diff --git a/packages/block-library/src/navigation-link/shared/index.js b/packages/block-library/src/navigation-link/shared/index.js
index f51728c8b7bfcd..9e1d52a73c2b09 100644
--- a/packages/block-library/src/navigation-link/shared/index.js
+++ b/packages/block-library/src/navigation-link/shared/index.js
@@ -7,5 +7,8 @@
 
 export { Controls } from './controls';
 export { updateAttributes } from './update-attributes';
-export { useEntityBinding } from './use-entity-binding';
+export {
+	useEntityBinding,
+	buildNavigationLinkEntityBinding,
+} from './use-entity-binding';
 export { LinkUI } from '../link-ui';
diff --git a/packages/block-library/src/navigation-link/shared/test/use-entity-binding.js b/packages/block-library/src/navigation-link/shared/test/use-entity-binding.js
index 31636c9e8cb8ae..060e3eb715cdd5 100644
--- a/packages/block-library/src/navigation-link/shared/test/use-entity-binding.js
+++ b/packages/block-library/src/navigation-link/shared/test/use-entity-binding.js
@@ -10,7 +10,10 @@ import { renderHook, act } from '@testing-library/react';
 /**
  * Internal dependencies
  */
-import { useEntityBinding } from '../use-entity-binding';
+import {
+	useEntityBinding,
+	buildNavigationLinkEntityBinding,
+} from '../use-entity-binding';
 
 // Mock the entire @wordpress/block-editor module
 jest.mock( '@wordpress/block-editor', () => ( {
@@ -276,160 +279,62 @@ describe( 'useEntityBinding', () => {
 		} );
 	} );
 
-	it( 'should create core/term-data binding when createBinding is called for taxonomy', () => {
-		const attributes = {
-			metadata: {},
-			id: null,
-			kind: 'taxonomy',
-		};
-
-		const { result } = renderHook( () =>
-			useEntityBinding( {
-				clientId: 'test-client-id',
-				attributes,
-			} )
-		);
-
-		act( () => {
-			result.current.createBinding();
-		} );
-
-		expect( mockUpdateBlockBindings ).toHaveBeenCalledWith( {
-			url: {
-				source: 'core/term-data',
-				args: {
-					key: 'link',
-				},
-			},
-		} );
-	} );
-
-	describe( 'clearBinding behavior', () => {
-		it( 'should call updateBlockBindings when clearBinding is called and valid binding exists', () => {
-			const attributes = {
-				metadata: {
-					bindings: {
-						url: {
-							source: 'core/post-data',
-							args: { key: 'link' },
-						},
-					},
+	describe( 'buildNavigationLinkEntityBinding', () => {
+		it( 'returns correct binding for post-type', () => {
+			const binding = buildNavigationLinkEntityBinding( 'post-type' );
+			expect( binding ).toEqual( {
+				url: {
+					source: 'core/post-data',
+					args: { key: 'link' },
 				},
-				id: 123,
-				kind: 'post-type',
-			};
-
-			const { result } = renderHook( () =>
-				useEntityBinding( {
-					clientId: 'test-client-id',
-					attributes,
-				} )
-			);
-
-			act( () => {
-				result.current.clearBinding();
-			} );
-
-			expect( mockUpdateBlockBindings ).toHaveBeenCalledWith( {
-				url: undefined,
 			} );
 		} );
 
-		it( 'should call updateBlockBindings when clearBinding is called and valid taxonomy binding exists', () => {
-			const attributes = {
-				metadata: {
-					bindings: {
-						url: {
-							source: 'core/term-data',
-							args: { key: 'link' },
-						},
-					},
+		it( 'returns correct binding for taxonomy', () => {
+			const binding = buildNavigationLinkEntityBinding( 'taxonomy' );
+			expect( binding ).toEqual( {
+				url: {
+					source: 'core/term-data',
+					args: { key: 'link' },
 				},
-				id: 456,
-				kind: 'taxonomy',
-			};
-
-			const { result } = renderHook( () =>
-				useEntityBinding( {
-					clientId: 'test-client-id',
-					attributes,
-				} )
-			);
-
-			act( () => {
-				result.current.clearBinding();
-			} );
-
-			expect( mockUpdateBlockBindings ).toHaveBeenCalledWith( {
-				url: undefined,
 			} );
 		} );
 
