diff --git a/packages/block-editor/src/components/link-control/link-preview.js b/packages/block-editor/src/components/link-control/link-preview.js
index 0a89f2a92ca578..630073f733d0ed 100644
--- a/packages/block-editor/src/components/link-control/link-preview.js
+++ b/packages/block-editor/src/components/link-control/link-preview.js
@@ -11,7 +11,9 @@ import {
 	Button,
 	ExternalLink,
 	__experimentalTruncate as Truncate,
+	__experimentalHStack as HStack,
 	Flex,
+	privateApis as componentsPrivateApis,
 } from '@wordpress/components';
 import { useCopyToClipboard } from '@wordpress/compose';
 import { filterURLForDisplay, safeDecodeURI } from '@wordpress/url';
@@ -31,23 +33,12 @@ import { store as preferencesStore } from '@wordpress/preferences';
 /**
  * Internal dependencies
  */
+import { unlock } from '../../lock-unlock';
 import { ViewerSlot } from './viewer-slot';
 
-import useRichUrlData from './use-rich-url-data';
+const { Badge } = unlock( componentsPrivateApis );
 
-/**
- * Filters the title for display. Removes the protocol and www prefix.
- *
- * @param {string} title The title to be filtered.
- *
- * @return {string} The filtered title.
- */
-function filterTitleForDisplay( title ) {
-	// Derived from `filterURLForDisplay` in `@wordpress/url`.
-	return title
-		.replace( /^[a-z\-.\+]+[0-9]*:(\/\/)?/i, '' )
-		.replace( /^www\./i, '' );
-}
+import useRichUrlData from './use-rich-url-data';
 
 export default function LinkPreview( {
 	value,
@@ -81,9 +72,6 @@ export default function LinkPreview( {
 		! isEmptyURL &&
 		stripHTML( richData?.title || value?.title || displayURL );
 
-	const isUrlRedundant =
-		! value?.url || filterTitleForDisplay( displayTitle ) === displayURL;
-
 	let icon;
 
 	if ( richData?.icon ) {
@@ -115,7 +103,7 @@ export default function LinkPreview( {
 				'is-url-title': displayTitle === displayURL,
 			} ) }
 		>
-			<Flex gap={ 0 }>
+			<Flex gap={ 0 } align="flex-start">
 				<Flex
 					className="block-editor-link-control__link-information"
 					role="figure"
@@ -124,22 +112,32 @@ export default function LinkPreview( {
 						__( 'Link information' )
 					}
 					justify="start"
+					align="flex-start"
 				>
-					<Flex
-						className={ clsx(
-							'block-editor-link-control__preview-icon',
-							{
-								'is-image': richData?.icon,
-							}
-						) }
-						justify="center"
-					>
-						{ icon }
-					</Flex>
+					{ value?.image ? (
+						<Flex
+							className="block-editor-link-control__preview-image"
+							justify="center"
+						>
+							<img src={ value?.image } alt="" />
+						</Flex>
+					) : (
+						<Flex
+							className={ clsx(
+								'block-editor-link-control__preview-icon',
+								{
+									'is-image': richData?.icon,
+								}
+							) }
+							justify="center"
+						>
+							{ icon }
+						</Flex>
+					) }
 					<Flex
 						className="block-editor-link-control__preview-details"
 						direction="column"
-						gap={ 1 }
+						gap={ 2 }
 					>
 						{ ! isEmptyURL ? (
 							<>
@@ -151,12 +149,28 @@ export default function LinkPreview( {
 										{ displayTitle }
 									</Truncate>
 								</ExternalLink>
-								{ ! isUrlRedundant && (
-									<span className="block-editor-link-control__preview-info">
-										<Truncate numberOfLines={ 1 }>
-											{ displayURL }
-										</Truncate>
-									</span>
+								<span className="block-editor-link-control__preview-info">
+									<Truncate numberOfLines={ 1 }>
+										{ displayURL }
+									</Truncate>
+								</span>
+								{ value?.badges?.length > 0 && (
+									<HStack
+										className="block-editor-link-control__preview-badges"
+										alignment="left"
+										gap={ 1 }
+									>
+										{ value.badges.map(
+											( badge, index ) => (
+												<Badge
+													key={ `${ badge.label }|${ badge.intent }|${ index }` }
+													intent={ badge.intent }
+												>
+													{ badge.label }
+												</Badge>
+											)
+										) }
+									</HStack>
 								) }
 							</>
 						) : (
diff --git a/packages/block-editor/src/components/link-control/style.scss b/packages/block-editor/src/components/link-control/style.scss
index af88eb8420705b..c8a1f2312140ce 100644
--- a/packages/block-editor/src/components/link-control/style.scss
+++ b/packages/block-editor/src/components/link-control/style.scss
@@ -192,6 +192,7 @@ $block-editor-link-control-number-of-actions: 1;
 		word-break: break-all;
 	}
 
