diff --git a/packages/block-editor/src/components/link-control/index.js b/packages/block-editor/src/components/link-control/index.js
index bffeb929c921e7..c9dee401164a76 100644
--- a/packages/block-editor/src/components/link-control/index.js
+++ b/packages/block-editor/src/components/link-control/index.js
@@ -181,6 +181,7 @@ function LinkControl( {
 	hasTextControl = false,
 	renderControlBottom = null,
 	handleEntities = false,
+	showCreateSuggestionInDropdown,
 } ) {
 	if ( withCreateSuggestion === undefined && createSuggestion ) {
 		withCreateSuggestion = true;
@@ -711,6 +712,9 @@ function LinkControl( {
 									helpTextId={ helpTextId }
 								/>
 							}
+							showCreateSuggestionInDropdown={
+								showCreateSuggestionInDropdown
+							}
 						/>
 						{ isEntity && helpTextId && (
 							<p
diff --git a/packages/block-editor/src/components/link-control/page-creator.js b/packages/block-editor/src/components/link-control/page-creator.js
new file mode 100644
index 00000000000000..e9618bc3ae9980
--- /dev/null
+++ b/packages/block-editor/src/components/link-control/page-creator.js
@@ -0,0 +1,169 @@
+/**
+ * WordPress dependencies
+ */
+import { useState, useRef, useEffect } from '@wordpress/element';
+import { __ } from '@wordpress/i18n';
+import {
+	Button,
+	TextControl,
+	Notice,
+	CheckboxControl,
+	__experimentalVStack as VStack,
+	__experimentalHStack as HStack,
+} from '@wordpress/components';
+import { chevronLeftSmall } from '@wordpress/icons';
+
+function generateSlug( text ) {
+	const cleanSlug = text
+		.toLowerCase()
+		.replace( /[^a-z0-9\s-]/g, '' )
+		.replace( /\s+/g, '-' )
+		.replace( /-+/g, '-' )
+		.trim();
+
+	return cleanSlug ? '/' + cleanSlug : '';
+}
+
+/**
+ * Inline page creation form for LinkControl.
+ *
+ * Page creation is delegated to the consumer via onCreateSuggestion, which
+ * already carries the saveEntityRecord call.
+ *
+ * @param {Object}   props
+ * @param {string}   props.initialTitle       Pre-populated from the search input value.
+ * @param {Function} props.onCreateSuggestion Consumer-provided async creator.
+ * @param {Function} props.onPageCreated      Called with the resulting link object on success.
+ * @param {Function} props.onCancel           Called when the user cancels.
+ */
+export function LinkControlPageCreator( {
+	initialTitle = '',
+	onCreateSuggestion,
+	onPageCreated,
+	onCancel,
+} ) {
+	const [ title, setTitle ] = useState( initialTitle );
+	const [ isCreating, setIsCreating ] = useState( false );
+	const [ errorMessage, setErrorMessage ] = useState( null );
+	const [ publishImmediately, setPublishImmediately ] = useState( true );
+	const [ slug, setSlug ] = useState( generateSlug( initialTitle ) );
+	const [ isSlugDirty, setIsSlugDirty ] = useState( false );
+	const backButtonRef = useRef();
+
+	useEffect( () => {
+		backButtonRef.current?.focus();
+	}, [] );
+
+	const handleTitleChange = ( newTitle ) => {
+		setTitle( newTitle );
+		if ( ! isSlugDirty ) {
+			setSlug( generateSlug( newTitle ) );
+		}
+	};
+
+	const handleSlugChange = ( newSlug ) => {
+		setSlug( newSlug );
+		setIsSlugDirty( true );
+	};
+
+	const handleCreate = async () => {
+		if ( ! title?.trim() ) {
+			return;
+		}
+
+		setIsCreating( true );
+		setErrorMessage( null );
+		try {
+			const suggestion = await onCreateSuggestion(
+				title.trim(),
+				publishImmediately,
+				slug.trim()
+			);
+			if ( suggestion?.url ) {
+				onPageCreated( suggestion );
+			}
+		} catch ( _e ) {
+			setErrorMessage(
+				__( 'There was an error creating the page. Please try again.' )
+			);
+			setIsCreating( false );
+		}
+	};
+
+	return (
+		<div className="block-editor-link-control__page-creator">
+			<Button
+				ref={ backButtonRef }
+				className="block-editor-link-control__page-creator__back"
+				icon={ chevronLeftSmall }
+				onClick={ onCancel }
+				size="small"
+			>
+				{ __( 'Back' ) }
+			</Button>
+			<div className="block-editor-link-control__page-creator__inner">
+				{ errorMessage && (
+					<Notice status="error" isDismissible={ false }>
+						{ errorMessage }
+					</Notice>
+				) }
+				<VStack spacing={ 4 }>
+					<TextControl
+						__next40pxDefaultSize
+						label={ __( 'Page title' ) }
+						value={ title }
+						onChange={ handleTitleChange }
+						placeholder={ __( 'Enter page title' ) }
+						onKeyDown={ ( event ) => {
+							if ( event.key === 'Enter' ) {
+								event.preventDefault();
+								handleCreate();
+							}
+						} }
+						disabled={ isCreating }
+					/>
+					<TextControl
+						__next40pxDefaultSize
+						label={ __( 'URL slug' ) }
+						value={ slug }
+						onChange={ handleSlugChange }
+						help={ __(
+							'Auto-generated from the title. Edit to customise.'
+						) }
+						disabled={ isCreating }
+					/>
+					<CheckboxControl
+						label={ __( 'Publish immediately' ) }
+						help={ __(
+							'If unchecked, the page will be created as a draft.'
+						) }
+						checked={ publishImmediately }
+						onChange={ setPublishImmediately }
+						disabled={ isCreating }
+					/>
+					<HStack justify="right" spacing={ 2 }>
+						<Button
+							__next40pxDefaultSize
+							variant="tertiary"
+							onClick={ onCancel }
+							disabled={ isCreating }
+							accessibleWhenDisabled
+						>
+							{ __( 'Cancel' ) }
+						</Button>
+						<Button
+							__next40pxDefaultSize
+							variant="primary"
+							onClick={ handleCreate }
+							isBusy={ isCreating }
+							disabled={ ! title?.trim() || isCreating }
+							accessibleWhenDisabled
+						>
+							{ isCreating ? __( 'Creating…' ) : __( 'Create' ) }
+						</Button>
+					</HStack>
+				</VStack>
+			</div>
+		</div>
+	);
+}
diff --git a/packages/block-editor/src/components/link-control/search-input.js b/packages/block-editor/src/components/link-control/search-input.js
index c72e7f69166ce6..2f7f894f43aad4 100644
--- a/packages/block-editor/src/components/link-control/search-input.js
+++ b/packages/block-editor/src/components/link-control/search-input.js
@@ -3,7 +3,10 @@
  */
 import { forwardRef, useState } from '@wordpress/element';
 import { __ } from '@wordpress/i18n';
+import { plus } from '@wordpress/icons';
+import { Button } from '@wordpress/components';
 import deprecated from '@wordpress/deprecated';
+import { LinkControlPageCreator } from './page-creator';
 
