diff --git a/app/assets/stylesheets/sections/merge_requests.scss b/app/assets/stylesheets/sections/merge_requests.scss
index 5dcfc449b42..2d9a5e4bbe6 100644
--- a/app/assets/stylesheets/sections/merge_requests.scss
+++ b/app/assets/stylesheets/sections/merge_requests.scss
@@ -73,6 +73,10 @@
 
     .merge-request-info {
       color: #999;
+
+      .merge-request-labels {
+        display: inline-block;
+      }
     }
   }
 }
@@ -111,3 +115,7 @@
     }
   }
 }
+
+.merge-request-show-labels .label {
+  padding: 6px 10px;
+}
diff --git a/app/controllers/application_controller.rb b/app/controllers/application_controller.rb
index a3f39c23e08..2730e9942ec 100644
--- a/app/controllers/application_controller.rb
+++ b/app/controllers/application_controller.rb
@@ -117,6 +117,11 @@ class ApplicationController < ActionController::Base
     return access_denied! unless can?(current_user, :push_code, project)
   end
 
+  def authorize_labels!
+    # Labels should be accessible for issues and/or merge requests
+    authorize_read_issue! || authorize_read_merge_request!
+  end
+
   def access_denied!
     render "errors/access_denied", layout: "errors", status: 404
   end
diff --git a/app/controllers/projects/labels_controller.rb b/app/controllers/projects/labels_controller.rb
index 0166ca9ff00..b037cf56502 100644
--- a/app/controllers/projects/labels_controller.rb
+++ b/app/controllers/projects/labels_controller.rb
@@ -1,8 +1,7 @@
 class Projects::LabelsController < Projects::ApplicationController
   before_filter :module_enabled
 
-  # Allow read any issue
-  before_filter :authorize_read_issue!
+  before_filter :authorize_labels!
 
   respond_to :js, :html
 
@@ -13,12 +12,18 @@ class Projects::LabelsController < Projects::ApplicationController
   def generate
     Gitlab::IssuesLabels.generate(@project)
 
-    redirect_to project_issues_path(@project)
+    if params[:redirect] == 'issues'
+      redirect_to project_issues_path(@project)
+    elsif params[:redirect] == 'merge_requests'
+      redirect_to project_merge_requests_path(@project)
+    end
   end
 
   protected
 
   def module_enabled
-    return render_404 unless @project.issues_enabled
+    unless @project.issues_enabled || @project.merge_requests_enabled
+      return render_404
+    end
   end
 end
diff --git a/app/models/merge_request.rb b/app/models/merge_request.rb
index 134a8c8dd40..061537132b3 100644
--- a/app/models/merge_request.rb
+++ b/app/models/merge_request.rb
@@ -36,7 +36,9 @@ class MergeRequest < ActiveRecord::Base
 
   delegate :commits, :diffs, :last_commit, :last_commit_short_sha, to: :merge_request_diff, prefix: nil
 
-  attr_accessible :title, :assignee_id, :source_project_id, :source_branch, :target_project_id, :target_branch, :milestone_id, :state_event, :description
+  attr_accessible :title, :assignee_id, :source_project_id, :source_branch,
+                  :target_project_id, :target_branch, :milestone_id,
+                  :state_event, :description, :label_list
 
   attr_accessor :should_remove_source_branch
 
@@ -44,6 +46,9 @@ class MergeRequest < ActiveRecord::Base
   # It allows us to close or modify broken merge requests
   attr_accessor :allow_broken
 
+  ActsAsTaggableOn.strict_case_match = true
+  acts_as_taggable_on :labels
+
   state_machine :state, initial: :opened do
     event :close do
       transition [:reopened, :opened] => :closed
diff --git a/app/models/project.rb b/app/models/project.rb
index 7ddcc73cf2a..45e950f4807 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -281,8 +281,11 @@ class Project < ActiveRecord::Base
     self.id
   end
 
+  # Tags are shared by issues and merge requests
   def issues_labels
-    @issues_labels ||= (issues_default_labels + issues.tags_on(:labels)).uniq.sort_by(&:name)
+    @issues_labels ||= (issues_default_labels +
+                        merge_requests.tags_on(:labels) +
+                        issues.tags_on(:labels)).uniq.sort_by(&:name)
   end
 
   def issue_exists?(issue_id)
diff --git a/app/views/projects/issues/index.html.haml b/app/views/projects/issues/index.html.haml
index 5e899d412c6..51a8c911af8 100644
--- a/app/views/projects/issues/index.html.haml
+++ b/app/views/projects/issues/index.html.haml
@@ -1,6 +1,7 @@
 = render "head"
 .row
   .col-md-3
-    = render 'shared/project_filter', project_entities_path: project_issues_path(@project), labels: true
+    = render 'shared/project_filter', project_entities_path: project_issues_path(@project),
+             labels: true, redirect: 'issues'
   .col-md-9.issues-holder
     = render "issues"
diff --git a/app/views/projects/merge_requests/_form.html.haml b/app/views/projects/merge_requests/_form.html.haml
index ddff3dbead8..290a15e2664 100644
--- a/app/views/projects/merge_requests/_form.html.haml
+++ b/app/views/projects/merge_requests/_form.html.haml
@@ -42,6 +42,15 @@
         .col-sm-10= f.select(:milestone_id, milestone_options(@merge_request), { include_blank: "Select milestone" }, {class: 'select2'})
 