+	.block-editor-link-control__preview-image,
 	.block-editor-link-control__preview-icon {
 		position: relative;
 		flex-shrink: 0;
@@ -199,10 +200,10 @@ $block-editor-link-control-number-of-actions: 1;
 		width: $grid-unit-40;
 		height: $grid-unit-40;
 		border-radius: $radius-small;
+	}
 
-		img {
-			width: $grid-unit-20; // favicons often have a source of 32px
-		}
+	.block-editor-link-control__preview-icon img {
+		width: $grid-unit-20; // favicons often have a source of 32px
 	}
 
 	&.is-error .block-editor-link-control__preview-icon {
diff --git a/packages/block-editor/src/components/link-control/test/index.js b/packages/block-editor/src/components/link-control/test/index.js
index 49ac805690d880..f6bc7a60bf4cc8 100644
--- a/packages/block-editor/src/components/link-control/test/index.js
+++ b/packages/block-editor/src/components/link-control/test/index.js
@@ -3622,3 +3622,119 @@ async function toggleSettingsDrawer( user ) {
 
 	await user.click( settingsToggle );
 }
+
+describe( 'Link preview with entity data from navigation blocks', () => {
+	describe( 'Featured image display', () => {
+		it( 'should display featured image in link preview when entity provides image', () => {
+			const linkWithImage = {
+				url: 'https://example.com/my-page',
+				title: 'My Test Page',
+				image: 'https://example.com/featured.jpg',
+			};
+
+			render( <LinkControl value={ linkWithImage } /> );
+
+			const linkPreview = screen.getByRole( 'group', {
+				name: 'Manage link',
+			} );
+
+			// eslint-disable-next-line testing-library/no-node-access
+			const imagePreview = linkPreview.querySelector(
+				'.block-editor-link-control__preview-image img'
+			);
+
+			expect( imagePreview ).toBeInTheDocument();
+			expect( imagePreview ).toHaveAttribute(
+				'src',
+				'https://example.com/featured.jpg'
+			);
+		} );
+
+		it( 'should not display featured image section when entity has no image', () => {
+			const linkWithoutImage = {
+				url: 'https://example.com/my-page',
+				title: 'My Test Page',
+			};
+
+			render( <LinkControl value={ linkWithoutImage } /> );
+
+			const linkPreview = screen.getByRole( 'group', {
+				name: 'Manage link',
+			} );
+
+			// eslint-disable-next-line testing-library/no-node-access
+			const imagePreview = linkPreview.querySelector(
+				'.block-editor-link-control__preview-image'
+			);
+
+			expect( imagePreview ).not.toBeInTheDocument();
+		} );
+	} );
+
+	describe( 'Entity status badges', () => {
+		it( 'should display badges in link preview when entity provides badges', () => {
+			const linkWithBadges = {
+				url: 'https://example.com/my-page',
+				title: 'My Test Page',
+				badges: [
+					{ label: 'Draft', intent: 'warning' },
+					{ label: 'Page', intent: 'default' },
+				],
+			};
+
+			render( <LinkControl value={ linkWithBadges } /> );
+
+			const linkPreview = screen.getByRole( 'group', {
+				name: 'Manage link',
+			} );
+
+			// eslint-disable-next-line testing-library/no-node-access
+			const badgesContainer = linkPreview.querySelector(
+				'.block-editor-link-control__preview-badges'
+			);
+
+			expect( badgesContainer ).toBeInTheDocument();
+		} );
+
+		it( 'should not display badges section when entity provides no badges', () => {
+			const linkWithoutBadges = {
+				url: 'https://example.com/my-page',
+				title: 'My Test Page',
+			};
+
+			render( <LinkControl value={ linkWithoutBadges } /> );
+
+			const linkPreview = screen.getByRole( 'group', {
+				name: 'Manage link',
+			} );
+
+			// eslint-disable-next-line testing-library/no-node-access
+			const badgesContainer = linkPreview.querySelector(
+				'.block-editor-link-control__preview-badges'
+			);
+
+			expect( badgesContainer ).not.toBeInTheDocument();
+		} );
+
+		it( 'should not display badges section when entity provides empty badges array', () => {
+			const linkWithEmptyBadges = {
+				url: 'https://example.com/my-page',
+				title: 'My Test Page',
+				badges: [],
+			};
+
+			render( <LinkControl value={ linkWithEmptyBadges } /> );
+
+			const linkPreview = screen.getByRole( 'group', {
+				name: 'Manage link',
+			} );
+
+			// eslint-disable-next-line testing-library/no-node-access
+			const badgesContainer = linkPreview.querySelector(
+				'.block-editor-link-control__preview-badges'
+			);
+
+			expect( badgesContainer ).not.toBeInTheDocument();
+		} );
+	} );
+} );
diff --git a/packages/block-library/src/navigation-link/edit.js b/packages/block-library/src/navigation-link/edit.js
index 1b2d94ebe99003..81b5b53b59396a 100644
--- a/packages/block-library/src/navigation-link/edit.js
+++ b/packages/block-library/src/navigation-link/edit.js
@@ -167,10 +167,11 @@ export default function NavigationLinkEdit( {
 	const { getBlocks } = useSelect( blockEditorStore );
 
