diff --git a/packages/lexical-markdown/src/MarkdownExport.ts b/packages/lexical-markdown/src/MarkdownExport.ts
index c0215cdc626..31f84ee178e 100644
--- a/packages/lexical-markdown/src/MarkdownExport.ts
+++ b/packages/lexical-markdown/src/MarkdownExport.ts
@@ -14,6 +14,7 @@ import type {
 } from '@lexical/markdown';
 import type {ElementNode, LexicalNode, TextFormatType, TextNode} from 'lexical';
 
+import {$isLinkNode} from '@lexical/link';
 import {
   $getRoot,
   $isDecoratorNode,
@@ -176,7 +177,7 @@ function getTextSibling(node: TextNode, backward: boolean): TextNode | null {
   if (!sibling) {
     const parent = node.getParentOrThrow();
 
-    if (parent.isInline()) {
+    if (parent.isInline() && !$isLinkNode(parent)) {
       sibling = backward
         ? parent.getPreviousSibling()
         : parent.getNextSibling();
@@ -185,7 +186,7 @@ function getTextSibling(node: TextNode, backward: boolean): TextNode | null {
 
   while (sibling) {
     if ($isElementNode(sibling)) {
-      if (!sibling.isInline()) {
+      if (!sibling.isInline() || $isLinkNode(sibling)) {
         break;
       }
 
diff --git a/packages/lexical-markdown/src/MarkdownImport.ts b/packages/lexical-markdown/src/MarkdownImport.ts
index 76e40e2ca5e..357920aa58b 100644
--- a/packages/lexical-markdown/src/MarkdownImport.ts
+++ b/packages/lexical-markdown/src/MarkdownImport.ts
@@ -16,7 +16,9 @@ import type {
 import type {LexicalNode, TextNode} from 'lexical';
 
 import {$createCodeNode} from '@lexical/code';
+import {$createLinkNode} from '@lexical/link';
 import {$isListItemNode, $isListNode, ListItemNode} from '@lexical/list';
+import {LINK} from '@lexical/markdown';
 import {$isQuoteNode} from '@lexical/rich-text';
 import {$findMatchingParent} from '@lexical/utils';
 import {
@@ -129,7 +131,7 @@ function $importBlocks(
     }
   }
 
-  importTextFormatTransformers(
+  $importTextFormatTransformers(
     textNode,
     textFormatTransformersIndex,
     textMatchTransformers,
@@ -203,12 +205,46 @@ function $importCodeBlock(
 // E.g. for "*Hello **world**!*" string it will create text node with
 // "Hello **world**!" content and italic format and run recursively over
 // its content to transform "**world**" part
-function importTextFormatTransformers(
+function $importTextFormatTransformers(
   textNode: TextNode,
   textFormatTransformersIndex: TextFormatTransformersIndex,
   textMatchTransformers: Array<TextMatchTransformer>,
 ) {
   const textContent = textNode.getTextContent();
+
+  // Look for links first.
+  const linkMatch = LINK.importRegExp.exec(textContent);
+  if (linkMatch) {
+    // If the link is the whole text node, then replace it and return.
+    // Else, split the match from previous and subsequent text nodes
+    // (if any) and recurse.
+    if (linkMatch.index === 0 && linkMatch[0].length === textContent.length) {
+      const [, linkText, linkUrl, linkTitle] = linkMatch;
+      const linkNode = $createLinkNode(linkUrl, {title: linkTitle});
+      const linkTextNode = $createTextNode(linkText);
+      linkNode.append(linkTextNode);
+      textNode.replace(linkNode);
+      $importTextFormatTransformers(
+        linkTextNode,
+        textFormatTransformersIndex,
+        textMatchTransformers,
+      );
+    } else {
+      const nodes = textNode.splitText(
+        linkMatch.index,
+        linkMatch.index + linkMatch[0].length,
+      );
+      for (const node of nodes) {
+        $importTextFormatTransformers(
+          node,
+          textFormatTransformersIndex,
+          textMatchTransformers,
+        );
+      }
+    }
+    return;
+  }
+
   const match = findOutermostMatch(textContent, textFormatTransformersIndex);
 
   if (!match) {
@@ -252,7 +288,7 @@ function importTextFormatTransformers(
 
   // Recursively run over inner text if it's not inline code
   if (!currentNode.hasFormat('code')) {
-    importTextFormatTransformers(
+    $importTextFormatTransformers(
       currentNode,
       textFormatTransformersIndex,
       textMatchTransformers,
@@ -261,7 +297,7 @@ function importTextFormatTransformers(
 
