diff --git a/lib/compat/wordpress-6.2/script-loader.php b/lib/compat/wordpress-6.2/script-loader.php
index e08bfa6e46ca8..aed58ef98122b 100644
--- a/lib/compat/wordpress-6.2/script-loader.php
+++ b/lib/compat/wordpress-6.2/script-loader.php
@@ -137,7 +137,8 @@ function gutenberg_resolve_assets_override() {
 	'block_editor_settings_all',
 	function( $settings ) {
 		// We must override what core is passing now.
-		$settings['__unstableResolvedAssets'] = gutenberg_resolve_assets_override();
+		$settings['__unstableResolvedAssets']    = gutenberg_resolve_assets_override();
+		$settings['__unstableIsBlockBasedTheme'] = wp_is_block_theme();
 		return $settings;
 	},
 	100
diff --git a/packages/block-library/src/freeform/edit.js b/packages/block-library/src/freeform/edit.js
index ab9a2257f87e4..c41a78ca5c042 100644
--- a/packages/block-library/src/freeform/edit.js
+++ b/packages/block-library/src/freeform/edit.js
@@ -6,10 +6,10 @@ import {
 	useBlockProps,
 	store as blockEditorStore,
 } from '@wordpress/block-editor';
-import { debounce } from '@wordpress/compose';
+import { debounce, useRefEffect } from '@wordpress/compose';
 import { useSelect } from '@wordpress/data';
 import { ToolbarGroup } from '@wordpress/components';
-import { useEffect, useRef } from '@wordpress/element';
+import { useEffect, useRef, useState } from '@wordpress/element';
 import { __ } from '@wordpress/i18n';
 import { BACKSPACE, DELETE, F10, isKeyboardEvent } from '@wordpress/keycodes';
 
@@ -17,6 +17,7 @@ import { BACKSPACE, DELETE, F10, isKeyboardEvent } from '@wordpress/keycodes';
  * Internal dependencies
  */
 import ConvertToBlocksButton from './convert-to-blocks-button';
+import ModalEdit from './modal';
 
 const { wp } = window;
 
@@ -36,17 +37,44 @@ function isTmceEmpty( editor ) {
 	return /^\n?$/.test( body.innerText || body.textContent );
 }
 
-export default function ClassicEdit( {
+export default function FreeformEdit( props ) {
+	const { clientId } = props;
+	const canRemove = useSelect(
+		( select ) => select( blockEditorStore ).canRemoveBlock( clientId ),
+		[ clientId ]
+	);
+	const [ isIframed, setIsIframed ] = useState( false );
+	const ref = useRefEffect( ( element ) => {
+		setIsIframed( element.ownerDocument !== document );
+	}, [] );
+
+	return (
+		<>
+			{ canRemove && (
+				<BlockControls>
+					<ToolbarGroup>
+						<ConvertToBlocksButton clientId={ clientId } />
+					</ToolbarGroup>
+				</BlockControls>
+			) }
+			<div { ...useBlockProps( { ref } ) }>
+				{ isIframed ? (
+					<ModalEdit { ...props } />
+				) : (
+					<ClassicEdit { ...props } />
+				) }
+			</div>
+		</>
+	);
+}
+
+function ClassicEdit( {
 	clientId,
 	attributes: { content },
 	setAttributes,
 	onReplace,
 } ) {
 	const { getMultiSelectedBlockClientIds } = useSelect( blockEditorStore );
-	const canRemove = useSelect(
-		( select ) => select( blockEditorStore ).canRemoveBlock( clientId ),
-		[ clientId ]
-	);
 	const didMount = useRef( false );
 
