diff --git a/src/editors/containers/EditorContainer/index.test.tsx b/src/editors/containers/EditorContainer/index.test.tsx
index a35e4d74b..d5cf30173 100644
--- a/src/editors/containers/EditorContainer/index.test.tsx
+++ b/src/editors/containers/EditorContainer/index.test.tsx
@@ -17,17 +17,6 @@ jest.spyOn(editorCmsApi, 'fetchCourseImages').mockImplementation(async () => ( /
   { data: { assets: [], start: 0, end: 0, page: 0, pageSize: 50, totalCount: 0 } }
 ));
 // Mock out the 'get ancestors' API:
-jest.spyOn(editorCmsApi, 'fetchByUnitId').mockImplementation(async () => ({
-  status: 200,
-  data: {
-    ancestors: [{
-      id: 'block-v1:Org+TS100+24+type@vertical+block@parent',
-      display_name: 'You-Knit? The Test Unit',
-      category: 'vertical',
-      has_children: true,
-    }],
-  },
-}));
 
 const isDirtyMock = jest.fn();
 jest.mock('../TextEditor/hooks', () => ({
@@ -60,6 +49,17 @@ describe('EditorContainer', () => {
     jest.spyOn(window, 'removeEventListener');
     jest.spyOn(mockEvent, 'preventDefault');
     Object.defineProperty(mockEvent, 'returnValue', { writable: true });
+    jest.spyOn(editorCmsApi, 'fetchByUnitId').mockImplementation(async () => ({
+      status: 200,
+      data: {
+        ancestors: [{
+          id: 'block-v1:Org+TS100+24+type@vertical+block@parent',
+          display_name: 'You-Knit? The Test Unit',
+          category: 'vertical',
+          has_children: true,
+        }],
+      },
+    }));
   });
 
   afterEach(() => {
diff --git a/src/editors/containers/EditorContainer/index.tsx b/src/editors/containers/EditorContainer/index.tsx
index 7bc04597a..eb9e08ab2 100644
--- a/src/editors/containers/EditorContainer/index.tsx
+++ b/src/editors/containers/EditorContainer/index.tsx
@@ -94,7 +94,6 @@ const EditorContainer: React.FC<Props> = ({
   const onSave = () => {
     setSaved(true);
     handleSave();
-    dispatch({ type: 'resetEditor' });
   };
   // Stops user from navigating away if they have unsaved changes.
   usePromptIfDirty(() => {
@@ -110,7 +109,6 @@ const EditorContainer: React.FC<Props> = ({
       openCancelConfirmModal();
     } else {
       handleCancel();
-      dispatch({ type: 'resetEditor' });
     }
   };
   return (
@@ -130,7 +128,6 @@ const EditorContainer: React.FC<Props> = ({
               if (returnFunction) {
                 closeCancelConfirmModal();
               }
-              dispatch({ type: 'resetEditor' });
             }}
           >
             <FormattedMessage {...messages.okButtonLabel} />
diff --git a/src/editors/containers/TextEditor/index.test.jsx b/src/editors/containers/TextEditor/index.test.jsx
index ea3bffc94..5e17dc544 100644
--- a/src/editors/containers/TextEditor/index.test.jsx
+++ b/src/editors/containers/TextEditor/index.test.jsx
@@ -55,6 +55,7 @@ jest.mock('../../data/redux', () => ({
   selectors: {
     app: {
       blockValue: jest.fn(state => ({ blockValue: state })),
+      isCreateBlock: jest.fn(state => ({ isCreateBlock: state })),
       lmsEndpointUrl: jest.fn(state => ({ lmsEndpointUrl: state })),
       studioEndpointUrl: jest.fn(state => ({ studioEndpointUrl: state })),
       showRawEditor: jest.fn(state => ({ showRawEditor: state })),
@@ -126,7 +127,8 @@ describe('TextEditor', () => {
     test('blockFinished from requests.isFinished', () => {
       expect(
         mapStateToProps(testState).blockFinished,
-      ).toEqual(selectors.requests.isFinished(testState, { requestKey: RequestKeys.fetchBlock }));
+      ).toEqual(selectors.app.isCreateBlock(testState)
+      || selectors.requests.isFinished(testState, { requestKey: RequestKeys.fetchBlock }));
     });
     test('learningContextId from app.learningContextId', () => {
       expect(
diff --git a/src/editors/data/redux/thunkActions/app.js b/src/editors/data/redux/thunkActions/app.js
index 5d99027b6..f9e8b2561 100644
--- a/src/editors/data/redux/thunkActions/app.js
+++ b/src/editors/data/redux/thunkActions/app.js
@@ -88,6 +88,7 @@ export const fetchCourseDetails = () => (dispatch) => {
  */
 export const initialize = (data) => (dispatch) => {
   const editorType = data.blockType;
+  dispatch({ type: 'resetEditor' });
   dispatch(actions.app.initialize(data));
   if (data.blockId === '' && editorType) {
     dispatch(actions.app.initializeEditor());
@@ -139,6 +140,10 @@ export const createBlock = (content, returnToUnit) => (dispatch) => {
       dispatch(actions.app.setBlockId(response.id));
       dispatch(saveBlock(content, returnToUnit));
     },
+    onFailure: (error) => dispatch(actions.requests.failRequest({
+      requestKey: RequestKeys.createBlock,
+      error,
+    })),
   }));
 };
 
