diff --git a/docs/CHANGELOG.md b/docs/CHANGELOG.md
index 72acee3cb..19955d05b 100644
--- a/docs/CHANGELOG.md
+++ b/docs/CHANGELOG.md
@@ -6,6 +6,7 @@
 - `Improvement` - `paste` config supports filter functions for tag-based substitution
 - `Fix` - "Convert to" is not shown in the Inline Toolbar when there are no tools to convert to
 - `Fix` - Invoke tool `reset()` methods on `Tools.destroy()`, catching and logging any errors as warnings
+- `Fix` - Inline formatting is no longer removed when a Block is converted to, or merged into, a Tool with per-field `sanitize` rules
 
 ### 2.31.7
 
diff --git a/package.json b/package.json
index b57e61968..9e8894910 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@editorjs/editorjs",
-  "version": "2.32.0-rc.3",
+  "version": "2.32.0-rc.4",
   "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/modules/blockManager.ts b/src/components/modules/blockManager.ts
index be8e1e247..2bb80ed4a 100644
--- a/src/components/modules/blockManager.ts
+++ b/src/components/modules/blockManager.ts
@@ -9,7 +9,7 @@ import Module from '../__module';
 import $ from '../dom';
 import * as _ from '../utils';
 import Blocks from '../blocks';
-import type { BlockToolData, PasteEvent } from '../../../types';
+import type { BlockToolData, PasteEvent, ToolConfig } from '../../../types';
 import type { BlockTuneData } from '../../../types/block-tunes/block-tune-data';
 import BlockAPI from '../block/api';
 import type { BlockMutationEventMap, BlockMutationType } from '../../../types/events/block';
@@ -21,6 +21,7 @@ import { BlockChanged } from '../events';
 import { clean, sanitizeBlocks } from '../utils/sanitizer';
 import { convertStringToBlockData, isBlockConvertable } from '../utils/blocks';
 import PromiseQueue from '../utils/promise-queue';
+import type BlockToolAdapter from '../tools/block';
 
 /**
  * @typedef {BlockManager} BlockManager
@@ -502,9 +503,8 @@ export default class BlockManager extends Module {
      */
     } else if (targetBlock.mergeable && isBlockConvertable(blockToMerge, 'export') && isBlockConvertable(targetBlock, 'import')) {
       const blockToMergeDataStringified = await blockToMerge.exportDataAsString();
-      const cleanData = clean(blockToMergeDataStringified, targetBlock.tool.sanitizeConfig);
 
-      blockToMergeData = convertStringToBlockData(cleanData, targetBlock.tool.conversionConfig);
+      blockToMergeData = this.composeSanitizedBlockData(blockToMergeDataStringified, targetBlock.tool);
     }
 
     if (blockToMergeData === undefined) {
@@ -853,17 +853,9 @@ export default class BlockManager extends Module {
     const exportedData = await blockToConvert.exportDataAsString();
 
     /**
-     * Clean exported data with replacing sanitizer config
+     * Now using Conversion Config "import" we compose a new Block data, cleaned with the replacing Tool's sanitizer config
      */
-    const cleanData: string = clean(
-      exportedData,
-      replacingTool.sanitizeConfig
-    );
-
-    /**
-     * Now using Conversion Config "import" we compose a new Block data
-     */
-    let newBlockData = convertStringToBlockData(cleanData, replacingTool.conversionConfig, replacingTool.settings);
+    let newBlockData = this.composeSanitizedBlockData(exportedData, replacingTool, replacingTool.settings);
 
     /**
      * Optional data overrides.
@@ -927,6 +919,34 @@ export default class BlockManager extends Module {
     }));
   }
 
+  /**
+   * Composes data of the passed Tool from a string exported by another Block and sanitizes it.
+   *
+   * The Tool's sanitizer config describes its data fields ({ text: { b: true }, caption: false }),
+   * so it is applied to the composed data, as on saving. Applied to the exported string,
+   * it would treat the field names as tag names and remove every real tag.
+   *
+   * @param exportedString - string got with the Conversion Config "export"
+   * @param tool - Tool to compose data for
+   * @param toolConfig - user config of the Tool, passed to the Conversion Config "import" function
+   */
+  private composeSanitizedBlockData(exportedString: string, tool: BlockToolAdapter, toolConfig?: ToolConfig): BlockToolData {
+    /**
+     * A Tool without any sanitizer rules allows no tags. sanitizeBlocks() skips an empty config, so clean the string itself
+     */
+    if (_.isEmpty(tool.sanitizeConfig)) {
+      return convertStringToBlockData(clean(exportedString), tool.conversionConfig, toolConfig);
+    }
+
+    const data = convertStringToBlockData(exportedString, tool.conversionConfig, toolConfig);
+    const [ sanitized ] = sanitizeBlocks([ {
+      tool: tool.name,
+      data,
+    } ], tool.sanitizeConfig);
+
+    return sanitized.data;
+  }
+
   /**
    * Bind Block events
    *
diff --git a/test/cypress/tests/api/blocks.cy.ts b/test/cypress/tests/api/blocks.cy.ts
index ab97b8b5c..86a1dd0a4 100644
--- a/test/cypress/tests/api/blocks.cy.ts
+++ b/test/cypress/tests/api/blocks.cy.ts
@@ -1,5 +1,5 @@
 import type EditorJS from '../../../../types/index';
-import type { ConversionConfig, ToolboxConfig, ToolConfig } from '../../../../types';
+import type { ConversionConfig, SanitizerConfig, ToolboxConfig, ToolConfig } from '../../../../types';
 import ToolMock, { type MockToolData } from '../../fixtures/tools/ToolMock';
 import { nanoid } from 'nanoid';
 
@@ -361,6 +361,64 @@ describe('api.blocks', () => {
       });
     });
 
+    it('should keep inline formatting allowed by the target Tool sanitize config for the imported field', function () {
+      /**
+       * Mock of Tool whose sanitize config describes its data fields
+       */
+      class ConvertableTool extends ToolMock {
+        /**
+         * Specify how to import string data to this Tool
+         */
+        public static get conversionConfig(): ConversionConfig {
+          return {
+            import: 'text',
+          };
+        }
+
+        /**
+         * Rules for the "text" field: only bold is allowed
+         */
+        public static get sanitize(): SanitizerConfig {
+          return {
+            text: {
+              b: true,
+            },
+          };
+        }
+      }
+
+      const existingBlock = {
+        id: 'test-id-123',
+        type: 'paragraph',
+        data: {
+          text: 'Some <b>bold</b> and <u>underlined</u> text',
+        },
+      };
+
+      cy.createEditor({
+        tools: {
+          convertableTool: {
+            class: ConvertableTool,
+            inlineToolbar: false,
+          },
+        },
+        data: {
+          blocks: [
+            existingBlock,
+          ],
+        },
+      }).then(async (editor) => {
+        await editor.blocks.convert(existingBlock.id, 'convertableTool');
+
+        /**
+         * Check the rendered Block: saving sanitizes the data once more and would hide the data passed to the Tool
+         */
+        cy.get('[data-cy=editorjs]')
+          .find('.ce-block__content [contenteditable]')
+          .should('have.html', 'Some <b>bold</b> and underlined text');
+      });
+    });
+
     it('should throw an error if nonexisting Block id passed', function () {
       cy.createEditor({})
         .then((editor) => {