diff --git a/models/issues/label.go b/models/issues/label.go
index 5b9898b3b27..0c3010601ad 100644
--- a/models/issues/label.go
+++ b/models/issues/label.go
@@ -5,9 +5,11 @@
 package issues
 
 import (
+	"cmp"
 	"context"
 	"errors"
 	"fmt"
+	"math"
 	"slices"
 	"strconv"
 	"strings"
@@ -191,6 +193,42 @@ func (l *Label) ExclusiveScope() string {
 	return l.Name[:lastIndex]
 }
 
+// CompareLabelForDisplay compares labels for displaying them in dropdowns or lists.
+// Labels are grouped by their exclusive scope, and labels within the same scope
+// are sorted by their exclusive order, where unordered labels (order 0) come last.
+// Labels without a scope are listed first and everything else falls back to name order.
+func CompareLabelForDisplay(a, b *Label) int {
+	scopeA, scopeB := a.ExclusiveScope(), b.ExclusiveScope()
+	if scopeA != scopeB {
+		if scopeA == "" {
+			return -1
+		}
+		if scopeB == "" {
+			return 1
+		}
+		return strings.Compare(scopeA, scopeB)
+	}
+	if scopeA != "" {
+		orderA, orderB := a.ExclusiveOrder, b.ExclusiveOrder
+		if orderA <= 0 {
+			orderA = math.MaxInt
+		}
+		if orderB <= 0 {
+			orderB = math.MaxInt
+		}
+		if orderA != orderB {
+			return cmp.Compare(orderA, orderB)
+		}
+	}
+	return strings.Compare(a.Name, b.Name)
+}
+
+// SortLabelsForDisplay sorts labels in place for displaying them in dropdowns or lists,
+// grouping them by their exclusive scope and respecting the exclusive order within each scope.
+func SortLabelsForDisplay(labels []*Label) {
+	slices.SortStableFunc(labels, CompareLabelForDisplay)
+}
+
 // NewLabel creates a new label
 func NewLabel(ctx context.Context, l *Label) error {
 	color, err := label.NormalizeColor(l.Color)
diff --git a/models/issues/label_test.go b/models/issues/label_test.go
index ea70e1cc214..94958e414fc 100644
--- a/models/issues/label_test.go
+++ b/models/issues/label_test.go
@@ -54,6 +54,47 @@ func TestLabel_ExclusiveScope(t *testing.T) {
 	assert.Equal(t, "scope/subscope", label.ExclusiveScope())
 }
 
+func TestSortLabelsForDisplay(t *testing.T) {
+	labels := []*issues_model.Label{
+		{Name: "priority/low", Exclusive: true, ExclusiveOrder: 4},
+		{Name: "priority/critical", Exclusive: true, ExclusiveOrder: 1},
+		{Name: "priority/medium", Exclusive: true, ExclusiveOrder: 3},
+		{Name: "priority/high", Exclusive: true, ExclusiveOrder: 2},
+		{Name: "bug"},
+		{Name: "enhancement"},
+		{Name: "kind/question", Exclusive: true},
+	}
+	issues_model.SortLabelsForDisplay(labels)
+
+	names := make([]string, 0, len(labels))
+	for _, l := range labels {
+		names = append(names, l.Name)
+	}
+	assert.Equal(t, []string{
+		"bug",
+		"enhancement",
+		"kind/question",
+		"priority/critical",
+		"priority/high",
+		"priority/medium",
+		"priority/low",
+	}, names)
+
+	// labels without an exclusive order in the same scope are listed last, ordered by name
+	labels = []*issues_model.Label{
+		{Name: "scope/unordered-b", Exclusive: true},
+		{Name: "scope/ordered", Exclusive: true, ExclusiveOrder: 1},
+		{Name: "scope/unordered-a", Exclusive: true},
+	}
+	issues_model.SortLabelsForDisplay(labels)
+
+	names = names[:0]
+	for _, l := range labels {
+		names = append(names, l.Name)
+	}
+	assert.Equal(t, []string{"scope/ordered", "scope/unordered-a", "scope/unordered-b"}, names)
+}
+
 func TestNewLabels(t *testing.T) {
 	assert.NoError(t, unittest.PrepareTestDatabase())
 	labels := []*issues_model.Label{
diff --git a/routers/web/repo/issue_page_meta.go b/routers/web/repo/issue_page_meta.go
index 3ef8826ce7b..0bc52993482 100644
--- a/routers/web/repo/issue_page_meta.go
+++ b/routers/web/repo/issue_page_meta.go
@@ -516,6 +516,7 @@ func (d *IssuePageMetaData) retrieveLabelsData(ctx *context.Context) {
 		ctx.ServerError("GetLabelsByRepoID", err)
 		return
 	}
+	issues_model.SortLabelsForDisplay(labels)
 	labelsData.RepoLabels = labels
 
 	if repo.Owner.IsOrganization() {
@@ -523,6 +524,7 @@ func (d *IssuePageMetaData) retrieveLabelsData(ctx *context.Context) {
 		if err != nil {
 			return
 		}
+		issues_model.SortLabelsForDisplay(orgLabels)
 		labelsData.OrgLabels = orgLabels
 	}
 	labelsData.AllLabels = append(labelsData.AllLabels, labelsData.RepoLabels...)
diff --git a/routers/web/shared/issue/issue_label.go b/routers/web/shared/issue/issue_label.go
index d8ebc987df1..aba0c2b1efe 100644
--- a/routers/web/shared/issue/issue_label.go
+++ b/routers/web/shared/issue/issue_label.go
@@ -38,6 +38,7 @@ func PrepareFilterIssueLabels(ctx *context.Context, repoID int64, owner *user_mo
 			ctx.ServerError("GetLabelsByRepoID", err)
 			return ret
 		}
+		issues_model.SortLabelsForDisplay(repoLabels)
 		allLabels = append(allLabels, repoLabels...)
 	}
 
@@ -47,6 +48,7 @@ func PrepareFilterIssueLabels(ctx *context.Context, repoID int64, owner *user_mo
 			ctx.ServerError("GetLabelsByOrgID", err)
 			return ret
 		}
+		issues_model.SortLabelsForDisplay(orgLabels)
 		allLabels = append(allLabels, orgLabels...)
 	}