 	// URL binding logic
-	const { hasUrlBinding, isBoundEntityAvailable } = useEntityBinding( {
-		clientId,
-		attributes,
-	} );
+	const { hasUrlBinding, isBoundEntityAvailable, entityRecord } =
+		useEntityBinding( {
+			clientId,
+			attributes,
+		} );
 
 	const handleLinkChange = useHandleLinkChange( {
 		clientId,
@@ -462,6 +463,11 @@ export default function NavigationLinkEdit( {
 							ref={ linkUIref }
 							clientId={ clientId }
 							link={ attributes }
+							entity={ {
+								entityRecord,
+								hasBinding: hasUrlBinding,
+								isEntityAvailable: isBoundEntityAvailable,
+							} }
 							onClose={ () => {
 								setIsLinkOpen( false );
 								// If there is no link and no binding, remove the auto-inserted block.
diff --git a/packages/block-library/src/navigation-link/link-ui/index.js b/packages/block-library/src/navigation-link/link-ui/index.js
index dc111919e37281..517dce248abc77 100644
--- a/packages/block-library/src/navigation-link/link-ui/index.js
+++ b/packages/block-library/src/navigation-link/link-ui/index.js
@@ -27,7 +27,7 @@ import { isURL } from '@wordpress/url';
  */
 import { LinkUIPageCreator } from './page-creator';
 import LinkUIBlockInserter from './block-inserter';
-import { useEntityBinding } from '../shared/use-entity-binding';
+import { useEntityBinding, useLinkPreview } from '../shared';
 
 /**
  * Given the Link block's type attribute, return the query params to give to
@@ -72,6 +72,17 @@ export function getSuggestionsQuery( type, kind ) {
 
 function UnforwardedLinkUI( props, ref ) {
 	const { label, url, opensInNewTab, type, kind, id } = props.link;
+
+	const { entityRecord, hasBinding, isEntityAvailable } = props.entity || {};
+
+	const { image, badges } = useLinkPreview( {
+		url,
+		entityRecord,
+		type,
+		hasBinding,
+		isEntityAvailable,
+	} );
+
 	const { clientId } = props;
 	const postType = type || 'page';
 
@@ -106,8 +117,10 @@ function UnforwardedLinkUI( props, ref ) {
 			kind,
 			type,
 			id,
+			image,
+			badges,
 		} ),
-		[ label, opensInNewTab, url, kind, type, id ]
+		[ label, opensInNewTab, url, kind, type, id, image, badges ]
 	);
 
 	const handlePageCreated = ( pageLink ) => {
diff --git a/packages/block-library/src/navigation-link/shared/controls.js b/packages/block-library/src/navigation-link/shared/controls.js
index d703cf6a059567..1ba79ee931b57c 100644
--- a/packages/block-library/src/navigation-link/shared/controls.js
+++ b/packages/block-library/src/navigation-link/shared/controls.js
@@ -115,38 +115,6 @@ export function Controls( { attributes, setAttributes, clientId } ) {
 		setAttributes,
 	} );
 
