diff --git a/packages/block-library/src/post-navigation-link/edit.js b/packages/block-library/src/post-navigation-link/edit.js
index e27d094feb79ab..6b31fe649f8071 100644
--- a/packages/block-library/src/post-navigation-link/edit.js
+++ b/packages/block-library/src/post-navigation-link/edit.js
@@ -11,7 +11,8 @@ import {
 	__experimentalToggleGroupControlOption as ToggleGroupControlOption,
 	ToggleControl,
 	SelectControl,
-	PanelBody,
+	__experimentalToolsPanel as ToolsPanel,
+	__experimentalToolsPanelItem as ToolsPanelItem,
 } from '@wordpress/components';
 import {
 	InspectorControls,
@@ -24,6 +25,11 @@ import { __, _x } from '@wordpress/i18n';
 import { useSelect } from '@wordpress/data';
 import { store as coreStore } from '@wordpress/core-data';
 
+/**
+ * Internal dependencies
+ */
+import { useToolsPanelDropdownMenuProps } from '../utils/hooks';
+
 export default function PostNavigationLinkEdit( {
 	context: { postType },
 	attributes: {
@@ -47,6 +53,7 @@ export default function PostNavigationLinkEdit( {
 	};
 
 	const displayArrow = arrowMap[ arrow ];
+	const dropdownMenuProps = useToolsPanelDropdownMenuProps();
 
 	if ( showTitle ) {
 		placeholder = isNext
@@ -94,70 +101,100 @@ export default function PostNavigationLinkEdit( {
 	return (
 		<>
 			<InspectorControls>
-				<PanelBody>
-					<ToggleControl
-						__nextHasNoMarginBottom
+				<ToolsPanel
+					label={ __( 'Settings' ) }
+					dropdownMenuProps={ dropdownMenuProps }
+				>
+					<ToolsPanelItem
+						hasValue={ () => !! showTitle }
 						label={ __( 'Display the title as a link' ) }
-						help={ __(
-							'If you have entered a custom label, it will be prepended before the title.'
-						) }
-						checked={ !! showTitle }
-						onChange={ () =>
-							setAttributes( {
-								showTitle: ! showTitle,
-							} )
+						onDeselect={ () =>
+							setAttributes( { showTitle: false } )
 						}
-					/>
-					{ showTitle && (
+						isShownByDefault
+					>
 						<ToggleControl
 							__nextHasNoMarginBottom
-							label={ __(
-								'Include the label as part of the link'
+							label={ __( 'Display the title as a link' ) }
+							help={ __(
+								'If you have entered a custom label, it will be prepended before the title.'
 							) }
-							checked={ !! linkLabel }
+							checked={ !! showTitle }
 							onChange={ () =>
 								setAttributes( {
-									linkLabel: ! linkLabel,
+									showTitle: ! showTitle,
 								} )
 							}
 						/>
+					</ToolsPanelItem>
+					{ showTitle && (
+						<ToolsPanelItem
+							hasValue={ () => !! linkLabel }
+							label={ __(
+								'Include the label as part of the link'
+							) }
+							onDeselect={ () =>
+								setAttributes( { linkLabel: false } )
+							}
+							isShownByDefault
+						>
+							<ToggleControl
+								__nextHasNoMarginBottom
+								label={ __(
+									'Include the label as part of the link'
+								) }
+								checked={ !! linkLabel }
+								onChange={ () =>
+									setAttributes( {
+										linkLabel: ! linkLabel,
+									} )
+								}
+							/>
+						</ToolsPanelItem>
 					) }
-					<ToggleGroupControl
-						__next40pxDefaultSize
-						__nextHasNoMarginBottom
+					<ToolsPanelItem
+						hasValue={ () => arrow !== 'none' }
 						label={ __( 'Arrow' ) }
-						value={ arrow }
-						onChange={ ( value ) => {
-							setAttributes( { arrow: value } );
-						} }
-						help={ __(
-							'A decorative arrow for the next and previous link.'
-						) }
-						isBlock
+						onDeselect={ () => setAttributes( { arrow: 'none' } ) }
+						isShownByDefault
 					>
-						<ToggleGroupControlOption
-							value="none"
-							label={ _x(
-								'None',
-								'Arrow option for Next/Previous link'
-							) }
-						/>
-						<ToggleGroupControlOption
-							value="arrow"
-							label={ _x(
-								'Arrow',
-								'Arrow option for Next/Previous link'
-							) }
-						/>
-						<ToggleGroupControlOption
-							value="chevron"
-							label={ _x(
-								'Chevron',
-								'Arrow option for Next/Previous link'
+						<ToggleGroupControl
+							__next40pxDefaultSize
+							__nextHasNoMarginBottom
+							label={ __( 'Arrow' ) }
+							value={ arrow }
+							onChange={ ( value ) => {
+								setAttributes( { arrow: value } );
+							} }
+							help={ __(
+								'A decorative arrow for the next and previous link.'
 							) }
-						/>
-					</ToggleGroupControl>
-				</PanelBody>
+							isBlock
+						>
+							<ToggleGroupControlOption
+								value="none"
+								label={ _x(
+									'None',
+									'Arrow option for Next/Previous link'
+								) }
+							/>
+							<ToggleGroupControlOption
+								value="arrow"
+								label={ _x(
+									'Arrow',
+									'Arrow option for Next/Previous link'
+								) }
+							/>
+							<ToggleGroupControlOption
+								value="chevron"
+								label={ _x(
+									'Chevron',
+									'Arrow option for Next/Previous link'
+								) }
+							/>
+						</ToggleGroupControl>
+					</ToolsPanelItem>
+				</ToolsPanel>
 			</InspectorControls>
 			<InspectorControls group="advanced">
 				<SelectControl