   // Run over leading/remaining text if any
   if (leadingNode) {
-    importTextFormatTransformers(
+    $importTextFormatTransformers(
       leadingNode,
       textFormatTransformersIndex,
       textMatchTransformers,
@@ -269,7 +305,7 @@ function importTextFormatTransformers(
   }
 
   if (remainderNode) {
-    importTextFormatTransformers(
+    $importTextFormatTransformers(
       remainderNode,
       textFormatTransformersIndex,
       textMatchTransformers,
diff --git a/packages/lexical-markdown/src/MarkdownTransformers.ts b/packages/lexical-markdown/src/MarkdownTransformers.ts
index ebc1b448dbc..438ca3c38f4 100644
--- a/packages/lexical-markdown/src/MarkdownTransformers.ts
+++ b/packages/lexical-markdown/src/MarkdownTransformers.ts
@@ -361,16 +361,17 @@ export const LINK: TextMatchTransformer = {
       return null;
     }
     const title = node.getTitle();
-    const linkContent = title
-      ? `[${node.getTextContent()}](${node.getURL()} "${title}")`
-      : `[${node.getTextContent()}](${node.getURL()})`;
+    const linkHref = title ? `${node.getURL()} "${title}"` : node.getURL();
     const firstChild = node.getFirstChild();
     // Add text styles only if link has single text node inside. If it's more
     // then one we ignore it as markdown does not support nested styles for links
     if (node.getChildrenSize() === 1 && $isTextNode(firstChild)) {
-      return exportFormat(firstChild, linkContent);
+      return `[${exportFormat(
+        firstChild,
+        node.getTextContent(),
+      )}](${linkHref})`;
     } else {
-      return linkContent;
+      return `[${node.getTextContent()}](${linkHref})`;
     }
   },
   importRegExp:
diff --git a/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts b/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts
index fcc3f20f075..93661828249 100644
--- a/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts
+++ b/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts
@@ -115,6 +115,18 @@ describe('Markdown', () => {
       html: '<p><code spellcheck="false" style="white-space: pre-wrap;"><span>Hello</span></code><span style="white-space: pre-wrap;"> world</span></p>',
       md: '`Hello` world',
     },
+    {
+      html: '<p><a href="https://lexical.dev"><code spellcheck="false" style="white-space: pre-wrap;"><span>XXX</span></code></a><span style="white-space: pre-wrap;"> world</span></p>',
+      md: '[`XXX`](https://lexical.dev) world',
+    },
+    {
+      html: '<p><span style="white-space: pre-wrap;">Hello </span><a href="https://lexical.dev"><code spellcheck="false" style="white-space: pre-wrap;"><span>XXX</span></code></a><span style="white-space: pre-wrap;"> world</span></p>',
+      md: 'Hello [`XXX`](https://lexical.dev) world',
+    },
+    {
+      html: '<p><code spellcheck="false" style="white-space: pre-wrap;"><span>Hello</span></code><span style="white-space: pre-wrap;"> </span><a href="https://lexical.dev"><code spellcheck="false" style="white-space: pre-wrap;"><span>XXY</span></code></a></p>',
+      md: '`Hello` [`XXY`](https://lexical.dev)',
+    },
     {
       html: '<p><s><span style="white-space: pre-wrap;">Hello</span></s><span style="white-space: pre-wrap;"> world</span></p>',
       md: '~~Hello~~ world',