diff --git a/app/client/src/sagas/BuildingBlockSagas/BuildingBlockAdditionSagas.ts b/app/client/src/sagas/BuildingBlockSagas/BuildingBlockAdditionSagas.ts
index 99a9dc2c6f..b0f7f70cf4 100644
--- a/app/client/src/sagas/BuildingBlockSagas/BuildingBlockAdditionSagas.ts
+++ b/app/client/src/sagas/BuildingBlockSagas/BuildingBlockAdditionSagas.ts
@@ -284,6 +284,7 @@ export function* loadBuildingBlocksIntoApplication(
       }
     }
   } catch (error) {
+    log.error("Error loading building blocks into application", error);
     yield put({
       type: WidgetReduxActionTypes.WIDGET_SINGLE_DELETE,
       payload: {
@@ -420,8 +421,6 @@ export function* pasteBuildingBlockWidgetsSaga(
   const mainCanvasWidth: number = yield select(getCanvasWidth);
 
   try {
-    const isThereACollision = false;
-
     if (
       // to avoid invoking old way of copied widgets implementaion
       !Array.isArray(copiedWidgetGroups) ||
@@ -458,6 +457,7 @@ export function* pasteBuildingBlockWidgetsSaga(
       topMostWidget.topRow,
       leftMostWidget.leftColumn,
       { gridPosition },
+      pastingIntoWidgetId,
     );
     for (const widgetGroup of copiedWidgetGroups) {
       //This is required when you cut the widget as CanvasWidgetState doesn't have the widget anymore
@@ -507,7 +507,7 @@ export function* pasteBuildingBlockWidgetsSaga(
             nextAvailableRow,
             newPastingPositionMap,
             true,
-            isThereACollision,
+            false,
             false,
           );
 
diff --git a/app/client/src/sagas/BuildingBlockSagas/PasteBuildingBlockWidgetSaga.test.ts b/app/client/src/sagas/BuildingBlockSagas/PasteBuildingBlockWidgetSaga.test.ts
index 3ab78ffda2..1149afd662 100644
--- a/app/client/src/sagas/BuildingBlockSagas/PasteBuildingBlockWidgetSaga.test.ts
+++ b/app/client/src/sagas/BuildingBlockSagas/PasteBuildingBlockWidgetSaga.test.ts
@@ -43,7 +43,7 @@ type GeneratorType = Generator<
 
 describe("pasteBuildingBlockWidgetsSaga", () => {
   const copiedWidgetsResponse = { widgets: copiedWidgets, flexLayers };
-  it("should handle pasting into a valid parent widget", () => {
+  it("1. should handle pasting into a valid parent widget", () => {
     const generator: GeneratorType = pasteBuildingBlockWidgetsSaga(
       gridPosition,
       parentWidgetId,
@@ -101,6 +101,7 @@ describe("pasteBuildingBlockWidgetsSaga", () => {
         boundaryWidgets.topMostWidget.topRow,
         boundaryWidgets.leftMostWidget.leftColumn,
         { gridPosition },
+        parentWidgetId,
       ),
     );
 
@@ -136,7 +137,7 @@ describe("pasteBuildingBlockWidgetsSaga", () => {
     expect(result.done).toBe(true);
   });
 
-  it("should handle errors gracefully", () => {
+  it("2. should handle errors gracefully", () => {
     const generator: GeneratorType = pasteBuildingBlockWidgetsSaga(
       { left: 0, top: 0 },
       "testParentId",
diff --git a/app/client/src/sagas/PasteWidgetUtils/index.ts b/app/client/src/sagas/PasteWidgetUtils/index.ts
index c8551e329f..14deaf608d 100644
--- a/app/client/src/sagas/PasteWidgetUtils/index.ts
+++ b/app/client/src/sagas/PasteWidgetUtils/index.ts
@@ -1,10 +1,13 @@
 import type { EitherMouseLocationORGridPosition } from "constants/WidgetConstants";
-import { GridDefaults } from "constants/WidgetConstants";
+import {
+  GridDefaults,
+  MAIN_CONTAINER_WIDGET_ID,
+} from "constants/WidgetConstants";
 import type { CanvasWidgetsReduxState } from "reducers/entityReducers/canvasWidgetsReducer";
 import { call, select } from "redux-saga/effects";
 import { getContainerWidgetSpacesSelector } from "selectors/editorSelectors";
 import type { WidgetProps } from "widgets/BaseWidget";
-import { getWidgets } from "../selectors";
+import { getWidget, getWidgets } from "../selectors";
 
