diff --git a/frontend/components/Label/Chip.vue b/frontend/components/Label/Chip.vue
index c1b4a0f8..d8bc7d68 100644
--- a/frontend/components/Label/Chip.vue
+++ b/frontend/components/Label/Chip.vue
@@ -15,6 +15,11 @@
       default: "md",
     },
   });
+
+  // Type guard to check if label is LabelOut (has parent/children)
+  const isLabelOut = (label: LabelOut | LabelSummary): label is LabelOut => {
+    return 'parent' in label || 'children' in label;
+  };
 </script>
 
 <template>
@@ -42,6 +47,10 @@
         <MdiArrowUp class="hidden group-hover/label-chip:block" />
       </div>
     </div>
+    <template v-if="isLabelOut(label) && label.parent">
+      <span class="opacity-70">{{ label.parent.name }}</span>
+      <span class="opacity-50">/</span>
+    </template>
     {{ label.name }}
   </NuxtLink>
 </template>
diff --git a/frontend/components/Label/CreateModal.vue b/frontend/components/Label/CreateModal.vue
index b0a70c0c..76df9e80 100644
--- a/frontend/components/Label/CreateModal.vue
+++ b/frontend/components/Label/CreateModal.vue
@@ -15,6 +15,7 @@
         :max-length="1000"
       />
       <ColorSelector v-model="form.color" :label="$t('components.label.create_modal.label_color')" :show-hex="true" />
+      <LabelParentSelector v-model="form.parentId" :labels="labels" />
       <div class="mt-4 flex flex-row-reverse">
         <ButtonGroup>
           <Button :disabled="loading" type="submit">{{ $t("global.create") }}</Button>
@@ -37,6 +38,8 @@
   import FormTextField from "~/components/Form/TextField.vue";
   import FormTextArea from "~/components/Form/TextArea.vue";
   import { Button, ButtonGroup } from "~/components/ui/button";
+  import LabelParentSelector from "@/components/Label/ParentSelector.vue";
+  import type { LabelOut } from "~/lib/api/types/data-contracts";
 
   const { t } = useI18n();
 
@@ -49,13 +52,25 @@
   const form = reactive({
     name: "",
     description: "",
-    color: "", // Future!
+    color: "",
+    parentId: null as string | null,
+  });
+
+  const labels = ref<LabelOut[]>([]);
+
+  // Load labels for parent selection
+  onMounted(async () => {
+    const { data } = await api.labels.getAll();
+    if (data) {
+      labels.value = data;
+    }
   });
 
   function reset() {
     form.name = "";
     form.description = "";
     form.color = "";
+    form.parentId = null;
     focused.value = false;
     loading.value = false;
   }
diff --git a/frontend/components/Label/ParentSelector.vue b/frontend/components/Label/ParentSelector.vue
new file mode 100644
index 00000000..c6413f35
--- /dev/null
+++ b/frontend/components/Label/ParentSelector.vue
@@ -0,0 +1,40 @@
+<template>
+  <div class="flex flex-col gap-1">
+    <Label :for="id">
+      {{ $t('components.label.parent_selector.label') }}
+    </Label>
+    <Select v-model="modelValue">
+      <SelectTrigger :id="id">
+        <SelectValue :placeholder="$t('components.label.parent_selector.placeholder')" />
+      </SelectTrigger>
+      <SelectContent>
+        <SelectItem value="">{{ $t('components.label.parent_selector.no_parent') }}</SelectItem>
+        <SelectItem v-for="label in props.labels" :key="label.id" :value="label.id">
+          {{ label.name }}
+        </SelectItem>
+      </SelectContent>
+    </Select>
+  </div>
+</template>
+
+<script setup lang="ts">
+  import { Label } from "@/components/ui/label";
+  import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from "@/components/ui/select";
+  import type { LabelOut } from "~/lib/api/types/data-contracts";
+
+  const id = useId();
+
+  const emit = defineEmits(["update:modelValue"]);
+  const props = defineProps({
+    modelValue: {
+      type: String as () => string | null,
+      default: null,
+    },
+    labels: {
+      type: Array as () => LabelOut[],
+      required: true,
+    },
+  });
+
+  const modelValue = useVModel(props, "modelValue", emit);
+</script>
diff --git a/frontend/pages/label/[id].vue b/frontend/pages/label/[id].vue
index 83620867..39465a74 100644
--- a/frontend/pages/label/[id].vue
+++ b/frontend/pages/label/[id].vue
@@ -21,6 +21,8 @@
   import PageQRCode from "~/components/global/PageQRCode.vue";
   import Markdown from "~/components/global/Markdown.vue";
   import ItemViewSelectable from "~/components/Item/View/Selectable.vue";
+  import LabelParentSelector from "@/components/Label/ParentSelector.vue";
+  import LabelChip from "@/components/Label/Chip.vue";
 
   definePageMeta({
     middleware: ["auth"],
@@ -69,12 +71,19 @@
     name: "",
     description: "",
     color: "",
+    parentId: null as string | null,
+  });
+
+  const { data: allLabels } = useAsyncData("all-labels", async () => {
+    const { data } = await api.labels.getAll();
+    return data || [];
   });
 
   function openUpdate() {
     updateData.name = label.value?.name || "";
     updateData.description = label.value?.description || "";
     updateData.color = "";
+    updateData.parentId = label.value?.parent?.id || null;
     openDialog(DialogID.UpdateLabel);
   }
 
@@ -151,6 +160,7 @@
           :show-hex="true"
           :starting-color="label.color"
         />
+        <LabelParentSelector v-if="allLabels" v-model="updateData.parentId" :labels="allLabels.filter(l => l.id !== labelId)" />
         <DialogFooter>
           <Button type="submit" :loading="updating"> {{ $t("global.update") }} </Button>
         </DialogFooter>
@@ -204,6 +214,25 @@
       </header>
       <Separator v-if="label && label.description" />
       <Markdown v-if="label && label.description" class="mt-3 text-base" :source="label.description" />
+      
+      <!-- Display parent and children -->
+      <div v-if="label && (label.parent || (label.children && label.children.length > 0))" class="mt-3">
+        <Separator />
+        <div class="mt-3">
+          <div v-if="label.parent" class="mb-2">
+            <span class="text-sm font-medium">{{ $t("labels.parent_label") }}:</span>
+            <div class="mt-1">
+              <LabelChip :label="label.parent" size="sm" />
+            </div>
+          </div>
+          <div v-if="label.children && label.children.length > 0">
+            <span class="text-sm font-medium">{{ $t("labels.child_labels") }}:</span>
+            <div class="mt-1 flex flex-wrap gap-2">
+              <LabelChip v-for="child in label.children" :key="child.id" :label="child" size="sm" />
+            </div>
+          </div>
+        </div>
+      </div>
     </Card>
     <section v-if="label && items">
       <ItemViewSelectable :items="items.items" @refresh="refreshItemList" />