diff --git a/packages/components/src/query-controls/terms.js b/packages/components/src/query-controls/terms.js
index cbeb9d0bb4b7ae..ba76e68980184e 100644
--- a/packages/components/src/query-controls/terms.js
+++ b/packages/components/src/query-controls/terms.js
@@ -11,7 +11,18 @@ import { groupBy } from 'lodash';
  * @return {Array} Array of terms in tree format.
  */
 export function buildTermsTree( flatTerms ) {
-	const termsByParent = groupBy( flatTerms, 'parent' );
+	const flatTermsWithParentAndChildren = flatTerms.map( ( term ) => {
+		return {
+			children: [],
+			parent: null,
+			...term,
+		};
+	} );
+
+	const termsByParent = groupBy( flatTermsWithParentAndChildren, 'parent' );
+	if ( termsByParent.null && termsByParent.null.length ) {
+		return flatTermsWithParentAndChildren;
+	}
 	const fillWithChildren = ( terms ) => {
 		return terms.map( ( term ) => {
 			const children = termsByParent[ term.id ];
diff --git a/packages/components/src/query-controls/test/terms.js b/packages/components/src/query-controls/test/terms.js
new file mode 100644
index 00000000000000..11cf1505d4f27e
--- /dev/null
+++ b/packages/components/src/query-controls/test/terms.js
@@ -0,0 +1,61 @@
+/**
+ * Internal dependencies
+ */
+import { buildTermsTree } from '../terms';
+
+describe( 'buildTermsTree()', () => {
+	it( 'Should return same array as input with null parent and empty children added if parent is never specified.', () => {
+		const input = Object.freeze( [
+			{ id: 2232, dummy: true },
+			{ id: 2245, dummy: true },
+		] );
+		const output = Object.freeze( [
+			{ id: 2232, parent: null, children: [], dummy: true },
+			{ id: 2245, parent: null, children: [], dummy: true },
+		] );
+		const termsTreem = buildTermsTree( input );
+		expect( termsTreem ).toEqual( output );
+	} );
+	it( 'Should return same array as input with empty children added if all the elements are top level', () => {
+		const input = Object.freeze( [
+			{ id: 2232, parent: 0, dummy: true },
+			{ id: 2245, parent: 0, dummy: false },
+		] );
+		const output = [
+			{ id: 2232, parent: 0, children: [], dummy: true },
+			{ id: 2245, parent: 0, children: [], dummy: false },
+		];
+		const termsTreem = buildTermsTree( input );
+		expect( termsTreem ).toEqual( output );
+	} );
+	it( 'Should return element with its child if a child exists', () => {
+		const input = Object.freeze( [
+			{ id: 2232, parent: 0 },
+			{ id: 2245, parent: 2232 },
+		] );
+		const output = [
+			{ id: 2232, parent: 0, children: [
+				{ id: 2245, parent: 2232, children: [] },
+			] },
+		];
+		const termsTreem = buildTermsTree( input );
+		expect( termsTreem ).toEqual( output );
+	} );
+	it( 'Should return elements with multiple children and elements with no children', () => {
+		const input = Object.freeze( [
+			{ id: 2232, parent: 0 },
+			{ id: 2245, parent: 2232 },
+			{ id: 2249, parent: 0 },
+			{ id: 2246, parent: 2232 },
+		] );
+		const output = [
+			{ id: 2232, parent: 0, children: [
+				{ id: 2245, parent: 2232, children: [] },
+				{ id: 2246, parent: 2232, children: [] },
+			] },
+			{ id: 2249, parent: 0, children: [] },
+		];
+		const termsTreem = buildTermsTree( input );
+		expect( termsTreem ).toEqual( output );
+	} );
+} );
diff --git a/packages/editor/src/utils/terms.js b/packages/editor/src/utils/terms.js
index cbeb9d0bb4b7ae..ba76e68980184e 100644
--- a/packages/editor/src/utils/terms.js
+++ b/packages/editor/src/utils/terms.js
@@ -11,7 +11,18 @@ import { groupBy } from 'lodash';
  * @return {Array} Array of terms in tree format.
  */
 export function buildTermsTree( flatTerms ) {
-	const termsByParent = groupBy( flatTerms, 'parent' );
+	const flatTermsWithParentAndChildren = flatTerms.map( ( term ) => {
+		return {
+			children: [],
+			parent: null,
+			...term,
+		};
+	} );
+
+	const termsByParent = groupBy( flatTermsWithParentAndChildren, 'parent' );
+	if ( termsByParent.null && termsByParent.null.length ) {
+		return flatTermsWithParentAndChildren;
+	}
 	const fillWithChildren = ( terms ) => {
 		return terms.map( ( term ) => {
 			const children = termsByParent[ term.id ];
diff --git a/packages/editor/src/utils/test/terms.js b/packages/editor/src/utils/test/terms.js
index 361cc4b414b7a0..11cf1505d4f27e 100644
--- a/packages/editor/src/utils/test/terms.js
+++ b/packages/editor/src/utils/test/terms.js
@@ -4,10 +4,17 @@
 import { buildTermsTree } from '../terms';
 
 describe( 'buildTermsTree()', () => {
-	it( 'Should return empty array if parent is never specified.', () => {
-		const input = Object.freeze( [ { term: 2232 }, { term: 2245 } ] );
+	it( 'Should return same array as input with null parent and empty children added if parent is never specified.', () => {
+		const input = Object.freeze( [
+			{ id: 2232, dummy: true },
+			{ id: 2245, dummy: true },
+		] );
+		const output = Object.freeze( [
+			{ id: 2232, parent: null, children: [], dummy: true },
+			{ id: 2245, parent: null, children: [], dummy: true },
+		] );
 		const termsTreem = buildTermsTree( input );
-		expect( termsTreem ).toEqual( [] );
+		expect( termsTreem ).toEqual( output );
 	} );
 	it( 'Should return same array as input with empty children added if all the elements are top level', () => {
 		const input = Object.freeze( [