-	const linkTitle =
-		entityRecord?.title?.rendered ||
-		entityRecord?.title ||
-		entityRecord?.name;
-
-	const linkImage = useSelect(
-		( select ) => {
-			// Only fetch for post-type entities with featured media
-			if ( ! entityRecord?.featured_media ) {
-				return null;
-			}
-
-			const { getEntityRecord } = select( coreStore );
-
-			// Get the media entity to fetch the image URL
-			const media = getEntityRecord(
-				'postType',
-				'attachment',
-				entityRecord.featured_media
-			);
-
-			// Return the thumbnail or medium size URL, fallback to source_url
-			return (
-				media?.media_details?.sizes?.thumbnail?.source_url ||
-				media?.media_details?.sizes?.medium?.source_url ||
-				media?.source_url ||
-				null
-			);
-		},
-		[ entityRecord?.featured_media ]
-	);
-
 	const onNavigateToEntityRecord = useSelect(
 		( select ) =>
 			select( blockEditorStore ).getSettings().onNavigateToEntityRecord,
@@ -168,10 +136,8 @@ export function Controls( { attributes, setAttributes, clientId } ) {
 
 	const preview = useLinkPreview( {
 		url,
-		title: linkTitle,
-		image: linkImage,
+		entityRecord,
 		type: attributes.type,
-		entityStatus: entityRecord?.status,
 		hasBinding: hasUrlBinding,
 		isEntityAvailable: isBoundEntityAvailable,
 	} );
diff --git a/packages/block-library/src/navigation-link/shared/index.js b/packages/block-library/src/navigation-link/shared/index.js
index c0b0273057468c..49777b0470789d 100644
--- a/packages/block-library/src/navigation-link/shared/index.js
+++ b/packages/block-library/src/navigation-link/shared/index.js
@@ -18,3 +18,4 @@ export { InvalidDraftDisplay } from './invalid-draft-display';
 export { useEnableLinkStatusValidation } from './use-enable-link-status-validation';
 export { useIsDraggingWithin } from './use-is-dragging-within';
 export { selectLabelText } from './select-label-text';
+export { useLinkPreview } from './use-link-preview';
diff --git a/packages/block-library/src/navigation-link/shared/test/use-link-preview.test.js b/packages/block-library/src/navigation-link/shared/test/use-link-preview.test.js
index 44616a244bc8db..2fbe1796afce39 100644
--- a/packages/block-library/src/navigation-link/shared/test/use-link-preview.test.js
+++ b/packages/block-library/src/navigation-link/shared/test/use-link-preview.test.js
@@ -1,7 +1,53 @@
+/**
+ * @jest-environment jsdom
+ */
+
+/**
+ * External dependencies
+ */
+import { renderHook } from '@testing-library/react';
+
+/**
+ * WordPress dependencies
+ */
+import { useSelect } from '@wordpress/data';
+
+// Mock useRemoteUrlData from block-editor
+const mockUseRemoteUrlData = jest.fn();
+
+jest.mock( '@wordpress/block-editor', () => ( {
+	privateApis: {},
+	store: {},
+} ) );
+
+// Mock the unlock function to return useRemoteUrlData, isHashLink, and isRelativePath
+jest.mock( '../../../lock-unlock', () => ( {
+	unlock: jest.fn( () => ( {
+		useRemoteUrlData: ( ...args ) => mockUseRemoteUrlData( ...args ),
+		isHashLink: ( url ) => url?.startsWith( '#' ),
+		isRelativePath: ( url ) =>
+			url?.startsWith( '/' ) && ! url?.startsWith( '//' ),
+	} ) ),
+} ) );
+
 /**
  * Internal dependencies
  */
-import { computeDisplayUrl, computeBadges } from '../use-link-preview';
+import {
+	computeDisplayUrl,
+	computeBadges,
+	useLinkPreview,
+} from '../use-link-preview';
+
+// Mock @wordpress/data
+jest.mock( '@wordpress/data', () => ( {
+	useSelect: jest.fn(),
+} ) );
+
+// Mock @wordpress/core-data
+jest.mock( '@wordpress/core-data', () => ( {
+	store: {},
+} ) );
 
