diff --git a/app/controllers/api/v1/accounts/contacts/labels_controller.rb b/app/controllers/api/v1/accounts/contacts/labels_controller.rb
new file mode 100644
index 000000000..41640978f
--- /dev/null
+++ b/app/controllers/api/v1/accounts/contacts/labels_controller.rb
@@ -0,0 +1,13 @@
+class Api::V1::Accounts::Contacts::LabelsController < Api::V1::Accounts::BaseController
+  include LabelConcern
+
+  private
+
+  def model
+    @model ||= Current.account.contacts.find(params[:contact_id])
+  end
+
+  def permitted_params
+    params.permit(:contact_id, :labels)
+  end
+end
diff --git a/app/controllers/api/v1/accounts/conversations/labels_controller.rb b/app/controllers/api/v1/accounts/conversations/labels_controller.rb
index 306544200..b84d030d8 100644
--- a/app/controllers/api/v1/accounts/conversations/labels_controller.rb
+++ b/app/controllers/api/v1/accounts/conversations/labels_controller.rb
@@ -1,11 +1,13 @@
 class Api::V1::Accounts::Conversations::LabelsController < Api::V1::Accounts::Conversations::BaseController
-  def create
-    @conversation.update_labels(params[:labels])
-    @labels = @conversation.label_list
+  include LabelConcern
+
+  private
+
+  def model
+    @model ||= @conversation
   end
 
-  # all labels of the current conversation
-  def index
-    @labels = @conversation.label_list
+  def permitted_params
+    params.permit(:conversation_id, :labels)
   end
 end
diff --git a/app/controllers/concerns/label_concern.rb b/app/controllers/concerns/label_concern.rb
new file mode 100644
index 000000000..194f063be
--- /dev/null
+++ b/app/controllers/concerns/label_concern.rb
@@ -0,0 +1,10 @@
+module LabelConcern
+  def create
+    model.update_labels(permitted_params[:labels])
+    @labels = model.label_list
+  end
+
+  def index
+    @labels = model.label_list
+  end
+end
diff --git a/app/models/concerns/labelable.rb b/app/models/concerns/labelable.rb
new file mode 100644
index 000000000..4e654fdd4
--- /dev/null
+++ b/app/models/concerns/labelable.rb
@@ -0,0 +1,11 @@
+module Labelable
+  extend ActiveSupport::Concern
+
+  included do
+    acts_as_taggable_on :labels
+  end
+
+  def update_labels(labels = nil)
+    update!(label_list: labels)
+  end
+end
diff --git a/app/models/contact.rb b/app/models/contact.rb
index 82ece1176..f62ffc1f8 100644
--- a/app/models/contact.rb
+++ b/app/models/contact.rb
@@ -26,6 +26,7 @@ class Contact < ApplicationRecord
   include Pubsubable
   include Avatarable
   include AvailabilityStatusable
+  include Labelable
 
   validates :account_id, presence: true
   validates :email, allow_blank: true, uniqueness: { scope: [:account_id], case_sensitive: false }
diff --git a/app/models/conversation.rb b/app/models/conversation.rb
index 3a90d1f82..f6ba5c3cc 100644
--- a/app/models/conversation.rb
+++ b/app/models/conversation.rb
@@ -32,6 +32,8 @@
 #
 
 class Conversation < ApplicationRecord
+  include Labelable
+
   validates :account_id, presence: true
   validates :inbox_id, presence: true
 
@@ -57,8 +59,6 @@ class Conversation < ApplicationRecord
   after_create_commit :notify_conversation_creation, :queue_conversation_auto_resolution_job
   after_save :run_round_robin
 
-  acts_as_taggable_on :labels
-
   delegate :auto_resolve_duration, to: :account
 
   def can_reply?
@@ -75,10 +75,6 @@ class Conversation < ApplicationRecord
     update!(assignee: agent)
   end
 
-  def update_labels(labels = nil)
-    update!(label_list: labels)
-  end
-
   def toggle_status
     # FIXME: implement state machine with aasm
     self.status = open? ? :resolved : :open
diff --git a/app/views/api/v1/accounts/contacts/labels/create.json.jbuilder b/app/views/api/v1/accounts/contacts/labels/create.json.jbuilder
new file mode 100644
index 000000000..b47f0870f
--- /dev/null
+++ b/app/views/api/v1/accounts/contacts/labels/create.json.jbuilder
@@ -0,0 +1 @@
+json.payload @labels
diff --git a/app/views/api/v1/accounts/contacts/labels/index.json.jbuilder b/app/views/api/v1/accounts/contacts/labels/index.json.jbuilder
new file mode 100644
index 000000000..b47f0870f
--- /dev/null
+++ b/app/views/api/v1/accounts/contacts/labels/index.json.jbuilder
@@ -0,0 +1 @@
+json.payload @labels
diff --git a/config/routes.rb b/config/routes.rb
index dcec9aa4b..1b461fa95 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -71,6 +71,7 @@ Rails.application.routes.draw do
             scope module: :contacts do
               resources :conversations, only: [:index]
               resources :contact_inboxes, only: [:create]
+              resources :labels, only: [:create, :index]
             end
           end
 
diff --git a/spec/controllers/api/v1/accounts/contacts/labels_controller_spec.rb b/spec/controllers/api/v1/accounts/contacts/labels_controller_spec.rb
new file mode 100644
index 000000000..55303c79b
--- /dev/null
+++ b/spec/controllers/api/v1/accounts/contacts/labels_controller_spec.rb
@@ -0,0 +1,67 @@
+require 'rails_helper'
+
+RSpec.describe 'Contact Label API', type: :request do
+  let(:account) { create(:account) }
+
+  describe 'GET /api/v1/accounts/{account.id}/contacts/<id>/labels' do
+    let(:contact) { create(:contact, account: account) }
+
+    before do
+      contact.update_labels('label1, label2')
+    end
+
+    context 'when it is an unauthenticated user' do
+      it 'returns unauthorized' do
+        get api_v1_account_contact_labels_url(account_id: account.id, contact_id: contact.id)
+        expect(response).to have_http_status(:unauthorized)
+      end
+    end
+
+    context 'when it is an authenticated user' do
+      let(:agent) { create(:user, account: account, role: :agent) }
+
+      it 'returns all the labels for the contact' do
+        get api_v1_account_contact_labels_url(account_id: account.id, contact_id: contact.id),
+            headers: agent.create_new_auth_token,
+            as: :json
+
+        expect(response).to have_http_status(:success)
+        expect(response.body).to include('label1')
+        expect(response.body).to include('label2')
+      end
+    end
+  end
+
+  describe 'POST /api/v1/accounts/{account.id}/contacts/<id>/labels' do
+    let(:contact) { create(:contact, account: account) }
+
+    before do
+      contact.update_labels('label1, label2')
+    end
+
+    context 'when it is an unauthenticated user' do
+      it 'returns unauthorized' do
+        post api_v1_account_contact_labels_url(account_id: account.id, contact_id: contact.id),
+             params: { labels: 'label3,label4' },
+             as: :json
+
+        expect(response).to have_http_status(:unauthorized)
+      end
+    end
+
+    context 'when it is an authenticated user' do
+      let(:agent) { create(:user, account: account, role: :agent) }
+
+      it 'creates labels for the contact' do
+        post api_v1_account_contact_labels_url(account_id: account.id, contact_id: contact.id),
+             params: { labels: 'label3,label4' },
+             headers: agent.create_new_auth_token,
+             as: :json
+
+        expect(response).to have_http_status(:success)
+        expect(response.body).to include('label3')
+        expect(response.body).to include('label4')
+      end
+    end
+  end
+end