diff --git a/blocks/editable/format-toolbar/index.js b/blocks/editable/format-toolbar/index.js
index f8a3a1f452cb3..85f1e5e97fbaf 100644
--- a/blocks/editable/format-toolbar/index.js
+++ b/blocks/editable/format-toolbar/index.js
@@ -12,6 +12,7 @@ import { keycodes } from '@wordpress/utils';
 import './style.scss';
 import UrlInput from '../../url-input';
 import { filterURLForDisplay } from '../../../editor/utils/url';
+import ToggleControl from '../../inspector-controls/toggle-control';
 
 const { ESCAPE } = keycodes;
 
@@ -39,10 +40,11 @@ const DEFAULT_CONTROLS = [ 'bold', 'italic', 'strikethrough', 'link' ];
 class FormatToolbar extends Component {
 	constructor() {
 		super( ...arguments );
-
 		this.state = {
 			isAddingLink: false,
 			isEditingLink: false,
+			settingsVisible: false,
+			opensInNewWindow: false,
 			newLinkValue: '',
 		};
 
@@ -52,6 +54,8 @@ class FormatToolbar extends Component {
 		this.submitLink = this.submitLink.bind( this );
 		this.onKeyDown = this.onKeyDown.bind( this );
 		this.onChangeLinkValue = this.onChangeLinkValue.bind( this );
+		this.toggleLinkSettingsVisibility = this.toggleLinkSettingsVisibility.bind( this );
+		this.setLinkTarget = this.setLinkTarget.bind( this );
 	}
 
 	componentDidMount() {
@@ -76,6 +80,8 @@ class FormatToolbar extends Component {
 			this.setState( {
 				isAddingLink: false,
 				isEditingLink: false,
+				settingsVisible: false,
+				opensInNewWindow: !! nextProps.formats.link && !! nextProps.formats.link.target,
 				newLinkValue: '',
 			} );
 		}
@@ -93,6 +99,16 @@ class FormatToolbar extends Component {
 		};
 	}
 
+	toggleLinkSettingsVisibility() {
+		this.setState( ( state ) => ( { settingsVisible: ! state.settingsVisible } ) );
+	}
+
+	setLinkTarget( event ) {
+		const opensInNewWindow = event.target.checked;
+		this.setState( { opensInNewWindow } );
+		this.props.onChange( { link: { value: this.props.formats.link.value, target: opensInNewWindow ? '_blank' : '' } } );
+	}
+
 	addLink() {
 		this.setState( { isEditingLink: false, isAddingLink: true, newLinkValue: '' } );
 	}
@@ -109,7 +125,7 @@ class FormatToolbar extends Component {
 
 	submitLink( event ) {
 		event.preventDefault();
-		this.props.onChange( { link: { value: this.state.newLinkValue } } );
+		this.props.onChange( { link: { value: this.state.newLinkValue, target: this.state.opensInNewWindow ? '_blank' : '' } } );
 		if ( this.state.isAddingLink ) {
 			this.props.speak( __( 'Link inserted.' ), 'assertive' );
 		}
@@ -117,7 +133,7 @@ class FormatToolbar extends Component {
 
 	render() {
 		const { formats, focusPosition, enabledControls = DEFAULT_CONTROLS } = this.props;
-		const { isAddingLink, isEditingLink, newLinkValue } = this.state;
+		const { isAddingLink, isEditingLink, newLinkValue, settingsVisible, opensInNewWindow } = this.state;
 		const linkStyle = focusPosition
 			? { position: 'absolute', ...focusPosition }
 			: null;
@@ -130,6 +146,15 @@ class FormatToolbar extends Component {
 				isActive: !! formats[ control.format ],
 			} ) );
 
