diff --git a/apps/builder/app/builder/shared/commands.ts b/apps/builder/app/builder/shared/commands.ts
index 15cd6741b3c3..b73d46d272de 100644
--- a/apps/builder/app/builder/shared/commands.ts
+++ b/apps/builder/app/builder/shared/commands.ts
@@ -36,7 +36,6 @@ import {
 import { $selectedInstancePath, selectInstance } from "~/shared/awareness";
 import { openCommandPanel } from "../features/command-panel";
 import { builderApi } from "~/shared/builder-api";
-
 import {
   findClosestNonTextualContainer,
   isInstanceDetachable,
diff --git a/apps/builder/app/canvas/features/text-editor/text-editor.tsx b/apps/builder/app/canvas/features/text-editor/text-editor.tsx
index 5bed9ea23988..a47467ecf748 100644
--- a/apps/builder/app/canvas/features/text-editor/text-editor.tsx
+++ b/apps/builder/app/canvas/features/text-editor/text-editor.tsx
@@ -97,7 +97,6 @@ import {
   insertListItemAt,
   insertTemplateAt,
 } from "~/builder/features/workspace/canvas-tools/outline/block-utils";
-import { editablePlaceholderComponents } from "~/canvas/shared/styles";
 
 const BindInstanceToNodePlugin = ({
   refs,
@@ -1580,6 +1579,7 @@ export const TextEditor = ({
   const handleNext = useEffectEvent(
     (state: EditorState, args: HandleNextParams) => {
       const rootInstanceId = $selectedPage.get()?.rootInstanceId;
+      const metas = $registeredComponentMetas.get();
 
       if (rootInstanceId === undefined) {
         return;
@@ -1589,7 +1589,7 @@ export const TextEditor = ({
       findAllEditableInstanceSelector(
         [rootInstanceId],
         instances,
-        $registeredComponentMetas.get(),
+        metas,
         editableInstanceSelectors
       );
 
@@ -1638,14 +1638,12 @@ export const TextEditor = ({
         if (instance === undefined) {
           continue;
         }
-
-        // Components with pseudo-elements (e.g., ::marker) that prevent content from collapsing
-        const componentsWithPseudoElementChildren =
-          editablePlaceholderComponents;
+        const meta = metas.get(instance.component);
 
         // opinionated: Non-collapsed elements without children can act as spacers (they have size for some reason).
         if (
-          !componentsWithPseudoElementChildren.includes(instance.component) &&
+          // Components with pseudo-elements (e.g., ::marker) that prevent content from collapsing
+          meta?.placeholder === undefined &&
           instance?.children.length === 0
         ) {
           const elt = getElementByInstanceSelector(nextSelector);
diff --git a/apps/builder/app/canvas/features/webstudio-component/webstudio-component.tsx b/apps/builder/app/canvas/features/webstudio-component/webstudio-component.tsx
index b79681bfe7f6..5d1fb76362ad 100644
--- a/apps/builder/app/canvas/features/webstudio-component/webstudio-component.tsx
+++ b/apps/builder/app/canvas/features/webstudio-component/webstudio-component.tsx
@@ -36,8 +36,6 @@ import {
   getIndexesWithinAncestors,
   type AnyComponent,
   textContentAttribute,
-  editingPlaceholderVariable,
-  editablePlaceholderVariable,
 } from "@webstudio-is/react-sdk";
 import { rawTheme } from "@webstudio-is/design-system";
 import {
@@ -68,8 +66,10 @@ import {
 } from "~/canvas/elements";
 import { Block } from "../build-mode/block";
 import { BlockTemplate } from "../build-mode/block-template";
-import { getInstanceLabel } from "~/shared/instance-utils";
-import { editablePlaceholderComponents } from "~/canvas/shared/styles";
+import {
+  editablePlaceholderAttribute,
+  editingPlaceholderVariable,
+} from "~/canvas/shared/styles";
 
 const ContentEditable = ({
   placeholder,
@@ -376,19 +376,14 @@ const getEditableComponentPlaceholder = (
   metas: Map<string, WsComponentMeta>,
   mode: "editing" | "editable"
 ) => {
-  if (!editablePlaceholderComponents.includes(instance.component)) {
+  const meta = metas.get(instance.component);
+  if (meta?.placeholder === undefined) {
     return;
   }
 
   const isContentBlockChild =
     undefined !== findBlockSelector(instanceSelector, instances);
 
