diff --git a/src/components/ha-label-picker.ts b/src/components/ha-label-picker.ts
index 45219965a2..21f2a98d19 100644
--- a/src/components/ha-label-picker.ts
+++ b/src/components/ha-label-picker.ts
@@ -1,7 +1,7 @@
 import { mdiPlus } from "@mdi/js";
 import type { HassEntity, UnsubscribeFunc } from "home-assistant-js-websocket";
 import type { TemplateResult } from "lit";
-import { LitElement, html } from "lit";
+import { LitElement, html, nothing } from "lit";
 import {
   customElement,
   property,
@@ -9,9 +9,16 @@ import {
   queryAssignedElements,
   state,
 } from "lit/decorators";
+import { styleMap } from "lit/directives/style-map";
+import type { RenderItemFunction } from "@lit-labs/virtualizer/virtualize";
 import memoizeOne from "memoize-one";
+import { computeCssColor } from "../common/color/compute-color";
 import { fireEvent } from "../common/dom/fire_event";
-import { getLabels, labelComboBoxKeys } from "../data/label/label_picker";
+import {
+  getLabels,
+  labelComboBoxKeys,
+  type LabelComboBoxItem,
+} from "../data/label/label_picker";
 import {
   createLabelRegistryEntry,
   subscribeLabelRegistry,
@@ -24,11 +31,26 @@ import type { HomeAssistant, ValueChangedEvent } from "../types";
 import type { HaDevicePickerDeviceFilterFunc } from "./device/ha-device-picker";
 import "./ha-generic-picker";
 import type { HaGenericPicker } from "./ha-generic-picker";
-import type { PickerComboBoxItem } from "./ha-picker-combo-box";
+import {
+  type PickerComboBoxItem,
+  DEFAULT_ROW_RENDERER_CONTENT,
+} from "./ha-picker-combo-box";
 import "./ha-svg-icon";
 
 const ADD_NEW_ID = "___ADD_NEW___";
 
+export const renderLabelColorBadge = (color: string | undefined) =>
+  html`<div
+    style=${styleMap({
+      backgroundColor: color ? computeCssColor(color) : undefined,
+      borderRadius: "var(--ha-border-radius-md)",
+      border: "1px solid var(--outline-color)",
+      boxSizing: "border-box",
+      width: "var(--ha-space-5)",
+      height: "var(--ha-space-5)",
+    })}
+  ></div>`;
+
 @customElement("ha-label-picker")
 export class HaLabelPicker extends SubscribeMixin(LitElement) {
   @property({ attribute: false }) public hass!: HomeAssistant;
@@ -106,6 +128,16 @@ export class HaLabelPicker extends SubscribeMixin(LitElement) {
     ];
   }
 
+  private _rowRenderer: RenderItemFunction<LabelComboBoxItem> = (item) =>
+    html`<ha-combo-box-item type="button" compact>
+      ${DEFAULT_ROW_RENDERER_CONTENT(item)}
+      ${item.id !== ADD_NEW_ID
+        ? html`<div slot="trailing-supporting-text">
+            ${renderLabelColorBadge(item.color)}
+          </div>`
+        : nothing}
+    </ha-combo-box-item>`;
+
   private _getLabelsMemoized = memoizeOne(getLabels);
 
   private _getItems = () =>
@@ -190,6 +222,7 @@ export class HaLabelPicker extends SubscribeMixin(LitElement) {
         .value=${this.value}
         .getItems=${this._getItems}
         .getAdditionalItems=${this._getAdditionalItems}
+        .rowRenderer=${this._rowRenderer}
         .searchKeys=${labelComboBoxKeys}
         @value-changed=${this._valueChanged}
       >
diff --git a/src/components/ha-picker-combo-box.ts b/src/components/ha-picker-combo-box.ts
index 2016ba4e6c..36c1eef031 100644
--- a/src/components/ha-picker-combo-box.ts
+++ b/src/components/ha-picker-combo-box.ts
@@ -59,11 +59,8 @@ export interface PickerComboBoxItem {
 export const NO_ITEMS_AVAILABLE_ID = "___no_items_available___";
 const PADDING_ID = "___padding___";
 
