diff --git a/packages/block-editor/src/components/provider/index.js b/packages/block-editor/src/components/provider/index.js
index dbd646426718d..13d25aafd8c83 100644
--- a/packages/block-editor/src/components/provider/index.js
+++ b/packages/block-editor/src/components/provider/index.js
@@ -28,9 +28,16 @@ export const ExperimentalBlockEditorProvider = withRegistryProvider(
 					...settings,
 					__internalIsInitialized: true,
 				},
-				stripExperimentalSettings
+				{
+					stripExperimentalSettings,
+					reset: true,
+				}
 			);
-		}, [ settings ] );
+		}, [
+			settings,
+			stripExperimentalSettings,
+			__experimentalUpdateSettings,
+		] );
 
 		// Syncs the entity provider with changes in the block-editor store.
 		useBlockSync( props );
diff --git a/packages/block-editor/src/store/actions.js b/packages/block-editor/src/store/actions.js
index 09ff7e185ab54..9dd3b24009c51 100644
--- a/packages/block-editor/src/store/actions.js
+++ b/packages/block-editor/src/store/actions.js
@@ -1390,7 +1390,9 @@ export function updateBlockListSettings( clientId, settings ) {
  * @return {Object} Action object
  */
 export function updateSettings( settings ) {
-	return __experimentalUpdateSettings( settings, true );
+	return __experimentalUpdateSettings( settings, {
+		stripExperimentalSettings: true,
+	} );
 }
 
 /**
diff --git a/packages/block-editor/src/store/private-actions.js b/packages/block-editor/src/store/private-actions.js
index 74c83d6018969..8b5e066e5a83c 100644
--- a/packages/block-editor/src/store/private-actions.js
+++ b/packages/block-editor/src/store/private-actions.js
@@ -28,13 +28,15 @@ const privateSettings = [
  * Action that updates the block editor settings and
  * conditionally preserves the experimental ones.
  *
- * @param {Object}  settings                  Updated settings
- * @param {boolean} stripExperimentalSettings Whether to strip experimental settings.
+ * @param {Object}  settings                          Updated settings
+ * @param {Object}  options                           Options object.
+ * @param {boolean} options.stripExperimentalSettings Whether to strip experimental settings.
+ * @param {boolean} options.reset                     Whether to reset the settings.
  * @return {Object} Action object
  */
 export function __experimentalUpdateSettings(
 	settings,
-	stripExperimentalSettings = false
+	{ stripExperimentalSettings = false, reset = false } = {}
 ) {
 	let cleanSettings = settings;
 	// There are no plugins in the mobile apps, so there is no
@@ -50,6 +52,7 @@ export function __experimentalUpdateSettings(
 	return {
 		type: 'UPDATE_SETTINGS',
 		settings: cleanSettings,
+		reset,
 	};
 }
 
diff --git a/packages/block-editor/src/store/reducer.js b/packages/block-editor/src/store/reducer.js
index d23f5f3058978..b4104a69ac620 100644
--- a/packages/block-editor/src/store/reducer.js
+++ b/packages/block-editor/src/store/reducer.js
@@ -1623,6 +1623,12 @@ export function template( state = { isValid: true }, action ) {
 export function settings( state = SETTINGS_DEFAULTS, action ) {
 	switch ( action.type ) {
 		case 'UPDATE_SETTINGS':
+			if ( action.reset ) {
+				return {
+					...SETTINGS_DEFAULTS,
+					...action.settings,
+				};
+			}
 			return {
 				...state,
 				...action.settings,
diff --git a/packages/block-editor/src/store/test/private-actions.js b/packages/block-editor/src/store/test/private-actions.js
index fdfe993091fef..01f6b85f5f9aa 100644
--- a/packages/block-editor/src/store/test/private-actions.js
+++ b/packages/block-editor/src/store/test/private-actions.js
@@ -6,6 +6,7 @@ import {
 	showBlockInterface,
 	setBlockEditingMode,
 	unsetBlockEditingMode,
+	__experimentalUpdateSettings,
 } from '../private-actions';
 
 describe( 'private actions', () => {
@@ -50,4 +51,59 @@ describe( 'private actions', () => {
 			} );
 		} );
 	} );
+
+	describe( '__experimentalUpdateSettings', () => {
+		const experimentalSettings = {
+			inserterMediaCategories: 'foo',
+			blockInspectorAnimation: 'bar',
+		};
+
+		const stableSettings = {
+			foo: 'foo',
+			bar: 'bar',
+			baz: 'baz',
+		};
+
+		const settings = {
+			...experimentalSettings,
+			...stableSettings,
+		};
+
+		it( 'should dispatch provided settings by default', () => {
+			expect( __experimentalUpdateSettings( settings ) ).toEqual( {
+				type: 'UPDATE_SETTINGS',
+				settings,
+				reset: false,
+			} );
+		} );
+
+		it( 'should dispatch provided settings with reset flag when `reset` argument is truthy', () => {
+			expect(
+				__experimentalUpdateSettings( settings, {
+					stripExperimentalSettings: false,
+					reset: true,
+				} )
+			).toEqual( {
+				type: 'UPDATE_SETTINGS',
+				settings,
+				reset: true,
+			} );
+		} );
+
+		it( 'should strip experimental settings from a given settings object when `stripExperimentalSettings` argument is truthy', () => {
+			expect(
+				__experimentalUpdateSettings( settings, {
+					stripExperimentalSettings: true,
+				} )
+			).toEqual( {
+				type: 'UPDATE_SETTINGS',
+				settings: {
+					foo: 'foo',
+					bar: 'bar',
+					baz: 'baz',
+				},
+				reset: false,
+			} );
+		} );
+	} );
 } );
diff --git a/packages/edit-site/src/components/block-editor/use-site-editor-settings.js b/packages/edit-site/src/components/block-editor/use-site-editor-settings.js
index af3f5ccba3498..4ce186ad9d6bb 100644
--- a/packages/edit-site/src/components/block-editor/use-site-editor-settings.js
+++ b/packages/edit-site/src/components/block-editor/use-site-editor-settings.js
@@ -78,14 +78,6 @@ export default function useSiteEditorSettings( templateType ) {
 			inserterMediaCategories,
 			__experimentalBlockPatterns: blockPatterns,
 			__experimentalBlockPatternCategories: blockPatternCategories,
-			// Temporary fix for bug in Block Editor Provider:
-			// see: https://github.com/WordPress/gutenberg/issues/51489.
-			// Some Site Editor entities (e.g. `wp_navigation`) may utilise
-			// template locking in their settings. Therefore this must be
-			// explicitly "unset" to avoid the template locking UI remaining
-			// active for all entities.
-			templateLock: false,
-			template: false,
 		};
 	}, [ storedSettings, blockPatterns, blockPatternCategories ] );
 }