-  const meta = metas.get(instance.component);
-
-  const label = meta
-    ? getInstanceLabel(instance, meta)
-    : (instance.label ?? instance.component);
-
   const isParagraph = instance.component === "Paragraph";
 
   if (isParagraph && isContentBlockChild) {
@@ -398,7 +393,7 @@ const getEditableComponentPlaceholder = (
         undefined;
   }
 
-  return label;
+  return meta.placeholder;
 };
 
 export const WebstudioComponentCanvas = forwardRef<
@@ -498,14 +493,6 @@ export const WebstudioComponentCanvas = forwardRef<
     Component = BlockTemplate;
   }
 
-  const placeholder = getEditableComponentPlaceholder(
-    instance,
-    instanceSelector,
-    instances,
-    metas,
-    "editable"
-  );
-
   const mergedProps = mergeProps(restProps, instanceProps, "delete");
 
   const props: {
@@ -514,20 +501,19 @@ export const WebstudioComponentCanvas = forwardRef<
     [selectorIdAttribute]: string;
   } & Record<string, unknown> = {
     ...mergedProps,
-    ...(placeholder !== undefined
-      ? {
-          style: {
-            ...mergedProps.style,
-            [editablePlaceholderVariable]: `'${placeholder.replaceAll("'", "\\'")}'`,
-          },
-        }
-      : null),
     // current props should override bypassed from parent
     // important for data-ws-* props
     tabIndex: 0,
     [selectorIdAttribute]: instanceSelector.join(","),
     [componentAttribute]: instance.component,
     [idAttribute]: instance.id,
+    [editablePlaceholderAttribute]: getEditableComponentPlaceholder(
+      instance,
+      instanceSelector,
+      instances,
+      metas,
+      "editable"
+    ),
   };
 
   // React ignores defaultValue changes after first render.
diff --git a/apps/builder/app/canvas/shared/styles.ts b/apps/builder/app/canvas/shared/styles.ts
index 6bfb5926bc59..21152ec7c733 100644
--- a/apps/builder/app/canvas/shared/styles.ts
+++ b/apps/builder/app/canvas/shared/styles.ts
@@ -12,13 +12,7 @@ import {
   createImageValueTransformer,
   addFontRules,
 } from "@webstudio-is/sdk";
-import {
-  collapsedAttribute,
-  idAttribute,
-  editingPlaceholderVariable,
-  editablePlaceholderVariable,
-  componentAttribute,
-} from "@webstudio-is/react-sdk";
+import { collapsedAttribute, idAttribute } from "@webstudio-is/react-sdk";
 import {
   StyleValue,
   type TransformValue,
@@ -68,31 +62,22 @@ export const mountStyles = () => {
   helpersSheet.render();
 };
 
-/**
- * Opinionated list of non collapsible components in the builder
- */
-export const editablePlaceholderComponents = [
-  "Paragraph",
-  "Heading",
-  "ListItem",
-  "Blockquote",
-  "Link",
-];
-
-const editablePlaceholderSelector = editablePlaceholderComponents
-  .map((component) => `[${componentAttribute}= "${component}"]`)
-  .join(", ");
+export const editablePlaceholderAttribute = "data-ws-editable-placeholder";
+// @todo replace with modern typed attr() when supported in all browsers
+// see the second edge case
+// https://developer.mozilla.org/en-US/docs/Web/CSS/attr#backwards_compatibility
+export const editingPlaceholderVariable = "--ws-editing-placeholder";
 
 const helperStylesShared = [
   // Display a placeholder text for elements that are editable but currently empty
-  `:is(${editablePlaceholderSelector}):empty::before {
-    content: var(${editablePlaceholderVariable}, '\\200B');
+  `:is([${editablePlaceholderAttribute}]):empty::before {
+    content: attr(${editablePlaceholderAttribute});
     opacity: 0.3;
   }
   `,
 
