diff --git a/app/assets/javascripts/labels_select.js.coffee b/app/assets/javascripts/labels_select.js.coffee
index ec74dfaae1a..6b86b51589c 100644
--- a/app/assets/javascripts/labels_select.js.coffee
+++ b/app/assets/javascripts/labels_select.js.coffee
@@ -254,7 +254,7 @@ class @LabelsSelect
         search:
           fields: ['title']
         selectable: true
-
+        filterable: true
         toggleLabel: (selected, el) ->
           selected_labels = $('.js-label-select').siblings('.dropdown-menu-labels').find('.is-active')
 
diff --git a/app/helpers/dropdowns_helper.rb b/app/helpers/dropdowns_helper.rb
index 14697f774cc..6b617e1730a 100644
--- a/app/helpers/dropdowns_helper.rb
+++ b/app/helpers/dropdowns_helper.rb
@@ -67,9 +67,9 @@ module DropdownsHelper
     end
   end
 
-  def dropdown_filter(placeholder)
+  def dropdown_filter(placeholder, search_id: nil)
     content_tag :div, class: "dropdown-input" do
-      filter_output = search_field_tag nil, nil, class: "dropdown-input-field", placeholder: placeholder
+      filter_output = search_field_tag search_id, nil, class: "dropdown-input-field", placeholder: placeholder
       filter_output << icon('search', class: "dropdown-input-search")
       filter_output << icon('times', class: "dropdown-input-clear js-dropdown-input-clear", role: "button")
 
diff --git a/app/views/shared/issuable/_label_page_default.html.haml b/app/views/shared/issuable/_label_page_default.html.haml
index 4e280c371ac..0acb8253139 100644
--- a/app/views/shared/issuable/_label_page_default.html.haml
+++ b/app/views/shared/issuable/_label_page_default.html.haml
@@ -4,7 +4,7 @@
 - filter_placeholder = local_assigns.fetch(:filter_placeholder, 'Search labels')
 .dropdown-page-one
   = dropdown_title(title)
-  = dropdown_filter(filter_placeholder)
+  = dropdown_filter(filter_placeholder, search_id: "label-name")
   = dropdown_content
   - if @project && show_footer
     = dropdown_footer do
diff --git a/spec/features/issues/filter_by_labels_spec.rb b/spec/features/issues/filter_by_labels_spec.rb
index 0ec8b6b180a..16c619c9288 100644
--- a/spec/features/issues/filter_by_labels_spec.rb
+++ b/spec/features/issues/filter_by_labels_spec.rb
@@ -199,4 +199,19 @@ feature 'Issue filtering by Labels', feature: true do
       end
     end
   end
+
+  context 'dropdown filtering', js: true do
+    it 'should filter by label name' do
+      page.within '.labels-filter' do
+        click_button 'Label'
+        wait_for_ajax
+        fill_in 'label-name', with: 'bug'
+
+        page.within '.dropdown-content' do
+          expect(page).not_to have_content 'enhancement'
+          expect(page).to have_content 'bug'
+        end
+      end
+    end
+  end
 end