diff --git a/app/javascript/dashboard/routes/dashboard/contacts/components/ContactLabels.vue b/app/javascript/dashboard/routes/dashboard/contacts/components/ContactLabels.vue
index 8ac65b462..04c79561f 100644
--- a/app/javascript/dashboard/routes/dashboard/contacts/components/ContactLabels.vue
+++ b/app/javascript/dashboard/routes/dashboard/contacts/components/ContactLabels.vue
@@ -24,12 +24,12 @@ export default {
 
   computed: {
     savedLabels() {
-      const result = this.$store.getters['contactLabels/getContactLabels'](
-        this.contactId
+      const availableContactLabels = this.$store.getters[
+        'contactLabels/getContactLabels'
+      ](this.contactId);
+      return this.allLabels.filter(({ title }) =>
+        availableContactLabels.includes(title)
       );
-      return result.map(value => {
-        return this.allLabels.find(label => label.title === value);
-      });
     },
 
     ...mapGetters({
diff --git a/app/jobs/labels/update_job.rb b/app/jobs/labels/update_job.rb
new file mode 100644
index 000000000..8834c97cc
--- /dev/null
+++ b/app/jobs/labels/update_job.rb
@@ -0,0 +1,11 @@
+class Labels::UpdateJob < ApplicationJob
+  queue_as :default
+
+  def perform(new_label_title, old_label_title, account_id)
+    Labels::UpdateService.new(
+      new_label_title: new_label_title,
+      old_label_title: old_label_title,
+      account_id: account_id
+    ).perform
+  end
+end
diff --git a/app/models/label.rb b/app/models/label.rb
index b53260f58..9b551141d 100644
--- a/app/models/label.rb
+++ b/app/models/label.rb
@@ -25,6 +25,8 @@ class Label < ApplicationRecord
             format: { with: UNICODE_CHARACTER_NUMBER_HYPHEN_UNDERSCORE },
             uniqueness: { scope: :account_id }
 
+  after_update_commit :update_associated_models
+
   before_validation do
     self.title = title.downcase if attribute_present?('title')
   end
@@ -40,4 +42,12 @@ class Label < ApplicationRecord
   def events
     account.events.where(conversation_id: conversations.pluck(:id))
   end
+
+  private
+
+  def update_associated_models
+    return unless title_previously_changed?
+
+    Labels::UpdateJob.perform_later(title, title_previously_was, account_id)
+  end
 end
diff --git a/app/services/labels/update_service.rb b/app/services/labels/update_service.rb
new file mode 100644
index 000000000..300331b09
--- /dev/null
+++ b/app/services/labels/update_service.rb
@@ -0,0 +1,35 @@
+class Labels::UpdateService
+  pattr_initialize [:new_label_title!, :old_label_title!, :account_id!]
+
+  def perform
+    tagged_conversations.find_in_batches do |conversation_batch|
+      conversation_batch.each do |conversation|
+        conversation.label_list.remove(old_label_title)
+        conversation.label_list.add(new_label_title)
+        conversation.save!
+      end
+    end
+
+    tagged_contacts.find_in_batches do |contact_batch|
+      contact_batch.each do |contact|
+        contact.label_list.remove(old_label_title)
+        contact.label_list.add(new_label_title)
+        contact.save!
+      end
+    end
+  end
+
+  private
+
+  def tagged_conversations
+    account.conversations.tagged_with(old_label_title)
+  end
+
+  def tagged_contacts
+    account.contacts.tagged_with(old_label_title)
+  end
+
+  def account
+    @account ||= Account.find(account_id)
+  end
+end
diff --git a/spec/jobs/labels/update_job_spec.rb b/spec/jobs/labels/update_job_spec.rb
new file mode 100644
index 000000000..16692b2c3
--- /dev/null
+++ b/spec/jobs/labels/update_job_spec.rb
@@ -0,0 +1,15 @@
+require 'rails_helper'
+
+RSpec.describe Labels::UpdateJob, type: :job do
+  subject(:job) { described_class.perform_later(new_label_title, old_label_title, account_id) }
+
+  let(:new_label_title) { 'new-title' }
+  let(:old_label_title) { 'old-title' }
+  let(:account_id) { 1 }
+
+  it 'queues the job' do
+    expect { job }.to have_enqueued_job(described_class)
+      .with(new_label_title, old_label_title, account_id)
+      .on_queue('default')
+  end
+end
diff --git a/spec/models/label_spec.rb b/spec/models/label_spec.rb
index 215e9d5a6..bd8b6ad19 100644
--- a/spec/models/label_spec.rb
+++ b/spec/models/label_spec.rb
@@ -39,4 +39,20 @@ RSpec.describe Label, type: :model do
       expect(duplicate_label.valid?).to eq false
     end
   end
+
+  describe '.after_update_commit' do
+    let(:label) { create(:label) }
+
+    it 'calls update job' do
+      expect(Labels::UpdateJob).to receive(:perform_later).with('new-title', label.title, label.account_id)
+
+      label.update(title: 'new-title')
+    end
+
+    it 'does not call update job if title is not updated' do
+      expect(Labels::UpdateJob).not_to receive(:perform_later)
+
+      label.update(description: 'new-description')
+    end
+  end
 end
diff --git a/spec/services/labels/update_service_spec.rb b/spec/services/labels/update_service_spec.rb
new file mode 100644
index 000000000..a71ec3271
--- /dev/null
+++ b/spec/services/labels/update_service_spec.rb
@@ -0,0 +1,32 @@
+require 'rails_helper'
+
+describe Labels::UpdateService do
+  let(:account) { create(:account) }
+  let(:conversation) { create(:conversation, account: account) }
+  let(:label) { create(:label, account: account) }
+  let(:contact) { conversation.contact }
+
+  before do
+    conversation.label_list.add(label.title)
+    conversation.save!
+
+    contact.label_list.add(label.title)
+    contact.save!
+  end
+
+  describe '#perform' do
+    it 'updates associated conversations/contacts labels' do
+      expect(conversation.label_list).to eq([label.title])
+      expect(contact.label_list).to eq([label.title])
+
+      described_class.new(
+        new_label_title: 'updated-label-title',
+        old_label_title: label.title,
+        account_id: account.id
+      ).perform
+
+      expect(conversation.reload.label_list).to eq(['updated-label-title'])
+      expect(contact.reload.label_list).to eq(['updated-label-title'])
+    end
+  end
+end