diff --git a/src/Data/Label.php b/src/Data/Label.php
index a46edcd5..e627f6be 100644
--- a/src/Data/Label.php
+++ b/src/Data/Label.php
@@ -11,6 +11,7 @@ public function __construct(
         public string $name,
         public string $color,
         public ?string $description,
+        public bool $default = false,
     ) {}
 
     public static function fromArray(array $data): self
@@ -20,6 +21,7 @@ public static function fromArray(array $data): self
             name: $data['name'],
             color: $data['color'],
             description: $data['description'] ?? null,
+            default: $data['default'] ?? false,
         );
     }
 
@@ -30,6 +32,29 @@ public function toArray(): array
             'name' => $this->name,
             'color' => $this->color,
             'description' => $this->description,
+            'default' => $this->default,
         ];
     }
+
+    /**
+     * Get full hex color with #
+     */
+    public function hexColor(): string
+    {
+        return '#'.$this->color;
+    }
+
+    /**
+     * Check if color is light or dark
+     */
+    public function isLightColor(): bool
+    {
+        $r = hexdec(substr($this->color, 0, 2));
+        $g = hexdec(substr($this->color, 2, 2));
+        $b = hexdec(substr($this->color, 4, 2));
+
+        $brightness = (($r * 299) + ($g * 587) + ($b * 114)) / 1000;
+
+        return $brightness > 155;
+    }
 }
diff --git a/src/Requests/IssueLabels/AddIssueLabelsRequest.php b/src/Requests/IssueLabels/AddIssueLabelsRequest.php
new file mode 100644
index 00000000..c4f703b2
--- /dev/null
+++ b/src/Requests/IssueLabels/AddIssueLabelsRequest.php
@@ -0,0 +1,33 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\IssueLabels;
+
+use Saloon\Contracts\Body\HasBody;
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+use Saloon\Traits\Body\HasJsonBody;
+
+class AddIssueLabelsRequest extends Request implements HasBody
+{
+    use HasJsonBody;
+
+    protected Method $method = Method::POST;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly int $issueNumber,
+        protected readonly array $labels,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/issues/{$this->issueNumber}/labels";
+    }
+
+    protected function defaultBody(): array
+    {
+        return ['labels' => $this->labels];
+    }
+}
diff --git a/src/Requests/IssueLabels/ClearIssueLabelsRequest.php b/src/Requests/IssueLabels/ClearIssueLabelsRequest.php
new file mode 100644
index 00000000..df30c0cf
--- /dev/null
+++ b/src/Requests/IssueLabels/ClearIssueLabelsRequest.php
@@ -0,0 +1,23 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\IssueLabels;
+
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+
+class ClearIssueLabelsRequest extends Request
+{
+    protected Method $method = Method::DELETE;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly int $issueNumber,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/issues/{$this->issueNumber}/labels";
+    }
+}
diff --git a/src/Requests/IssueLabels/ListIssueLabelsRequest.php b/src/Requests/IssueLabels/ListIssueLabelsRequest.php
new file mode 100644
index 00000000..bdd2fe72
--- /dev/null
+++ b/src/Requests/IssueLabels/ListIssueLabelsRequest.php
@@ -0,0 +1,23 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\IssueLabels;
+
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+
+class ListIssueLabelsRequest extends Request
+{
+    protected Method $method = Method::GET;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly int $issueNumber,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/issues/{$this->issueNumber}/labels";
+    }
+}
diff --git a/src/Requests/IssueLabels/RemoveIssueLabelRequest.php b/src/Requests/IssueLabels/RemoveIssueLabelRequest.php
new file mode 100644
index 00000000..176b4f76
--- /dev/null
+++ b/src/Requests/IssueLabels/RemoveIssueLabelRequest.php
@@ -0,0 +1,24 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\IssueLabels;
+
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+
+class RemoveIssueLabelRequest extends Request
+{
+    protected Method $method = Method::DELETE;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly int $issueNumber,
+        protected readonly string $label,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/issues/{$this->issueNumber}/labels/{$this->label}";
+    }
+}
diff --git a/src/Requests/IssueLabels/SetIssueLabelsRequest.php b/src/Requests/IssueLabels/SetIssueLabelsRequest.php