 /**
  * Internal dependencies
@@ -46,13 +49,14 @@ const LinkControlSearchInput = forwardRef(
 			suffix,
 			isEntity = false,
 			customValidity: customValidityProp,
+			showCreateSuggestionInDropdown = false,
 		},
 		ref
 	) => {
 		const genericSearchHandler = useSearchHandler(
 			suggestionsQuery,
 			allowDirectEntry,
-			withCreateSuggestion,
+			withCreateSuggestion && showCreateSuggestionInDropdown,
 			withURLSuggestion
 		);
 
@@ -61,6 +65,7 @@ const LinkControlSearchInput = forwardRef(
 			: noopSearchHandler;
 
 		const [ focusedSuggestion, setFocusedSuggestion ] = useState();
+		const [ isCreatingPage, setIsCreatingPage ] = useState( false );
 
 		/**
 		 * Handles the user moving between different suggestions. Does not handle
@@ -129,6 +134,17 @@ const LinkControlSearchInput = forwardRef(
 				? _placeholder
 				: __( 'Link' );
 
+		if ( withCreateSuggestion && isCreatingPage ) {
+			return (
+				<LinkControlPageCreator
+					initialTitle={ value || '' }
+					onCreateSuggestion={ onCreateSuggestion }
+					onPageCreated={ () => setIsCreatingPage( false ) }
+					onCancel={ () => setIsCreatingPage( false ) }
+				/>
+			);
+		}
+
 		return (
 			<div className="block-editor-link-control__search-input-container">
 				<URLInput
@@ -169,6 +185,18 @@ const LinkControlSearchInput = forwardRef(
 					suffix={ suffix }
 					disabled={ isEntity }
 				/>
+				{ withCreateSuggestion && ! showCreateSuggestionInDropdown && (
+					<Button
+						className="block-editor-link-control__search-create has-text"
+						icon={ plus }
+						onClick={ () => setIsCreatingPage( true ) }
+						__next40pxDefaultSize
+					>
+						{ value
+							? createSuggestionButtonText( value )
+							: __( 'Create page' ) }
+					</Button>
+				) }
 				{ children }
 			</div>
 		);
diff --git a/packages/block-editor/src/components/link-control/style.scss b/packages/block-editor/src/components/link-control/style.scss
index 061ac588c3d774..abd0881612c3e4 100644
--- a/packages/block-editor/src/components/link-control/style.scss
+++ b/packages/block-editor/src/components/link-control/style.scss
@@ -56,6 +56,22 @@ $block-editor-link-control-number-of-actions: 1;
 			}
 		}
 	}
+
+	&__page-creator {
+		max-width: 350px;
+		min-width: auto;
+		width: 90vw;
+		padding-top: $grid-unit-10;
+
+		&__back {
+			margin-left: $grid-unit-10;
+			text-transform: uppercase;
+		}
+
+		&__inner {
+			padding: $grid-unit-20;
+		}
+	}
 }
 