 	useEffect( () => {
@@ -225,28 +253,19 @@ export default function ClassicEdit( {
 	/* eslint-disable jsx-a11y/no-static-element-interactions */
 	return (
 		<>
-			{ canRemove && (
-				<BlockControls>
-					<ToolbarGroup>
-						<ConvertToBlocksButton clientId={ clientId } />
-					</ToolbarGroup>
-				</BlockControls>
-			) }
-			<div { ...useBlockProps() }>
-				<div
-					key="toolbar"
-					id={ `toolbar-${ clientId }` }
-					className="block-library-classic__toolbar"
-					onClick={ focus }
-					data-placeholder={ __( 'Classic' ) }
-					onKeyDown={ onToolbarKeyDown }
-				/>
-				<div
-					key="editor"
-					id={ `editor-${ clientId }` }
-					className="wp-block-freeform block-library-rich-text__tinymce"
-				/>
-			</div>
+			<div
+				key="toolbar"
+				id={ `toolbar-${ clientId }` }
+				className="block-library-classic__toolbar"
+				onClick={ focus }
+				data-placeholder={ __( 'Classic' ) }
+				onKeyDown={ onToolbarKeyDown }
+			/>
+			<div
+				key="editor"
+				id={ `editor-${ clientId }` }
+				className="wp-block-freeform block-library-rich-text__tinymce"
+			/>
 		</>
 	);
 	/* eslint-enable jsx-a11y/no-static-element-interactions */
diff --git a/packages/block-library/src/freeform/modal.js b/packages/block-library/src/freeform/modal.js
new file mode 100644
index 0000000000000..67338be91fa86
--- /dev/null
+++ b/packages/block-library/src/freeform/modal.js
@@ -0,0 +1,111 @@
+/**
+ * WordPress dependencies
+ */
+import { BlockControls, store } from '@wordpress/block-editor';
+import {
+	ToolbarGroup,
+	ToolbarButton,
+	Modal,
+	Button,
+} from '@wordpress/components';
+import { useEffect, useState, RawHTML } from '@wordpress/element';
+import { __ } from '@wordpress/i18n';
+import { useSelect } from '@wordpress/data';
+
+function ClassicEdit( props ) {
+	const styles = useSelect(
+		( select ) => select( store ).getSettings().styles
+	);
+	useEffect( () => {
+		const { baseURL, suffix, settings } = window.wpEditorL10n.tinymce;
+
+		window.tinymce.EditorManager.overrideDefaults( {
+			base_url: baseURL,
+			suffix,
+		} );
+
+		window.wp.oldEditor.initialize( props.id, {
+			tinymce: {
+				...settings,
+				height: 500,
+				setup( editor ) {
+					editor.on( 'init', () => {
+						const doc = editor.getDoc();
+						styles.forEach( ( { css } ) => {
+							const styleEl = doc.createElement( 'style' );
+							styleEl.innerHTML = css;
+							doc.head.appendChild( styleEl );
+						} );
+					} );
+				},
+			},
+		} );
+
+		return () => {
+			window.wp.oldEditor.remove( props.id );
+		};
+	}, [] );
+
+	return <textarea { ...props } />;
+}
+
+export default function ModalEdit( props ) {
+	const {
+		clientId,
+		attributes: { content },
+		setAttributes,
+		onReplace,
+	} = props;
+	const [ isOpen, setOpen ] = useState( false );
+	const id = `editor-${ clientId }`;
+	const label = __( 'Classic Edit' );
+
+	return (
+		<>
+			<BlockControls>
+				<ToolbarGroup>
+					<ToolbarButton onClick={ () => setOpen( true ) }>
+						{ label }
+					</ToolbarButton>
+				</ToolbarGroup>
+			</BlockControls>
+			{ content && <RawHTML>{ content }</RawHTML> }
+			{ ( isOpen || ! content ) && (
+				<Modal title={ label } __experimentalHideHeader={ true }>
+					<h2
+						style={ {
+							display: 'flex',
+							justifyContent: 'space-between',
+						} }
+					>
+						<div>{ label }</div>
+						<div>
+							<Button
+								onClick={ () =>
+									content ? setOpen( false ) : onReplace( [] )
+								}
+							>
+								{ __( 'Cancel' ) }
+							</Button>
+							<Button
+								isPrimary
+								onClick={ () => {
+									setAttributes( {
+										content:
+											window.wp.oldEditor.getContent(
+												id
+											),
+									} );
+									setOpen( false );
+								} }
+							>
+								{ __( 'Save' ) }
+							</Button>
+						</div>
+					</h2>
+					<ClassicEdit id={ id } defaultValue={ content } />
+				</Modal>
+			) }
+		</>
+	);
+}
diff --git a/packages/e2e-test-utils/src/create-reusable-block.js b/packages/e2e-test-utils/src/create-reusable-block.js
index 3bf2e33aeb34f..ec35e07390847 100644
--- a/packages/e2e-test-utils/src/create-reusable-block.js
+++ b/packages/e2e-test-utils/src/create-reusable-block.js
@@ -4,6 +4,7 @@
 import { insertBlock } from './inserter';
 import { clickMenuItem } from './click-menu-item';
 import { clickBlockToolbarButton } from './click-block-toolbar-button';
+import { canvas } from './canvas';
 
 /**
  * Creates a simple reusable block with a paragraph block.
@@ -33,7 +34,7 @@ export const createReusableBlock = async ( content, title ) => {
 	);
 