new file mode 100644
index 00000000..8b2d2b9f
--- /dev/null
+++ b/src/Requests/IssueLabels/SetIssueLabelsRequest.php
@@ -0,0 +1,33 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\IssueLabels;
+
+use Saloon\Contracts\Body\HasBody;
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+use Saloon\Traits\Body\HasJsonBody;
+
+class SetIssueLabelsRequest extends Request implements HasBody
+{
+    use HasJsonBody;
+
+    protected Method $method = Method::PUT;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly int $issueNumber,
+        protected readonly array $labels,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/issues/{$this->issueNumber}/labels";
+    }
+
+    protected function defaultBody(): array
+    {
+        return ['labels' => $this->labels];
+    }
+}
diff --git a/src/Requests/RepositoryLabels/CreateLabelRequest.php b/src/Requests/RepositoryLabels/CreateLabelRequest.php
new file mode 100644
index 00000000..f80eadce
--- /dev/null
+++ b/src/Requests/RepositoryLabels/CreateLabelRequest.php
@@ -0,0 +1,38 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\RepositoryLabels;
+
+use Saloon\Contracts\Body\HasBody;
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+use Saloon\Traits\Body\HasJsonBody;
+
+class CreateLabelRequest extends Request implements HasBody
+{
+    use HasJsonBody;
+
+    protected Method $method = Method::POST;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly string $name,
+        protected readonly string $color,
+        protected readonly ?string $description = null,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/labels";
+    }
+
+    protected function defaultBody(): array
+    {
+        return [
+            'name' => $this->name,
+            'color' => $this->color,
+            'description' => $this->description,
+        ];
+    }
+}
diff --git a/src/Requests/RepositoryLabels/DeleteLabelRequest.php b/src/Requests/RepositoryLabels/DeleteLabelRequest.php
new file mode 100644
index 00000000..a12ec5f5
--- /dev/null
+++ b/src/Requests/RepositoryLabels/DeleteLabelRequest.php
@@ -0,0 +1,23 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\RepositoryLabels;
+
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+
+class DeleteLabelRequest extends Request
+{
+    protected Method $method = Method::DELETE;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly string $name,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/labels/{$this->name}";
+    }
+}
diff --git a/src/Requests/RepositoryLabels/GetLabelRequest.php b/src/Requests/RepositoryLabels/GetLabelRequest.php
new file mode 100644
index 00000000..cc3fe18b
--- /dev/null
+++ b/src/Requests/RepositoryLabels/GetLabelRequest.php
@@ -0,0 +1,23 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\RepositoryLabels;
+
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+
+class GetLabelRequest extends Request
+{
+    protected Method $method = Method::GET;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly string $name,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/labels/{$this->name}";
+    }
+}
diff --git a/src/Requests/RepositoryLabels/ListLabelsRequest.php b/src/Requests/RepositoryLabels/ListLabelsRequest.php
new file mode 100644
index 00000000..d5bdeba9
--- /dev/null
+++ b/src/Requests/RepositoryLabels/ListLabelsRequest.php
@@ -0,0 +1,22 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\RepositoryLabels;
+
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+
+class ListLabelsRequest extends Request
+{
+    protected Method $method = Method::GET;
+
+    public function __construct(
+        protected readonly string $fullName,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/labels";
+    }
+}
diff --git a/src/Requests/RepositoryLabels/UpdateLabelRequest.php b/src/Requests/RepositoryLabels/UpdateLabelRequest.php
new file mode 100644
index 00000000..ef1d1dd9
--- /dev/null
+++ b/src/Requests/RepositoryLabels/UpdateLabelRequest.php
@@ -0,0 +1,33 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Requests\RepositoryLabels;
+
+use Saloon\Contracts\Body\HasBody;
+use Saloon\Enums\Method;
+use Saloon\Http\Request;
+use Saloon\Traits\Body\HasJsonBody;
+
+class UpdateLabelRequest extends Request implements HasBody
+{
+    use HasJsonBody;
+
+    protected Method $method = Method::PATCH;
+
+    public function __construct(
+        protected readonly string $fullName,