-		it( 'should NOT call updateBlockBindings when clearBinding is called and binding exists but no id', () => {
-			const attributes = {
-				metadata: {
-					bindings: {
-						url: {
-							source: 'core/post-data',
-							args: { key: 'link' },
-						},
-					},
-				},
-				id: null,
-				kind: 'post-type',
-			};
-
-			const { result } = renderHook( () =>
-				useEntityBinding( {
-					clientId: 'test-client-id',
-					attributes,
-				} )
+		it( 'throws error when called without parameter', () => {
+			expect( () => {
+				buildNavigationLinkEntityBinding();
+			} ).toThrow(
+				'buildNavigationLinkEntityBinding requires a kind parameter'
 			);
-
-			act( () => {
-				result.current.clearBinding();
-			} );
-
-			expect( mockUpdateBlockBindings ).not.toHaveBeenCalled();
 		} );
 
-		it( 'should call updateBlockBindings when clearBinding is called and binding exists with any source', () => {
-			const attributes = {
-				metadata: {
-					bindings: {
-						url: {
-							source: 'core/post-data',
-							args: { key: 'link' },
-						},
-					},
-				},
-				id: 123,
-				kind: 'post-type', // Correct kind for post-data source
-			};
-
-			const { result } = renderHook( () =>
-				useEntityBinding( {
-					clientId: 'test-client-id',
-					attributes,
-				} )
-			);
+		it( 'throws error for invalid kind', () => {
+			expect( () => {
+				buildNavigationLinkEntityBinding( 'invalid-kind' );
+			} ).toThrow( 'Invalid kind "invalid-kind"' );
+		} );
 
-			act( () => {
-				result.current.clearBinding();
-			} );
+		it( 'throws error for null kind', () => {
+			expect( () => {
+				buildNavigationLinkEntityBinding( null );
+			} ).toThrow( 'Invalid kind "null"' );
+		} );
 
-			expect( mockUpdateBlockBindings ).toHaveBeenCalledWith( {
-				url: undefined,
-			} );
+		it( 'throws error for empty string', () => {
+			expect( () => {
+				buildNavigationLinkEntityBinding( '' );
+			} ).toThrow( 'Invalid kind ""' );
 		} );
-	} );
 
-	describe( 'createBinding behavior', () => {
-		it( 'should not create binding when createBinding is called without kind', () => {
+		it( 'handles invalid kind gracefully in createBinding', () => {
+			const consoleSpy = jest
+				.spyOn( console, 'warn' )
+				.mockImplementation();
+
 			const attributes = {
 				metadata: {},
 				id: null,
-				kind: null,
+				kind: 'invalid-kind',
 			};
 
 			const { result } = renderHook( () =>
@@ -443,39 +348,15 @@ describe( 'useEntityBinding', () => {
 				result.current.createBinding();
 			} );
 
-			expect( mockUpdateBlockBindings ).not.toHaveBeenCalled();
-		} );
-
-		it( 'should create binding with updated attributes when createBinding is called with updatedAttributes', () => {
-			const attributes = {
-				metadata: {},
-				id: null,
-				kind: 'post-type',
-			};
-
-			const updatedAttributes = {
-				kind: 'taxonomy',
-			};
-
-			const { result } = renderHook( () =>
-				useEntityBinding( {
-					clientId: 'test-client-id',
-					attributes,
-				} )
+			expect( consoleSpy ).toHaveBeenCalledWith(
+				'Failed to create entity binding:',
+				expect.stringContaining( 'Invalid kind "invalid-kind"' )
 			);
 
