diff --git a/packages/block-editor/src/components/link-control/README.md b/packages/block-editor/src/components/link-control/README.md
index 9479863e36f407..edab6b4ad488cd 100644
--- a/packages/block-editor/src/components/link-control/README.md
+++ b/packages/block-editor/src/components/link-control/README.md
@@ -4,6 +4,26 @@ Renders a link control. A link control is a controlled input which maintains a v
 
 It is designed to provide a standardized UI for the creation of a link throughout the Editor, see History section at bottom for further background.
 
+## Best Practices
+
+### Ensuring unique instances
+
+It is possible that a given editor may render multiple instances of the `<LinkControl>` component. As a result, it is important to ensure each instance is unique across the editor to avoid state "leaking" between components.
+
+Why would this happen?
+
+React's reconciliation algorithm means that if you return the same element from a component, it keeps the nodes around as an optimization, even if the props change. This means that if you render two (or more) `<LinkControl>`s, it is possible that the `value` from one will appear in the other as you move between them.
+
+As a result it is recommended that consumers provide a `key` prop to each instance of `<LinkControl>`:
+
+```jsx
+<LinkControl key="some-unique-key" { ...props } />
+```
+
+This will cause React to return the same component/element type but force remount a new instance, thus avoiding the issues described above.
+
+For more information see: https://github.com/WordPress/gutenberg/pull/34742.
+
 ## Relationship to `<URLInput>`
 
 As of Gutenberg 7.4, `<LinkControl>` became the default link creation interface within the Block Editor, replacing previous disparate uses of `<URLInput>` and standardizing the UI.
diff --git a/packages/block-editor/src/components/link-control/use-internal-value.js b/packages/block-editor/src/components/link-control/use-internal-value.js
index ac58c05b10a870..9df557be1460cf 100644
--- a/packages/block-editor/src/components/link-control/use-internal-value.js
+++ b/packages/block-editor/src/components/link-control/use-internal-value.js
@@ -1,21 +1,25 @@
 /**
  * WordPress dependencies
  */
-import { useState, useEffect } from '@wordpress/element';
+import { useState } from '@wordpress/element';
+
+/**
+ * External dependencies
+ */
+import fastDeepEqual from 'fast-deep-equal';
 
 export default function useInternalValue( value ) {
 	const [ internalValue, setInternalValue ] = useState( value || {} );
+	const [ previousValue, setPreviousValue ] = useState( value );
 
 	// If the value prop changes, update the internal state.
-	useEffect( () => {
-		setInternalValue( ( prevValue ) => {
-			if ( value && value !== prevValue ) {
-				return value;
-			}
-
-			return prevValue;
-		} );
-	}, [ value ] );
+	// See:
+	// - https://github.com/WordPress/gutenberg/pull/51387#issuecomment-1722927384.
+	// - https://react.dev/reference/react/useState#storing-information-from-previous-renders.
+	if ( ! fastDeepEqual( value, previousValue ) ) {
+		setPreviousValue( value );
+		setInternalValue( value );
+	}
 
 	const setInternalURLInputValue = ( nextValue ) => {
 		setInternalValue( {