diff --git a/docs/reference-guides/core-blocks.md b/docs/reference-guides/core-blocks.md
index 0fac97b3372369..955da5a92d147e 100644
--- a/docs/reference-guides/core-blocks.md
+++ b/docs/reference-guides/core-blocks.md
@@ -43,7 +43,7 @@ Create and save content to reuse across your site. Update the pattern, and the c
 -	**Name:** core/block
 -	**Category:** reusable
 -	**Supports:** ~~customClassName~~, ~~html~~, ~~inserter~~
--	**Attributes:** dynamicContent, patternId, ref
+-	**Attributes:** dynamicContent, ref
 
 ## Button
 
diff --git a/lib/block-supports/pattern.php b/lib/block-supports/pattern.php
index 174aa5949c48d7..069eb5e84c6ced 100644
--- a/lib/block-supports/pattern.php
+++ b/lib/block-supports/pattern.php
@@ -8,7 +8,7 @@
 $gutenberg_experiments = get_option( 'gutenberg-experiments' );
 if ( $gutenberg_experiments && array_key_exists( 'gutenberg-patterns', $gutenberg_experiments ) ) {
 	/**
-	 * Adds `patternId` and `dynamicContent` items to the block's `usesContext`
+	 * Adds `dynamicContent` items to the block's `usesContext`
 	 * configuration.
 	 *
 	 * @param WP_Block_Type $block_type Block type.
@@ -21,10 +21,6 @@ function gutenberg_register_pattern_support( $block_type ) {
 				$block_type->uses_context = array();
 			}
 
-			if ( ! in_array( 'patternId', $block_type->uses_context, true ) ) {
-				$block_type->uses_context[] = 'patternId';
-			}
-
 			if ( ! in_array( 'dynamicContent', $block_type->uses_context, true ) ) {
 				$block_type->uses_context[] = 'dynamicContent';
 			}
diff --git a/packages/block-editor/src/hooks/pattern.js b/packages/block-editor/src/hooks/pattern.js
index 8def099c7eee71..b793d6e7200ecd 100644
--- a/packages/block-editor/src/hooks/pattern.js
+++ b/packages/block-editor/src/hooks/pattern.js
@@ -1,163 +1,55 @@
-/**
- * External dependencies
- */
-// eslint-disable-next-line import/no-extraneous-dependencies
-import { v4 as uuid } from 'uuid';
-// TODO: Fix the unique ID generation to avoid adding another dependency just for this.
-
 /**
  * WordPress dependencies
  */
-import { getBlockSupport, getBlockType } from '@wordpress/blocks';
+import { store as blocksStore } from '@wordpress/blocks';
 import { createHigherOrderComponent } from '@wordpress/compose';
-import { useDispatch, useRegistry } from '@wordpress/data';
-import { useCallback, useMemo } from '@wordpress/element';
+import { useSelect } from '@wordpress/data';
+import { useMemo } from '@wordpress/element';
 import { addFilter } from '@wordpress/hooks';
 
 /**
  * Internal dependencies
  */
-import { cleanEmptyObject } from './utils';
+import { useBlockEditContext } from '../components/block-edit';
 import { store as blockEditorStore } from '../store';
 
 export const PATTERN_SUPPORT_KEY = '__experimentalPattern';
 
-function hasPatternSupport( blockType ) {
-	return !! getBlockSupport( blockType, PATTERN_SUPPORT_KEY );
-}
-
 // TODO: Extract this to a custom source file?
-function useSource( {
-	name,
-	context: { dynamicContent, patternId },
-	attributes,
-	setAttributes,
-} ) {
-	const { updateBlockAttributes } = useDispatch( blockEditorStore );
-	const blockType = getBlockType( name );
-	const patternSupport = blockType.supports?.[ PATTERN_SUPPORT_KEY ];
-	// Generate unique id to link the block instance with the data in the
-	// pattern block's dynamic content.
+function useSourceAttributes( attributes ) {
+	const { name, clientId } = useBlockEditContext();
+	const dynamicContent = useSelect(
+		( select ) => {
+			const hasPatternSupport = select( blocksStore ).hasBlockSupport(
+				name,
+				PATTERN_SUPPORT_KEY
+			);
+			if ( ! hasPatternSupport ) return undefined;
+			const parentPatternClientId = select(
+				blockEditorStore
+			).getBlockParentsByBlockName( clientId, 'core/block', true )[ 0 ];
+			if ( ! parentPatternClientId ) return undefined;
+			return select( blockEditorStore ).getBlockAttributes(
+				parentPatternClientId
+			).dynamicContent;
+		},
+		[ name, clientId ]
+	);
 