   // Display a placeholder text for elements that are editing but empty (Lexical adds p>br children)
-  `:is(${editablePlaceholderSelector})[contenteditable] > p:only-child:has(br:only-child) {
+  `:is([${editablePlaceholderAttribute}])[contenteditable] > p:only-child:has(br:only-child) {
     position: relative;
     display: block;
     &:after {
diff --git a/apps/builder/app/shared/instance-utils.test.tsx b/apps/builder/app/shared/instance-utils.test.tsx
index 0070bb9a35ee..5fbaf0b52822 100644
--- a/apps/builder/app/shared/instance-utils.test.tsx
+++ b/apps/builder/app/shared/instance-utils.test.tsx
@@ -1388,6 +1388,36 @@ describe("find closest insertable", () => {
     });
   });
 
+  test("finds closest container without textual placeholder", () => {
+    const { instances } = renderData(
+      <$.Body ws:id="bodyId">
+        <$.Paragraph ws:id="paragraphId"></$.Paragraph>
+      </$.Body>
+    );
+    $instances.set(instances);
+    selectInstance(["paragraphId", "bodyId"]);
+    expect(findClosestInsertable(newBoxFragment)).toEqual({
+      parentSelector: ["bodyId"],
+      position: 1,
+    });
+  });
+
+  test("finds closest container even with when parent has placeholder", () => {
+    const { instances } = renderData(
+      <$.Body ws:id="bodyId">
+        <$.Paragraph ws:id="paragraphId">
+          <$.Box ws:id="spanId" tag="span"></$.Box>
+        </$.Paragraph>
+      </$.Body>
+    );
+    $instances.set(instances);
+    selectInstance(["boxId", "paragraphId", "bodyId"]);
+    expect(findClosestInsertable(newBoxFragment)).toEqual({
+      parentSelector: ["paragraphId", "bodyId"],
+      position: 0,
+    });
+  });
+
   test("forbids inserting into :root", () => {
     const { instances } = renderData(<$.Body ws:id="bodyId"></$.Body>);
     $instances.set(instances);
diff --git a/apps/builder/app/shared/matcher.ts b/apps/builder/app/shared/matcher.ts
index 12037173f110..40a1baa179f4 100644
--- a/apps/builder/app/shared/matcher.ts
+++ b/apps/builder/app/shared/matcher.ts
@@ -376,7 +376,10 @@ export const findClosestNonTextualContainer = ({
     if (instance === undefined) {
       continue;
     }
-    let hasText = false;
+    const meta = metas.get(instance.component);
+    // placeholder exists only inside of empty instances
+    let hasText =
+      meta?.placeholder !== undefined && instance.children.length === 0;
     for (const child of instance.children) {
       if (child.type === "text" || child.type === "expression") {
         hasText = true;
@@ -392,7 +395,6 @@ export const findClosestNonTextualContainer = ({
     if (hasText) {
       continue;
     }
-    const meta = metas.get(instance.component);
     if (meta?.type === "container") {
       return index;
     }
diff --git a/packages/react-sdk/src/props.ts b/packages/react-sdk/src/props.ts
index 18c731dd23a3..8fdf2d05d37e 100644
--- a/packages/react-sdk/src/props.ts
+++ b/packages/react-sdk/src/props.ts
@@ -129,10 +129,6 @@ export const showAttribute = "data-ws-show" as const;
 export const indexAttribute = "data-ws-index" as const;
 export const collapsedAttribute = "data-ws-collapsed" as const;
 export const textContentAttribute = "data-ws-text-content" as const;
-export const editablePlaceholderVariable =
-  "--data-ws-editable-placeholder" as const;
-export const editingPlaceholderVariable =
-  "--data-ws-editing-placeholder" as const;
 
