diff --git a/packages/api/src/repository/label.ts b/packages/api/src/repository/label.ts
index baaac24bb..0faebd3db 100644
--- a/packages/api/src/repository/label.ts
+++ b/packages/api/src/repository/label.ts
@@ -46,9 +46,12 @@ export const labelRepository = appDataSource.getRepository(Label).extend({
     return this.findOneBy({ id })
   },
 
-  findByName(name: string) {
+  findByName(name: string, userId: string) {
     return this.createQueryBuilder()
-      .where('LOWER(name) = LOWER(:name)', { name }) // case insensitive
+      .where('user_id = :userId AND LOWER(name) = LOWER(:name)', {
+        name,
+        userId,
+      }) // case insensitive
       .getOne()
   },
 
diff --git a/packages/api/src/resolvers/labels/index.ts b/packages/api/src/resolvers/labels/index.ts
index 1da2f3053..cd5ec824b 100644
--- a/packages/api/src/resolvers/labels/index.ts
+++ b/packages/api/src/resolvers/labels/index.ts
@@ -90,7 +90,7 @@ export const createLabelResolver = authorized<
   CreateLabelError,
   MutationCreateLabelArgs
 >(async (_, { input }, { authTrx, uid }) => {
-  const existingLabel = await labelRepository.findByName(input.name)
+  const existingLabel = await labelRepository.findByName(input.name, uid)
   if (existingLabel) {
     return {
       errorCodes: [CreateLabelErrorCode.LabelAlreadyExists],
diff --git a/packages/api/test/resolvers/labels.test.ts b/packages/api/test/resolvers/labels.test.ts
index 8d1175c78..0dccc54d1 100644
--- a/packages/api/test/resolvers/labels.test.ts
+++ b/packages/api/test/resolvers/labels.test.ts
@@ -145,7 +145,7 @@ describe('Labels API', () => {
       })
     })
 
-    context('when name exists', () => {
+    context('when name exists in the user library', () => {
       let existingLabel: Label
 
       before(async () => {
@@ -177,6 +177,32 @@ describe('Labels API', () => {
       })
     })
 
+    context('when name exists in the other user library', () => {
+      let existingLabel: Label
+      let otherUser: User
+
+      before(async () => {
+        otherUser = await createTestUser('otherUser')
+        existingLabel = await createLabel('label3', '#ffffff', otherUser.id)
+      })
+
+      after(async () => {
+        // delete other user will also delete the label
+        await deleteUser(otherUser.id)
+      })
+
+      it('creates the label', async () => {
+        const res = await graphqlRequest(query, authToken, {
+          input: { name: existingLabel.name },
+        }).expect(200)
+        const label = await findLabelById(
+          res.body.data.createLabel.label.id,
+          user.id
+        )
+        expect(label).to.exist
+      })
+    })
+
     it('responds status code 400 when invalid query', async () => {
       const invalidQuery = `
         mutation {