diff --git a/packages/api/src/entity/label.ts b/packages/api/src/entity/label.ts
index dec2046f4..0b36eddec 100644
--- a/packages/api/src/entity/label.ts
+++ b/packages/api/src/entity/label.ts
@@ -4,13 +4,10 @@ import {
   CreateDateColumn,
   Entity,
   JoinColumn,
-  JoinTable,
-  ManyToMany,
   ManyToOne,
   PrimaryGeneratedColumn,
 } from 'typeorm'
 import { User } from './user'
-import { Link } from './link'
 
 @Entity({ name: 'labels' })
 export class Label extends BaseEntity {
@@ -24,10 +21,6 @@ export class Label extends BaseEntity {
   @JoinColumn({ name: 'user_id' })
   user!: User
 
-  @ManyToMany(() => Link, (link) => link.labels)
-  @JoinTable({ name: 'link_labels' })
-  link?: Link
-
   @Column('text')
   color!: string
 
diff --git a/packages/api/src/entity/link.ts b/packages/api/src/entity/link.ts
index fcd9ee2f4..40c0f208a 100644
--- a/packages/api/src/entity/link.ts
+++ b/packages/api/src/entity/link.ts
@@ -63,7 +63,11 @@ export class Link extends BaseEntity {
   @UpdateDateColumn()
   updatedAt?: Date
 
-  @ManyToMany(() => Label, (label) => label.link)
-  @JoinTable({ name: 'link_labels' })
+  @ManyToMany(() => Label)
+  @JoinTable({
+    name: 'link_labels',
+    joinColumn: { name: 'link_id' },
+    inverseJoinColumn: { name: 'label_id' },
+  })
   labels?: Label[]
 }
diff --git a/packages/api/src/entity/link_label.ts b/packages/api/src/entity/link_label.ts
new file mode 100644
index 000000000..5bcdd64d6
--- /dev/null
+++ b/packages/api/src/entity/link_label.ts
@@ -0,0 +1,27 @@
+import {
+  BaseEntity,
+  CreateDateColumn,
+  Entity,
+  JoinColumn,
+  ManyToOne,
+  PrimaryGeneratedColumn,
+} from 'typeorm'
+import { Link } from './link'
+import { Label } from './label'
+
+@Entity({ name: 'link_labels' })
+export class LinkLabel extends BaseEntity {
+  @PrimaryGeneratedColumn('uuid')
+  id!: string
+
+  @ManyToOne(() => Link)
+  @JoinColumn({ name: 'link_id' })
+  link!: Link
+
+  @ManyToOne(() => Label)
+  @JoinColumn({ name: 'label_id' })
+  label!: Label
+
+  @CreateDateColumn()
+  createdAt!: Date
+}
diff --git a/packages/api/src/generated/graphql.ts b/packages/api/src/generated/graphql.ts
index e854ff299..c844284eb 100644
--- a/packages/api/src/generated/graphql.ts
+++ b/packages/api/src/generated/graphql.ts
@@ -778,6 +778,7 @@ export type Mutation = {
   setBookmarkArticle: SetBookmarkArticleResult;
   setDeviceToken: SetDeviceTokenResult;
   setFollow: SetFollowResult;
+  setLabels: SetLabelsResult;
   setLinkArchived: ArchiveLinkResult;
   setShareArticle: SetShareArticleResult;
   setShareHighlight: SetShareHighlightResult;
@@ -919,6 +920,11 @@ export type MutationSetFollowArgs = {
 };
 
 
+export type MutationSetLabelsArgs = {
+  input: SetLabelsInput;
+};
+
+
 export type MutationSetLinkArchivedArgs = {
   input: ArchiveLinkInput;
 };
@@ -1350,6 +1356,29 @@ export type SetFollowSuccess = {
   updatedUser: User;
 };
 
