diff --git a/apps/frontend/src/renderer/components/github-issues/components/IssueDetail.tsx b/apps/frontend/src/renderer/components/github-issues/components/IssueDetail.tsx
index 2e9dcaff..794fdc82 100644
--- a/apps/frontend/src/renderer/components/github-issues/components/IssueDetail.tsx
+++ b/apps/frontend/src/renderer/components/github-issues/components/IssueDetail.tsx
@@ -192,27 +192,19 @@ export function IssueDetail({
         {onAddLabels && onRemoveLabels && repoLabels ? (
           <LabelManager
             currentLabels={issue.labels.map(l => l.name)}
-            repoLabels={repoLabels}
+            repoLabels={[...repoLabels, ...issue.labels.filter(il => !repoLabels.some(rl => rl.name === il.name))]}
             onAddLabel={(label) => onAddLabels([label])}
             onRemoveLabel={(label) => onRemoveLabels([label])}
           />
         ) : issue.labels.length > 0 ? (
           <div className="flex flex-wrap gap-2">
             {issue.labels.map((label) => {
-              const bg = `#${label.color}`;
-              const lum = (() => {
-                const r = Number.parseInt(label.color.substring(0, 2), 16);
-                const g = Number.parseInt(label.color.substring(2, 4), 16);
-                const b = Number.parseInt(label.color.substring(4, 6), 16);
-                return (0.299 * r + 0.587 * g + 0.114 * b) / 255;
-              })();
-              const textColor = lum > 0.5 ? '#24292f' : '#ffffff';
+              const color = `#${label.color}`;
               return (
                 <Badge
                   key={label.id}
                   variant="outline"
-                  className="border-transparent"
-                  style={{ backgroundColor: bg, borderColor: bg, color: textColor }}
+                  style={{ backgroundColor: `${color}20`, borderColor: `${color}40`, color }}
                 >
                   {label.name}
                 </Badge>
diff --git a/apps/frontend/src/renderer/components/github-issues/components/IssueListItem.tsx b/apps/frontend/src/renderer/components/github-issues/components/IssueListItem.tsx
index 1a76dc6b..099678ce 100644
--- a/apps/frontend/src/renderer/components/github-issues/components/IssueListItem.tsx
+++ b/apps/frontend/src/renderer/components/github-issues/components/IssueListItem.tsx
@@ -98,16 +98,12 @@ export const IssueListItem = memo(function IssueListItem({
               {issue.labels.length > 0 && (
                 <div className="flex items-center gap-1 overflow-hidden">
                   {issue.labels.slice(0, 3).map((label) => {
-                    const bg = `#${label.color}`;
-                    const r = Number.parseInt(label.color.substring(0, 2), 16);
-                    const g = Number.parseInt(label.color.substring(2, 4), 16);
-                    const b = Number.parseInt(label.color.substring(4, 6), 16);
-                    const textColor = (0.299 * r + 0.587 * g + 0.114 * b) / 255 > 0.5 ? '#24292f' : '#ffffff';
+                    const color = `#${label.color}`;
                     return (
                       <span
                         key={label.id}
-                        className="inline-flex items-center px-1.5 py-0.5 rounded-full text-[10px] font-medium leading-none"
-                        style={{ backgroundColor: bg, color: textColor }}
+                        className="inline-flex items-center px-1.5 py-0.5 rounded-full text-[10px] font-medium leading-none border"
+                        style={{ backgroundColor: `${color}20`, borderColor: `${color}40`, color }}
                       >
                         {label.name}
                       </span>
diff --git a/apps/frontend/src/renderer/components/github-issues/components/LabelManager.tsx b/apps/frontend/src/renderer/components/github-issues/components/LabelManager.tsx
index 384cce11..f4f08ab7 100644
--- a/apps/frontend/src/renderer/components/github-issues/components/LabelManager.tsx
+++ b/apps/frontend/src/renderer/components/github-issues/components/LabelManager.tsx
@@ -4,18 +4,6 @@ import { Plus, X, Check } from 'lucide-react';
 import { Button } from '../../ui/button';
 import { Badge } from '../../ui/badge';
 
-/**
- * Returns white or dark text color for readable contrast against a hex background.
- * Uses perceived luminance formula (ITU-R BT.601).
- */
-function getContrastTextColor(hexColor: string): string {
-  const hex = hexColor.replace('#', '');
-  const r = Number.parseInt(hex.substring(0, 2), 16);
-  const g = Number.parseInt(hex.substring(2, 4), 16);
-  const b = Number.parseInt(hex.substring(4, 6), 16);
-  const luminance = (0.299 * r + 0.587 * g + 0.114 * b) / 255;
-  return luminance > 0.5 ? '#24292f' : '#ffffff';
-}
 
 interface LabelManagerProps {
   currentLabels: string[];
@@ -70,17 +58,16 @@ export function LabelManager({
       <div className="flex flex-wrap gap-1.5">
         {currentLabels.map((label) => {
           const repoLabel = repoLabels.find((rl) => rl.name === label);
-          const bgColor = repoLabel ? `#${repoLabel.color}` : undefined;
-          const textColor = repoLabel ? getContrastTextColor(repoLabel.color) : undefined;
+          const labelColor = repoLabel ? `#${repoLabel.color}` : undefined;
           return (
             <Badge
               key={label}
               variant="outline"
-              className="gap-1 text-xs border-transparent"
-              style={bgColor ? {
-                backgroundColor: bgColor,
-                borderColor: bgColor,
-                color: textColor,
+              className="gap-1 text-xs"
+              style={labelColor ? {
+                backgroundColor: `${labelColor}20`,
+                borderColor: `${labelColor}40`,
+                color: labelColor,
               } : undefined}
             >
               {label}
@@ -90,7 +77,7 @@ export function LabelManager({
                   className="ml-0.5 opacity-70 hover:opacity-100"
                   onClick={() => onRemoveLabel(label)}
                   aria-label={`Remove label ${label}`}
-                  style={textColor ? { color: textColor } : undefined}
+                  style={labelColor ? { color: labelColor } : undefined}
                 >
                   <X className="h-3 w-3" />
                 </button>