 import type { FlattenedWidgetProps } from "WidgetProvider/constants";
 import type { WidgetSpace } from "constants/CanvasEditorConstants";
@@ -48,6 +51,7 @@ export /**
  * @param copiedTopMostRow top row of the top most copied widget
  * @param copiedLeftMostColumn left column of the left most copied widget
  * @param gridPosition left and top canvas grid position values
+ * @param pastingIntoWidgetId - The ID of the widget where the new widgets should be pasted into.
  * @returns
  */
 const getNewPositions = function* (
@@ -56,6 +60,7 @@ const getNewPositions = function* (
   copiedTopMostRow: number,
   copiedLeftMostColumn: number,
   whereToPasteWidget: EitherMouseLocationORGridPosition,
+  pastingIntoWidgetId?: string,
 ) {
   const selectedWidgetIDs: string[] = yield select(getSelectedWidgets);
   const canvasWidgets: CanvasWidgetsReduxState = yield select(getWidgets);
@@ -107,6 +112,7 @@ const getNewPositions = function* (
     copiedTopMostRow,
     copiedLeftMostColumn,
     whereToPasteWidget,
+    pastingIntoWidgetId,
   );
   return newPastingPositionDetails;
 };
@@ -124,6 +130,7 @@ const getNewPositions = function* (
  * @param copiedTopMostRow top row of the top most copied widget
  * @param copiedLeftMostColumn left column of the left most copied widget
  * @param gridPosition left and top canvas grid position values
+ * @param pastingIntoWidgetId - The ID of the widget where the new widgets should be pasted into. If this is known we don't need to calculate it. In addition, the container widget and dom queries will be different.
  * @returns
  */
 function* getNewPositionsBasedOnMousePositions(
@@ -134,15 +141,33 @@ function* getNewPositionsBasedOnMousePositions(
   copiedTopMostRow: number,
   copiedLeftMostColumn: number,
   whereToPasteWidget: EitherMouseLocationORGridPosition,
+  pastingIntoWidgetId?: string,
 ) {
-  let { canvasDOM, canvasId, containerWidget } =
-    getDefaultCanvas(canvasWidgets);
+  let {
+    canvasDOM,
+    canvasId,
+    containerWidget,
+  }: {
+    canvasDOM: Element | null | undefined;
+    canvasId: string | undefined;
+    containerWidget: FlattenedWidgetProps | undefined;
+  } = getDefaultCanvas(canvasWidgets);
 
   //if the selected widget is a layout widget then change the pasting canvas.
   if (selectedWidgets.length === 1 && isDropTarget(selectedWidgets[0].type)) {
     containerWidget = selectedWidgets[0];
     ({ canvasDOM, canvasId } = getCanvasIdForContainer(containerWidget));
   }
+  if (pastingIntoWidgetId && pastingIntoWidgetId !== MAIN_CONTAINER_WIDGET_ID) {
+    // For building block we already know the widget where we want to paste the new widgets
+    // no need to calculate it
+    const containerWidgetId = getContainerIdForCanvas(pastingIntoWidgetId);
+    if (!containerWidgetId) return {};
+    containerWidget = yield select(getWidget, containerWidgetId);
+    ({ canvasDOM, canvasId } = getCanvasIdForContainer(
+      containerWidget as WidgetProps,
+    ));
+  }
 
   if (!canvasDOM || !containerWidget || !canvasId) return {};