+export type SetLabelsError = {
+  __typename?: 'SetLabelsError';
+  errorCodes: Array<SetLabelsErrorCode>;
+};
+
+export enum SetLabelsErrorCode {
+  BadRequest = 'BAD_REQUEST',
+  NotFound = 'NOT_FOUND',
+  Unauthorized = 'UNAUTHORIZED'
+}
+
+export type SetLabelsInput = {
+  labelIds: Array<Scalars['ID']>;
+  linkId: Scalars['ID'];
+};
+
+export type SetLabelsResult = SetLabelsError | SetLabelsSuccess;
+
+export type SetLabelsSuccess = {
+  __typename?: 'SetLabelsSuccess';
+  labels: Array<Label>;
+};
+
 export type SetShareArticleError = {
   __typename?: 'SetShareArticleError';
   errorCodes: Array<SetShareArticleErrorCode>;
@@ -2014,6 +2043,11 @@ export type ResolversTypes = {
   SetFollowInput: SetFollowInput;
   SetFollowResult: ResolversTypes['SetFollowError'] | ResolversTypes['SetFollowSuccess'];
   SetFollowSuccess: ResolverTypeWrapper<SetFollowSuccess>;
+  SetLabelsError: ResolverTypeWrapper<SetLabelsError>;
+  SetLabelsErrorCode: SetLabelsErrorCode;
+  SetLabelsInput: SetLabelsInput;
+  SetLabelsResult: ResolversTypes['SetLabelsError'] | ResolversTypes['SetLabelsSuccess'];
+  SetLabelsSuccess: ResolverTypeWrapper<SetLabelsSuccess>;
   SetShareArticleError: ResolverTypeWrapper<SetShareArticleError>;
   SetShareArticleErrorCode: SetShareArticleErrorCode;
   SetShareArticleInput: SetShareArticleInput;
@@ -2250,6 +2284,10 @@ export type ResolversParentTypes = {
   SetFollowInput: SetFollowInput;
   SetFollowResult: ResolversParentTypes['SetFollowError'] | ResolversParentTypes['SetFollowSuccess'];
   SetFollowSuccess: SetFollowSuccess;
+  SetLabelsError: SetLabelsError;
+  SetLabelsInput: SetLabelsInput;
+  SetLabelsResult: ResolversParentTypes['SetLabelsError'] | ResolversParentTypes['SetLabelsSuccess'];
+  SetLabelsSuccess: SetLabelsSuccess;
   SetShareArticleError: SetShareArticleError;
   SetShareArticleInput: SetShareArticleInput;
   SetShareArticleResult: ResolversParentTypes['SetShareArticleError'] | ResolversParentTypes['SetShareArticleSuccess'];
@@ -2878,6 +2916,7 @@ export type MutationResolvers<ContextType = ResolverContext, ParentType extends
   setBookmarkArticle?: Resolver<ResolversTypes['SetBookmarkArticleResult'], ParentType, ContextType, RequireFields<MutationSetBookmarkArticleArgs, 'input'>>;
   setDeviceToken?: Resolver<ResolversTypes['SetDeviceTokenResult'], ParentType, ContextType, RequireFields<MutationSetDeviceTokenArgs, 'input'>>;
   setFollow?: Resolver<ResolversTypes['SetFollowResult'], ParentType, ContextType, RequireFields<MutationSetFollowArgs, 'input'>>;
+  setLabels?: Resolver<ResolversTypes['SetLabelsResult'], ParentType, ContextType, RequireFields<MutationSetLabelsArgs, 'input'>>;
   setLinkArchived?: Resolver<ResolversTypes['ArchiveLinkResult'], ParentType, ContextType, RequireFields<MutationSetLinkArchivedArgs, 'input'>>;
   setShareArticle?: Resolver<ResolversTypes['SetShareArticleResult'], ParentType, ContextType, RequireFields<MutationSetShareArticleArgs, 'input'>>;
   setShareHighlight?: Resolver<ResolversTypes['SetShareHighlightResult'], ParentType, ContextType, RequireFields<MutationSetShareHighlightArgs, 'input'>>;
@@ -3084,6 +3123,20 @@ export type SetFollowSuccessResolvers<ContextType = ResolverContext, ParentType
   __isTypeOf?: IsTypeOfResolverFn<ParentType, ContextType>;
 };
 
