diff --git a/packages/web/pages/settings/labels.tsx b/packages/web/pages/settings/labels.tsx
index f27c9c62a..446237535 100644
--- a/packages/web/pages/settings/labels.tsx
+++ b/packages/web/pages/settings/labels.tsx
@@ -267,6 +267,7 @@ export default function LabelsPage(): JSX.Element {
                   <Button
                     onClick={() => {
                       resetLabelState()
+                      handleGenerateRandomColor()
                       setIsCreateMode(true)
                     }}
                     style="ctaDarkYellow"