-			act( () => {
-				result.current.createBinding( updatedAttributes );
-			} );
+			// Should not call updateBlockBindings when validation fails
+			expect( mockUpdateBlockBindings ).not.toHaveBeenCalled();
 
-			expect( mockUpdateBlockBindings ).toHaveBeenCalledWith( {
-				url: {
-					source: 'core/term-data',
-					args: {
-						key: 'link',
-					},
-				},
-			} );
+			consoleSpy.mockRestore();
 		} );
 	} );
 } );
diff --git a/packages/block-library/src/navigation-link/shared/use-entity-binding.js b/packages/block-library/src/navigation-link/shared/use-entity-binding.js
index 6e164f24955e71..6dbbe8652bf8c2 100644
--- a/packages/block-library/src/navigation-link/shared/use-entity-binding.js
+++ b/packages/block-library/src/navigation-link/shared/use-entity-binding.js
@@ -4,6 +4,46 @@
 import { useCallback } from '@wordpress/element';
 import { useBlockBindingsUtils } from '@wordpress/block-editor';
 
+/**
+ * Builds entity binding configuration for navigation link URLs.
+ * This function generates the structure used to bind navigation link URLs to their entity sources.
+ *
+ * Using a function instead of a constant allows for future enhancements where the binding
+ * might need dynamic data (e.g., entity ID, context-specific arguments).
+ *
+ * @param {('post-type'|'taxonomy')} kind - The kind of entity. Only 'post-type' and 'taxonomy' are supported.
+ * @return {Object} Entity binding configuration object
+ * @throws {Error} If kind is not 'post-type' or 'taxonomy'
+ */
+export function buildNavigationLinkEntityBinding( kind ) {
+	// Validate kind parameter exists
+	if ( kind === undefined ) {
+		throw new Error(
+			'buildNavigationLinkEntityBinding requires a kind parameter. ' +
+				'Only "post-type" and "taxonomy" are supported.'
+		);
+	}
+
+	// Validate kind parameter value
+	if ( kind !== 'post-type' && kind !== 'taxonomy' ) {
+		throw new Error(
+			`Invalid kind "${ kind }" provided to buildNavigationLinkEntityBinding. ` +
+				`Only 'post-type' and 'taxonomy' are supported.`
+		);
+	}
+
+	const source = kind === 'taxonomy' ? 'core/term-data' : 'core/post-data';
+
+	return {
+		url: {
+			source,
+			args: {
+				key: 'link',
+			},
+		},
+	};
+}
+
 /**
  * Shared hook for entity binding functionality in Navigation blocks.
  *
@@ -42,19 +82,17 @@ export function useEntityBinding( { clientId, attributes } ) {
 				return;
 			}
 
-			// Default to post-type in case there is a need to support dynamic kinds
-			// in the future.
-			const source =
-				kindToUse === 'taxonomy' ? 'core/term-data' : 'core/post-data';
-
-			updateBlockBindings( {
-				url: {
-					source,
-					args: {
-						key: 'link',
-					},
-				},
-			} );
+			try {
+				const binding = buildNavigationLinkEntityBinding( kindToUse );
+				updateBlockBindings( binding );
+			} catch ( error ) {
+				// eslint-disable-next-line no-console
+				console.warn(
+					'Failed to create entity binding:',
+					error.message
+				);
+				// Don't create binding if validation fails
+			}
 		},
 		[ updateBlockBindings, kind, id ]
 	);
diff --git a/packages/block-library/src/page-list/test/convert-to-links-modal.js b/packages/block-library/src/page-list/test/convert-to-navigation-links.js
similarity index 87%
rename from packages/block-library/src/page-list/test/convert-to-links-modal.js
rename to packages/block-library/src/page-list/test/convert-to-navigation-links.js
index 985bed8381cfaf..a3cbdc8f184ad5 100644
--- a/packages/block-library/src/page-list/test/convert-to-links-modal.js
+++ b/packages/block-library/src/page-list/test/convert-to-navigation-links.js
@@ -4,6 +4,16 @@
 
 import { convertToNavigationLinks } from '../use-convert-to-navigation-links';
 
