diff --git a/packages/koenig-lexical/src/plugins/KoenigBehaviourPlugin.jsx b/packages/koenig-lexical/src/plugins/KoenigBehaviourPlugin.jsx
index f198a03e8f..0376a96507 100644
--- a/packages/koenig-lexical/src/plugins/KoenigBehaviourPlugin.jsx
+++ b/packages/koenig-lexical/src/plugins/KoenigBehaviourPlugin.jsx
@@ -1296,12 +1296,28 @@ function useKoenigBehaviour({editor, containerElem, cursorDidExitAtTop, isNested
                     // TODO: replace with better regex to include more protocols like mailto, ftp, etc
                     const linkMatch = text?.match(/^(https?:\/\/[^\s]+)$/);
                     if (linkMatch) {
-                        // avoid any conversion if we're pasting onto a card shortcut
                         const node = $getSelection()?.anchor.getNode();
-                        if (node && node.getTextContent().startsWith('/')) {
+
+                        // avoid any conversion if we're pasting onto a card shortcut
+                        const isNodeCardShortcut = node && node.getTextContent().startsWith('/');
+
+                        if (isNodeCardShortcut) {
                             return false;
                         }
 
+                        // avoid converting to an embed/bookmark if we're pasting onto a list item
+                        const isNodeListItem = node && $isListItemNode(node);
+
+                        if (isNodeListItem) {
+                            const linkNode = $createLinkNode(text);
+                            const textNode = $createTextNode(text);
+
+                            linkNode.append(textNode);
+                            node.append(linkNode);
+
+                            return true;
+                        }
+
                         // we're pasting a URL, convert it to an embed/bookmark/link
                         clipboardEvent.preventDefault();
                         editor.dispatchCommand(PASTE_LINK_COMMAND, {linkMatch});
diff --git a/packages/koenig-lexical/test/e2e/paste-behaviour.test.js b/packages/koenig-lexical/test/e2e/paste-behaviour.test.js
index 85f09e0d93..3508ef8098 100644
--- a/packages/koenig-lexical/test/e2e/paste-behaviour.test.js
+++ b/packages/koenig-lexical/test/e2e/paste-behaviour.test.js
@@ -1,6 +1,6 @@
 import fs from 'fs';
 import path from 'path';
-import {assertHTML, ctrlOrCmd, focusEditor,html, initialize, insertCard, paste, pasteFiles, pasteFilesWithText, pasteHtml, pasteText} from '../utils/e2e';
+import {assertHTML, ctrlOrCmd, focusEditor,html, initialize, insertCard, paste, pasteFiles, pasteFilesWithText, pasteHtml, pasteLexical, pasteText} from '../utils/e2e';
 import {expect, test} from '@playwright/test';
 import {fileURLToPath} from 'url';
 const __filename = fileURLToPath(import.meta.url);
@@ -623,4 +623,50 @@ test.describe('Paste behaviour', async () => {
             expect(imgSrc).not.toContain('https://files.slack.com/foo-bar');
         });
     });
+
+    test.describe('Links', function () {
+        test('avoids converting links to embed/bookmarks when pasting it into a list item', async function () {
+            await focusEditor(page);
+            await pasteLexical(page, JSON.stringify({
+                namespace: 'KoenigEditor',
+                nodes: [{
+                    children: [{
+                        children: [{
+                            detail: 0,
+                            format: 0,
+                            mode: 'normal',
+                            style: '',
+                            text: '',
+                            type: 'text',
+                            version: 1
+                        }],
+                        format: '',
+                        indent: 0,
+                        type: 'listitem',
+                        version: 1
+                    }],
+                    format: '',
+                    indent: 0,
+                    type: 'list',
+                    version: 1,
+                    listType: 'bullet',
+                    start: 1,
+                    tag: 'ul'
+                }]
+            }));
+
+            await paste(page, {
+                'text/plain': 'https://ghost.org/',
+                'text/html': '<p><a href="https://ghost.org/">Link</a></p>'
+            });
+
+            await assertHTML(page, html`<ul>
+                    <li value="1">
+                        <a href="https://ghost.org/" dir="ltr">
+                            <span data-lexical-text="true">https://ghost.org/</span>
+                        </a>
+                    </li>
+                </ul>`);
+        });
+    });
 });