+export type SetLabelsErrorResolvers<ContextType = ResolverContext, ParentType extends ResolversParentTypes['SetLabelsError'] = ResolversParentTypes['SetLabelsError']> = {
+  errorCodes?: Resolver<Array<ResolversTypes['SetLabelsErrorCode']>, ParentType, ContextType>;
+  __isTypeOf?: IsTypeOfResolverFn<ParentType, ContextType>;
+};
+
+export type SetLabelsResultResolvers<ContextType = ResolverContext, ParentType extends ResolversParentTypes['SetLabelsResult'] = ResolversParentTypes['SetLabelsResult']> = {
+  __resolveType: TypeResolveFn<'SetLabelsError' | 'SetLabelsSuccess', ParentType, ContextType>;
+};
+
+export type SetLabelsSuccessResolvers<ContextType = ResolverContext, ParentType extends ResolversParentTypes['SetLabelsSuccess'] = ResolversParentTypes['SetLabelsSuccess']> = {
+  labels?: Resolver<Array<ResolversTypes['Label']>, ParentType, ContextType>;
+  __isTypeOf?: IsTypeOfResolverFn<ParentType, ContextType>;
+};
+
 export type SetShareArticleErrorResolvers<ContextType = ResolverContext, ParentType extends ResolversParentTypes['SetShareArticleError'] = ResolversParentTypes['SetShareArticleError']> = {
   errorCodes?: Resolver<Array<ResolversTypes['SetShareArticleErrorCode']>, ParentType, ContextType>;
   __isTypeOf?: IsTypeOfResolverFn<ParentType, ContextType>;
@@ -3460,6 +3513,9 @@ export type Resolvers<ContextType = ResolverContext> = {
   SetFollowError?: SetFollowErrorResolvers<ContextType>;
   SetFollowResult?: SetFollowResultResolvers<ContextType>;
   SetFollowSuccess?: SetFollowSuccessResolvers<ContextType>;
+  SetLabelsError?: SetLabelsErrorResolvers<ContextType>;
+  SetLabelsResult?: SetLabelsResultResolvers<ContextType>;
+  SetLabelsSuccess?: SetLabelsSuccessResolvers<ContextType>;
   SetShareArticleError?: SetShareArticleErrorResolvers<ContextType>;
   SetShareArticleResult?: SetShareArticleResultResolvers<ContextType>;
   SetShareArticleSuccess?: SetShareArticleSuccessResolvers<ContextType>;
diff --git a/packages/api/src/generated/schema.graphql b/packages/api/src/generated/schema.graphql
index a6288950d..0e7793c8d 100644
--- a/packages/api/src/generated/schema.graphql
+++ b/packages/api/src/generated/schema.graphql
@@ -691,6 +691,7 @@ type Mutation {
   setBookmarkArticle(input: SetBookmarkArticleInput!): SetBookmarkArticleResult!
   setDeviceToken(input: SetDeviceTokenInput!): SetDeviceTokenResult!
   setFollow(input: SetFollowInput!): SetFollowResult!
+  setLabels(input: SetLabelsInput!): SetLabelsResult!
   setLinkArchived(input: ArchiveLinkInput!): ArchiveLinkResult!
   setShareArticle(input: SetShareArticleInput!): SetShareArticleResult!
   setShareHighlight(input: SetShareHighlightInput!): SetShareHighlightResult!
@@ -989,6 +990,27 @@ type SetFollowSuccess {
   updatedUser: User!
 }
 