+		const linkSettings = settingsVisible && (
+			<fieldset className="blocks-format-toolbar__link-settings">
+				<ToggleControl
+					label={ __( 'Open in new window' ) }
+					checked={ opensInNewWindow }
+					onChange={ this.setLinkTarget } />
+			</fieldset>
+		);
+
 		if ( enabledControls.indexOf( 'link' ) !== -1 ) {
 			toolbarControls.push( {
 				icon: 'admin-links',
@@ -151,6 +176,8 @@ class FormatToolbar extends Component {
 						<UrlInput value={ newLinkValue } onChange={ this.onChangeLinkValue } />
 						<IconButton icon="editor-break" label={ __( 'Apply' ) } type="submit" />
 						<IconButton icon="editor-unlink" label={ __( 'Remove link' ) } onClick={ this.dropLink } />
+						<IconButton icon="admin-generic" onClick={ this.toggleLinkSettingsVisibility } aria-expanded={ settingsVisible } />
+						{ linkSettings }
 					</form>
 				}
 
@@ -165,6 +192,8 @@ class FormatToolbar extends Component {
 						</a>
 						<IconButton icon="edit" label={ __( 'Edit' ) } onClick={ this.editLink } />
 						<IconButton icon="editor-unlink" label={ __( 'Remove link' ) } onClick={ this.dropLink } />
+						<IconButton icon="admin-generic" onClick={ this.toggleLinkSettingsVisibility } aria-expanded={ settingsVisible } />
+						{ linkSettings }
 					</div>
 				}
 			</div>
diff --git a/blocks/editable/format-toolbar/style.scss b/blocks/editable/format-toolbar/style.scss
index 6a906bef855db..e6a80a1f27594 100644
--- a/blocks/editable/format-toolbar/style.scss
+++ b/blocks/editable/format-toolbar/style.scss
@@ -7,13 +7,18 @@
 	box-shadow: 0px 3px 20px rgba( 18, 24, 30, .1 ), 0px 1px 3px rgba( 18, 24, 30, .1 );
 	border: 1px solid #e0e5e9;
 	background: #fff;
-	width: 300px;
+	width: 305px;
 	display: inline-flex;
+	flex-wrap: wrap;
 	align-items: center;
 	font-family: $default-font;
 	font-size: $default-font-size;
 	line-height: $default-line-height;
 	z-index: z-index( '.blocks-format-toolbar__link-modal' );
+
+	.blocks-url-input {
+		width: auto;
+	}
 }
 
 .blocks-format-toolbar__link-value {
@@ -26,3 +31,13 @@
 		@include long-content-fade( $size: 40% );
 	}
 }
+
+.blocks-format-toolbar__link-settings {
+	border-top: 1px solid $light-gray-500;
+	width: 100%;
+	padding: 10px 8px;
+
+	.blocks-base-control {
+		margin: 0;
+	}
+}
diff --git a/blocks/editable/index.js b/blocks/editable/index.js
index 07ca484d7c8e6..fa7732784164c 100644
--- a/blocks/editable/index.js
+++ b/blocks/editable/index.js
@@ -448,7 +448,7 @@ export default class Editable extends Component {
 		const formats = {};
 		const link = find( parents, ( node ) => node.nodeName.toLowerCase() === 'a' );
 		if ( link ) {
-			formats.link = { value: link.getAttribute( 'href' ) || '', node: link };
+			formats.link = { value: link.getAttribute( 'href' ) || '', target: link.getAttribute( 'target' ) || '', node: link };
 		}
 		const activeFormats = this.editor.formatter.matchAll( [	'bold', 'italic', 'strikethrough' ] );
 		activeFormats.forEach( ( activeFormat ) => formats[ activeFormat ] = true );
@@ -542,7 +542,7 @@ export default class Editable extends Component {
 					if ( ! anchor ) {
 						this.removeFormat( 'link' );
 					}
-					this.applyFormat( 'link', { href: formatValue.value }, anchor );
+					this.applyFormat( 'link', { href: formatValue.value, target: formatValue.target }, anchor );
 				} else {
 					this.editor.execCommand( 'Unlink' );
 				}