+        protected readonly string $name,
+        protected readonly array $attributes,
+    ) {}
+
+    public function resolveEndpoint(): string
+    {
+        return "/repos/{$this->fullName}/labels/{$this->name}";
+    }
+
+    protected function defaultBody(): array
+    {
+        return $this->attributes;
+    }
+}
diff --git a/src/Services/IssueLabelManager.php b/src/Services/IssueLabelManager.php
new file mode 100644
index 00000000..1dba8d2f
--- /dev/null
+++ b/src/Services/IssueLabelManager.php
@@ -0,0 +1,96 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Services;
+
+use ConduitUi\GitHubConnector\Connector;
+use ConduitUI\Issue\Data\Label;
+use ConduitUI\Issue\Requests\IssueLabels\AddIssueLabelsRequest;
+use ConduitUI\Issue\Requests\IssueLabels\ClearIssueLabelsRequest;
+use ConduitUI\Issue\Requests\IssueLabels\ListIssueLabelsRequest;
+use ConduitUI\Issue\Requests\IssueLabels\RemoveIssueLabelRequest;
+use ConduitUI\Issue\Requests\IssueLabels\SetIssueLabelsRequest;
+use Illuminate\Support\Collection;
+
+final class IssueLabelManager
+{
+    public function __construct(
+        protected Connector $connector,
+        protected string $fullName,
+        protected int $issueNumber,
+    ) {}
+
+    /**
+     * Get all labels for this issue
+     *
+     * @return Collection<int, Label>
+     */
+    public function all(): Collection
+    {
+        $response = $this->connector->send(
+            new ListIssueLabelsRequest($this->fullName, $this->issueNumber)
+        );
+
+        return collect($response->json())
+            ->map(fn (mixed $label): Label => Label::fromArray((array) $label));
+    }
+
+    /**
+     * Add labels to issue
+     *
+     * @param  string|array<int, string>  $labels
+     * @return Collection<int, Label>
+     */
+    public function add(string|array $labels): Collection
+    {
+        $labels = is_array($labels) ? $labels : [$labels];
+
+        $response = $this->connector->send(
+            new AddIssueLabelsRequest($this->fullName, $this->issueNumber, $labels)
+        );
+
+        return collect($response->json())
+            ->map(fn (mixed $label): Label => Label::fromArray((array) $label));
+    }
+
+    /**
+     * Remove a label from issue
+     */
+    public function remove(string $label): bool
+    {
+        $response = $this->connector->send(
+            new RemoveIssueLabelRequest($this->fullName, $this->issueNumber, $label)
+        );
+
+        return $response->successful();
+    }
+
+    /**
+     * Replace all labels
+     *
+     * @param  array<int, string>  $labels
+     * @return Collection<int, Label>
+     */
+    public function set(array $labels): Collection
+    {
+        $response = $this->connector->send(
+            new SetIssueLabelsRequest($this->fullName, $this->issueNumber, $labels)
+        );
+
+        return collect($response->json())
+            ->map(fn (mixed $label): Label => Label::fromArray((array) $label));
+    }
+
+    /**
+     * Remove all labels
+     */
+    public function clear(): bool
+    {
+        $response = $this->connector->send(
+            new ClearIssueLabelsRequest($this->fullName, $this->issueNumber)
+        );
+
+        return $response->successful();
+    }
+}
diff --git a/src/Services/LabelBuilder.php b/src/Services/LabelBuilder.php
new file mode 100644
index 00000000..20aafc30
--- /dev/null
+++ b/src/Services/LabelBuilder.php
@@ -0,0 +1,117 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Services;
+
+use ConduitUi\GitHubConnector\Connector;
+use ConduitUI\Issue\Data\Label;
+use ConduitUI\Issue\Requests\RepositoryLabels\CreateLabelRequest;
+
+final class LabelBuilder
+{
+    protected ?string $name = null;
+
+    protected ?string $color = null;
+
+    protected ?string $description = null;
+
+    public function __construct(
+        protected Connector $connector,
+        protected string $fullName,
+    ) {}
+
+    /**
+     * Set label name
+     */
+    public function name(string $name): self
+    {
+        $this->name = $name;
+
+        return $this;
+    }
+
+    /**
+     * Set label color
+     */
+    public function color(string $color): self
+    {
+        $this->color = ltrim($color, '#');
+
+        return $this;
+    }
+
+    /**
+     * Set label description
+     */
+    public function description(string $description): self
+    {
+        $this->description = $description;
+
+        return $this;
