diff --git a/docs/CHANGELOG.md b/docs/CHANGELOG.md
index bca6f9236..0adb2fa2b 100644
--- a/docs/CHANGELOG.md
+++ b/docs/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+### 2.31.7
+
+- `Fix` - Inability to unlink text using the inline toolbar unlink action
+
 ### 2.31.6
 
 - `Fix` - Widen `sanitize` type on `BlockTool` and `BaseToolConstructable` to accept per-field `SanitizerConfig`
diff --git a/package.json b/package.json
index 3d964610b..2bc48489f 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@editorjs/editorjs",
-  "version": "2.31.6",
+  "version": "2.31.7",
   "description": "Editor.js — open source block-style WYSIWYG editor with JSON output",
   "main": "dist/editorjs.umd.js",
   "module": "dist/editorjs.mjs",
diff --git a/src/components/inline-tools/inline-tool-link.ts b/src/components/inline-tools/inline-tool-link.ts
index 0bef25c73..b881c962e 100644
--- a/src/components/inline-tools/inline-tool-link.ts
+++ b/src/components/inline-tools/inline-tool-link.ts
@@ -74,6 +74,11 @@ export default class LinkInlineTool implements InlineTool {
       input: null,
     };
 
+  /**
+   * Indicates whether the button has been clicked
+   */
+  private BUTTON_CLICKED = false;
+
   /**
    * SelectionUtils instance
    */
@@ -125,6 +130,10 @@ export default class LinkInlineTool implements InlineTool {
 
     this.nodes.button.innerHTML = IconLink;
 
+    this.nodes.button.addEventListener('click', () => {
+      this.BUTTON_CLICKED = true;
+    });
+
     return this.nodes.button;
   }
 
@@ -151,6 +160,13 @@ export default class LinkInlineTool implements InlineTool {
    * @param {Range} range - range to wrap with link
    */
   public surround(range: Range): void {
+    /**
+     * Preserve the current click state
+     */
+    const buttonClicked = this.BUTTON_CLICKED;
+
+    this.BUTTON_CLICKED = false;
+
     /**
      * Range will be null when user makes second click on the 'link icon' to close opened input
      */
@@ -171,22 +187,12 @@ export default class LinkInlineTool implements InlineTool {
       /**
        * Unlink icon pressed
        */
-      if (parentAnchor) {
-        /**
-         * If input is not opened, treat click as explicit unlink action.
-         * If input is opened (e.g., programmatic close when switching tools), avoid unlinking.
-         */
-        if (!this.inputOpened) {
-          this.selection.expandToTag(parentAnchor);
-          this.unlink();
-          this.closeActions();
-          this.checkState();
-          this.toolbar.close();
-        } else {
-          /** Only close actions without clearing saved selection to preserve user state */
-          this.closeActions(false);
-          this.checkState();
-        }
+      if (parentAnchor && buttonClicked) {
+        this.selection.expandToTag(parentAnchor);
+        this.unlink();
+        this.closeActions();
+        this.checkState();
+        this.toolbar.close();
 
         return;
       }
diff --git a/test/cypress/tests/inline-tools/link.cy.ts b/test/cypress/tests/inline-tools/link.cy.ts
index 7d3fa121a..6cd761d82 100644
--- a/test/cypress/tests/inline-tools/link.cy.ts
+++ b/test/cypress/tests/inline-tools/link.cy.ts
@@ -238,4 +238,115 @@ describe('Inline Tool Link', () => {
 
     cy.get('@windowOpen').should('be.calledWith', 'https://test.io/');
   });
+
+  it('should unlink on popover item block click', () => {
+    cy.createEditor({
+      data: {
+        blocks: [
+          {
+            type: 'paragraph',
+            data: {
+              text: 'Link text',
+            },
+          },
+        ],
+      },
+    });
+
+    cy.get('[data-cy=editorjs]')
+      .find('.ce-paragraph')
+      .selectText('Link text');
+
+    cy.get('[data-cy=editorjs]')
+      .find('[data-item-name=link]')
+      .click();
+
+    cy.get('[data-cy=editorjs]')
+      .find('.ce-inline-tool-input')
+      .type('https://test.io/')
+      .type('{enter}');
+
+    cy.get('[data-cy=editorjs]')
+      .find('div.ce-block')
+      .find('a')
+      .selectText('Link text');
+    
+    cy.get('[data-cy=editorjs]')
+      .find('[data-item-name=link]')
+      .click();
+    
+    cy.get('[data-cy=editorjs]')
+      .find('div.ce-block')
+      .find('a')
+      .should('not.exist');
+  });
+
+  it('should hide popover on selection change', () => {
+    cy.createEditor({
+      data: {
+        blocks: [
+          {
+            type: 'paragraph',
+            data: {
+              text: 'Link text',
+            },
+          },
+        ],
+      },
+    });
+
+    cy.get('[data-cy=editorjs]')
+      .find('.ce-paragraph')
+      .selectText('Link text');
+
+    cy.get('[data-cy=editorjs]')
+      .find('[data-item-name=link]')
+      .click();
+    
+    cy.get('[data-cy=editorjs]')
+      .find('.ce-paragraph')
+      .click();
+
+    cy.get('[data-cy=editorjs]')
+      .find('[data-item-name=link]')
+      .should('not.exist');
+    
+    cy.get('[data-cy=editorjs]')
+      .find('.ce-paragraph')
+      .find('span')
+      .should('not.exist');
+  });
+
+  it('should restore selection and apply formatting on other popover item block click', () => {
+    cy.createEditor({
+      data: {
+        blocks: [
+          {
+            type: 'paragraph',
+            data: {
+              text: 'Link text',
+            },
+          },
+        ],
+      },
+    });
+
+    cy.get('[data-cy=editorjs]')
+      .find('.ce-paragraph')
+      .selectText('Link text');
+
+    cy.get('[data-cy=editorjs]')
+      .find('[data-item-name=link]')
+      .click();
+
+    cy.get('[data-cy=editorjs]')
+      .find('[data-item-name=bold]')
+      .click();
+    
+    cy.get('[data-cy=editorjs]')
+      .find('div.ce-block')
+      .find('b')
+      .should('exist')
+      .and('have.text', 'Link text');
+  });
 });