 	// Check that we have a reusable block on the page
-	const block = await page.waitForSelector(
+	const block = await canvas().waitForSelector(
 		'.block-editor-block-list__block[data-type="core/block"]'
 	);
 	expect( block ).not.toBeNull();
diff --git a/packages/e2e-tests/specs/site-editor/multi-entity-saving.test.js b/packages/e2e-tests/specs/site-editor/multi-entity-saving.test.js
index 592d7781856a4..2d4d1a396b725 100644
--- a/packages/e2e-tests/specs/site-editor/multi-entity-saving.test.js
+++ b/packages/e2e-tests/specs/site-editor/multi-entity-saving.test.js
@@ -15,6 +15,7 @@ import {
 	visitSiteEditor,
 	enterEditMode,
 	deleteAllTemplates,
+	canvas,
 } from '@wordpress/e2e-test-utils';
 
 describe( 'Multi-entity save flow', () => {
@@ -94,8 +95,8 @@ describe( 'Multi-entity save flow', () => {
 		it( 'Save flow should work as expected.', async () => {
 			await createNewPost();
 			// Edit the page some.
-			await page.waitForSelector( '.editor-post-title' );
-			await page.click( '.editor-post-title' );
+			await canvas().waitForSelector( '.editor-post-title' );
+			await canvas().click( '.editor-post-title' );
 			await page.keyboard.type( 'Test Post...' );
 			await page.keyboard.press( 'Enter' );
 
@@ -110,8 +111,8 @@ describe( 'Multi-entity save flow', () => {
 
 			// Add a reusable block and edit it.
 			await createReusableBlock( 'Hi!', 'Test' );
-			await page.waitForSelector( 'p[data-type="core/paragraph"]' );
-			await page.click( 'p[data-type="core/paragraph"]' );
+			await canvas().waitForSelector( 'p[data-type="core/paragraph"]' );
+			await canvas().click( 'p[data-type="core/paragraph"]' );
 			await page.keyboard.type( 'Oh!' );
 
 			// Should trigger multi-entity save button once template part edited.
@@ -169,7 +170,7 @@ describe( 'Multi-entity save flow', () => {
 			} );
 
 			// Update the post.
-			await page.click( '.editor-post-title' );
+			await canvas().click( '.editor-post-title' );
 			await page.keyboard.type( '...more title!' );
 
 			// Verify update button is enabled.
@@ -182,9 +183,9 @@ describe( 'Multi-entity save flow', () => {
 			await assertExistence( saveA11ySelector, false );
 
 			// Update reusable block again.
-			await page.click( 'p[data-type="core/paragraph"]' );
+			await canvas().click( 'p[data-type="core/paragraph"]' );
 			// We need to click again due to the clickthrough overlays in reusable blocks.
-			await page.click( 'p[data-type="core/paragraph"]' );
+			await canvas().click( 'p[data-type="core/paragraph"]' );
 			await page.keyboard.type( 'R!' );
 
 			// Multi-entity saving should be enabled.
@@ -203,19 +204,19 @@ describe( 'Multi-entity save flow', () => {
 			);
 			const editableSiteTitleSelector =
 				'.wp-block-site-title a[contenteditable="true"]';
-			await page.waitForSelector( editableSiteTitleSelector );
-			await page.focus( editableSiteTitleSelector );
+			await canvas().waitForSelector( editableSiteTitleSelector );
+			await canvas().focus( editableSiteTitleSelector );
 			await page.keyboard.type( '...' );
 
 			await insertBlock( 'Site Tagline' );
 			// Wait for the placeholder.
-			await page.waitForXPath(
+			await canvas().waitForXPath(
 				'//span[@data-rich-text-placeholder="Write site tagline…"]'
 			);
 			const editableSiteTagLineSelector =
 				'.wp-block-site-tagline[contenteditable="true"]';
-			await page.waitForSelector( editableSiteTagLineSelector );
-			await page.focus( editableSiteTagLineSelector );
+			await canvas().waitForSelector( editableSiteTagLineSelector );
+			await canvas().focus( editableSiteTagLineSelector );
 			await page.keyboard.type( 'Just another WordPress site' );
 
 			await clickButton( 'Publish' );
diff --git a/packages/edit-post/src/components/visual-editor/index.js b/packages/edit-post/src/components/visual-editor/index.js
index 8062e9d51dada..ab708d3e87dbf 100644
--- a/packages/edit-post/src/components/visual-editor/index.js
+++ b/packages/edit-post/src/components/visual-editor/index.js
@@ -119,6 +119,7 @@ export default function VisualEditor( { styles } ) {
 		editedPostTemplate = {},
 		wrapperBlockName,
 		wrapperUniqueId,
+		isBlockBasedTheme,
 	} = useSelect( ( select ) => {
 		const {
 			isFeatureActive,
@@ -137,7 +138,8 @@ export default function VisualEditor( { styles } ) {
 			_wrapperBlockName = 'core/post-content';
 		}
 