+    }
+
+    /**
+     * Use a predefined color
+     */
+    public function red(): self
+    {
+        return $this->color('d73a4a');
+    }
+
+    public function orange(): self
+    {
+        return $this->color('d4a72c');
+    }
+
+    public function yellow(): self
+    {
+        return $this->color('fef2c0');
+    }
+
+    public function green(): self
+    {
+        return $this->color('0e8a16');
+    }
+
+    public function blue(): self
+    {
+        return $this->color('1d76db');
+    }
+
+    public function purple(): self
+    {
+        return $this->color('5319e7');
+    }
+
+    public function pink(): self
+    {
+        return $this->color('e99695');
+    }
+
+    public function gray(): self
+    {
+        return $this->color('d1d5da');
+    }
+
+    /**
+     * Create the label
+     */
+    public function create(): Label
+    {
+        if ($this->name === null || $this->color === null) {
+            throw new \InvalidArgumentException('Name and color are required to create a label');
+        }
+
+        $response = $this->connector->send(
+            new CreateLabelRequest(
+                $this->fullName,
+                $this->name,
+                $this->color,
+                $this->description
+            )
+        );
+
+        return Label::fromArray($response->json());
+    }
+}
diff --git a/src/Services/RepositoryLabelManager.php b/src/Services/RepositoryLabelManager.php
new file mode 100644
index 00000000..02cf65a8
--- /dev/null
+++ b/src/Services/RepositoryLabelManager.php
@@ -0,0 +1,138 @@
+<?php
+
+declare(strict_types=1);
+
+namespace ConduitUI\Issue\Services;
+
+use ConduitUi\GitHubConnector\Connector;
+use ConduitUI\Issue\Data\Label;
+use ConduitUI\Issue\Requests\RepositoryLabels\CreateLabelRequest;
+use ConduitUI\Issue\Requests\RepositoryLabels\DeleteLabelRequest;
+use ConduitUI\Issue\Requests\RepositoryLabels\GetLabelRequest;
+use ConduitUI\Issue\Requests\RepositoryLabels\ListLabelsRequest;
+use ConduitUI\Issue\Requests\RepositoryLabels\UpdateLabelRequest;
+use Illuminate\Support\Collection;
+
+final class RepositoryLabelManager
+{
+    public function __construct(
+        protected Connector $connector,
+        protected string $fullName,
+    ) {}
+
+    /**
+     * Get all repository labels
+     *
+     * @return Collection<int, Label>
+     */
+    public function all(): Collection
+    {
+        $response = $this->connector->send(
+            new ListLabelsRequest($this->fullName)
+        );
+
+        return collect($response->json())
+            ->map(fn (mixed $label): Label => Label::fromArray((array) $label));
+    }
+
+    /**
+     * Get a specific label
+     */
+    public function find(string $name): Label
+    {
+        $response = $this->connector->send(
+            new GetLabelRequest($this->fullName, $name)
+        );
+
+        return Label::fromArray($response->json());
+    }
+
+    /**
+     * Create a new label
+     */
+    public function create(string $name, string $color, ?string $description = null): Label
+    {
+        $response = $this->connector->send(
+            new CreateLabelRequest(
+                $this->fullName,
+                $name,
+                ltrim($color, '#'),
+                $description
+            )
+        );
+
+        return Label::fromArray($response->json());
+    }
+
+    /**
+     * Update an existing label
+     */
+    public function update(string $name, array $attributes): Label
+    {
+        if (isset($attributes['color'])) {
+            $attributes['color'] = ltrim($attributes['color'], '#');
+        }
+
+        $response = $this->connector->send(
+            new UpdateLabelRequest($this->fullName, $name, $attributes)
+        );
+
+        return Label::fromArray($response->json());
+    }
+
+    /**
+     * Delete a label
+     */
+    public function delete(string $name): bool
+    {
+        $response = $this->connector->send(
+            new DeleteLabelRequest($this->fullName, $name)
+        );
+
+        return $response->successful();
+    }
+
+    /**
+     * Get a label builder for fluent creation
+     */
+    public function builder(): LabelBuilder
+    {
+        return new LabelBuilder($this->connector, $this->fullName);
+    }
+
+    /**
+     * Sync labels from an array
+     *
+     * @param  array<int, array{name: string, color: string, description?: string}>  $labels
