diff --git a/src/plugins/qmldesigner/components/materialeditor/materialeditorview.cpp b/src/plugins/qmldesigner/components/materialeditor/materialeditorview.cpp
index 49cebb3dd4b..7ab7cc090c5 100644
--- a/src/plugins/qmldesigner/components/materialeditor/materialeditorview.cpp
+++ b/src/plugins/qmldesigner/components/materialeditor/materialeditorview.cpp
@@ -74,8 +74,11 @@ MaterialEditorView::MaterialEditorView(QWidget *parent)
     connect(m_updateShortcut, &QShortcut::activated, this, &MaterialEditorView::reloadQml);
 
     m_ensureMatLibTimer.callOnTimeout([this] {
-        if (model() && model()->rewriterView() && !model()->rewriterView()->hasIncompleteTypeInformation()) {
-            materialLibraryNode(); // create the material library node
+        if (model() && model()->rewriterView() && !model()->rewriterView()->hasIncompleteTypeInformation()
+            && model()->rewriterView()->errors().isEmpty()) {
+            executeInTransaction("MaterialEditorView::MaterialEditorView", [this] {
+                ensureMaterialLibraryNode();
+            });
             m_ensureMatLibTimer.stop();
         }
     });
diff --git a/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp b/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp
index d610014d5bf..38c32f65cd8 100644
--- a/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp
+++ b/src/plugins/qmldesigner/components/navigator/navigatortreemodel.cpp
@@ -697,17 +697,6 @@ void NavigatorTreeModel::handleItemLibraryItemDrop(const QMimeData *mimeData, in
                         newQmlObjectNode.destroy();
                         return;
                     }
-                    // We can't have material initially parented if material library is created in this
-                    // same transaction (rewriter will not allow it for some reason)
-                    ModelNode matLib = m_view->modelNodeForId(Constants::MATERIAL_LIB_ID);
-                    if (!matLib.isValid()) {
-                        newQmlObjectNode.destroy();
-                        newQmlObjectNode = QmlItemNode::createQmlObjectNode(
-                                    m_view, itemLibraryEntry, QPointF(), NodeAbstractProperty(), false);
-                        newModelNode = newQmlObjectNode.modelNode();
-                        if (!newModelNode.isValid())
-                            return;
-                    }
                     m_view->assignMaterialTo3dModel(targetNode, newModelNode);
                 }
 
diff --git a/src/plugins/qmldesigner/designercore/include/abstractview.h b/src/plugins/qmldesigner/designercore/include/abstractview.h
index 18380aadb1a..2eecf8df5aa 100644
--- a/src/plugins/qmldesigner/designercore/include/abstractview.h
+++ b/src/plugins/qmldesigner/designercore/include/abstractview.h
@@ -259,6 +259,7 @@ public:
 
     void changeRootNodeType(const TypeName &type, int majorVersion, int minorVersion);
 
+    void ensureMaterialLibraryNode();
     ModelNode materialLibraryNode();
     void assignMaterialTo3dModel(const ModelNode &modelNode, const ModelNode &materialNode = {});
 
diff --git a/src/plugins/qmldesigner/designercore/model/abstractview.cpp b/src/plugins/qmldesigner/designercore/model/abstractview.cpp
index 86dab970316..6826c9ed4dd 100644
--- a/src/plugins/qmldesigner/designercore/model/abstractview.cpp
+++ b/src/plugins/qmldesigner/designercore/model/abstractview.cpp
@@ -809,16 +809,14 @@ void AbstractView::changeRootNodeType(const TypeName &type, int majorVersion, in
     m_model.data()->d->changeRootNodeType(type, majorVersion, minorVersion);
 }
 
-// Returns ModelNode for project's material library.
-// If the material library doesn't exist yet, it is created and all existing materials are moved
-// under material library.
-// This function should be called only form inside a transaction, as it potentially does many
-// changes to model.
-ModelNode AbstractView::materialLibraryNode()
+// Creates material library if it doesn't exist and moves any existing materials into it
+// This function should be called only from inside a transaction, as it potentially does many
+// changes to model, or undo stack should be cleared after the call.
+void AbstractView::ensureMaterialLibraryNode()
 {
     ModelNode matLib = modelNodeForId(Constants::MATERIAL_LIB_ID);
     if (matLib.isValid())
-        return matLib;
+        return;
 
     // Create material library node
     TypeName nodeType = rootModelNode().isSubclassOf("QtQuick3D.Node") ? "QtQuick3D.Node"
@@ -830,20 +828,28 @@ ModelNode AbstractView::materialLibraryNode()
     rootModelNode().defaultNodeListProperty().reparentHere(matLib);
 
     const QList<ModelNode> materials = rootModelNode().subModelNodesOfType("QtQuick3D.Material");
-    if (materials.isEmpty())
-        return matLib;
+    if (!materials.isEmpty()) {
+        // Move all materials to under material library node
+        for (const ModelNode &node : materials) {
+            // If material has no name, set name to id
+            QString matName = node.variantProperty("objectName").value().toString();
+            if (matName.isEmpty()) {
+                VariantProperty objNameProp = node.variantProperty("objectName");
+                objNameProp.setValue(node.id());
+            }
 
-    // Move all materials to under material library node
-    for (const ModelNode &node : materials) {
-        // If material has no name, set name to id
-        QString matName = node.variantProperty("objectName").value().toString();
-        if (matName.isEmpty()) {
-            VariantProperty objNameProp = node.variantProperty("objectName");
-            objNameProp.setValue(node.id());
+            matLib.defaultNodeListProperty().reparentHere(node);
         }
-
-        matLib.defaultNodeListProperty().reparentHere(node);
     }
+}
+
+// Returns ModelNode for project's material library.
+ModelNode AbstractView::materialLibraryNode()
+{
+    ensureMaterialLibraryNode();
+
+    ModelNode matLib = modelNodeForId(Constants::MATERIAL_LIB_ID);
+    QTC_ASSERT(matLib.isValid(), return {});
 
     return matLib;
 }
@@ -859,6 +865,9 @@ void AbstractView::assignMaterialTo3dModel(const ModelNode &modelNode, const Mod
     QTC_ASSERT(modelNode.isValid() && modelNode.isSubclassOf("QtQuick3D.Model"), return);
 
     ModelNode matLib = materialLibraryNode();
+
+    QTC_ASSERT(matLib.isValid(), return);
+
     ModelNode newMaterialNode;
 
     if (materialNode.isValid() && materialNode.isSubclassOf("QtQuick3D.Material")) {