diff --git a/extensions/markdown-language-features/src/languageFeatures/copyFiles/copyPasteLinks.ts b/extensions/markdown-language-features/src/languageFeatures/copyFiles/copyPasteLinks.ts
index e596e0c2c82..ab7b9b60d65 100644
--- a/extensions/markdown-language-features/src/languageFeatures/copyFiles/copyPasteLinks.ts
+++ b/extensions/markdown-language-features/src/languageFeatures/copyFiles/copyPasteLinks.ts
@@ -40,7 +40,7 @@ class PasteLinkEditProvider implements vscode.DocumentPasteEditProvider {
 			return;
 		}
 
-		uriEdit.label = pasteEdit.label;
+		uriEdit.label = pasteUrlSetting === PasteUrlAsFormattedLink.Smart ? vscode.l10n.t('Smartly Insert Link') : pasteEdit.label;
 		uriEdit.additionalEdit = pasteEdit.additionalEdits;
 		return uriEdit;
 	}