+     * @return Collection<int, Label>
+     */
+    public function sync(array $labels): Collection
+    {
+        $existing = $this->all()->pluck('name')->toArray();
+        $desired = collect($labels)->pluck('name')->toArray();
+
+        // Delete labels not in desired list
+        $toDelete = array_diff($existing, $desired);
+        foreach ($toDelete as $name) {
+            if (is_string($name)) {
+                $this->delete($name);
+            }
+        }
+
+        // Create or update labels
+        $results = collect();
+        foreach ($labels as $label) {
+            if (in_array($label['name'], $existing)) {
+                $results->push($this->update($label['name'], $label));
+            } else {
+                $results->push($this->create(
+                    $label['name'],
+                    $label['color'],
+                    $label['description'] ?? null
+                ));
+            }
+        }
+
+        return $results;
+    }
+}
diff --git a/tests/Unit/Data/LabelTest.php b/tests/Unit/Data/LabelTest.php
index d04812e1..83ebc8f3 100644
--- a/tests/Unit/Data/LabelTest.php
+++ b/tests/Unit/Data/LabelTest.php
@@ -11,6 +11,7 @@
             'name' => 'bug',
             'color' => 'fc2929',
             'description' => 'Something is broken',
+            'default' => false,
         ];
 
         $label = Label::fromArray($data);
@@ -19,6 +20,7 @@
         expect($label->name)->toBe('bug');
         expect($label->color)->toBe('fc2929');
         expect($label->description)->toBe('Something is broken');
+        expect($label->default)->toBeFalse();
     });
 
     it('can create label from array with null description', function () {
@@ -68,4 +70,37 @@
         expect($array['color'])->toBe('84b6eb');
         expect($array['description'])->toBeNull();
     });
+
+    it('can get hex color with hash', function () {
+        $label = new Label(
+            id: 123,
+            name: 'bug',
+            color: 'fc2929',
+            description: null,
+        );
+
+        expect($label->hexColor())->toBe('#fc2929');
+    });
+
+    it('can detect light colors', function () {
+        $lightLabel = new Label(
+            id: 123,
+            name: 'light',
+            color: 'ffffff',
+            description: null,
+        );
+
+        expect($lightLabel->isLightColor())->toBeTrue();
+    });
+
+    it('can detect dark colors', function () {
+        $darkLabel = new Label(
+            id: 123,
+            name: 'dark',
+            color: '000000',
+            description: null,
+        );
+
+        expect($darkLabel->isLightColor())->toBeFalse();
+    });
 });
diff --git a/tests/Unit/Services/IssueLabelManagerTest.php b/tests/Unit/Services/IssueLabelManagerTest.php
new file mode 100644
index 00000000..84aac4eb
--- /dev/null
+++ b/tests/Unit/Services/IssueLabelManagerTest.php
@@ -0,0 +1,101 @@
+<?php
+
+declare(strict_types=1);
+
+use ConduitUi\GitHubConnector\Connector;
+use ConduitUI\Issue\Data\Label;
+use ConduitUI\Issue\Services\IssueLabelManager;
+use Saloon\Http\Faking\MockClient;
+use Saloon\Http\Faking\MockResponse;
+
+describe('IssueLabelManager', function () {
+    beforeEach(function () {
+        $this->mockClient = new MockClient;
+        $this->connector = new Connector('fake-token');
+        $this->connector->withMockClient($this->mockClient);
+        $this->manager = new IssueLabelManager($this->connector, 'owner/repo', 123);
+    });
+
+    it('lists all issue labels', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            ['id' => 1, 'name' => 'bug', 'color' => 'd73a4a', 'description' => 'Bug', 'default' => false],
+            ['id' => 2, 'name' => 'feature', 'color' => '1d76db', 'description' => 'Feature', 'default' => false],
+        ]));
+
+        $labels = $this->manager->all();
+
+        expect($labels)->toHaveCount(2)
+            ->and($labels->first())->toBeInstanceOf(Label::class)
+            ->and($labels->first()->name)->toBe('bug')
+            ->and($labels->last()->name)->toBe('feature');
+    });
+
+    it('adds a single label to issue', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            ['id' => 1, 'name' => 'bug', 'color' => 'd73a4a', 'description' => 'Bug', 'default' => false],
+        ]));
+
+        $labels = $this->manager->add('bug');
+
+        expect($labels)->toHaveCount(1)
+            ->and($labels->first()->name)->toBe('bug');