 describe( 'computeDisplayUrl', () => {
 	describe( 'external links', () => {
@@ -250,3 +296,235 @@ it( 'should show "Page" badge for internal custom links', () => {
 		intent: 'default',
 	} );
 } );
+
+describe( 'useLinkPreview', () => {
+	beforeEach( () => {
+		jest.clearAllMocks();
+		mockUseRemoteUrlData.mockReturnValue( { richData: null } );
+		useSelect.mockReturnValue( null );
+	} );
+
+	describe( 'title computation', () => {
+		it( 'should use entityRecord.title.rendered when available', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com',
+					entityRecord: { title: { rendered: 'Test Page' } },
+					type: 'page',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			expect( result.current.title ).toBe( 'Test Page' );
+		} );
+
+		it( 'should use entityRecord.title string when rendered not available', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com',
+					entityRecord: { title: 'Test Category' },
+					type: 'category',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			expect( result.current.title ).toBe( 'Test Category' );
+		} );
+
+		it( 'should use entityRecord.name for taxonomy terms', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com',
+					entityRecord: { name: 'Test Tag' },
+					type: 'tag',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			expect( result.current.title ).toBe( 'Test Tag' );
+		} );
+
+		it( 'should use richData title when entity title not available', () => {
+			mockUseRemoteUrlData.mockReturnValue( {
+				richData: { title: 'External Site Title' },
+			} );
+
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://external.com',
+					entityRecord: null,
+					type: null,
+					hasBinding: false,
+					isEntityAvailable: false,
+				} )
+			);
+
+			expect( result.current.title ).toBe( 'External Site Title' );
+		} );
+
+		it( 'should use URL when no title available', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com/page',
+					entityRecord: null,
+					type: null,
+					hasBinding: false,
+					isEntityAvailable: false,
+				} )
+			);
+
+			expect( result.current.title ).toBe( 'https://example.com/page' );
+		} );
+
+		it( 'should return "Add link" when no URL provided', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: '',
+					entityRecord: null,
+					type: null,
+					hasBinding: false,
+					isEntityAvailable: false,
+				} )
+			);
+
+			expect( result.current.title ).toBe( 'Add link' );
+		} );
+	} );
+
+	describe( 'URL computation', () => {
+		it( 'should return a URL string', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com/about',
+					entityRecord: null,
+					type: 'page',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			expect( typeof result.current.url ).toBe( 'string' );
+			expect( result.current.url.length ).toBeGreaterThan( 0 );
+		} );
+	} );
+
+	describe( 'image computation', () => {
+		it( 'should fetch featured image when featured_media is available', () => {
+			const mockMedia = {
+				media_details: {
+					sizes: {
+						thumbnail: {
+							source_url: 'https://example.com/thumb.jpg',
+						},
+					},
+				},
+			};
+
+			useSelect.mockImplementation( ( callback ) =>
+				callback( () => ( {
+					getEntityRecord: () => mockMedia,
+				} ) )
+			);
+
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com',
+					entityRecord: { featured_media: 123 },
+					type: 'page',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			expect( result.current.image ).toBe(
+				'https://example.com/thumb.jpg'
+			);
+		} );
+
+		it( 'should return null when no featured_media', () => {
+			useSelect.mockReturnValue( null );
+
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com',
+					entityRecord: { title: 'Test' },
+					type: 'page',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			expect( result.current.image ).toBeNull();
+		} );
+	} );
+
+	describe( 'badges computation', () => {
+		it( 'should show "No link selected" badge when no URL', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: '',
+					entityRecord: null,
+					type: null,
+					hasBinding: false,
+					isEntityAvailable: false,
+				} )
+			);
+
+			expect( result.current.badges ).toContainEqual( {
+				label: 'No link selected',
+				intent: 'error',
+			} );
+		} );
+
+		it( 'should show entity type badge when type is provided', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com/page',
+					entityRecord: { title: 'Test' },
+					type: 'page',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			// Should have at least one badge
+			expect( result.current.badges.length ).toBeGreaterThan( 0 );
+		} );
+
+		it( 'should show "Missing" badge when entity is not available', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com',
+					entityRecord: null,
+					type: 'page',
+					hasBinding: true,
+					isEntityAvailable: false,
+				} )
+			);
+
+			expect( result.current.badges ).toContainEqual( {
+				label: 'Missing page',
+				intent: 'error',
+			} );
+		} );
+
+		it( 'should include badges when entity has status', () => {
+			const { result } = renderHook( () =>
+				useLinkPreview( {
+					url: 'https://example.com/post',
+					entityRecord: { status: 'draft', title: 'Test' },
+					type: 'post',
+					hasBinding: false,
+					isEntityAvailable: true,
+				} )
+			);
+
+			// Just verify badges array exists and has items
+			expect( Array.isArray( result.current.badges ) ).toBe( true );
+			expect( result.current.badges.length ).toBeGreaterThan( 0 );
+		} );
+	} );
+} );
diff --git a/packages/block-library/src/navigation-link/shared/use-link-preview.js b/packages/block-library/src/navigation-link/shared/use-link-preview.js
index 8fd2bda2da0108..b81096ee5ec47e 100644
--- a/packages/block-library/src/navigation-link/shared/use-link-preview.js
+++ b/packages/block-library/src/navigation-link/shared/use-link-preview.js
@@ -161,20 +161,16 @@ export function computeBadges( {
  *
  * @param {Object}  options                   - Options object
  * @param {string}  options.url               - Link URL
- * @param {string}  options.title             - Link title (from entity or rich data)
- * @param {string}  options.image             - Link image URL
  * @param {string}  options.type              - Entity type (page, post, etc.)
- * @param {string}  options.entityStatus      - Entity status (publish, draft, etc.)
+ * @param {Object}  options.entityRecord      - Entity record
  * @param {boolean} options.hasBinding        - Whether link has entity binding
  * @param {boolean} options.isEntityAvailable - Whether bound entity exists
  * @return {Object} Preview data object with title, url, image, and badges
  */
 export function useLinkPreview( {
 	url,
-	title,
-	image,
+	entityRecord,
 	type,
-	entityStatus,
 	hasBinding,
 	isEntityAvailable,
 } ) {
@@ -187,6 +183,11 @@ export function useLinkPreview( {
 		return siteEntity?.url;
 	}, [] );
 
