diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index a31dbf4011c25d..b37b7b876abe48 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -4,12 +4,16 @@
 
 ### Bug Fixes
 
+<<<<<<< fix/rtc-inline-inserter
+-   `Autocomplete`: Fix value comparison to avoid resetting block inserter in RTC ([#76980](https://github.com/WordPress/gutenberg/pull/76980)).
+=======
 -   `ValidatedRangeControl`: Fix `aria-label` rendered as `[object Object]` when `required` or `markWhenOptional` is set ([#77042](https://github.com/WordPress/gutenberg/pull/77042)).
 -   `Autocomplete`: Fix matching logic to prefer longest overlapping trigger ([#77018](https://github.com/WordPress/gutenberg/pull/77018)).
 
 ### Internal
 
 -   Autocomplete: Refactor `useAutocomplete` to use `useReducer` ([#77020](https://github.com/WordPress/gutenberg/pull/77020)).
+>>>>>>> trunk
 
 ## 32.5.0 (2026-04-01)
 
diff --git a/packages/components/src/autocomplete/index.tsx b/packages/components/src/autocomplete/index.tsx
index 7991177363adb7..f12533284535e1 100644
--- a/packages/components/src/autocomplete/index.tsx
+++ b/packages/components/src/autocomplete/index.tsx
@@ -294,17 +294,41 @@ export function useAutocomplete( {
 	};
 }
 
-function useLastDifferentValue( value: UseAutocompleteProps[ 'record' ] ) {
-	const history = useRef< Set< typeof value > >( new Set() );
+/**
+ * Checks whether two records represent the same user-visible state
+ * (same text content and cursor position).
+ */
+function recordValuesMatch(
+	a: UseAutocompleteProps[ 'record' ],
+	b: UseAutocompleteProps[ 'record' ]
+) {
+	return a.text === b.text && a.start === b.start && a.end === b.end;
+}
 
-	history.current.add( value );
+/**
+ * Tracks the last record whose value differed from the current one.
+ * Used to determine whether the user has actually typed something
+ */
+export function useLastDifferentValue(
+	value: UseAutocompleteProps[ 'record' ]
+) {
+	const history = useRef< Array< typeof value > >( [] );
+
+	const lastEntry = history.current[ history.current.length - 1 ];
+
+	// Only add to history if the value is meaningfully different from
+	// the most recent entry (analogous to Set.add being a no-op for
+	// duplicate references in the original implementation).
+	if ( ! lastEntry || ! recordValuesMatch( value, lastEntry ) ) {
+		history.current.push( value );
+	}
 
 	// Keep the history size to 2.
-	if ( history.current.size > 2 ) {
-		history.current.delete( Array.from( history.current )[ 0 ] );
+	if ( history.current.length > 2 ) {
+		history.current.shift();
 	}
 
-	return Array.from( history.current )[ 0 ];
+	return history.current[ 0 ];
 }
 
 export function useAutocompleteProps( options: UseAutocompleteProps ) {
diff --git a/packages/components/src/autocomplete/test/index.tsx b/packages/components/src/autocomplete/test/index.tsx
index 0df784f8367cdd..f77e685c6370ea 100644
--- a/packages/components/src/autocomplete/test/index.tsx
+++ b/packages/components/src/autocomplete/test/index.tsx
@@ -1,7 +1,7 @@
 /**
  * External dependencies
  */
-import { render, screen } from '@testing-library/react';
+import { render, screen, renderHook } from '@testing-library/react';
 import userEvent from '@testing-library/user-event';
 
 /**
@@ -13,9 +13,118 @@ import { useRef } from '@wordpress/element';
  * Internal dependencies
  */
 import { getAutoCompleterUI } from '../autocompleter-ui';
+import { useLastDifferentValue } from '..';
 
 type FruitOption = { visual: string; name: string; id: number };
 
+function makeRecord( text: string ) {
+	return {
+		text,
+		formats: [],
+		replacements: [],
+		start: text.length,
+		end: text.length,
+	};
+}
+
+describe( 'useLastDifferentValue', () => {
+	it( 'should return the current record on first render', () => {
+		const record = makeRecord( 'Hello' );
+		const { result } = renderHook(
+			( { value } ) => useLastDifferentValue( value ),
+			{ initialProps: { value: record } }
+		);
+
+		expect( result.current.text ).toBe( 'Hello' );
+	} );
+
+	it( 'should return the previous record when text changes', () => {
+		const record1 = makeRecord( 'Hello' );
+		const { result, rerender } = renderHook(
+			( { value } ) => useLastDifferentValue( value ),
+			{ initialProps: { value: record1 } }
+		);
+
+		const record2 = makeRecord( 'Hello/' );
+		rerender( { value: record2 } );
+
+		expect( result.current.text ).toBe( 'Hello' );
+	} );
+
+	it( 'should not update when re-rendered with a new reference but same text', () => {
+		const record1 = makeRecord( 'Hello' );
+		const { result, rerender } = renderHook(
+			( { value } ) => useLastDifferentValue( value ),
+			{ initialProps: { value: record1 } }
+		);
+
+		// User types "/"
+		const record2 = makeRecord( 'Hello/' );
+		rerender( { value: record2 } );
+		expect( result.current.text ).toBe( 'Hello' );
+
+		// RESET_BLOCKS creates a new record object with the same text.
+		const record3 = makeRecord( 'Hello/' );
+		rerender( { value: record3 } );
+		expect( result.current.text ).toBe( 'Hello' );
+	} );
+
+	it( 'should survive multiple same-text re-renders', () => {
+		const record1 = makeRecord( 'Hello' );
+		const { result, rerender } = renderHook(
+			( { value } ) => useLastDifferentValue( value ),
+			{ initialProps: { value: record1 } }
+		);
+
+		// User types "/"
+		const record2 = makeRecord( 'Hello/' );
+		rerender( { value: record2 } );
+
+		// Multiple syncs, each producing new references with the same text.
+		for ( let i = 0; i < 5; i++ ) {
+			rerender( { value: makeRecord( 'Hello/' ) } );
+		}
+
+		expect( result.current.text ).toBe( 'Hello' );
+	} );
+
+	it( 'should track consecutive text changes correctly', () => {
+		const { result, rerender } = renderHook(
+			( { value } ) => useLastDifferentValue( value ),
+			{ initialProps: { value: makeRecord( 'A' ) } }
+		);
+
+		rerender( { value: makeRecord( 'AB' ) } );
+		expect( result.current.text ).toBe( 'A' );
+
+		rerender( { value: makeRecord( 'ABC' ) } );
+		expect( result.current.text ).toBe( 'AB' );
+
+		rerender( { value: makeRecord( 'ABCD' ) } );
+		expect( result.current.text ).toBe( 'ABC' );
+	} );
+
+	it( 'should update when cursor position changes without text change', () => {
+		const { result, rerender } = renderHook(
+			( { value } ) => useLastDifferentValue( value ),
+			{ initialProps: { value: makeRecord( 'Hello' ) } }
+		);
+
+		// User types "/"
+		rerender( { value: makeRecord( 'Hello/' ) } );
+		expect( result.current.text ).toBe( 'Hello' );
+
+		// User moves cursor left (same text, different position).
+		rerender( {
+			value: { ...makeRecord( 'Hello/' ), start: 0, end: 0 },
+		} );
+
+		// The returned record should now match the current text,
+		// so that didUserInput evaluates to false.
+		expect( result.current.text ).toBe( 'Hello/' );
+	} );
+} );
+
 describe( 'AutocompleterUI', () => {
 	describe( 'click outside behavior', () => {
 		it( 'should call reset function when a click on another element occurs', async () => {