+    });
+
+    it('adds multiple labels to issue', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            ['id' => 1, 'name' => 'bug', 'color' => 'd73a4a', 'description' => 'Bug', 'default' => false],
+            ['id' => 2, 'name' => 'priority-high', 'color' => 'ff0000', 'description' => 'High priority', 'default' => false],
+        ]));
+
+        $labels = $this->manager->add(['bug', 'priority-high']);
+
+        expect($labels)->toHaveCount(2)
+            ->and($labels->first()->name)->toBe('bug')
+            ->and($labels->last()->name)->toBe('priority-high');
+    });
+
+    it('removes a label from issue', function () {
+        $this->mockClient->addResponse(MockResponse::make([], 204));
+
+        $result = $this->manager->remove('bug');
+
+        expect($result)->toBeTrue();
+    });
+
+    it('returns false when remove fails', function () {
+        $this->mockClient->addResponse(MockResponse::make([], 404));
+
+        $result = $this->manager->remove('nonexistent');
+
+        expect($result)->toBeFalse();
+    });
+
+    it('replaces all labels', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            ['id' => 1, 'name' => 'feature', 'color' => '1d76db', 'description' => 'Feature', 'default' => false],
+            ['id' => 2, 'name' => 'enhancement', 'color' => '0e8a16', 'description' => 'Enhancement', 'default' => false],
+        ]));
+
+        $labels = $this->manager->set(['feature', 'enhancement']);
+
+        expect($labels)->toHaveCount(2)
+            ->and($labels->first()->name)->toBe('feature')
+            ->and($labels->last()->name)->toBe('enhancement');
+    });
+
+    it('clears all labels', function () {
+        $this->mockClient->addResponse(MockResponse::make([], 204));
+
+        $result = $this->manager->clear();
+
+        expect($result)->toBeTrue();
+    });
+
+    it('returns false when clear fails', function () {
+        $this->mockClient->addResponse(MockResponse::make([], 404));
+
+        $result = $this->manager->clear();
+
+        expect($result)->toBeFalse();
+    });
+});
diff --git a/tests/Unit/Services/LabelBuilderTest.php b/tests/Unit/Services/LabelBuilderTest.php
new file mode 100644
index 00000000..fd9d4107
--- /dev/null
+++ b/tests/Unit/Services/LabelBuilderTest.php
@@ -0,0 +1,212 @@
+<?php
+
+declare(strict_types=1);
+
+use ConduitUi\GitHubConnector\Connector;
+use ConduitUI\Issue\Data\Label;
+use ConduitUI\Issue\Services\LabelBuilder;
+use Saloon\Http\Faking\MockClient;
+use Saloon\Http\Faking\MockResponse;
+
+describe('LabelBuilder', function () {
+    beforeEach(function () {
+        $this->mockClient = new MockClient;
+        $this->connector = new Connector('fake-token');
+        $this->connector->withMockClient($this->mockClient);
+        $this->builder = new LabelBuilder($this->connector, 'owner/repo');
+    });
+
+    it('creates label with fluent API', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'priority-high',
+            'color' => 'd73a4a',
+            'description' => 'High priority issue',
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('priority-high')
+            ->color('d73a4a')
+            ->description('High priority issue')
+            ->create();
+
+        expect($label)->toBeInstanceOf(Label::class)
+            ->and($label->name)->toBe('priority-high')
+            ->and($label->color)->toBe('d73a4a')
+            ->and($label->description)->toBe('High priority issue');
+    });
+
+    it('strips hash from color', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'test',
+            'color' => 'ff0000',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('test')
+            ->color('#ff0000')
+            ->create();
+
+        expect($label->color)->toBe('ff0000');
+    });
+
+    it('uses red color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'bug',
+            'color' => 'd73a4a',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('bug')
+            ->red()
+            ->create();
+
+        expect($label->color)->toBe('d73a4a');
+    });
+
+    it('uses orange color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'warning',
+            'color' => 'd4a72c',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('warning')
+            ->orange()
+            ->create();
+
+        expect($label->color)->toBe('d4a72c');
+    });
+