 	const attributesWithSourcedAttributes = useMemo( () => {
 		const id = attributes.metadata?.id;
 
-		if ( ! patternSupport || ! id || ! dynamicContent ) {
+		if ( ! id || ! dynamicContent ) {
 			return attributes;
 		}
 
 		return {
 			...attributes,
-			...Object.fromEntries(
-				Object.keys( patternSupport ).map( ( attributeName ) => {
-					return [
-						attributeName,
-						dynamicContent[ id ]?.[ attributeName ] ||
-							attributes[ attributeName ],
-					];
-				} )
-			),
+			...dynamicContent[ id ],
 		};
-	}, [ attributes, dynamicContent, patternSupport ] );
-
-	const updatedSetAttributes = useCallback(
-		( nextAttributes ) => {
-			const id = attributes.metadata?.id ?? uuid();
-
-			// Collect the updated dynamic content for the current block.
-			const updatedDynamicContent = Object.entries( nextAttributes ?? {} )
-				.filter(
-					( [ key ] ) => patternSupport && key in patternSupport
-				)
-				.map( ( [ key, value ] ) => {
-					if ( value === '' ) {
-						return [ key, undefined ];
-					}
-
-					return [ key, value ];
-				} );
-
-			// Collect the updated dynamic pattern content.
-			const nextDynamicContent = cleanEmptyObject( {
-				...dynamicContent,
-				[ id ]: {
-					...dynamicContent?.[ id ],
-					...Object.fromEntries( updatedDynamicContent ),
-				},
-			} );
-
-			// Filter out pattern stored attributes so they don't override the
-			// original attributes that act as a default or fallback.
-			const updatedAttributes = updatedDynamicContent.length
-				? Object.fromEntries(
-						Object.entries( nextAttributes ?? {} ).filter(
-							( [ key ] ) =>
-								! ( patternSupport && key in patternSupport )
-						)
-				  )
-				: nextAttributes;
-
-			// Update the parent pattern instance's dynamic content attribute.
-			if ( updatedDynamicContent.length ) {
-				// If we are setting dynamic content on the parent pattern,
-				// ensure the block's id is saved in its metadata.
-				if ( ! attributes.metadata?.id ) {
-					updatedAttributes.metadata = {
-						...updatedAttributes.metadata,
-						id,
-					};
-				}
-
-				updateBlockAttributes( patternId, {
-					dynamicContent: nextDynamicContent,
-				} );
-			}
-
-			setAttributes( updatedAttributes );
-		},
-		[
-			attributes.metadata?.id,
-			dynamicContent,
-			patternId,
-			patternSupport,
-			setAttributes,
-			updateBlockAttributes,
-		]
-	);
+	}, [ attributes, dynamicContent ] );
 
-	return {
-		attributes: attributesWithSourcedAttributes,
-		setAttributes: updatedSetAttributes,
-	};
-}
-
-/**
- * Filters registered block settings, extending usesContext to include the
- * dynamic content and setter provided by a pattern block.
- *
- * @param {Object} settings Original block settings.
- *
- * @return {Object} Filtered block settings.
- */
-function extendUsesContext( settings ) {
-	if ( ! hasPatternSupport( settings ) ) {
-		return settings;
-	}
-
-	if ( ! Array.isArray( settings.usesContext ) ) {
-		settings.usesContext = [ 'dynamicContent', 'patternId' ];
-		return settings;
-	}
-
-	if ( ! settings.usesContext.includes( 'dynamicContent' ) ) {
-		settings.usesContext.push( 'dynamicContent' );
-	}
-
-	if ( ! settings.usesContext.includes( 'patternId' ) ) {
-		settings.usesContext.push( 'patternId' );
-	}
-
-	return settings;
+	return attributesWithSourcedAttributes;
 }
 