+	const title =
+		entityRecord?.title?.rendered ||
+		entityRecord?.title ||
+		entityRecord?.name;
+
 	// Fetch rich URL data if we don't have a title. Internal links should have passed a title.
 	const { richData } = useRemoteUrlData( title ? null : url );
 
@@ -196,12 +197,39 @@ export function useLinkPreview( {
 		siteUrl,
 	} );
 
+	const image = useSelect(
+		( select ) => {
+			// Only fetch for post-type entities with featured media
+			if ( ! entityRecord?.featured_media ) {
+				return null;
+			}
+
+			const { getEntityRecord } = select( coreDataStore );
+
+			// Get the media entity to fetch the image URL
+			const media = getEntityRecord(
+				'postType',
+				'attachment',
+				entityRecord.featured_media
+			);
+
+			// Return the thumbnail or medium size URL, fallback to source_url
+			return (
+				media?.media_details?.sizes?.thumbnail?.source_url ||
+				media?.media_details?.sizes?.medium?.source_url ||
+				media?.source_url ||
+				null
+			);
+		},
+		[ entityRecord?.featured_media ]
+	);
+
 	// Compute badges
 	const badges = computeBadges( {
 		url,
 		type,
 		isExternal,
-		entityStatus,
+		entityStatus: entityRecord?.status,
 		hasBinding,
 		isEntityAvailable,
 	} );
diff --git a/packages/block-library/src/navigation-submenu/edit.js b/packages/block-library/src/navigation-submenu/edit.js
index 9e1dcce14b63d4..0e461a90dfc18e 100644
--- a/packages/block-library/src/navigation-submenu/edit.js
+++ b/packages/block-library/src/navigation-submenu/edit.js
@@ -92,7 +92,13 @@ export default function NavigationSubmenuEdit( {
 		blockEditingMode !== 'default' ? true : submenuVisibility === 'click';
 
 	// URL binding logic
-	const { clearBinding, createBinding } = useEntityBinding( {
+	const {
+		clearBinding,
+		createBinding,
+		hasUrlBinding,
+		isBoundEntityAvailable,
+		entityRecord,
+	} = useEntityBinding( {
 		clientId,
 		attributes,
 	} );
@@ -378,6 +384,11 @@ export default function NavigationSubmenuEdit( {
 						<LinkUI
 							clientId={ clientId }
 							link={ attributes }
+							entity={ {
+								entityRecord,
+								hasBinding: hasUrlBinding,
+								isEntityAvailable: isBoundEntityAvailable,
+							} }
 							onClose={ () => {
 								setIsLinkOpen( false );
 							} }