diff --git a/app/assets/javascripts/gl_dropdown.js.coffee b/app/assets/javascripts/gl_dropdown.js.coffee
index 7c7334e9e40..b49bd4565a7 100644
--- a/app/assets/javascripts/gl_dropdown.js.coffee
+++ b/app/assets/javascripts/gl_dropdown.js.coffee
@@ -211,6 +211,7 @@ class GitLabDropdown
 
     @dropdown.on "shown.bs.dropdown", @opened
     @dropdown.on "hidden.bs.dropdown", @hidden
+    $(@el).on "update.label", @updateLabel
     @dropdown.on "click", ".dropdown-menu, .dropdown-menu-close", @shouldPropagate
     @dropdown.on 'keyup', (e) =>
       if e.which is 27 # Escape key
@@ -453,7 +454,7 @@ class GitLabDropdown
 
       # Toggle the dropdown label
       if @options.toggleLabel
-        $(@el).find(".dropdown-toggle-text").text @options.toggleLabel
+        @updateLabel()
       else
         selectedObject
     else if el.hasClass(INDETERMINATE_CLASS)
@@ -480,7 +481,7 @@ class GitLabDropdown
 
       # Toggle the dropdown label
       if @options.toggleLabel
-        $(@el).find(".dropdown-toggle-text").text @options.toggleLabel(selectedObject, el)
+        @updateLabel(selectedObject, el)
       if value?
         if !field.length and fieldName
           @addInput(fieldName, value)
@@ -579,6 +580,9 @@ class GitLabDropdown
       # Scroll the dropdown content up
       $dropdownContent.scrollTop(listItemTop - dropdownContentTop)
 
+  updateLabel: (selected = null, el = null) =>
+    $(@el).find(".dropdown-toggle-text").text @options.toggleLabel(selected, el)
+
 $.fn.glDropdown = (opts) ->
   return @.each ->
     if (!$.data @, 'glDropdown')
diff --git a/app/assets/javascripts/issuable.js.coffee b/app/assets/javascripts/issuable.js.coffee
index ef0d35d0dd3..c2447120033 100644
--- a/app/assets/javascripts/issuable.js.coffee
+++ b/app/assets/javascripts/issuable.js.coffee
@@ -54,6 +54,7 @@ issuable_created = false
 
         # Submit the form to get new data
         Issuable.filterResults $('.filter-form')
+        $('.js-label-select').trigger('update.label')
 
   toggleLabelFilters: ->
     $filteredLabels = $('.filtered-labels')
diff --git a/spec/features/issues/filter_by_labels_spec.rb b/spec/features/issues/filter_by_labels_spec.rb
index 2015b0434fb..0ec8b6b180a 100644
--- a/spec/features/issues/filter_by_labels_spec.rb
+++ b/spec/features/issues/filter_by_labels_spec.rb
@@ -174,4 +174,29 @@ feature 'Issue filtering by Labels', feature: true do
       expect(find('.filtered-labels')).not_to have_content "feature"
     end
   end
+
+  context 'remove filtered labels', js: true do
+    before do
+      page.within '.labels-filter' do
+        click_button 'Label'
+        click_link 'bug'
+        find('.dropdown-menu-close').click
+      end
+
+      page.within '.filtered-labels' do
+        expect(page).to have_content 'bug'
+      end
+    end
+
+    it 'should allow user to remove filtered labels' do
+      page.within '.filtered-labels' do
+        first('.js-label-filter-remove').click
+        expect(page).not_to have_content 'bug'
+      end
+
+      page.within '.labels-filter' do
+        expect(page).not_to have_content 'bug'
+      end
+    end
+  end
 end