 /**
@@ -172,37 +64,11 @@ function extendUsesContext( settings ) {
 const createEditFunctionWithPatternSource = () =>
 	createHigherOrderComponent(
 		( BlockEdit ) =>
-			( { name, attributes, setAttributes, context, ...props } ) => {
-				if ( ! context.patternId ) {
-					return (
-						<BlockEdit
-							name={ name }
-							context={ context }
-							attributes={ attributes }
-							setAttributes={ setAttributes }
-							{ ...props }
-						/>
-					);
-				}
-
-				const registry = useRegistry();
-				const {
-					attributes: updatedAttributes,
-					setAttributes: updatedSetAttributes,
-				} = useSource( { name, attributes, setAttributes, context } );
+			( { attributes, ...props } ) => {
+				const sourceAttributes = useSourceAttributes( attributes );
 
 				return (
-					<BlockEdit
-						name={ name }
-						context={ context }
-						attributes={ updatedAttributes }
-						setAttributes={ ( newAttributes ) =>
-							registry.batch( () =>
-								updatedSetAttributes( newAttributes )
-							)
-						}
-						{ ...props }
-					/>
+					<BlockEdit { ...props } attributes={ sourceAttributes } />
 				);
 			}
 	);
@@ -219,10 +85,4 @@ if ( window.__experimentalPatterns ) {
 		'core/pattern/shimAttributeSource',
 		shimAttributeSource
 	);
-
-	addFilter(
-		'blocks.registerBlockType',
-		'core/pattern/extendUsesContext',
-		extendUsesContext
-	);
 }
diff --git a/packages/block-editor/src/store/actions.js b/packages/block-editor/src/store/actions.js
index 32108de713f754..57926a9c23614f 100644
--- a/packages/block-editor/src/store/actions.js
+++ b/packages/block-editor/src/store/actions.js
@@ -13,6 +13,7 @@ import {
 	switchToBlockType,
 	synchronizeBlocksWithTemplate,
 	getBlockSupport,
+	store as blocksStore,
 } from '@wordpress/blocks';
 import { speak } from '@wordpress/a11y';
 import { __, _n, sprintf } from '@wordpress/i18n';
@@ -157,18 +158,96 @@ export function receiveBlocks( blocks ) {
  * @param {boolean}         uniqueByBlock true if each block in clientIds array has a unique set of attributes
  * @return {Object} Action object.
  */
-export function updateBlockAttributes(
-	clientIds,
-	attributes,
-	uniqueByBlock = false
-) {
-	return {
-		type: 'UPDATE_BLOCK_ATTRIBUTES',
-		clientIds: castArray( clientIds ),
-		attributes,
-		uniqueByBlock,
+export const updateBlockAttributes =
+	( clientIds, attributes, uniqueByBlock = false ) =>
+	( { select, dispatch, registry } ) => {
+		if ( ! window.__experimentalPatterns ) {
+			dispatch( {
+				type: 'UPDATE_BLOCK_ATTRIBUTES',
+				clientIds: castArray( clientIds ),
+				attributes,
+				uniqueByBlock,
+			} );
+			return;
+		}
+
+		const updates = {};
+		for ( const clientId of castArray( clientIds ) ) {
+			const attrs = uniqueByBlock ? attributes[ clientId ] : attributes;
+			const parentBlocks = select.getBlocksByClientId(
+				select.getBlockParents( clientId )
+			);
+			const parentPattern = parentBlocks.findLast(
+				( parentBlock ) => parentBlock.name === 'core/block'
+			);
+			const block = select.getBlock( clientId );
+			if (
+				! parentPattern ||
+				! registry
+					.select( blocksStore )
+					.hasBlockSupport( block.name, '__experimentalPattern' )
+			) {
+				updates[ clientId ] = attrs;
+				continue;
+			}
+
+			const contentAttributes = registry
+				.select( blocksStore )
+				.getBlockSupport( block.name, '__experimentalPattern' );
+			const dynamicContent = {};
+			const updatedAttributes = {};
+			for ( const attributeKey of Object.keys( attrs ) ) {
+				if ( Object.hasOwn( contentAttributes, attributeKey ) ) {
+					dynamicContent[ attributeKey ] = attrs[ attributeKey ];
+				} else {
+					updatedAttributes[ attributeKey ] = attrs[ attributeKey ];
+				}
+			}
+			if ( Object.keys( dynamicContent ).length > 0 ) {
+				let id = block.attributes.metadata?.id;
+				if ( ! id ) {
+					// The id just has to be unique within the pattern context, so we
+					// use the block's clientId as a convenient unique identifier.
+					id = block.clientId;
+					updatedAttributes.metadata = {
+						...block.attributes.metadata,
+						id,
+					};
+				}
+
+				updates[ parentPattern.clientId ] = {
+					dynamicContent: {
+						...parentPattern.attributes.dynamicContent,
+						[ id ]: dynamicContent,
+					},
+				};
+			}
+			if ( Object.keys( updatedAttributes ).length > 0 ) {
+				updates[ clientId ] = updatedAttributes;
+			}
+		}
+
+		if (
+			Object.values( updates ).every(
+				( updatedAttributes, _index, arr ) =>
+					updatedAttributes === arr[ 0 ]
+			)
+		) {
+			dispatch( {
+				type: 'UPDATE_BLOCK_ATTRIBUTES',
+				clientIds: Object.keys( updates ),
+				attributes: Object.values( updates )[ 0 ],
+				uniqueByBlock: false,
+			} );
+		} else {
+			dispatch( {
+				type: 'UPDATE_BLOCK_ATTRIBUTES',
+				clientIds: Object.keys( updates ),
+				attributes: updates,
+				uniqueByBlock: true,
+			} );
+		}
 	};
-}
 
