diff --git a/changelogs/fragments/9010-edit-gitlab-label-color.yaml b/changelogs/fragments/9010-edit-gitlab-label-color.yaml
new file mode 100644
index 0000000000..0959e57772
--- /dev/null
+++ b/changelogs/fragments/9010-edit-gitlab-label-color.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+  - gitlab_label - update label's color (https://github.com/ansible-collections/community.general/pull/9010).
diff --git a/plugins/modules/gitlab_label.py b/plugins/modules/gitlab_label.py
index 635033ab6c..f6e9172eb3 100644
--- a/plugins/modules/gitlab_label.py
+++ b/plugins/modules/gitlab_label.py
@@ -275,6 +275,8 @@ class GitlabLabels(object):
             _label.description = var_obj.get('description')
         if var_obj.get('priority') is not None:
             _label.priority = var_obj.get('priority')
+        if var_obj.get('color') is not None:
+            _label.color = var_obj.get('color')
 
         # save returns None
         _label.save()