diff --git a/apps/roam/src/components/DiscourseNodeMenu.tsx b/apps/roam/src/components/DiscourseNodeMenu.tsx
index 3b6f6e1b9..0c55f7d8c 100644
--- a/apps/roam/src/components/DiscourseNodeMenu.tsx
+++ b/apps/roam/src/components/DiscourseNodeMenu.tsx
@@ -23,7 +23,7 @@ import updateBlock from "roamjs-components/writes/updateBlock";
 import { getCoordsFromTextarea } from "roamjs-components/components/CursorMenu";
 import getDiscourseNodes from "~/utils/getDiscourseNodes";
 import createDiscourseNode from "~/utils/createDiscourseNode";
-import { getNewDiscourseNodeText } from "~/utils/formatUtils";
+import { resolveNewDiscourseNodeText } from "~/utils/formatUtils";
 import { OnloadArgs } from "roamjs-components/types";
 import { formatHexColor } from "./settings/DiscourseNodeCanvasSettings";
 import posthog from "posthog-js";
@@ -126,12 +126,13 @@ const NodeMenu = ({
         if (document.activeElement === textarea) document.body.click();
 
         const createNodeAndUpdateBlock = async () => {
-          const pageName = await getNewDiscourseNodeText({
-            text: highlighted,
-            nodeType: nodeUid,
-            blockUid: targetBlockUid,
-            skipBlockUpdate: true,
-          });
+          const { text: pageName, handledByDialog } =
+            await resolveNewDiscourseNodeText({
+              text: highlighted,
+              nodeType: nodeUid,
+              blockUid: targetBlockUid,
+              skipBlockUpdate: true,
+            });
           if (!pageName) return;
 
           const latestBlockText = getTextByBlockUid(targetBlockUid);
@@ -141,11 +142,13 @@ const NodeMenu = ({
             selectionStart,
           )}[[${pageName}]]${latestBlockText.substring(selectionEnd)}`;
 
-          await createDiscourseNode({
-            text: pageName,
-            configPageUid: nodeUid,
-            extensionAPI,
-          });
+          if (!handledByDialog) {
+            await createDiscourseNode({
+              text: pageName,
+              configPageUid: nodeUid,
+              extensionAPI,
+            });
+          }
           void updateBlock({ text: newText, uid: targetBlockUid });
           posthog.capture("Discourse Node: Created via Node Menu", {
             nodeType: nodeUid,
diff --git a/apps/roam/src/utils/__tests__/formatUtils.test.ts b/apps/roam/src/utils/__tests__/formatUtils.test.ts
new file mode 100644
index 000000000..ef6a20965
--- /dev/null
+++ b/apps/roam/src/utils/__tests__/formatUtils.test.ts
@@ -0,0 +1,48 @@
+import { beforeEach, describe, expect, it, vi } from "vitest";
+import { resolveNewDiscourseNodeText } from "~/utils/formatUtils";
+import type { ModifyNodeDialogProps } from "~/components/ModifyNodeDialog";
+
+const { renderFormDialog } = vi.hoisted(() => ({
+  renderFormDialog: vi.fn<(props: ModifyNodeDialogProps) => void>(),
+}));
+
+vi.mock("roamjs-components/util/createOverlayRender", () => ({
+  default: () => renderFormDialog,
+}));
+vi.mock("roamjs-components/util/extensionApiContext", () => ({
+  default: vi.fn(() => undefined),
+}));
+vi.mock("~/components/ModifyNodeDialog", () => ({
+  default: vi.fn(),
+}));
+vi.mock("~/utils/getDiscourseNodes", () => ({
+  default: vi.fn(() => []),
+}));
+
+describe("resolveNewDiscourseNodeText", () => {
+  beforeEach(() => {
+    renderFormDialog.mockReset();
+  });
+
+  it("reports when an empty selection is handled by the creation dialog", async () => {
+    const resultPromise = resolveNewDiscourseNodeText({
+      text: "",
+      nodeType: "issue",
+      blockUid: "source-block",
+      skipBlockUpdate: true,
+    });
+    const dialogProps = renderFormDialog.mock.calls[0][0];
+
+    await dialogProps.onSuccess({
+      text: "Test issue",
+      uid: "test-issue-uid",
+      action: "create",
+    });
+    dialogProps.onClose();
+
+    await expect(resultPromise).resolves.toEqual({
+      text: "Test issue",
+      handledByDialog: true,
+    });
+  });
+});
diff --git a/apps/roam/src/utils/formatUtils.ts b/apps/roam/src/utils/formatUtils.ts
index c807edfd6..5e184c869 100644
--- a/apps/roam/src/utils/formatUtils.ts
+++ b/apps/roam/src/utils/formatUtils.ts
@@ -20,23 +20,29 @@ const renderFormDialog = createOverlayRender<ModifyNodeDialogProps>(
   ModifyNodeDialog,
 );
 
-export const getNewDiscourseNodeText = async ({
-  text,
-  nodeType,
-  blockUid,
-  skipBlockUpdate = false,
-}: {
+export type ResolvedDiscourseNodeText = {
+  text: string;
+  handledByDialog: boolean;
+};
+
+type GetNewDiscourseNodeTextArgs = {
   text: string;
   nodeType: string;
   blockUid?: string;
   skipBlockUpdate?: boolean;
-}) => {
+};
+
+export const resolveNewDiscourseNodeText = async ({
+  text,
+  nodeType,
+  blockUid,
+  skipBlockUpdate = false,
+}: GetNewDiscourseNodeTextArgs): Promise<ResolvedDiscourseNodeText> => {
   const discourseNodes = getDiscourseNodes();
   let newText = text;
-  let textFromDialog = false;
+  const handledByDialog = !text;
 
-  if (!text) {
-    textFromDialog = true;
+  if (handledByDialog) {
     newText = await new Promise<string>((resolve) => {
       let resolvedText = "";
       renderFormDialog({
@@ -57,10 +63,10 @@ export const getNewDiscourseNodeText = async ({
   }
 
   if (!newText || !newText.trim()) {
-    return "";
+    return { text: "", handledByDialog };
   }
-  if (textFromDialog) {
-    return newText;
+  if (handledByDialog) {
+    return { text: newText, handledByDialog };
   }
 
   const indexedByType = Object.fromEntries(
@@ -90,7 +96,14 @@ export const getNewDiscourseNodeText = async ({
     }
     return "";
   });
-  return formattedText;
+  return { text: formattedText, handledByDialog };
+};
+
+export const getNewDiscourseNodeText = async (
+  args: GetNewDiscourseNodeTextArgs,
+): Promise<string> => {
+  const { text } = await resolveNewDiscourseNodeText(args);
+  return text;
 };
 
 export const getReferencedNodeInFormat = ({