-		const supportsTemplateMode = getEditorSettings().supportsTemplateMode;
+		const editorSettings = getEditorSettings();
+		const supportsTemplateMode = editorSettings.supportsTemplateMode;
 		const canEditTemplate = select( coreStore ).canUser(
 			'create',
 			'templates'
@@ -155,6 +157,7 @@ export default function VisualEditor( { styles } ) {
 					: undefined,
 			wrapperBlockName: _wrapperBlockName,
 			wrapperUniqueId: getCurrentPostId(),
+			isBlockBasedTheme: editorSettings.__unstableIsBlockBasedTheme,
 		};
 	}, [] );
 	const { isCleanNewPost } = useSelect( editorStore );
@@ -336,6 +339,7 @@ export default function VisualEditor( { styles } ) {
 				>
 					<MaybeIframe
 						shouldIframe={
+							( isBlockBasedTheme && ! hasMetaBoxes ) ||
 							isTemplateMode ||
 							deviceType === 'Tablet' ||
 							deviceType === 'Mobile'
diff --git a/test/e2e/specs/editor/blocks/comments.spec.js b/test/e2e/specs/editor/blocks/comments.spec.js
index 581027f53a09e..3232b8ff95cd8 100644
--- a/test/e2e/specs/editor/blocks/comments.spec.js
+++ b/test/e2e/specs/editor/blocks/comments.spec.js
@@ -1,7 +1,11 @@
 /**
  * WordPress dependencies
  */
-const { test, expect } = require( '@wordpress/e2e-test-utils-playwright' );
+const {
+	test,
+	expect,
+	Editor,
+} = require( '@wordpress/e2e-test-utils-playwright' );
 
 /**
  * @typedef {import('@playwright/test').Page} Page
@@ -12,6 +16,9 @@ test.use( {
 	commentsBlockUtils: async ( { page, admin, requestUtils }, use ) => {
 		await use( new CommentsBlockUtils( { page, admin, requestUtils } ) );
 	},
+	editor: async ( { page }, use ) => {
+		await use( new Editor( { page, hasIframe: true } ) );
+	},
 } );
 
 test.describe( 'Comments', () => {
@@ -45,14 +52,15 @@ test.describe( 'Comments', () => {
 	test( 'We show no results message if there are no comments', async ( {
 		admin,
 		editor,
-		page,
 		requestUtils,
 	} ) => {
 		await requestUtils.deleteAllComments();
 		await admin.createNewPost();
 		await editor.insertBlock( { name: 'core/comments' } );
 		await expect(
-			page.locator( 'role=document[name="Block: Comment Template"i]' )
+			editor.canvas.locator(
+				'role=document[name="Block: Comment Template"i]'
+			)
 		).toContainText( 'No results found.' );
 	} );
 
@@ -145,7 +153,6 @@ test.describe( 'Comments', () => {
 	test( 'A button allows the block to switch from legacy mode to editable mode', async ( {
 		admin,
 		editor,
-		page,
 	} ) => {
 		await admin.createNewPost();
 		await editor.insertBlock( {
@@ -153,7 +160,9 @@ test.describe( 'Comments', () => {
 			attributes: { legacy: true, textColor: 'vivid-purple' },
 		} );
 
-		const block = page.locator( 'role=document[name="Block: Comments"i]' );
+		const block = editor.canvas.locator(
+			'role=document[name="Block: Comments"i]'
+		);
 		const warning = block.locator( '.block-editor-warning' );
 		const placeholder = block.locator(
 			'.wp-block-comments__legacy-placeholder'
@@ -163,7 +172,9 @@ test.describe( 'Comments', () => {
 		await expect( warning ).toBeVisible();
 		await expect( placeholder ).toBeVisible();
 
-		await page.click( 'role=button[name="Switch to editable mode"i]' );
+		await editor.canvas.click(
+			'role=button[name="Switch to editable mode"i]'
+		);
 
 		const commentTemplate = block.locator(
 			'role=document[name="Block: Comment Template"i]'
@@ -301,8 +312,12 @@ test.describe( 'Post Comments', () => {
 		await commentsBlockUtils.hideWelcomeGuide();
 
 		// Check that the Post Comments block has been replaced with Comments.
-		await expect( page.locator( '.wp-block-post-comments' ) ).toBeHidden();
-		await expect( page.locator( '.wp-block-comments' ) ).toBeVisible();
+		await expect(
+			editor.canvas.locator( '.wp-block-post-comments' )
+		).toBeHidden();
+		await expect(
+			editor.canvas.locator( '.wp-block-comments' )
+		).toBeVisible();
 
 		// Check the block definition has changed.
 		const content = await editor.getEditedPostContent();