diff --git a/podman_compose.py b/podman_compose.py
index ec6471c8..e5ba8d69 100755
--- a/podman_compose.py
+++ b/podman_compose.py
@@ -2378,6 +2378,8 @@ async def build_one(compose, args, cnt):
         build_args.extend(get_secret_args(compose, cnt, secret, podman_is_building=True))
     for tag in build_desc.get("tags", []):
         build_args.extend(["-t", tag])
+    for label in build_desc.get("labels", []):
+        build_args.extend(["--label", label])
     for additional_ctx in build_desc.get("additional_contexts", {}):
         build_args.extend([f"--build-context={additional_ctx}"])
     if "target" in build_desc:
diff --git a/tests/integration/build/README.md b/tests/integration/build/README.md
index e67b4219..b8b260ae 100644
--- a/tests/integration/build/README.md
+++ b/tests/integration/build/README.md
@@ -21,5 +21,3 @@ ALT buildno=2 port 8000 2019-09-03T15:16:38+0000
 
 as you can see we were able to override buildno to be 2 instead of 1,
 and httpd_port to 8000.
-
-NOTE: build labels are not passed to `podman build`