diff --git a/apiserver/plane/api/views/issue.py b/apiserver/plane/api/views/issue.py
index d1cd93e73..258aee80d 100644
--- a/apiserver/plane/api/views/issue.py
+++ b/apiserver/plane/api/views/issue.py
@@ -753,8 +753,8 @@ class LabelViewSet(BaseViewSet):
             .select_related("project")
             .select_related("workspace")
             .select_related("parent")
-            .order_by("name")
             .distinct()
+            .order_by("sort_order")
         )
 
 
diff --git a/apiserver/plane/db/migrations/0047_issuemention_label_sort_order_and_more.py b/apiserver/plane/db/migrations/0047_issuemention_label_sort_order_and_more.py
new file mode 100644
index 000000000..de7d6ed0f
--- /dev/null
+++ b/apiserver/plane/db/migrations/0047_issuemention_label_sort_order_and_more.py
@@ -0,0 +1,33 @@
+# Generated by Django 4.2.5 on 2023-11-13 15:07
+
+from django.conf import settings
+from django.db import migrations, models
+import django.db.models.deletion
+import uuid
+import random
+
+
+def random_sort_ordering(apps, schema_editor):
+    Label = apps.get_model("db", "Label")
+
+    bulk_labels = []
+    for label in Label.objects.all():
+        label.sort_order = random.randint(0,65535)
+        bulk_labels.append(label)
+
+    Label.objects.bulk_update(bulk_labels, ["sort_order"], batch_size=1000)
+
+
+class Migration(migrations.Migration):
+    dependencies = [
+        ("db", "0046_alter_analyticview_created_by_and_more"),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name="label",
+            name="sort_order",
+            field=models.FloatField(default=65535),
+        ),
+        migrations.RunPython(random_sort_ordering)
+    ]
diff --git a/apiserver/plane/db/models/issue.py b/apiserver/plane/db/models/issue.py
index 0c227a158..a951e5c11 100644
--- a/apiserver/plane/db/models/issue.py
+++ b/apiserver/plane/db/models/issue.py
@@ -431,6 +431,7 @@ class Label(ProjectBaseModel):
     name = models.CharField(max_length=255)
     description = models.TextField(blank=True)
     color = models.CharField(max_length=255, blank=True)
+    sort_order = models.FloatField(default=65535)
 
     class Meta:
         unique_together = ["name", "project"]
@@ -439,6 +440,18 @@ class Label(ProjectBaseModel):
         db_table = "labels"
         ordering = ("-created_at",)
 
+    def save(self, *args, **kwargs):
+        if self._state.adding:
+            # Get the maximum sequence value from the database
+            last_id = Label.objects.filter(project=self.project).aggregate(
+                largest=models.Max("sort_order")
+            )["largest"]
+            # if last_id is not None
+            if last_id is not None:
+                self.sort_order = last_id + 10000
+
+        super(Label, self).save(*args, **kwargs)
+
     def __str__(self):
         return str(self.name)