diff --git a/packages/canvas-rce/src/rce/plugins/shared/CanvasContentTray.js b/packages/canvas-rce/src/rce/plugins/shared/CanvasContentTray.js
index b08b4a0c17c..5ca875e8cba 100644
--- a/packages/canvas-rce/src/rce/plugins/shared/CanvasContentTray.js
+++ b/packages/canvas-rce/src/rce/plugins/shared/CanvasContentTray.js
@@ -289,7 +289,7 @@ export default function CanvasContentTray(props) {
             published,
           })
           setLinkText(text)
-          setPlaceholderText(text)
+          setPlaceholderText(fileName)
         } else {
           setIsEditTray(false)
         }
@@ -371,7 +371,7 @@ export default function CanvasContentTray(props) {
     const newLink = {
       ...link,
       forceRename: true,
-      text: linkText || placeholderText,
+      text: linkText,
     }
 
     bridge.insertLink(newLink)
@@ -490,7 +490,7 @@ export default function CanvasContentTray(props) {
               <LinkDisplay
                 linkText={linkText}
                 Icon={Icon}
-                placeholderText={placeholderText}
+                placeholderText={link?.title || placeholderText}
                 linkFileName={link?.title || ''}
                 published={link?.published || false}
                 handleTextChange={setLinkText}
diff --git a/packages/canvas-rce/src/rce/plugins/shared/__tests__/CanvasContentTray.test.js b/packages/canvas-rce/src/rce/plugins/shared/__tests__/CanvasContentTray.test.js
index 033f129f1e2..0df12463719 100644
--- a/packages/canvas-rce/src/rce/plugins/shared/__tests__/CanvasContentTray.test.js
+++ b/packages/canvas-rce/src/rce/plugins/shared/__tests__/CanvasContentTray.test.js
@@ -24,6 +24,7 @@ import * as fakeSource from '../../../../rcs/fake'
 import initialState from '../../../../sidebar/store/initialState'
 import sidebarHandlers from '../../../../sidebar/containers/sidebarHandlers'
 import CanvasContentTray from '../CanvasContentTray'
+import {LinkDisplay} from '../LinkDisplay'
 
 jest.useFakeTimers()
 jest.mock('../../../../canvasFileBrowser/FileBrowser', () => {
@@ -43,6 +44,9 @@ jest.mock('../../../../bridge', () => {
   original.default.insertLink = jest.fn()
   return original
 })
+jest.mock('../LinkDisplay', () => ({
+  LinkDisplay: jest.fn(() => <div data-testid="LinkDisplay" />),
+}))
 
 const storeInitialState = {
   ...initialState({
@@ -148,6 +152,17 @@ describe('RCE Plugins > CanvasContentTray', () => {
         })
       })
     })
+
+    it('sets placeholder to the current link title', async () => {
+      renderComponent()
+      await showTrayForPlugin('course_link_edit')
+      await waitFor(() => {
+        expect(LinkDisplay).toHaveBeenCalledWith(
+          expect.objectContaining({placeholderText: 'some filename'}),
+          {}
+        )
+      })
+    })
   })
 
   describe('Tray Label in course context', () => {