diff --git a/packages/block-editor/src/components/media-placeholder/hooks/use-files-upload.js b/packages/block-editor/src/components/media-placeholder/hooks/use-files-upload.js
new file mode 100644
index 00000000000000..6948bae230879c
--- /dev/null
+++ b/packages/block-editor/src/components/media-placeholder/hooks/use-files-upload.js
@@ -0,0 +1,88 @@
+/**
+ * WordPress dependencies
+ */
+import { useSelect } from '@wordpress/data';
+
+/**
+ * Internal dependencies
+ */
+import { store as blockEditorStore } from '../../../store';
+
+export default function useFilesUpload( {
+	addToGallery,
+	handleUpload,
+	onSelect,
+	multiple,
+	onFilesPreUpload,
+	value,
+	allowedTypes,
+	onError,
+} ) {
+	const mediaUpload = useSelect( ( select ) => {
+		const { getSettings } = select( blockEditorStore );
+		return getSettings().mediaUpload;
+	}, [] );
+
+	return [
+		mediaUpload,
+		( files ) => {
+			if ( ! handleUpload ) {
+				return onSelect( files );
+			}
+			onFilesPreUpload( files );
+			let setMedia;
+			if ( multiple ) {
+				if ( addToGallery ) {
+					// Since the setMedia function runs multiple times per upload group
+					// and is passed newMedia containing every item in its group each time, we must
+					// filter out whatever this upload group had previously returned to the
+					// gallery before adding and returning the image array with replacement newMedia
+					// values.
+
+					// Define an array to store urls from newMedia between subsequent function calls.
+					let lastMediaPassed = [];
+					setMedia = ( newMedia ) => {
+						// Remove any images this upload group is responsible for (lastMediaPassed).
+						// Their replacements are contained in newMedia.
+						const filteredMedia = ( value ?? [] ).filter(
+							( item ) => {
+								// If Item has id, only remove it if lastMediaPassed has an item with that id.
+								if ( item.id ) {
+									return ! lastMediaPassed.some(
+										// Be sure to convert to number for comparison.
+										( { id } ) =>
+											Number( id ) === Number( item.id )
+									);
+								}
+								// Compare transient images via .includes since gallery may append extra info onto the url.
+								return ! lastMediaPassed.some(
+									( { urlSlug } ) =>
+										item.url.includes( urlSlug )
+								);
+							}
+						);
+						// Return the filtered media array along with newMedia.
+						onSelect( filteredMedia.concat( newMedia ) );
+						// Reset lastMediaPassed and set it with ids and urls from newMedia.
+						lastMediaPassed = newMedia.map( ( media ) => {
+							// Add everything up to '.fileType' to compare via .includes.
+							const cutOffIndex = media.url.lastIndexOf( '.' );
+							const urlSlug = media.url.slice( 0, cutOffIndex );
+							return { id: media.id, urlSlug };
+						} );
+					};
+				} else {
+					setMedia = onSelect;
+				}
+			} else {
+				setMedia = ( [ media ] ) => onSelect( media );
+			}
+			mediaUpload( {
+				allowedTypes,
+				filesList: files,
+				onFileChange: setMedia,
+				onError,
+			} );
+		},
+	];
+}
diff --git a/packages/block-editor/src/components/media-placeholder/index.js b/packages/block-editor/src/components/media-placeholder/index.js
index 58bc1a86352481..9d4383284bbb1d 100644
--- a/packages/block-editor/src/components/media-placeholder/index.js
+++ b/packages/block-editor/src/components/media-placeholder/index.js
@@ -16,7 +16,6 @@ import {
 } from '@wordpress/components';
 import { __ } from '@wordpress/i18n';
 import { useState, useEffect } from '@wordpress/element';
-import { useSelect } from '@wordpress/data';
 import deprecated from '@wordpress/deprecated';
 import { keyboardReturn } from '@wordpress/icons';
 
@@ -26,7 +25,7 @@ import { keyboardReturn } from '@wordpress/icons';
 import MediaUpload from '../media-upload';
 import MediaUploadCheck from '../media-upload/check';
 import URLPopover from '../url-popover';
-import { store as blockEditorStore } from '../../store';
+import useFilesUpload from './hooks/use-files-upload';
 
 const InsertFromURLPopover = ( { src, onChange, onSubmit, onClose } ) => (
 	<URLPopover onClose={ onClose }>
@@ -79,10 +78,16 @@ export function MediaPlaceholder( {
 	mediaLibraryButton,
 	placeholder,
 } ) {
-	const mediaUpload = useSelect( ( select ) => {
-		const { getSettings } = select( blockEditorStore );
-		return getSettings().mediaUpload;
-	}, [] );
+	const [ mediaUpload, onFilesUpload ] = useFilesUpload( {
+		addToGallery,
+		handleUpload,
+		onSelect,
+		multiple,
+		onFilesPreUpload,
+		value,
+		allowedTypes,
+		onError,
+	} );
 	const [ src, setSrc ] = useState( '' );
 	const [ isURLInputVisible, setIsURLInputVisible ] = useState( false );
 
@@ -120,62 +125,6 @@ export function MediaPlaceholder( {
 		}
 	};
 
-	const onFilesUpload = ( files ) => {
-		if ( ! handleUpload ) {
-			return onSelect( files );
-		}
-		onFilesPreUpload( files );
-		let setMedia;
-		if ( multiple ) {
-			if ( addToGallery ) {
-				// Since the setMedia function runs multiple times per upload group
-				// and is passed newMedia containing every item in its group each time, we must
-				// filter out whatever this upload group had previously returned to the
-				// gallery before adding and returning the image array with replacement newMedia
-				// values.
-
-				// Define an array to store urls from newMedia between subsequent function calls.
-				let lastMediaPassed = [];
-				setMedia = ( newMedia ) => {
-					// Remove any images this upload group is responsible for (lastMediaPassed).
-					// Their replacements are contained in newMedia.
-					const filteredMedia = ( value ?? [] ).filter( ( item ) => {
-						// If Item has id, only remove it if lastMediaPassed has an item with that id.
-						if ( item.id ) {
-							return ! lastMediaPassed.some(
-								// Be sure to convert to number for comparison.
-								( { id } ) => Number( id ) === Number( item.id )
-							);
-						}
-						// Compare transient images via .includes since gallery may append extra info onto the url.
-						return ! lastMediaPassed.some( ( { urlSlug } ) =>
-							item.url.includes( urlSlug )
-						);
-					} );
-					// Return the filtered media array along with newMedia.
-					onSelect( filteredMedia.concat( newMedia ) );
-					// Reset lastMediaPassed and set it with ids and urls from newMedia.
-					lastMediaPassed = newMedia.map( ( media ) => {
-						// Add everything up to '.fileType' to compare via .includes.
-						const cutOffIndex = media.url.lastIndexOf( '.' );
-						const urlSlug = media.url.slice( 0, cutOffIndex );
-						return { id: media.id, urlSlug };
-					} );
-				};
-			} else {
-				setMedia = onSelect;
-			}
-		} else {
-			setMedia = ( [ media ] ) => onSelect( media );
-		}
-		mediaUpload( {
-			allowedTypes,
-			filesList: files,
-			onFileChange: setMedia,
-			onError,
-		} );
-	};
-
 	const onUpload = ( event ) => {
 		onFilesUpload( event.target.files );
 	};