diff --git a/packages/block-library/src/template-part/block.json b/packages/block-library/src/template-part/block.json
index 5ad3a052cc3415..8ffb9be3fe1ce0 100644
--- a/packages/block-library/src/template-part/block.json
+++ b/packages/block-library/src/template-part/block.json
@@ -11,6 +11,9 @@
 		},
 		"tagName": {
 			"type": "string"
+		},
+		"area": {
+			"type": "string"
 		}
 	},
 	"supports": {
diff --git a/packages/block-library/src/template-part/edit/index.js b/packages/block-library/src/template-part/edit/index.js
index 999987e157be8c..fb5e5adc431a9c 100644
--- a/packages/block-library/src/template-part/edit/index.js
+++ b/packages/block-library/src/template-part/edit/index.js
@@ -28,10 +28,11 @@ import { TemplatePartAdvancedControls } from './advanced-controls';
 import { getTagBasedOnArea } from './get-tag-based-on-area';
 
 export default function TemplatePartEdit( {
-	attributes: { slug, theme, tagName, layout = {} },
+	attributes,
 	setAttributes,
 	clientId,
 } ) {
+	const { slug, theme, tagName, layout = {} } = attributes;
 	const templatePartId = theme && slug ? theme + '//' + slug : null;
 
 	const [ hasAlreadyRendered, RecursionProvider ] = useNoRecursiveRenders(
@@ -116,6 +117,7 @@ export default function TemplatePartEdit( {
 			<TagName { ...blockProps }>
 				{ isPlaceholder && (
 					<TemplatePartPlaceholder
+						area={ attributes.area }
 						setAttributes={ setAttributes }
 						innerBlocks={ innerBlocks }
 					/>
diff --git a/packages/block-library/src/template-part/edit/placeholder/index.js b/packages/block-library/src/template-part/edit/placeholder/index.js
index caaa42e35ea601..4a8462b278b9c7 100644
--- a/packages/block-library/src/template-part/edit/placeholder/index.js
+++ b/packages/block-library/src/template-part/edit/placeholder/index.js
@@ -15,26 +15,36 @@ import { store as coreStore } from '@wordpress/core-data';
 import TemplatePartSelection from '../selection';
 
 export default function TemplatePartPlaceholder( {
+	area,
 	setAttributes,
 	innerBlocks,
 } ) {
 	const { saveEntityRecord } = useDispatch( coreStore );
 	const onCreate = useCallback( async () => {
 		const title = __( 'Untitled Template Part' );
+		// If we have `area` set from block attributes, means an exposed
+		// block variation was inserted. So add this prop to the template
+		// part entity on creation. Afterwards remove `area` value from
+		// block attributes.
+		const record = {
+			title,
+			slug: 'template-part',
+			content: serialize( innerBlocks ),
+			// `area` is filterable on the server and defaults to `UNCATEGORIZED`
+			// if provided value is not allowed.
+			area,
+		};
 		const templatePart = await saveEntityRecord(
 			'postType',
 			'wp_template_part',
-			{
-				title,
-				slug: 'template-part',
-				content: serialize( innerBlocks ),
-			}
+			record
 		);
 		setAttributes( {
 			slug: templatePart.slug,
 			theme: templatePart.theme,
+			area: undefined,
 		} );
-	}, [ setAttributes ] );
+	}, [ setAttributes, area ] );
 
 	return (
 		<Placeholder
diff --git a/packages/block-library/src/template-part/edit/selection/template-part-previews.js b/packages/block-library/src/template-part/edit/selection/template-part-previews.js
index 2e1e8b9889e48c..416f19fc203d30 100644
--- a/packages/block-library/src/template-part/edit/selection/template-part-previews.js
+++ b/packages/block-library/src/template-part/edit/selection/template-part-previews.js
@@ -49,7 +49,7 @@ function TemplatePartItem( {
 	const { createSuccessNotice } = useDispatch( noticesStore );
 
 	const onClick = useCallback( () => {
-		setAttributes( { slug, theme } );
+		setAttributes( { slug, theme, area: undefined } );
 		createSuccessNotice(
 			sprintf(
 				/* translators: %s: template part title. */
diff --git a/packages/block-library/src/template-part/variations.js b/packages/block-library/src/template-part/variations.js
index 2653c0dadf96aa..52fddbb53ae22c 100644
--- a/packages/block-library/src/template-part/variations.js
+++ b/packages/block-library/src/template-part/variations.js
@@ -6,20 +6,6 @@ import { store as coreDataStore } from '@wordpress/core-data';
 import { select } from '@wordpress/data';
 import { __ } from '@wordpress/i18n';
 
-const createIsActiveBasedOnArea = ( area ) => ( { theme, slug } ) => {
-	if ( ! slug ) {
-		return false;
-	}
-
-	const entity = select( coreDataStore ).getEntityRecord(
-		'postType',
-		'wp_template_part',
-		`${ theme }//${ slug }`
-	);
-
-	return entity?.area === area;
-};
-
 const variations = [
 	{
 		name: 'header',
@@ -28,7 +14,7 @@ const variations = [
 			"The header template defines a page area that typically contains a title, logo, and main navigation. Since it's a global element it can be present across all pages and posts."
 		),
 		icon: header,
-		isActive: createIsActiveBasedOnArea( 'header' ),
+		attributes: { area: 'header' },
 		scope: [ 'inserter' ],
 	},
 	{
@@ -38,9 +24,33 @@ const variations = [
 			"The footer template defines a page area that typically contains site credits, social links, or any other combination of blocks. Since it's a global element it can be present across all pages and posts."
 		),
 		icon: footer,
-		isActive: createIsActiveBasedOnArea( 'footer' ),
+		attributes: { area: 'footer' },
 		scope: [ 'inserter' ],
 	},
 ];
 
+/**
+ * Add `isActive` function to all `Template Part` variations, if not defined.
+ * `isActive` function is used to find a variation match from a created
+ *  Block by providing its attributes.
+ */
+variations.forEach( ( variation ) => {
+	if ( variation.isActive ) return;
+	variation.isActive = ( blockAttributes, variationAttributes ) => {
+		const { area, theme, slug } = blockAttributes;
+		// We first check the `area` block attribute which is set during insertion.
+		// This property is removed on the creation of a template part.
+		if ( area ) return area === variationAttributes.area;
+		// Find a matching variation from the created template part
+		// by checking the entity's `area` property.
+		if ( ! slug ) return false;
+		const entity = select( coreDataStore ).getEntityRecord(
+			'postType',
+			'wp_template_part',
+			`${ theme }//${ slug }`
+		);
+		return entity?.area === variationAttributes.area;
+	};
+} );
+
 export default variations;