diff --git a/modules/ve-mw/ce/nodes/ve.ce.MWTransclusionNode.js b/modules/ve-mw/ce/nodes/ve.ce.MWTransclusionNode.js
index 29bdc04063..64eb73e07c 100644
--- a/modules/ve-mw/ce/nodes/ve.ce.MWTransclusionNode.js
+++ b/modules/ve-mw/ce/nodes/ve.ce.MWTransclusionNode.js
@@ -87,6 +87,33 @@ ve.ce.MWTransclusionNode.static.getDescription = function ( model ) {
 		.join( ve.msg( 'comma-separator' ) );
 };
 
+/**
+ * Filter rendering to remove auto-generated content and wrappers
+ *
+ * @static
+ * @param {HTMLElement[]} contentNodes Rendered nodes
+ * @return {HTMLElement[]} Filtered rendered nodes
+ */
+ve.ce.MWTransclusionNode.static.filterRendering = function ( contentNodes ) {
+	// Filter out auto-generated items, e.g. reference lists
+	contentNodes = contentNodes.filter( function ( node ) {
+		var dataMw = node.nodeType === Node.ELEMENT_NODE &&
+			node.hasAttribute( 'data-mw' ) &&
+			JSON.parse( node.getAttribute( 'data-mw' ) );
+		if ( dataMw && dataMw.autoGenerated ) {
+			return false;
+		}
+		return true;
+	} );
+	// HACK: if $content consists of a single paragraph, unwrap it.
+	// We have to do this because the parser wraps everything in <p>s, and inline templates
+	// will render strangely when wrapped in <p>s.
+	if ( contentNodes.length === 1 && contentNodes[ 0 ].nodeName.toLowerCase() === 'p' ) {
+		contentNodes = Array.prototype.slice.apply( contentNodes[ 0 ].childNodes );
+	}
+	return contentNodes;
+};
+
 /* Methods */
 
 /**
@@ -122,24 +149,7 @@ ve.ce.MWTransclusionNode.prototype.onParseSuccess = function ( deferred, respons
 
 	// Work around https://github.com/jquery/jquery/issues/1997
 	contentNodes = $.parseHTML( response.visualeditor.content, this.getModelHtmlDocument() ) || [];
-	// Filter out auto-generated items, e.g. reference lists
-	contentNodes = contentNodes.filter( function ( node ) {
-		var dataMw = node.nodeType === Node.ELEMENT_NODE &&
-			node.hasAttribute( 'data-mw' ) &&
-			JSON.parse( node.getAttribute( 'data-mw' ) );
-		if ( dataMw && dataMw.autoGenerated ) {
-			return false;
-		}
-		return true;
-	} );
-	// HACK: if $content consists of a single paragraph, unwrap it.
-	// We have to do this because the parser wraps everything in <p>s, and inline templates
-	// will render strangely when wrapped in <p>s.
-	if ( contentNodes.length === 1 && contentNodes[ 0 ].nodeName.toLowerCase() === 'p' ) {
-		contentNodes = Array.prototype.slice.apply( contentNodes[ 0 ].childNodes );
-	}
-
-	deferred.resolve( contentNodes );
+	deferred.resolve( this.constructor.static.filterRendering( contentNodes ) );
 };
 
 /**
diff --git a/modules/ve-mw/dm/models/ve.dm.MWTransclusionModel.js b/modules/ve-mw/dm/models/ve.dm.MWTransclusionModel.js
index e8a8aacf6e..5ac11e3b1f 100644
--- a/modules/ve-mw/dm/models/ve.dm.MWTransclusionModel.js
+++ b/modules/ve-mw/dm/models/ve.dm.MWTransclusionModel.js
@@ -50,19 +50,63 @@
 	/**
 	 * Insert transclusion at the end of a surface fragment.
 	 *
-	 * @param {ve.dm.SurfaceFragment} surfaceFragment Surface fragment to insert at
+	 * If forceType is not specified and this is used in async mode, users of this method
+	 * should ensure the surface is not accessible while the type is being evaluated.
+	 *
+	 * @param {ve.dm.SurfaceFragment} surfaceFragment Surface fragment after which to insert.
+	 * @param {boolean|undefined} [forceType] Force the type to 'inline' or 'block'. If not
+	 *   specified it will be evaluated asynchronously.
+	 * @return {jQuery.Promise} Promise which resolves when the node has been inserted. If
+	 *   forceType was specified this will be instant.
 	 */
-	ve.dm.MWTransclusionModel.prototype.insertTransclusionNode = function ( surfaceFragment ) {
-		surfaceFragment
-			.insertContent( [
-				{
-					type: 'mwTransclusionInline',
-					attributes: {
-						mw: this.getPlainObject()
+	ve.dm.MWTransclusionModel.prototype.insertTransclusionNode = function ( surfaceFragment, forceType ) {
+		var model = this,
+			deferred = $.Deferred(),
+			nodeClass = ve.dm.MWTransclusionNode;
+
+		function insertNode( isInline ) {
+			var type = isInline ? nodeClass.static.inlineType : nodeClass.static.blockType;
+			surfaceFragment
+				.insertContent( [
+					{
+						type: type,
+						attributes: {
+							mw: model.getPlainObject()
+						}
+					},
+					{ type: '/' + type }
+				] );
+			deferred.resolve();
+		}
+
+		if ( forceType ) {
+			insertNode( forceType === 'inline' );
+		} else {
+			new mw.Api().post( {
+					action: 'visualeditor',
+					paction: 'parsefragment',
+					page: mw.config.get( 'wgRelevantPageName' ),
+					wikitext: nodeClass.static.getWikitext( this.getPlainObject() ),
+					pst: 1
+				} )
+				.then( function ( response ) {
+					var contentNodes;
+
+					if ( ve.getProp( response, 'visualeditor', 'result' ) === 'success' ) {
+						contentNodes = $.parseHTML( response.visualeditor.content, surfaceFragment.getDocument().getHtmlDocument() ) || [];
+						contentNodes = ve.ce.MWTransclusionNode.static.filterRendering( contentNodes );
+						insertNode(
+							nodeClass.static.isHybridInline( contentNodes, ve.dm.converter )
+						);
+					} else {
+						// Request failed - just assume inline
+						insertNode( true );
 					}
-				},
-				{ type: '/mwTransclusionInline' }
-			] );
+				}, function () {
+					insertNode( true );
+				} );
+		}
+		return deferred.promise();
 	};
 