+type SetLabelsError {
+  errorCodes: [SetLabelsErrorCode!]!
+}
+
+enum SetLabelsErrorCode {
+  BAD_REQUEST
+  NOT_FOUND
+  UNAUTHORIZED
+}
+
+input SetLabelsInput {
+  labelIds: [ID!]!
+  linkId: ID!
+}
+
+union SetLabelsResult = SetLabelsError | SetLabelsSuccess
+
+type SetLabelsSuccess {
+  labels: [Label!]!
+}
+
 type SetShareArticleError {
   errorCodes: [SetShareArticleErrorCode!]!
 }
diff --git a/packages/api/src/resolvers/function_resolvers.ts b/packages/api/src/resolvers/function_resolvers.ts
index 287c43003..47858f573 100644
--- a/packages/api/src/resolvers/function_resolvers.ts
+++ b/packages/api/src/resolvers/function_resolvers.ts
@@ -59,6 +59,7 @@ import {
   setBookmarkArticleResolver,
   setDeviceTokenResolver,
   setFollowResolver,
+  setLabelsResolver,
   setLinkArchivedResolver,
   setShareArticleResolver,
   setShareHighlightResolver,
@@ -135,6 +136,7 @@ export const functionResolvers = {
     deleteLabel: deleteLabelResolver,
     login: loginResolver,
     signup: signupResolver,
+    setLabels: setLabelsResolver,
   },
   Query: {
     me: getMeUserResolver,
@@ -525,4 +527,5 @@ export const functionResolvers = {
   ...resultResolveTypeResolver('DeleteLabel'),
   ...resultResolveTypeResolver('Login'),
   ...resultResolveTypeResolver('Signup'),
+  ...resultResolveTypeResolver('SetLabels'),
 }
diff --git a/packages/api/src/resolvers/labels/index.ts b/packages/api/src/resolvers/labels/index.ts
index 2852171e7..2d111b507 100644
--- a/packages/api/src/resolvers/labels/index.ts
+++ b/packages/api/src/resolvers/labels/index.ts
@@ -11,6 +11,10 @@ import {
   LabelsSuccess,
   MutationCreateLabelArgs,
   MutationDeleteLabelArgs,
+  MutationSetLabelsArgs,
+  SetLabelsError,
+  SetLabelsErrorCode,
+  SetLabelsSuccess,
 } from '../../generated/graphql'
 import { analytics } from '../../utils/analytics'
 import { env } from '../../env'
@@ -18,6 +22,8 @@ import { User } from '../../entity/user'
 import { Label } from '../../entity/label'
 import { getManager, getRepository } from 'typeorm'
 import { setClaims } from '../../entity/utils'
+import { Link } from '../../entity/link'
+import { LinkLabel } from '../../entity/link_label'
 
 export const labelsResolver = authorized<LabelsSuccess, LabelsError>(
   async (_obj, _params, { claims: { uid }, log }) => {
@@ -172,3 +178,70 @@ export const deleteLabelResolver = authorized<
     }
   }
 })
+
+export const setLabelsResolver = authorized<
+  SetLabelsSuccess,
+  SetLabelsError,
+  MutationSetLabelsArgs
+>(async (_, { input }, { claims: { uid }, log }) => {
+  log.info('setLabelsResolver')
+
+  const { linkId, labelIds } = input
+
+  try {
+    const user = await getRepository(User).findOne(uid)
+    if (!user) {
+      return {
+        errorCodes: [SetLabelsErrorCode.Unauthorized],
+      }
+    }
+
+    const link = await getRepository(Link).findOne(linkId)
+    if (!link) {
+      return {
+        errorCodes: [SetLabelsErrorCode.NotFound],
+      }
+    }
+
+    const labels = await getRepository(Label).findByIds(labelIds, {
+      where: {
+        user,
+      },
+      relations: ['user'],
+    })
+    if (labels.length !== labelIds.length) {
+      return {
+        errorCodes: [SetLabelsErrorCode.NotFound],
+      }
+    }
+
+    // delete all existing labels of the link
+    await getManager().transaction(async (t) => {
+      await t.getRepository(LinkLabel).delete({ link })
+
+      // add new labels
+      await t
+        .getRepository(LinkLabel)
+        .save(labels.map((label) => ({ link, label })))
+    })
+
+    analytics.track({
+      userId: uid,
+      event: 'setLabels',
+      properties: {
+        linkId,
+        labelIds,
+        env: env.server.apiEnv,
+      },
+    })
+
+    return {
+      labels,
+    }
+  } catch (error) {
+    log.error(error)
+    return {
+      errorCodes: [SetLabelsErrorCode.BadRequest],
+    }
+  }
+})
diff --git a/packages/api/src/schema.ts b/packages/api/src/schema.ts
index ce3613b72..6d4f32525 100755
--- a/packages/api/src/schema.ts
+++ b/packages/api/src/schema.ts
@@ -1326,6 +1326,27 @@ const schema = gql`
 