+    it('uses yellow color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'attention',
+            'color' => 'fef2c0',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('attention')
+            ->yellow()
+            ->create();
+
+        expect($label->color)->toBe('fef2c0');
+    });
+
+    it('uses green color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'enhancement',
+            'color' => '0e8a16',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('enhancement')
+            ->green()
+            ->create();
+
+        expect($label->color)->toBe('0e8a16');
+    });
+
+    it('uses blue color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'documentation',
+            'color' => '1d76db',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('documentation')
+            ->blue()
+            ->create();
+
+        expect($label->color)->toBe('1d76db');
+    });
+
+    it('uses purple color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'question',
+            'color' => '5319e7',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('question')
+            ->purple()
+            ->create();
+
+        expect($label->color)->toBe('5319e7');
+    });
+
+    it('uses pink color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'design',
+            'color' => 'e99695',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('design')
+            ->pink()
+            ->create();
+
+        expect($label->color)->toBe('e99695');
+    });
+
+    it('uses gray color preset', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'wontfix',
+            'color' => 'd1d5da',
+            'description' => null,
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('wontfix')
+            ->gray()
+            ->create();
+
+        expect($label->color)->toBe('d1d5da');
+    });
+
+    it('chains multiple method calls', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            'id' => 123,
+            'name' => 'feature',
+            'color' => '1d76db',
+            'description' => 'New feature request',
+            'default' => false,
+        ]));
+
+        $label = $this->builder
+            ->name('feature')
+            ->blue()
+            ->description('New feature request')
+            ->create();
+
+        expect($label->name)->toBe('feature')
+            ->and($label->color)->toBe('1d76db')
+            ->and($label->description)->toBe('New feature request');
+    });
+});
diff --git a/tests/Unit/Services/RepositoryLabelManagerTest.php b/tests/Unit/Services/RepositoryLabelManagerTest.php
new file mode 100644
index 00000000..baa79bca
--- /dev/null
+++ b/tests/Unit/Services/RepositoryLabelManagerTest.php
@@ -0,0 +1,188 @@
+<?php
+
+declare(strict_types=1);
+
+use ConduitUi\GitHubConnector\Connector;
+use ConduitUI\Issue\Data\Label;
+use ConduitUI\Issue\Services\LabelBuilder;
+use ConduitUI\Issue\Services\RepositoryLabelManager;
+use Saloon\Http\Faking\MockClient;
+use Saloon\Http\Faking\MockResponse;
+
+function labelResponse(array $override = []): array
+{
+    return array_merge([
+        'id' => 123,
+        'name' => 'bug',
+        'color' => 'd73a4a',
+        'description' => 'Something is broken',
+        'default' => false,
+    ], $override);
+}
+
+describe('RepositoryLabelManager', function () {
+    beforeEach(function () {
+        $this->mockClient = new MockClient;
+        $this->connector = new Connector('fake-token');
+        $this->connector->withMockClient($this->mockClient);
+        $this->manager = new RepositoryLabelManager($this->connector, 'owner/repo');
+    });
+
+    it('lists all repository labels', function () {
+        $this->mockClient->addResponse(MockResponse::make([
+            labelResponse(['id' => 1, 'name' => 'bug', 'color' => 'd73a4a']),
+            labelResponse(['id' => 2, 'name' => 'feature', 'color' => '1d76db']),
+        ]));
+
+        $labels = $this->manager->all();
+
+        expect($labels)->toHaveCount(2)
+            ->and($labels->first())->toBeInstanceOf(Label::class)
+            ->and($labels->first()->name)->toBe('bug')
+            ->and($labels->last()->name)->toBe('feature');
+    });
+
+    it('finds a specific label', function () {
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'enhancement'])
+        ));
+
+        $label = $this->manager->find('enhancement');
+
+        expect($label)->toBeInstanceOf(Label::class)