+// Expected entity binding structure for navigation links
+const EXPECTED_ENTITY_BINDING = {
+	url: {
+		source: 'core/post-data',
+		args: {
+			key: 'link',
+		},
+	},
+};
+
 // Mock createBlock to avoid creating the blocks in test environment
 // as convertToNavigationLinks calls this method internally.
 jest.mock( '@wordpress/blocks', () => {
@@ -117,6 +127,9 @@ describe( 'page list convert to links', () => {
 						label: 'Sample Page',
 						type: 'page',
 						url: 'http://wordpress.local/sample-page/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [],
 					name: 'core/navigation-link',
@@ -128,6 +141,9 @@ describe( 'page list convert to links', () => {
 						label: 'About',
 						type: 'page',
 						url: 'http://wordpress.local/about/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [
 						{
@@ -137,6 +153,9 @@ describe( 'page list convert to links', () => {
 								label: 'About Sub 1',
 								type: 'page',
 								url: 'http://wordpress.local/about/about-sub-1/',
+								metadata: {
+									bindings: EXPECTED_ENTITY_BINDING,
+								},
 							},
 							innerBlocks: [],
 							name: 'core/navigation-link',
@@ -148,6 +167,9 @@ describe( 'page list convert to links', () => {
 								label: 'About Sub 2',
 								type: 'page',
 								url: 'http://wordpress.local/about/about-sub-2/',
+								metadata: {
+									bindings: EXPECTED_ENTITY_BINDING,
+								},
 							},
 							innerBlocks: [],
 							name: 'core/navigation-link',
@@ -162,6 +184,9 @@ describe( 'page list convert to links', () => {
 						label: 'Contact Page',
 						type: 'page',
 						url: 'http://wordpress.local/contact-page/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [],
 					name: 'core/navigation-link',
@@ -173,6 +198,9 @@ describe( 'page list convert to links', () => {
 						label: 'Test',
 						type: 'page',
 						url: 'http://wordpress.local/test/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [
 						{
@@ -182,6 +210,9 @@ describe( 'page list convert to links', () => {
 								label: 'Test Sub',
 								type: 'page',
 								url: 'http://wordpress.local/test/test-sub/',
+								metadata: {
+									bindings: EXPECTED_ENTITY_BINDING,
+								},
 							},
 							innerBlocks: [
 								{
@@ -191,6 +222,9 @@ describe( 'page list convert to links', () => {
 										label: 'Test Sub Sub',
 										type: 'page',
 										url: 'http://wordpress.local/test/test-sub/test-sub-sub/',
+										metadata: {
+											bindings: EXPECTED_ENTITY_BINDING,
+										},
 									},
 									innerBlocks: [],
 									name: 'core/navigation-link',
@@ -297,6 +331,9 @@ describe( 'page list convert to links', () => {
 						label: 'Sample Page',
 						type: 'page',
 						url: 'http://wordpress.local/sample-page/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [],
 					name: 'core/navigation-link',
@@ -308,6 +345,9 @@ describe( 'page list convert to links', () => {
 						label: 'About',
 						type: 'page',
 						url: 'http://wordpress.local/about/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [
 						{
@@ -317,6 +357,9 @@ describe( 'page list convert to links', () => {