 /**
  * Action that updates the block with the specified client ID.
diff --git a/packages/block-library/src/block/block.json b/packages/block-library/src/block/block.json
index 3b1508a362cca9..d66234f9b5134b 100644
--- a/packages/block-library/src/block/block.json
+++ b/packages/block-library/src/block/block.json
@@ -11,17 +11,10 @@
 		"dynamicContent": {
 			"type": "object"
 		},
-		"patternId": {
-			"type": "string"
-		},
 		"ref": {
 			"type": "number"
 		}
 	},
-	"providesContext": {
-		"dynamicContent": "dynamicContent",
-		"patternId": "patternId"
-	},
 	"supports": {
 		"customClassName": false,
 		"html": false,
diff --git a/packages/block-library/src/block/edit.js b/packages/block-library/src/block/edit.js
index 21586854fb6d05..13745ae0fd6dec 100644
--- a/packages/block-library/src/block/edit.js
+++ b/packages/block-library/src/block/edit.js
@@ -19,30 +19,11 @@ import {
 	__experimentalUseHasRecursion as useHasRecursion,
 	InnerBlocks,
 	InspectorControls,
-	store as blockEditorStore,
 	useBlockProps,
 	Warning,
 } from '@wordpress/block-editor';
-import { useDispatch } from '@wordpress/data';
-import { useEffect } from '@wordpress/element';
-
-export default function ReusableBlockEdit( {
-	attributes: { ref },
-	clientId,
-	setAttributes,
-} ) {
-	const { __unstableMarkNextChangeAsNotPersistent } =
-		useDispatch( blockEditorStore );
-
-	// To leverage updateBlockAttributes in the pattern block support we need
-	// an ID, otherwise we'd need to pass a setter down through context.
-	// The `clientId` is a prop and so can't be passed directly through block
-	// context. Instead, we set this on a dedicated block attribute.
-	useEffect( () => {
-		__unstableMarkNextChangeAsNotPersistent();
-		setAttributes( { patternId: clientId } );
-	}, [] );
 
+export default function ReusableBlockEdit( { attributes: { ref } } ) {
 	const hasAlreadyRendered = useHasRecursion( ref );
 	const { record, hasResolved } = useEntityRecord(
 		'postType',