+            ->and($label->name)->toBe('enhancement');
+    });
+
+    it('creates a new label', function () {
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'priority-high', 'color' => 'ff0000', 'description' => 'High priority'])
+        ));
+
+        $label = $this->manager->create('priority-high', 'ff0000', 'High priority');
+
+        expect($label)->toBeInstanceOf(Label::class)
+            ->and($label->name)->toBe('priority-high')
+            ->and($label->color)->toBe('ff0000')
+            ->and($label->description)->toBe('High priority');
+    });
+
+    it('creates a label and strips hash from color', function () {
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'test', 'color' => 'ff0000'])
+        ));
+
+        $label = $this->manager->create('test', '#ff0000');
+
+        expect($label->color)->toBe('ff0000');
+    });
+
+    it('updates an existing label', function () {
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'bug', 'color' => '00ff00', 'description' => 'Updated'])
+        ));
+
+        $label = $this->manager->update('bug', [
+            'color' => '00ff00',
+            'description' => 'Updated',
+        ]);
+
+        expect($label)->toBeInstanceOf(Label::class)
+            ->and($label->color)->toBe('00ff00')
+            ->and($label->description)->toBe('Updated');
+    });
+
+    it('updates label and strips hash from color', function () {
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['color' => 'ff0000'])
+        ));
+
+        $label = $this->manager->update('bug', ['color' => '#ff0000']);
+
+        expect($label->color)->toBe('ff0000');
+    });
+
+    it('deletes a label', function () {
+        $this->mockClient->addResponse(MockResponse::make([], 204));
+
+        $result = $this->manager->delete('old-label');
+
+        expect($result)->toBeTrue();
+    });
+
+    it('returns false when delete fails', function () {
+        $this->mockClient->addResponse(MockResponse::make([], 404));
+
+        $result = $this->manager->delete('nonexistent');
+
+        expect($result)->toBeFalse();
+    });
+
+    it('returns a label builder', function () {
+        $builder = $this->manager->builder();
+
+        expect($builder)->toBeInstanceOf(LabelBuilder::class);
+    });
+
+    it('syncs labels by creating new ones', function () {
+        // First call: get all existing labels (empty)
+        $this->mockClient->addResponse(MockResponse::make([]));
+
+        // Second call: create 'bug' label
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'bug', 'color' => 'd73a4a'])
+        ));
+
+        // Third call: create 'feature' label
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'feature', 'color' => '1d76db'])
+        ));
+
+        $labels = $this->manager->sync([
+            ['name' => 'bug', 'color' => 'd73a4a', 'description' => 'Bug'],
+            ['name' => 'feature', 'color' => '1d76db', 'description' => 'Feature'],
+        ]);
+
+        expect($labels)->toHaveCount(2);
+    });
+
+    it('syncs labels by updating existing ones', function () {
+        // First call: get all existing labels
+        $this->mockClient->addResponse(MockResponse::make([
+            labelResponse(['name' => 'bug', 'color' => 'ff0000']),
+        ]));
+
+        // Second call: update 'bug' label
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'bug', 'color' => 'd73a4a'])
+        ));
+
+        $labels = $this->manager->sync([
+            ['name' => 'bug', 'color' => 'd73a4a', 'description' => 'Updated bug'],
+        ]);
+
+        expect($labels)->toHaveCount(1)
+            ->and($labels->first()->color)->toBe('d73a4a');
+    });
+
+    it('syncs labels by deleting removed ones', function () {
+        // First call: get all existing labels
+        $this->mockClient->addResponse(MockResponse::make([
+            labelResponse(['name' => 'bug']),
+            labelResponse(['name' => 'old-label']),
+        ]));
+
+        // Second call: delete 'old-label'
+        $this->mockClient->addResponse(MockResponse::make([], 204));
+
+        // Third call: update 'bug' label
+        $this->mockClient->addResponse(MockResponse::make(
+            labelResponse(['name' => 'bug'])
+        ));
+
+        $labels = $this->manager->sync([
+            ['name' => 'bug', 'color' => 'd73a4a', 'description' => 'Bug'],
+        ]);
+
+        expect($labels)->toHaveCount(1);
+    });
+});