwToolPanel extends LitElement {
         items.push({ section: v.section });
         lastSection = v.section;
       }
-      const opensExternally = v.experience === 'window' || v.experience === 'fullsize-dialog';
+      const opensExternally = v.experience === 'window' || v.experience === 'fullsize-dialog'
+        || v.experience === 'modal';
       items.push({
         value: v.id,
         label: v.label,
@@ -153,6 +154,10 @@ class EwToolPanel extends LitElement {
       this._fullsizeDialogViewId = name;
       return;
     }
+    if (consumer.experience === 'modal') {
+      await consumer.openModal?.();
+      return;
+    }
     if (!this._loaded[name]) {
       this._loaded[name] = await consumer.load();
     }
diff --git a/test/unit/blocks/canvas/ew-panel-extensions/helpers.test.js b/test/unit/blocks/canvas/ew-panel-extensions/helpers.test.js
index fcf2d0ef8..355971db9 100644
--- a/test/unit/blocks/canvas/ew-panel-extensions/helpers.test.js
+++ b/test/unit/blocks/canvas/ew-panel-extensions/helpers.test.js
@@ -4,10 +4,12 @@ import { setNx } from '../../../../../scripts/utils.js';
 setNx('/test/fixtures/nx', { hostname: 'example.com' });
 
 let getBlockVariants;
+let extensionToPanelView;
 
 before(async () => {
   const mod = await import('../../../../../blocks/canvas/ew-panel-extensions/helpers.js');
   getBlockVariants = mod.getBlockVariants;
+  extensionToPanelView = mod.extensionToPanelView;
 });
 
 describe('EW panel helpers transformBlock', () => {
@@ -179,3 +181,30 @@ describe('EW panel helpers transformBlock', () => {
     expect(dom.querySelector('p')).to.not.be.null;
   });
 });
+
+describe('extensionToPanelView', () => {
+  it('gives the "blocks" extension a dedicated modal experience', () => {
+    const ext = { name: 'blocks', title: 'Blocks', ootb: true, icon: '#icon-blocks' };
+    const view = extensionToPanelView(ext, 'Library');
+    expect(view.id).to.equal('blocks');
+    expect(view.label).to.equal('Blocks');
+    expect(view.section).to.equal('Library');
+    expect(view.firstParty).to.be.true;
+    expect(view.experience).to.equal('modal');
+    expect(view.icon).to.equal('#icon-blocks');
+    expect(view.openModal).to.be.a('function');
+    // The modal view opts out of the generic inline-panel loader.
+    expect(view.load).to.be.undefined;
+  });
+
+  it('leaves non-blocks extensions on the standard inline/load experience', () => {
+    const ext = {
+      name: 'templates', title: 'Templates', ootb: true, experience: 'inline', sources: ['/tpl'], icon: '',
+    };
+    const view = extensionToPanelView(ext, 'Library');
+    expect(view.id).to.equal('templates');
+    expect(view.experience).to.equal('inline');
+    expect(view.load).to.be.a('function');
+    expect(view.openModal).to.be.undefined;
+  });
+});
diff --git a/test/unit/blocks/canvas/ew-tool-panel/tool-panel.test.js b/test/unit/blocks/canvas/ew-tool-panel/tool-panel.test.js
new file mode 100644
index 000000000..205576cda
--- /dev/null
+++ b/test/unit/blocks/canvas/ew-tool-panel/tool-panel.test.js
@@ -0,0 +1,64 @@
+/* eslint-disable no-underscore-dangle */
+import { expect } from '@esm-bundle/chai';
+import { setNx } from '../../../../../scripts/utils.js';
+
+setNx('/test/fixtures/nx', { hostname: 'example.com' });
+
+before(async () => {
+  await import('../../../../../blocks/canvas/ew-tool-panel/tool-panel.js');
+});
+
+// The element is used detached (never appended), so Lit never runs an update
+// cycle — we call the changed methods directly. The 'modal' branch of showPanel
+// returns before touching the shadow root, so this stays safe without rendering.
+function createPanel(views) {
+  const el = document.createElement('ew-tool-panel');
+  el.views = views;
+  return el;
+}
+
+describe('EwToolPanel — modal experience', () => {
+  describe('_pickerItemsFromViews', () => {
+    it('marks a modal view as an external-opening action item', () => {
+      const el = createPanel([
+        { id: 'blocks', label: 'Blocks', section: 'Library', experience: 'modal' },
+      ]);
+      const item = el._pickerItemsFromViews().find((i) => i.value === 'blocks');
+      expect(item.action).to.be.true;
+      expect(item.trailingIcon).to.exist;
+      expect(item.ariaLabel).to.equal('Blocks (opens in dialog)');
+    });
+
+    it('leaves a plain inline view as a non-action item', () => {
+      const el = createPanel([
+        { id: 'files', label: 'Files', section: 'Editor', experience: 'inline' },
+      ]);
+      const item = el._pickerItemsFromViews().find((i) => i.value === 'files');
+      expect(item.action).to.be.undefined;
+      expect(item.trailingIcon).to.be.undefined;
+    });
+  });
+
+  describe('showPanel', () => {
+    it('invokes openModal and does not activate the view for a modal experience', async () => {
+      let opened = 0;
+      const openModal = async () => { opened += 1; };
+      const el = createPanel([{ id: 'blocks', label: 'Blocks', experience: 'modal', openModal }]);
+      await el.showPanel('blocks');
+      expect(opened).to.equal(1);
+      expect(el.activeId).to.be.undefined;
+    });
+
+    it('does not throw when a modal view has no openModal handler', async () => {
+      const el = createPanel([{ id: 'blocks', label: 'Blocks', experience: 'modal' }]);
+      let threw = false;
+      try {
+        await el.showPanel('blocks');
+      } catch {
+        threw = true;
+      }
+      expect(threw).to.be.false;
+      expect(el.activeId).to.be.undefined;
+    });
+  });
+});