diff --git a/source/blender/blenkernel/BKE_lib_id.hh b/source/blender/blenkernel/BKE_lib_id.hh
index 7d4e14431d8..cfc90303b22 100644
--- a/source/blender/blenkernel/BKE_lib_id.hh
+++ b/source/blender/blenkernel/BKE_lib_id.hh
@@ -712,9 +712,15 @@ char *BKE_id_to_unique_string_key(const ID *id);
  * #LIB_TAG_PRE_EXISTING.
  * \param set_fake: If true, set fake user on all localized data-blocks
  * (except group and objects ones).
+ * \param clear_asset_data: If true, clear the asset metadata on all localized data-blocks, making
+ * them normal non-asset data-blocks.
  */
-void BKE_library_make_local(
-    Main *bmain, const Library *lib, GHash *old_to_new_ids, bool untagged_only, bool set_fake);
+void BKE_library_make_local(Main *bmain,
+                            const Library *lib,
+                            GHash *old_to_new_ids,
+                            bool untagged_only,
+                            bool set_fake,
+                            bool clear_asset_data);
 
 void BKE_id_tag_set_atomic(ID *id, int tag);
 void BKE_id_tag_clear_atomic(ID *id, int tag);
diff --git a/source/blender/blenkernel/intern/brush.cc b/source/blender/blenkernel/intern/brush.cc
index 1b39fa7d0c6..7379249682c 100644
--- a/source/blender/blenkernel/intern/brush.cc
+++ b/source/blender/blenkernel/intern/brush.cc
@@ -166,7 +166,7 @@ static void brush_make_local(Main *bmain, ID *id, const int flags)
      * does not deal properly with it. */
     /* NOTE: assert below ensures that the comment above is valid, and that exception is
      * acceptable for the time being. */
-    BKE_lib_id_make_local(bmain, &brush->clone.image->id, 0);
+    BKE_lib_id_make_local(bmain, &brush->clone.image->id, LIB_ID_MAKELOCAL_ASSET_DATA_CLEAR);
     BLI_assert(!ID_IS_LINKED(brush->clone.image) && brush->clone.image->id.newid == nullptr);
   }
 
diff --git a/source/blender/blenkernel/intern/lib_id.cc b/source/blender/blenkernel/intern/lib_id.cc
index 3e74a066e5e..edd2c206737 100644
--- a/source/blender/blenkernel/intern/lib_id.cc
+++ b/source/blender/blenkernel/intern/lib_id.cc
@@ -1946,7 +1946,8 @@ void BKE_library_make_local(Main *bmain,
                             const Library *lib,
                             GHash *old_to_new_ids,
                             const bool untagged_only,
-                            const bool set_fake)
+                            const bool set_fake,
+                            const bool clear_asset_data)
 {
   /* NOTE: Old (2.77) version was simply making (tagging) data-blocks as local,
    * without actually making any check whether they were also indirectly used or not...
@@ -2061,6 +2062,8 @@ void BKE_library_make_local(Main *bmain,
   TIMEIT_VALUE_PRINT(make_local);
 #endif
 
+  const int make_local_flags = clear_asset_data ? LIB_ID_MAKELOCAL_ASSET_DATA_CLEAR : 0;
+
   /* Step 3: Make IDs local, either directly (quick and simple), or using generic process,
    * which involves more complex checks and might instead
    * create a local copy of original linked ID. */
@@ -2073,7 +2076,7 @@ void BKE_library_make_local(Main *bmain,
        * currently there are some indirect usages. So instead of making a copy that we'll likely
        * get rid of later, directly make that data block local.
        * Saves a tremendous amount of time with complex scenes... */
-      BKE_lib_id_clear_library_data(bmain, id, 0);
+      BKE_lib_id_clear_library_data(bmain, id, make_local_flags);
       BKE_lib_id_expand_local(bmain, id, 0);
       id->tag &= ~LIB_TAG_DOIT;
 