diff --git a/src/editors/data/redux/thunkActions/app.test.js b/src/editors/data/redux/thunkActions/app.test.js
index a3c098ef6..c1c179987 100644
--- a/src/editors/data/redux/thunkActions/app.test.js
+++ b/src/editors/data/redux/thunkActions/app.test.js
@@ -186,6 +186,7 @@ describe('app thunkActions', () => {
       thunkActions.fetchCourseDetails = () => 'fetchCourseDetails';
       thunkActions.initialize(testValue)(dispatch);
       expect(dispatch.mock.calls).toEqual([
+        [{ type: 'resetEditor' }],
         [actions.app.initialize(testValue)],
         [thunkActions.fetchBlock()],
       ]);
@@ -207,6 +208,7 @@ describe('app thunkActions', () => {
       };
       thunkActions.initialize(data)(dispatch);
       expect(dispatch.mock.calls).toEqual([
+        [{ type: 'resetEditor' }],
         [actions.app.initialize(data)],
         [actions.app.initializeEditor()],
       ]);
@@ -236,6 +238,7 @@ describe('app thunkActions', () => {
       };
       thunkActions.initialize(data)(dispatch);
       expect(dispatch.mock.calls).toEqual([
+        [{ type: 'resetEditor' }],
         [actions.app.initialize(data)],
         [thunkActions.fetchBlock()],
         [thunkActions.fetchUnit()],
@@ -273,6 +276,7 @@ describe('app thunkActions', () => {
       };
       thunkActions.initialize(data)(dispatch);
       expect(dispatch.mock.calls).toEqual([
+        [{ type: 'resetEditor' }],
         [actions.app.initialize(data)],
         [thunkActions.fetchBlock()],
         [thunkActions.fetchUnit()],
@@ -310,6 +314,7 @@ describe('app thunkActions', () => {
       };
       thunkActions.initialize(data)(dispatch);
       expect(dispatch.mock.calls).toEqual([
+        [{ type: 'resetEditor' }],
         [actions.app.initialize(data)],
         [thunkActions.fetchBlock()],
         [thunkActions.fetchUnit()],
diff --git a/src/editors/data/redux/thunkActions/requests.js b/src/editors/data/redux/thunkActions/requests.js
index d0564996f..1e68bc101 100644
--- a/src/editors/data/redux/thunkActions/requests.js
+++ b/src/editors/data/redux/thunkActions/requests.js
@@ -376,6 +376,7 @@ export default StrictDict({
   fetchBlock,
   fetchStudioView,
   fetchUnit,
+  createBlock,
   saveBlock,
   fetchImages,
   fetchVideos,