   union SignupResult = SignupSuccess | SignupError
 
+  input SetLabelsInput {
+    linkId: ID!
+    labelIds: [ID!]!
+  }
+
+  union SetLabelsResult = SetLabelsSuccess | SetLabelsError
+
+  type SetLabelsSuccess {
+    labels: [Label!]!
+  }
+
+  type SetLabelsError {
+    errorCodes: [SetLabelsErrorCode!]!
+  }
+
+  enum SetLabelsErrorCode {
+    UNAUTHORIZED
+    BAD_REQUEST
+    NOT_FOUND
+  }
+
   # Mutations
   type Mutation {
     googleLogin(input: GoogleLoginInput!): LoginResult!
@@ -1384,6 +1405,7 @@ const schema = gql`
     deleteLabel(id: ID!): DeleteLabelResult!
     login(input: LoginInput!): LoginResult!
     signup(input: SignupInput!): SignupResult!
+    setLabels(input: SetLabelsInput!): SetLabelsResult!
   }
 
   # FIXME: remove sort from feedArticles after all cahced tabs are closed
diff --git a/packages/api/test/db.ts b/packages/api/test/db.ts
index 68596e748..b92af6ead 100644
--- a/packages/api/test/db.ts
+++ b/packages/api/test/db.ts
@@ -14,6 +14,7 @@ import { Link } from '../src/entity/link'
 import { Reminder } from '../src/entity/reminder'
 import { NewsletterEmail } from '../src/entity/newsletter_email'
 import { UserDeviceToken } from '../src/entity/user_device_tokens'
+import { Label } from '../src/entity/label'
 
 const runMigrations = async () => {
   const migrationDirectory = __dirname + '/../../db/migrations'
@@ -200,3 +201,17 @@ export const getUser = async (id: string): Promise<User | undefined> => {
 export const getLink = async (id: string): Promise<Link | undefined> => {
   return getRepository(Link).findOne(id)
 }
+
+export const createTestLabel = async (
+  user: User,
+  name: string,
+  color: string
+): Promise<Label> => {
+  return getRepository(Label)
+    .create({
+      user: user,
+      name: name,
+      color: color,
+    })
+    .save()
+}
diff --git a/packages/api/test/resolvers/labels.test.ts b/packages/api/test/resolvers/labels.test.ts
index 8fe06fd8e..737908272 100644
--- a/packages/api/test/resolvers/labels.test.ts
+++ b/packages/api/test/resolvers/labels.test.ts
@@ -1,4 +1,5 @@
 import {
+  createTestLabel,
   createTestLink,
   createTestPage,
   createTestUser,
@@ -11,10 +12,13 @@ import { expect } from 'chai'
 import { Page } from '../../src/entity/page'
 import { getRepository } from 'typeorm'
 import 'mocha'
+import { LinkLabel } from '../../src/entity/link_label'
+import { User } from '../../src/entity/user'
 
 describe('Labels API', () => {
   const username = 'fakeUser'
 