 								label: 'About Sub 1',
 								type: 'page',
 								url: 'http://wordpress.local/about/about-sub-1/',
+								metadata: {
+									bindings: EXPECTED_ENTITY_BINDING,
+								},
 							},
 							innerBlocks: [],
 							name: 'core/navigation-link',
@@ -328,6 +371,9 @@ describe( 'page list convert to links', () => {
 								label: 'About Sub 2',
 								type: 'page',
 								url: 'http://wordpress.local/about/about-sub-2/',
+								metadata: {
+									bindings: EXPECTED_ENTITY_BINDING,
+								},
 							},
 							innerBlocks: [],
 							name: 'core/navigation-link',
@@ -342,6 +388,9 @@ describe( 'page list convert to links', () => {
 						label: 'Contact Page',
 						type: 'page',
 						url: 'http://wordpress.local/contact-page/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [],
 					name: 'core/navigation-link',
@@ -353,6 +402,9 @@ describe( 'page list convert to links', () => {
 						label: 'Test',
 						type: 'page',
 						url: 'http://wordpress.local/test/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [
 						{
@@ -362,6 +414,9 @@ describe( 'page list convert to links', () => {
 								label: 'Test Sub',
 								type: 'page',
 								url: 'http://wordpress.local/test/test-sub/',
+								metadata: {
+									bindings: EXPECTED_ENTITY_BINDING,
+								},
 							},
 							innerBlocks: [
 								{
@@ -371,6 +426,9 @@ describe( 'page list convert to links', () => {
 										label: 'Test Sub Sub',
 										type: 'page',
 										url: 'http://wordpress.local/test/test-sub/test-sub-sub/',
+										metadata: {
+											bindings: EXPECTED_ENTITY_BINDING,
+										},
 									},
 									innerBlocks: [],
 									name: 'core/navigation-link',
@@ -481,6 +539,9 @@ describe( 'page list convert to links', () => {
 						label: 'About Sub 1',
 						type: 'page',
 						url: 'http://wordpress.local/about/about-sub-1/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [],
 					name: 'core/navigation-link',
@@ -492,6 +553,9 @@ describe( 'page list convert to links', () => {
 						label: 'About Sub 2',
 						type: 'page',
 						url: 'http://wordpress.local/about/about-sub-2/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [],
 					name: 'core/navigation-link',
@@ -511,6 +575,9 @@ describe( 'page list convert to links', () => {
 						label: 'Test Sub Sub',
 						type: 'page',
 						url: 'http://wordpress.local/test/test-sub/test-sub-sub/',
+						metadata: {
+							bindings: EXPECTED_ENTITY_BINDING,
+						},
 					},
 					innerBlocks: [],
 					name: 'core/navigation-link',
diff --git a/packages/block-library/src/page-list/use-convert-to-navigation-links.js b/packages/block-library/src/page-list/use-convert-to-navigation-links.js
index 4cbc69d6e6de66..a32a334c29ef2c 100644
--- a/packages/block-library/src/page-list/use-convert-to-navigation-links.js
+++ b/packages/block-library/src/page-list/use-convert-to-navigation-links.js
@@ -5,6 +5,11 @@ import { createBlock } from '@wordpress/blocks';
 import { useDispatch } from '@wordpress/data';
 import { store as blockEditorStore } from '@wordpress/block-editor';
 
