diff --git a/packages/block-editor/src/store/selectors.js b/packages/block-editor/src/store/selectors.js
index 00c50b76d1e7a..61501dae210e8 100644
--- a/packages/block-editor/src/store/selectors.js
+++ b/packages/block-editor/src/store/selectors.js
@@ -1618,25 +1618,32 @@ export const getInserterItems = createSelector(
 				blockVariations.push( ...variations.map( variationMapper ) );
 			}
 		}
-		// Prioritize core blocks's display in inserter.
-		const prioritizeCoreBlocks = ( a, b ) => {
-			const coreBlockNamePrefix = 'core/';
-			const firstIsCoreBlock = a.name.startsWith( coreBlockNamePrefix );
-			const secondIsCoreBlock = b.name.startsWith( coreBlockNamePrefix );
-			if ( firstIsCoreBlock && secondIsCoreBlock ) {
-				return 0;
-			}
-			return firstIsCoreBlock && ! secondIsCoreBlock ? -1 : 1;
-		};
 		// Ensure core blocks are prioritized in the returned results,
 		// because third party blocks can be registered earlier than
 		// the core blocks (usually by using the `init` action),
 		// thus affecting the display order.
 		// We don't sort reusable blocks as they are handled differently.
+		const groupByType = ( blocks, block ) => {
+			const { core, noncore } = blocks;
+			const type = block.name.startsWith( 'core/' ) ? core : noncore;
+
+			type.push( block );
+			return blocks;
+		};
+		const items = visibleBlockTypeInserterItems.reduce( groupByType, {
+			core: [],
+			noncore: [],
+		} );
+		const variations = blockVariations.reduce( groupByType, {
+			core: [],
+			noncore: [],
+		} );
 		const sortedBlockTypes = [
-			...visibleBlockTypeInserterItems,
-			...blockVariations,
-		].sort( prioritizeCoreBlocks );
+			...items.core,
+			...variations.core,
+			...items.noncore,
+			...variations.noncore,
+		];
 		return [ ...sortedBlockTypes, ...reusableBlockInserterItems ];
 	},
 	( state, rootClientId ) => [
diff --git a/packages/block-editor/src/store/test/selectors.js b/packages/block-editor/src/store/test/selectors.js
index 0e67cc0f1d551..1d96c678b2b48 100644
--- a/packages/block-editor/src/store/test/selectors.js
+++ b/packages/block-editor/src/store/test/selectors.js
@@ -3725,6 +3725,13 @@ describe( 'getInserterItems with core blocks prioritization', () => {
 			title: 'Another Plugin Block B',
 			icon: 'test',
 		} );
+		registerBlockType( 'plugin/block-c-with-variations', {
+			save() {},
+			category: 'text',
+			title: 'Plugin Block C with variations',
+			icon: 'test',
+			variations: [ { name: 'variation-a' }, { name: 'variation-b' } ],
+		} );
 		registerBlockType( 'core/block', {
 			save() {},
 			category: 'text',
@@ -3737,13 +3744,23 @@ describe( 'getInserterItems with core blocks prioritization', () => {
 			icon: 'test',
 			keywords: [ 'testing' ],
 		} );
+		registerBlockType( 'core/test-block-with-variations', {
+			save() {},
+			category: 'text',
+			title: 'Core Block C with variations',
+			icon: 'test',
+			keywords: [ 'testing' ],
+			variations: [ { name: 'variation-a' }, { name: 'variation-b' } ],
+		} );
 	} );
 	afterEach( () => {
 		[
 			'plugin/block-a',
 			'another-plugin/block-b',
+			'plugin/block-c-with-variations',
 			'core/block',
 			'core/test-block-a',
+			'core/test-block-with-variations',
 		].forEach( unregisterBlockType );
 	} );
 	it( 'should prioritize core blocks by sorting them at the top of the returned list', () => {
@@ -3763,10 +3780,16 @@ describe( 'getInserterItems with core blocks prioritization', () => {
 		const expectedResult = [
 			'core/block',
 			'core/test-block-a',
+			'core/test-block-with-variations',
+			'core/test-block-with-variations/variation-a',
+			'core/test-block-with-variations/variation-b',
 			'plugin/block-a',
 			'another-plugin/block-b',
+			'plugin/block-c-with-variations',
+			'plugin/block-c-with-variations/variation-a',
+			'plugin/block-c-with-variations/variation-b',
 		];
-		expect( items.map( ( { name } ) => name ) ).toEqual( expectedResult );
+		expect( items.map( ( { id } ) => id ) ).toEqual( expectedResult );
 	} );
 } );