 
+    - if @merge_request.persisted? # Only allow labels on edit to avoid fork vs upstream repo labels issue
+      .form-group
+        = f.label :label_list, class: 'control-label' do
+          %i.icon-tag
+          Labels
+        .col-sm-10
+          = f.text_field :label_list, maxlength: 2000, class: "form-control"
+          %p.hint Separate labels with commas.
+
   .form-actions
     - if @merge_request.new_record?
       = f.submit 'Submit merge request', class: "btn btn-create"
@@ -60,3 +69,32 @@
     $('#merge_request_assignee_id').val("#{current_user.id}").trigger("change");
     e.preventDefault();
   });
+
+  $("#merge_request_label_list")
+    .bind( "keydown", function( event ) {
+      if ( event.keyCode === $.ui.keyCode.TAB &&
+        $( this ).data( "autocomplete" ).menu.active ) {
+        event.preventDefault();
+      }
+    })
+    .bind("click", function(event) {
+      $(this).autocomplete("search", "");
+    })
+    .autocomplete({
+      minLength: 0,
+      source: function( request, response ) {
+        response( $.ui.autocomplete.filter(
+          #{raw labels_autocomplete_source}, extractLast( request.term ) ) );
+      },
+      focus: function() {
+        return false;
+      },
+      select: function(event, ui) {
+        var terms = split( this.value );
+        terms.pop();
+        terms.push( ui.item.value );
+        terms.push( "" );
+        this.value = terms.join( ", " );
+        return false;
+      }
+    });
diff --git a/app/views/projects/merge_requests/_merge_request.html.haml b/app/views/projects/merge_requests/_merge_request.html.haml
index d1cab89a35c..c9a80ec22ef 100644
--- a/app/views/projects/merge_requests/_merge_request.html.haml
+++ b/app/views/projects/merge_requests/_merge_request.html.haml
@@ -31,3 +31,9 @@
 
     .pull-right
       %small updated #{time_ago_with_tooltip(merge_request.updated_at, 'bottom', 'merge_request_updated_ago')}
+
+    .merge-request-labels
+      - merge_request.labels.each do |label|
+        %span{class: "label #{label_css_class(label.name)}"}
+          %i.icon-tag
+          = label.name
diff --git a/app/views/projects/merge_requests/_show.html.haml b/app/views/projects/merge_requests/_show.html.haml
index e36a48f62cf..193c600f774 100644
--- a/app/views/projects/merge_requests/_show.html.haml
+++ b/app/views/projects/merge_requests/_show.html.haml
@@ -4,6 +4,7 @@
   = render "projects/merge_requests/show/mr_box"
   = render "projects/merge_requests/show/state_widget"
   = render "projects/merge_requests/show/commits"
+  = render "projects/merge_requests/show/participants"
 
   - if @commits.present?
     %ul.nav.nav-tabs
diff --git a/app/views/projects/merge_requests/index.html.haml b/app/views/projects/merge_requests/index.html.haml
index 34faebf619c..12a72edb224 100644
--- a/app/views/projects/merge_requests/index.html.haml
+++ b/app/views/projects/merge_requests/index.html.haml
@@ -8,7 +8,8 @@
 %hr
 .row
   .col-md-3
-    = render 'shared/project_filter', project_entities_path: project_merge_requests_path(@project)
+    = render 'shared/project_filter', project_entities_path: project_merge_requests_path(@project),
+             labels: true, redirect: 'merge_requests'
   .col-md-9
     .mr-filters.append-bottom-10
       .dropdown.inline
diff --git a/app/views/projects/merge_requests/show/_participants.html.haml b/app/views/projects/merge_requests/show/_participants.html.haml
new file mode 100644
index 00000000000..0dabd965e52
--- /dev/null
+++ b/app/views/projects/merge_requests/show/_participants.html.haml
@@ -0,0 +1,11 @@
+.participants
+  %cite.cgray #{@merge_request.participants.count} participants
+  - @merge_request.participants.each do |participant|
+    = link_to_member(@project, participant, name: false, size: 24)
+
+  .merge-request-show-labels.pull-right
+    - @merge_request.labels.each do |label|
+      %span{class: "label #{label_css_class(label.name)}"}
+        %i.icon-tag
+        = label.name
+      &nbsp;
diff --git a/app/views/shared/_project_filter.html.haml b/app/views/shared/_project_filter.html.haml
index d82b08eeaa2..7936a038be3 100644
--- a/app/views/shared/_project_filter.html.haml
+++ b/app/views/shared/_project_filter.html.haml
@@ -44,7 +44,7 @@
             .light-well
               Add first label to your issues
               %br
-              or #{link_to 'generate', generate_project_labels_path(@project), method: :post} default set of labels
+              or #{link_to 'generate', generate_project_labels_path(@project, redirect: redirect), method: :post} default set of labels
 