 /**
  * Copyright (c) Meta Platforms, Inc. and affiliates.
diff --git a/packages/sdk-components-react/src/blockquote.ws.ts b/packages/sdk-components-react/src/blockquote.ws.ts
index 05dff94f2df8..a9fd64c84180 100644
--- a/packages/sdk-components-react/src/blockquote.ws.ts
+++ b/packages/sdk-components-react/src/blockquote.ws.ts
@@ -61,6 +61,7 @@ const presetStyle = {
 
 export const meta: WsComponentMeta = {
   type: "container",
+  placeholder: "Blockquote",
   icon: BlockquoteIcon,
   states: defaultStates,
   presetStyle,
diff --git a/packages/sdk-components-react/src/heading.ws.ts b/packages/sdk-components-react/src/heading.ws.ts
index 822d1f66b8ff..34965c96247f 100644
--- a/packages/sdk-components-react/src/heading.ws.ts
+++ b/packages/sdk-components-react/src/heading.ws.ts
@@ -23,6 +23,7 @@ const presetStyle = {
 
 export const meta: WsComponentMeta = {
   type: "container",
+  placeholder: "Heading",
   icon: HeadingIcon,
   constraints: {
     relation: "ancestor",
diff --git a/packages/sdk-components-react/src/link.ws.ts b/packages/sdk-components-react/src/link.ws.ts
index ebfc69b73e4f..a50f51a6e857 100644
--- a/packages/sdk-components-react/src/link.ws.ts
+++ b/packages/sdk-components-react/src/link.ws.ts
@@ -21,6 +21,7 @@ const presetStyle = {
 
 export const meta: WsComponentMeta = {
   type: "container",
+  placeholder: "Link",
   icon: LinkIcon,
   constraints: {
     relation: "ancestor",
diff --git a/packages/sdk-components-react/src/list-item.ws.ts b/packages/sdk-components-react/src/list-item.ws.ts
index aca2beaa6f3c..63fcbd90a790 100644
--- a/packages/sdk-components-react/src/list-item.ws.ts
+++ b/packages/sdk-components-react/src/list-item.ws.ts
@@ -15,6 +15,7 @@ const presetStyle = {
 
 export const meta: WsComponentMeta = {
   type: "container",
+  placeholder: "List item",
   constraints: {
     // cannot use parent relation here
     // because list item can be put inside of collection or slot
diff --git a/packages/sdk-components-react/src/paragraph.ws.ts b/packages/sdk-components-react/src/paragraph.ws.ts
index 484726abba27..d81e8c2abc24 100644
--- a/packages/sdk-components-react/src/paragraph.ws.ts
+++ b/packages/sdk-components-react/src/paragraph.ws.ts
@@ -15,6 +15,7 @@ const presetStyle = {
 
 export const meta: WsComponentMeta = {
   type: "container",
+  placeholder: "Paragraph",
   icon: TextAlignLeftIcon,
   constraints: {
     relation: "ancestor",
diff --git a/packages/sdk/src/schema/component-meta.ts b/packages/sdk/src/schema/component-meta.ts
index 94409899c9ec..c836fc9a8d36 100644
--- a/packages/sdk/src/schema/component-meta.ts
+++ b/packages/sdk/src/schema/component-meta.ts
@@ -56,6 +56,11 @@ export const WsComponentMeta = z.object({
   // embed - images, videos or other embeddable components, without children
   // rich-text-child - formatted text fragment, not listed in components list
   type: z.enum(["container", "control", "embed", "rich-text-child"]),
+  /**
+   * a property used as textual placeholder when no content specified while in builder
+   * also signals to not insert components inside unless dropped explicitly
+   */
+  placeholder: z.string().optional(),
   constraints: Matchers.optional(),
   // when this field is specified component receives
   // prop with index of same components withiin specified ancestor