+  let user: User
   let authToken: string
   let page: Page
   let link: Link
@@ -22,31 +26,30 @@ describe('Labels API', () => {
 
   before(async () => {
     // create test user and login
-    const user = await createTestUser(username)
+    user = await createTestUser(username)
     const res = await request
       .post('/local/debug/fake-user-login')
       .send({ fakeEmail: user.email })
 
     authToken = res.body.authToken
 
-    //  create test label
+    //  create testing labels
+    const label1 = await createTestLabel(user, 'label_1', '#ffffff')
+    const label2 = await createTestLabel(user, 'label_2', '#eeeeee')
+    labels = [label1, label2]
+
     page = await createTestPage()
     link = await createTestLink(user, page)
-    const label1 = await getRepository(Label)
-      .create({
-        name: 'label1',
-        user: user,
-        color: '#ffffff',
-      })
-      .save()
-    const label2 = await getRepository(Label)
-      .create({
-        name: 'label2',
-        user: user,
-        color: '#eeeeee',
-      })
-      .save()
-    labels = [label1, label2]
+    const existingLabelOfLink = await createTestLabel(
+      user,
+      'different_label',
+      '#dddddd'
+    )
+    //  set another label to link
+    await getRepository(LinkLabel).save({
+      link,
+      label: existingLabelOfLink,
+    })
   })
 
   after(async () => {
@@ -81,6 +84,7 @@ describe('Labels API', () => {
     it('should return labels', async () => {
       const res = await graphqlRequest(query, authToken).expect(200)
 
+      const labels = await getRepository(Label).find({ where: { user } })
       expect(res.body.data.labels.labels).to.eql(
         labels.map((label) => ({
           id: label.id,
@@ -200,8 +204,9 @@ describe('Labels API', () => {
     })
 
     context('when label exists', () => {
-      before(() => {
-        labelId = labels[0].id
+      before(async () => {
+        const toDeleteLabel = await createTestLabel(user, 'label4', '#ffffff')
+        labelId = toDeleteLabel.id
       })
 
       it('should delete label', async () => {
@@ -237,4 +242,89 @@ describe('Labels API', () => {
       return graphqlRequest(query, invalidAuthToken).expect(500)
     })
   })
+
+  describe('Set labels', () => {
+    let query: string
+    let linkId: string
+    let labelIds: string[] = []
+
+    beforeEach(() => {
+      query = `
+        mutation {
+          setLabels(
+            input: {
+              linkId: "${linkId}",
+              labelIds: [
+                "${labelIds[0]}",
+                "${labelIds[1]}"
+              ]
+            }
+          ) {
+            ... on SetLabelsSuccess {
+              labels {
+                id
+                name
+              }
+            }
+            ... on SetLabelsError {
+              errorCodes
+            }
+          }
+        }
+      `
+    })
+
+    context('when labels exists', () => {
+      before(() => {
+        linkId = link.id
+        labelIds = [labels[0].id, labels[1].id]
+      })
+
+      it('should set labels', async () => {
+        await graphqlRequest(query, authToken).expect(200)
+        const link = await getRepository(Link).findOne(linkId, {
+          relations: ['labels'],
+        })
+        expect(link?.labels?.map((l) => l.id)).to.eql(labelIds)
+      })
+    })
+
+    context('when labels not exist', () => {
+      before(() => {
+        linkId = link.id
+        labelIds = [generateFakeUuid(), generateFakeUuid()]
+      })
+
+      it('should return error code NOT_FOUND', async () => {
+        const res = await graphqlRequest(query, authToken).expect(200)
+        expect(res.body.data.setLabels.errorCodes).to.eql(['NOT_FOUND'])
+      })
+    })
+
+    context('when link not exist', () => {
+      before(() => {
+        linkId = generateFakeUuid()
+        labelIds = [labels[0].id, labels[1].id]
+      })
+
+      it('should return error code NOT_FOUND', async () => {
+        const res = await graphqlRequest(query, authToken).expect(200)
+        expect(res.body.data.setLabels.errorCodes).to.eql(['NOT_FOUND'])
+      })
+    })
+
+    it('responds status code 400 when invalid query', async () => {
+      const invalidQuery = `
+        mutation {
+          setLabels {}
+        }
+      `
+      return graphqlRequest(invalidQuery, authToken).expect(400)
+    })
+
+    it('responds status code 500 when invalid user', async () => {
+      const invalidAuthToken = 'Fake token'
+      return graphqlRequest(query, invalidAuthToken).expect(500)
+    })
+  })
 })