+/**
+ * Internal dependencies
+ */
+import { buildNavigationLinkEntityBinding } from '../navigation-link/shared';
+
 /**
  * Converts an array of pages into a nested array of navigation link blocks.
  *
@@ -13,6 +18,7 @@ import { store as blockEditorStore } from '@wordpress/block-editor';
  * @return {Array} A nested array of navigation link blocks.
  */
 function createNavigationLinks( pages = [] ) {
+	const POST_TYPE_KIND = 'post-type';
 	const linkMap = {};
 	const navigationLinks = [];
 	pages.forEach( ( { id, title, link: url, type, parent } ) => {
@@ -25,7 +31,11 @@ function createNavigationLinks( pages = [] ) {
 				label: title.rendered,
 				url,
 				type,
-				kind: 'post-type',
+				kind: POST_TYPE_KIND,
+				metadata: {
+					bindings:
+						buildNavigationLinkEntityBinding( POST_TYPE_KIND ),
+				},
 			},
 			innerBlocks
 		);
diff --git a/test/e2e/specs/editor/blocks/navigation.spec.js b/test/e2e/specs/editor/blocks/navigation.spec.js
index 01ee0223d88d66..da035949422dcd 100644
--- a/test/e2e/specs/editor/blocks/navigation.spec.js
+++ b/test/e2e/specs/editor/blocks/navigation.spec.js
@@ -1125,6 +1125,105 @@ test.describe( 'Navigation block', () => {
 			await expect( linkInput ).toBeEnabled();
 			await expect( linkInput ).toHaveValue( testPage1.link );
 		} );
+
+		test( 'Page List converts to Navigation Links with entity bindings', async ( {
+			editor,
+			page,
+			admin,
+			requestUtils,
+		} ) => {
+			// Step 1: Create menu with Page List block
+			const menu = await requestUtils.createNavigationMenu( {
+				title: 'Test Menu with Page List',
+				content: '<!-- wp:page-list /-->',
+			} );
+
+			// Step 2: Insert Navigation block
+			await admin.createNewPost();
+
+			await editor.insertBlock( {
+				name: 'core/navigation',
+				attributes: {
+					ref: menu.id,
+				},
+			} );
+
+			// Step 3: Verify Page List is present
+			const pageListBlock = editor.canvas.getByRole( 'document', {
+				name: 'Block: Page List',
+			} );
+			await expect( pageListBlock ).toBeVisible();
+
+			// Verify pages are shown in the list
+			const pageItems = pageListBlock.locator( 'li' );
+
+			// Wait for Page List to load pages
+			await pageItems.first().waitFor( { state: 'visible' } );
+			const itemCount = await pageItems.count();
+			expect( itemCount ).toBeGreaterThan( 0 );
+
+			// Step 4: Convert Page List using Edit button
+			// Select the Page List block
+			await editor.selectBlocks( pageListBlock );
+
+			// Try using the toolbar Edit button instead
+			const editButton = page
+				.getByRole( 'button', { name: 'Edit' } )
+				.first();
+			await expect( editButton ).toBeVisible();
+
+			await editButton.click();
+
+			// Wait for modal and approve conversion
+			await expect(
+				page.getByRole( 'dialog', { name: 'Edit Page List' } )
+			).toBeVisible();
+
+			await page.getByRole( 'button', { name: 'Edit' } ).last().click();
+
+			// Wait for conversion - check that Page List is gone
+			await expect( pageListBlock ).toBeHidden();
+
+			// Step 5: Verify conversion to entity links
+
+			// Get Navigation block
+			const navBlock = editor.canvas.getByRole( 'document', {
+				name: 'Block: Navigation',
+			} );
+
+			// Should have Navigation Link blocks
+			const navLinkBlocks = navBlock.getByRole( 'document', {
+				name: 'Block: Page Link',
+			} );
+
+			const linkCount = await navLinkBlocks.count();
+			expect( linkCount ).toBeGreaterThan( 0 );
+
+			// Select first link and verify binding
+			const navLinkBlock = navLinkBlocks.first();
+			await editor.selectBlocks( navLinkBlock );
+
+			// Open sidebar to check Link field
+			await editor.openDocumentSettingsSidebar();
+			const settingsControls = page
+				.getByRole( 'region', { name: 'Editor settings' } )
+				.getByRole( 'tabpanel', { name: 'Settings' } );
+
+			await expect( settingsControls ).toBeVisible();
+
+			// Verify Link field is disabled (indicating binding is active)
+			const linkInput = settingsControls.getByRole( 'textbox', {
+				name: 'Link',
+				description: 'Synced with the selected page',
+			} );
+
+			await expect( linkInput ).toBeDisabled();
+
+			// Verify help text is present
+			await expect(
+				settingsControls.getByText( 'Synced with the selected page.' )
+			).toBeVisible();
+		} );
 	} );
 } );