@@ -2083,7 +2086,7 @@ void BKE_library_make_local(Main *bmain,
     }
     else {
       /* In this specific case, we do want to make ID local even if it has no local usage yet... */
-      BKE_lib_id_make_local(bmain, id, LIB_ID_MAKELOCAL_FULL_LIBRARY);
+      BKE_lib_id_make_local(bmain, id, make_local_flags | LIB_ID_MAKELOCAL_FULL_LIBRARY);
 
       if (id->newid) {
         if (GS(id->newid->name) == ID_OB) {
diff --git a/source/blender/editors/interface/templates/interface_templates.cc b/source/blender/editors/interface/templates/interface_templates.cc
index 3dbe699731a..33b70afbd6b 100644
--- a/source/blender/editors/interface/templates/interface_templates.cc
+++ b/source/blender/editors/interface/templates/interface_templates.cc
@@ -1017,7 +1017,7 @@ static void template_id_cb(bContext *C, void *arg_litem, void *arg_event)
           template_id_liboverride_hierarchy_make(C, bmain, template_ui, &idptr, &undo_push_label);
         }
         else {
-          if (BKE_lib_id_make_local(bmain, id, 0)) {
+          if (BKE_lib_id_make_local(bmain, id, LIB_ID_MAKELOCAL_ASSET_DATA_CLEAR)) {
             BKE_id_newptr_and_tag_clear(id);
 
             /* Reassign to get proper updates/notifiers. */
diff --git a/source/blender/editors/object/object_relations.cc b/source/blender/editors/object/object_relations.cc
index a892dc9118d..ad7c999c15d 100644
--- a/source/blender/editors/object/object_relations.cc
+++ b/source/blender/editors/object/object_relations.cc
@@ -2262,7 +2262,8 @@ static int make_local_exec(bContext *C, wmOperator *op)
     CTX_DATA_END;
   }
 
-  BKE_library_make_local(bmain, nullptr, nullptr, true, false); /* nullptr is all libraries. */
+  BKE_library_make_local(
+      bmain, nullptr, nullptr, true, false, true); /* nullptr is all libraries. */
 
   WM_event_add_notifier(C, NC_WINDOW, nullptr);
   return OPERATOR_FINISHED;
diff --git a/source/blender/editors/space_outliner/outliner_tools.cc b/source/blender/editors/space_outliner/outliner_tools.cc
index 2c72a866cea..ab6b5bdc569 100644
--- a/source/blender/editors/space_outliner/outliner_tools.cc
+++ b/source/blender/editors/space_outliner/outliner_tools.cc
@@ -978,7 +978,7 @@ static void id_local_fn(bContext *C,
 {
   if (ID_IS_LINKED(tselem->id) && (tselem->id->tag & LIB_TAG_EXTERN)) {
     Main *bmain = CTX_data_main(C);
-    if (BKE_lib_id_make_local(bmain, tselem->id, 0)) {
+    if (BKE_lib_id_make_local(bmain, tselem->id, LIB_ID_MAKELOCAL_ASSET_DATA_CLEAR)) {
       BKE_id_newptr_and_tag_clear(tselem->id);
     }
   }
diff --git a/source/blender/makesrna/intern/rna_ID.cc b/source/blender/makesrna/intern/rna_ID.cc
index ace650de269..fbee7596064 100644
--- a/source/blender/makesrna/intern/rna_ID.cc
+++ b/source/blender/makesrna/intern/rna_ID.cc
@@ -1101,10 +1101,16 @@ static void rna_ID_user_remap(ID *id, Main *bmain, ID *new_id)
   }
 }
 
-static ID *rna_ID_make_local(ID *self, Main *bmain, bool /*clear_proxy*/, bool clear_liboverride)
+static ID *rna_ID_make_local(
+    ID *self, Main *bmain, bool /*clear_proxy*/, bool clear_liboverride, bool clear_asset_data)
 {
   if (ID_IS_LINKED(self)) {
-    BKE_lib_id_make_local(bmain, self, 0);
+    int flags = 0;
+    if (clear_asset_data) {
+      flags |= LIB_ID_MAKELOCAL_ASSET_DATA_CLEAR;
+    }
+
+    BKE_lib_id_make_local(bmain, self, flags);
   }
   else if (ID_IS_OVERRIDE_LIBRARY_REAL(self)) {
     BKE_lib_override_library_make_local(bmain, self);
@@ -2458,6 +2464,13 @@ static void rna_def_ID(BlenderRNA *brna)
                          false,
                          "",
                          "Remove potential library override data from the newly made local data");
+  RNA_def_boolean(
+      func,
+      "clear_asset_data",
+      true,
+      "",
+      "Remove potential asset metadata so the newly local data-block is not treated as asset "
+      "data-block and won't show up in asset libraries");
   parm = RNA_def_pointer(func, "id", "ID", "", "This ID, or the new ID if it was copied");
   RNA_def_function_return(func, parm);