diff --git a/lib/class-wp-rest-menu-items-controller.php b/lib/class-wp-rest-menu-items-controller.php
index c0f70208c4279..f6cf192a80722 100644
--- a/lib/class-wp-rest-menu-items-controller.php
+++ b/lib/class-wp-rest-menu-items-controller.php
@@ -569,9 +569,15 @@ public function prepare_item_for_response( $post, $request ) {
 		if ( in_array( 'title', $fields, true ) ) {
 			add_filter( 'protected_title_format', array( $this, 'protected_title_format' ) );
 
+			/** This filter is documented in wp-includes/post-template.php */
+			$title = apply_filters( 'the_title', $menu_item->title, $menu_item->ID );
+
+			/** This filter is documented in wp-includes/class-walker-nav-menu.php */
+			$title = apply_filters( 'nav_menu_item_title', $title, $menu_item, null, 0 );
+
 			$data['title'] = array(
-				'raw'      => $menu_item->post_title,
-				'rendered' => $menu_item->title,
+				'raw'      => $menu_item->title,
+				'rendered' => $title,
 			);
 
 			remove_filter( 'protected_title_format', array( $this, 'protected_title_format' ) );
diff --git a/packages/block-library/src/navigation/placeholder.js b/packages/block-library/src/navigation/placeholder.js
index ed2aa4b43afea..0e50078babbb8 100644
--- a/packages/block-library/src/navigation/placeholder.js
+++ b/packages/block-library/src/navigation/placeholder.js
@@ -1,8 +1,6 @@
 /**
  * External dependencies
  */
-
-import { escape } from 'lodash';
 import classnames from 'classnames';
 
 /**
@@ -93,9 +91,7 @@ function mapMenuItemsToBlocks( nodes ) {
 				type,
 				id,
 				url,
-				label: ! title.rendered
-					? __( '(no title)' )
-					: escape( title.rendered ),
+				label: ! title.rendered ? __( '(no title)' ) : title.rendered,
 				opensInNewTab: false,
 			},
 			innerBlocks
@@ -136,9 +132,7 @@ function convertPagesToBlocks( pages ) {
 			type,
 			id,
 			url,
-			label: ! title.rendered
-				? __( '(no title)' )
-				: escape( title.rendered ),
+			label: ! title.rendered ? __( '(no title)' ) : title.rendered,
 			opensInNewTab: false,
 		} )
 	);
diff --git a/phpunit/class-rest-nav-menu-items-controller-test.php b/phpunit/class-rest-nav-menu-items-controller-test.php
index dcc8c5ef4a3fa..69593227a32ac 100644
--- a/phpunit/class-rest-nav-menu-items-controller-test.php
+++ b/phpunit/class-rest-nav-menu-items-controller-test.php
@@ -177,6 +177,66 @@ public function test_get_item() {
 		$this->check_get_menu_item_response( $response, 'view' );
 	}
 
+	/**
+	 * Test that title.raw contains the verbatim title and that title.rendered
+	 * has been passed through the_title which escapes & characters.
+	 *
+	 * @see https://github.com/WordPress/gutenberg/pull/24673
+	 */
+	public function test_get_item_escapes_title() {
+		wp_set_current_user( self::$admin_id );
+
+		$menu_item_id = wp_update_nav_menu_item(
+			$this->menu_id,
+			0,
+			array(
+				'menu-item-type'      => 'taxonomy',
+				'menu-item-object'    => 'post_tag',
+				'menu-item-object-id' => $this->tag_id,
+				'menu-item-status'    => 'publish',
+				'menu-item-title'     => '<strong>Foo</strong> & bar',
+			)
+		);
+
+		$request = new WP_REST_Request(
+			'GET',
+			"/__experimental/menu-items/$menu_item_id"
+		);
+		$request->set_query_params(
+			array(
+				'context' => 'edit',
+			)
+		);
+
+		$response = rest_get_server()->dispatch( $request );
+
+		if ( ! is_multisite() ) {
+			// Check that title.raw is the unescaped title and that
+			// title.rendered has been run through the_title.
+			$this->assertEquals(
+				array(
+					'rendered' => '<strong>Foo</strong> &#038; bar',
+					'raw'      => '<strong>Foo</strong> & bar',
+				),
+				$response->get_data()['title']
+			);
+		} else {
+			// In a multisite, administrators do not have unfiltered_html and
+			// post_title is ran through wp_kses before being saved in the
+			// database. Running the title through the_title does nothing in
+			// this case.
+			$this->assertEquals(
+				array(
+					'rendered' => '<strong>Foo</strong> &amp; bar',
+					'raw'      => '<strong>Foo</strong> &amp; bar',
+				),
+				$response->get_data()['title']
+			);
+		}
+
+		wp_delete_post( $menu_item_id );
+	}
+
 	/**
 	 *
 	 */
@@ -726,7 +786,7 @@ protected function check_menu_item_data( $post, $data, $context, $links ) {
 			$this->assertEquals( $post->title, $data['title']['rendered'] );
 			remove_filter( 'protected_title_format', array( $this, 'protected_title_format' ) );
 			if ( 'edit' === $context ) {
-				$this->assertEquals( $post->post_title, $data['title']['raw'] );
+				$this->assertEquals( $post->title, $data['title']['raw'] );
 			} else {
 				$this->assertFalse( isset( $data['title']['raw'] ) );
 			}