diff --git a/packages/block-library/CHANGELOG.md b/packages/block-library/CHANGELOG.md
index 9a5ed2680e741f..393ec36807f693 100644
--- a/packages/block-library/CHANGELOG.md
+++ b/packages/block-library/CHANGELOG.md
@@ -14,6 +14,7 @@
 
 -   Footnotes: Treat unreadable `footnotes` post meta as no footnotes instead of throwing, so the block shows its placeholder rather than the block crash warning ([#81201](https://github.com/WordPress/gutenberg/pull/81201)).
 -   Playlist: Update `@arraypress/waveform-player` to `^1.23.0`, which no longer sets `crossorigin="anonymous"` on its audio element, fixing playback of tracks served without CORS headers such as media offloaded to a CDN ([#80533](https://github.com/WordPress/gutenberg/pull/80533)).
+-   Term Description: Apply the term description display filters when rendering with term context inside a Terms Query loop, so multi-paragraph descriptions keep their paragraphs and match the taxonomy archive rendering ([#81290](https://github.com/WordPress/gutenberg/pull/81290)).
 
 ### Internal
 
diff --git a/packages/block-library/src/term-description/index.php b/packages/block-library/src/term-description/index.php
index 9f61dbba07fbc1..3f0fd6ce474dd4 100644
--- a/packages/block-library/src/term-description/index.php
+++ b/packages/block-library/src/term-description/index.php
@@ -23,7 +23,7 @@ function render_block_core_term_description( $attributes, $content, $block ) {
 	if ( isset( $block->context['termId'] ) && isset( $block->context['taxonomy'] ) ) {
 		$term = get_term( $block->context['termId'], $block->context['taxonomy'] );
 		if ( $term && ! is_wp_error( $term ) ) {
-			$term_description = $term->description;
+			$term_description = get_term_field( 'description', $term );
 		}
 	} elseif ( is_category() || is_tag() || is_tax() ) {
 		$term_description = term_description();