 	/**
diff --git a/modules/ve-mw/dm/nodes/ve.dm.MWTransclusionNode.js b/modules/ve-mw/dm/nodes/ve.dm.MWTransclusionNode.js
index bbe6b08555..fc2afef0cc 100644
--- a/modules/ve-mw/dm/nodes/ve.dm.MWTransclusionNode.js
+++ b/modules/ve-mw/dm/nodes/ve.dm.MWTransclusionNode.js
@@ -268,6 +268,41 @@ ve.dm.MWTransclusionNode.static.escapeParameter = function ( param ) {
 	return output;
 };
 
+/**
+ * Get the wikitext for this transclusion.
+ *
+ * @static
+ * @param {Object} content MW data content
+ * @return {string} Wikitext like `{{foo|1=bar|baz=quux}}`
+ */
+ve.dm.MWTransclusionNode.static.getWikitext = function ( content ) {
+	var i, len, part, template, param,
+		wikitext = '';
+
+	// Normalize to multi template format
+	if ( content.params ) {
+		content = { parts: [ { template: content } ] };
+	}
+	// Build wikitext from content
+	for ( i = 0, len = content.parts.length; i < len; i++ ) {
+		part = content.parts[ i ];
+		if ( part.template ) {
+			// Template
+			template = part.template;
+			wikitext += '{{' + template.target.wt;
+			for ( param in template.params ) {
+				wikitext += '|' + param + '=' +
+					this.escapeParameter( template.params[ param ].wt );
+			}
+			wikitext += '}}';
+		} else {
+			// Plain wikitext
+			wikitext += part;
+		}
+	}
+	return wikitext;
+};
+
 /* Methods */
 
 /**
@@ -350,38 +385,13 @@ ve.dm.MWTransclusionNode.prototype.getPartsList = function () {
 };
 
 /**
- * Get the wikitext for this transclusion.
+ * Wrapper for static method
  *
  * @method
  * @return {string} Wikitext like `{{foo|1=bar|baz=quux}}`
  */
 ve.dm.MWTransclusionNode.prototype.getWikitext = function () {
-	var i, len, part, template, param,
-		content = this.getAttribute( 'mw' ),
-		wikitext = '';
-
-	// Normalize to multi template format
-	if ( content.params ) {
-		content = { parts: [ { template: content } ] };
-	}
-	// Build wikitext from content
-	for ( i = 0, len = content.parts.length; i < len; i++ ) {
-		part = content.parts[ i ];
-		if ( part.template ) {
-			// Template
-			template = part.template;
-			wikitext += '{{' + template.target.wt;
-			for ( param in template.params ) {
-				wikitext += '|' + param + '=' +
-					this.constructor.static.escapeParameter( template.params[ param ].wt );
-			}
-			wikitext += '}}';
-		} else {
-			// Plain wikitext
-			wikitext += part;
-		}
-	}
-	return wikitext;
+	return this.constructor.static.getWikitext( this.getAttribute( 'mw' ) );
 };
 
 /* Concrete subclasses */
diff --git a/modules/ve-mw/ui/dialogs/ve.ui.MWTemplateDialog.js b/modules/ve-mw/ui/dialogs/ve.ui.MWTemplateDialog.js
index 4f80d96087..c5838e8a1b 100644
--- a/modules/ve-mw/ui/dialogs/ve.ui.MWTemplateDialog.js
+++ b/modules/ve-mw/ui/dialogs/ve.ui.MWTemplateDialog.js
@@ -414,19 +414,25 @@ ve.ui.MWTemplateDialog.prototype.getActionProcess = function ( action ) {
 		return new OO.ui.Process( function () {
 			var deferred = $.Deferred();
 			dialog.checkRequiredParameters().done( function () {
-				var surfaceModel = dialog.getFragment().getSurface(),
+				var modelPromise,
+					surfaceModel = dialog.getFragment().getSurface(),
 					obj = dialog.transclusionModel.getPlainObject();
 
+				dialog.pushPending();
+
 				if ( dialog.selectedNode instanceof ve.dm.MWTransclusionNode ) {
 					dialog.transclusionModel.updateTransclusionNode( surfaceModel, dialog.selectedNode );
+					// TODO: updating the node could result in the inline/block state change
+					modelPromise = $.Deferred().resolve().promise();
 				} else if ( obj !== null ) {
 					// Collapse returns a new fragment, so update dialog.fragment
 					dialog.fragment = dialog.getFragment().collapseToEnd();
-					dialog.transclusionModel.insertTransclusionNode( dialog.getFragment() );
+					modelPromise = dialog.transclusionModel.insertTransclusionNode( dialog.getFragment() );
 				}
 
-				dialog.pushPending();
-				dialog.close( { action: action } ).always( dialog.popPending.bind( dialog ) );
+				return modelPromise.then( function () {
+					dialog.close( { action: action } ).always( dialog.popPending.bind( dialog ) );
+				} );
 			} ).always( deferred.resolve );
 
 			return deferred;