     %fieldset
       - if %w(state scope milestone_id assignee_id label_name).select { |k| params[k].present? }.any?
diff --git a/lib/api/entities.rb b/lib/api/entities.rb
index c1bd6d02c68..457af52fe9d 100644
--- a/lib/api/entities.rb
+++ b/lib/api/entities.rb
@@ -136,6 +136,7 @@ module API
       expose :target_branch, :source_branch, :upvotes, :downvotes
       expose :author, :assignee, using: Entities::UserBasic
       expose :source_project_id, :target_project_id
+      expose :label_list, as: :labels
     end
 
     class SSHKey < Grape::Entity
diff --git a/lib/api/merge_requests.rb b/lib/api/merge_requests.rb
index 7fb135b37b8..017cb1f562e 100644
--- a/lib/api/merge_requests.rb
+++ b/lib/api/merge_requests.rb
@@ -67,6 +67,7 @@ module API
       #   assignee_id              - Assignee user ID
       #   title (required)         - Title of MR
       #   description              - Description of MR
+      #   labels (optional)        - Labels for MR as a comma-separated list
       #
       # Example:
       #   POST /projects/:id/merge_requests
@@ -75,6 +76,7 @@ module API
         authorize! :write_merge_request, user_project
         required_attributes! [:source_branch, :target_branch, :title]
         attrs = attributes_for_keys [:source_branch, :target_branch, :assignee_id, :title, :target_project_id, :description]
+        attrs[:label_list] = params[:labels] if params[:labels].present?
         merge_request = ::MergeRequests::CreateService.new(user_project, current_user, attrs).execute
 
         if merge_request.valid?
@@ -95,11 +97,13 @@ module API
       #   title                       - Title of MR
       #   state_event                 - Status of MR. (close|reopen|merge)
       #   description                 - Description of MR
+      #   labels (optional)           - Labels for a MR as a comma-separated list
       # Example:
       #   PUT /projects/:id/merge_request/:merge_request_id
       #
       put ":id/merge_request/:merge_request_id" do
         attrs = attributes_for_keys [:source_branch, :target_branch, :assignee_id, :title, :state_event, :description]
+        attrs[:label_list] = params[:labels] if params[:labels].present?
         merge_request = user_project.merge_requests.find(params[:merge_request_id])
         authorize! :modify_merge_request, merge_request
         merge_request = ::MergeRequests::UpdateService.new(user_project, current_user, attrs).execute(merge_request)
diff --git a/spec/requests/api/projects_spec.rb b/spec/requests/api/projects_spec.rb
index 4b8f41a4683..81e6abbb0d7 100644
--- a/spec/requests/api/projects_spec.rb
+++ b/spec/requests/api/projects_spec.rb
@@ -14,6 +14,12 @@ describe API::API, api: true  do
   let(:users_project) { create(:users_project, user: user, project: project, project_access: UsersProject::MASTER) }
   let(:users_project2) { create(:users_project, user: user3, project: project, project_access: UsersProject::DEVELOPER) }
   let(:issue_with_labels) { create(:issue, author: user, assignee: user, project: project, :label_list => "label1, label2") }
+  let(:merge_request_with_labels) do
+    create(:merge_request, :simple, author: user, assignee: user,
+           source_project: project, target_project: project, title: 'Test',
+           label_list: 'label3, label4')
+  end
+
 
   describe "GET /projects" do
     before { project }
@@ -634,15 +640,45 @@ describe API::API, api: true  do
     end
   end
 
-   describe "GET /projects/:id/labels" do
-    before { issue_with_labels }
+  describe 'GET /projects/:id/labels' do
+    context 'with an issue' do
+      before { issue_with_labels }
 
-    it "should return project labels" do
-      get api("/projects/#{project.id}/labels", user)
-      response.status.should == 200
-      json_response.should be_an Array
-      json_response.first['name'].should == issue_with_labels.labels.first.name
-      json_response.last['name'].should == issue_with_labels.labels.last.name
+      it 'should return project labels' do
+        get api("/projects/#{project.id}/labels", user)
+        response.status.should == 200
+        json_response.should be_an Array
+        json_response.first['name'].should == issue_with_labels.labels.first.name
+        json_response.last['name'].should == issue_with_labels.labels.last.name
+      end
+    end
+
+    context 'with a merge request' do
+      before { merge_request_with_labels }
+
+      it 'should return project labels' do
+        get api("/projects/#{project.id}/labels", user)
+        response.status.should == 200
+        json_response.should be_an Array
+        json_response.first['name'].should == merge_request_with_labels.labels.first.name
+        json_response.last['name'].should == merge_request_with_labels.labels.last.name
+      end
+    end
+
+    context 'with an issue and a merge request' do
+      before do
+        issue_with_labels
+        merge_request_with_labels
+      end
+
+      it 'should return project labels from both' do
+        get api("/projects/#{project.id}/labels", user)
+        response.status.should == 200
+        json_response.should be_an Array
+        all_labels = issue_with_labels.labels.map(&:name).to_a
+                       .concat(merge_request_with_labels.labels.map(&:name).to_a)
+        json_response.map { |e| e['name'] }.should =~ all_labels
+      end
     end
   end
 end