 // Provides positioning context for reset button. Without this then when an
@@ -304,6 +320,21 @@ $block-editor-link-control-number-of-actions: 1;
 
 .block-editor-link-control__search-create {
 	align-items: center; // align text with icon.
+	width: 100%;
+	border-top: 1px solid $gray-200;
+	padding: $grid-unit-10 $grid-unit-15;
+	color: $gray-900;
+
+	&:hover,
+	&:focus {
+		background-color: $gray-100;
+	}
+
+	mark {
+		font-weight: 600;
+		color: inherit;
+		background-color: transparent;
+	}
 
 	.block-editor-link-control__preview-title {
 		margin-bottom: 0;
diff --git a/packages/block-editor/src/components/link-control/use-create-page.js b/packages/block-editor/src/components/link-control/use-create-page.js
index 42e243a2625fd4..1816eecb4c9986 100644
--- a/packages/block-editor/src/components/link-control/use-create-page.js
+++ b/packages/block-editor/src/components/link-control/use-create-page.js
@@ -9,7 +9,11 @@ export default function useCreatePage( handleCreatePage ) {
 	const [ isCreatingPage, setIsCreatingPage ] = useState( false );
 	const [ errorMessage, setErrorMessage ] = useState( null );
 
-	const createPage = async function ( suggestionTitle ) {
+	const createPage = async function (
+		suggestionTitle,
+		publishImmediately,
+		Slug
+	) {
 		setIsCreatingPage( true );
 		setErrorMessage( null );
 
@@ -19,7 +23,13 @@ export default function useCreatePage( handleCreatePage ) {
 			cancelableCreateSuggestion.current = makeCancelable(
 				// Using Promise.resolve to allow createSuggestion to return a
 				// non-Promise based value.
-				Promise.resolve( handleCreatePage( suggestionTitle ) )
+				Promise.resolve(
+					handleCreatePage(
+						suggestionTitle,
+						publishImmediately,
+						Slug
+					)
+				)
 			);
 
 			return await cancelableCreateSuggestion.current.promise;
diff --git a/packages/block-library/src/button/edit.js b/packages/block-library/src/button/edit.js
index b89580164178f9..b2b40263d1bd5b 100644
--- a/packages/block-library/src/button/edit.js
+++ b/packages/block-library/src/button/edit.js
@@ -204,11 +204,16 @@ function ButtonEdit( props ) {
 		[ context, isSelected, metadata?.bindings?.url ]
 	);
 
-	async function handleCreate( pageTitle ) {
-		const page = await createPageEntity( {
+	async function handleCreate( pageTitle, publishImmediately, Slug ) {
+		const payload = {
 			title: pageTitle,
-			status: 'draft',
-		} );
+			status: publishImmediately ? 'publish' : 'draft',
+		};
+
+		if ( Slug ) {
+			payload.slug = Slug;
+		}
+		const page = await createPageEntity( payload );
 
 		return {
 			id: page.id,
diff --git a/packages/format-library/src/link/inline.js b/packages/format-library/src/link/inline.js
index 9b9129be340713..40e7eea9ee1aee 100644
--- a/packages/format-library/src/link/inline.js
+++ b/packages/format-library/src/link/inline.js
@@ -251,11 +251,16 @@ function InlineLinkUI( {
 		},
 	} );
 
-	async function handleCreate( pageTitle ) {
-		const page = await createPageEntity( {
+	async function handleCreate( pageTitle, publishImmediately, Slug ) {
+		const payload = {
 			title: pageTitle,
-			status: 'draft',
-		} );
+			status: publishImmediately ? 'publish' : 'draft',
+		};
+
+		if ( Slug ) {
+			payload.slug = Slug;
+		}
+		const page = await createPageEntity( payload );
 
 		return {
 			id: page.id,