-const DEFAULT_ROW_RENDERER: RenderItemFunction<PickerComboBoxItem> = (
-  item
-) => html`
-  <ha-combo-box-item type="button" compact>
-    ${item.icon
+export const DEFAULT_ROW_RENDERER_CONTENT = (item: PickerComboBoxItem) =>
+  html` ${item.icon
       ? html`<ha-icon slot="start" .icon=${item.icon}></ha-icon>`
       : item.icon_path
         ? html`<ha-svg-icon slot="start" .path=${item.icon_path}></ha-svg-icon>`
@@ -71,9 +68,12 @@ const DEFAULT_ROW_RENDERER: RenderItemFunction<PickerComboBoxItem> = (
     <span slot="headline">${item.primary}</span>
     ${item.secondary
       ? html`<span slot="supporting-text">${item.secondary}</span>`
-      : nothing}
-  </ha-combo-box-item>
-`;
+      : nothing}`;
+
+const DEFAULT_ROW_RENDERER: RenderItemFunction<PickerComboBoxItem> = (item) =>
+  html`<ha-combo-box-item type="button" compact>
+    ${DEFAULT_ROW_RENDERER_CONTENT(item)}
+  </ha-combo-box-item>`;
 
 export type PickerComboBoxSearchFn<T extends PickerComboBoxItem> = (
   search: string,
diff --git a/src/data/label/label_picker.ts b/src/data/label/label_picker.ts
index 9a53ade0e8..ba8f3863b4 100644
--- a/src/data/label/label_picker.ts
+++ b/src/data/label/label_picker.ts
@@ -28,6 +28,10 @@ export const labelComboBoxKeys: FuseWeightedKey[] = [
   },
 ];
 
+export interface LabelComboBoxItem extends PickerComboBoxItem {
+  color?: string;
+}
+
 export const getLabels = (
   hassStates: HomeAssistant["states"],
   hassAreas: HomeAssistant["areas"],
@@ -41,7 +45,7 @@ export const getLabels = (
   entityFilter?: HaEntityPickerEntityFilterFunc,
   excludeLabels?: string[],
   idPrefix = ""
-): PickerComboBoxItem[] => {
+): LabelComboBoxItem[] => {
   if (!labels || labels.length === 0) {
     return [];
   }
@@ -194,7 +198,7 @@ export const getLabels = (
     );
   }
 
-  const items = outputLabels.map<PickerComboBoxItem>((label) => ({
+  const items = outputLabels.map<LabelComboBoxItem>((label) => ({
     id: `${idPrefix}${label.label_id}`,
     primary: label.name,
     secondary: label.description ?? "",
@@ -206,6 +210,7 @@ export const getLabels = (
       description: label.description,
       id: label.label_id,
     },
+    color: label.color || undefined,
   }));
 
   return items;
diff --git a/src/panels/config/labels/ha-config-labels.ts b/src/panels/config/labels/ha-config-labels.ts
index e4d8aaef28..edf4fce4df 100644
--- a/src/panels/config/labels/ha-config-labels.ts
+++ b/src/panels/config/labels/ha-config-labels.ts
@@ -11,9 +11,7 @@ import {
 import type { PropertyValues } from "lit";
 import { LitElement, html, nothing } from "lit";
 import { customElement, property, query, state } from "lit/decorators";
-import { styleMap } from "lit/directives/style-map";
 import memoizeOne from "memoize-one";
-import { computeCssColor } from "../../../common/color/compute-color";
 import { formatShortDateTime } from "../../../common/datetime/format_date_time";
 import { storage } from "../../../common/decorators/storage";
 import { navigate } from "../../../common/navigate";
@@ -46,6 +44,7 @@ import "../../../layouts/hass-tabs-subpage-data-table";
 import type { HomeAssistant, Route } from "../../../types";
 import { configSections } from "../ha-panel-config";
 import { showLabelDetailDialog } from "./show-dialog-label-detail";
+import { renderLabelColorBadge } from "../../../components/ha-label-picker";
 
 @customElement("ha-config-labels")
 export class HaConfigLabels extends LitElement {
@@ -111,19 +110,7 @@ export class HaConfigLabels extends LitElement {
         showNarrow: true,
         label: localize("ui.panel.config.labels.headers.color"),
         type: "icon",
-        template: (label) =>
-          html`<div
-            style=${styleMap({
-              backgroundColor: label.color
-                ? computeCssColor(label.color)
-                : undefined,
-              borderRadius: "var(--ha-border-radius-md)",
-              border: "1px solid var(--outline-color)",
-              boxSizing: "border-box",
-              width: "var(--ha-space-5)",
-              height: "var(--ha-space-5)",
-            })}
-          ></div>`,
+        template: (label) => renderLabelColorBadge(label.color ?? undefined),
       },
       name: {
         title: localize("ui.panel.config.labels.headers.name"),