diff --git a/changelogs/fragments/coe_cluster_template_labels_comparison.yml b/changelogs/fragments/coe_cluster_template_labels_comparison.yml
new file mode 100644
index 00000000..5d26647d
--- /dev/null
+++ b/changelogs/fragments/coe_cluster_template_labels_comparison.yml
@@ -0,0 +1,7 @@
+---
+
+bugfixes:
+  - |
+    coe_cluster_template - now labels are converted to strings by module that
+    fixes module idempotence in case label values defined by users are
+    integers or booleans.
diff --git a/ci/roles/coe_cluster_template/tasks/main.yml b/ci/roles/coe_cluster_template/tasks/main.yml
index f310ebb7..8e121604 100644
--- a/ci/roles/coe_cluster_template/tasks/main.yml
+++ b/ci/roles/coe_cluster_template/tasks/main.yml
@@ -26,6 +26,9 @@
     keypair_id: '{{ keypair.keypair.id }}'
     name: k8s
     state: present
+    labels:
+      docker_volume_size: 10
+      cloud_provider_tag: v1.23.1
   register: coe_cluster_template
 
 - name: Assert return values of coe_cluster_template module
@@ -43,6 +46,9 @@
     keypair_id: '{{ keypair.keypair.id }}'
     name: k8s
     state: present
+    labels:
+      docker_volume_size: 10
+      cloud_provider_tag: v1.23.1
   register: coe_cluster_template
 
 - name: Assert return values of coe_cluster_template module
diff --git a/plugins/modules/coe_cluster_template.py b/plugins/modules/coe_cluster_template.py
index 7217a8b4..caed9fc4 100644
--- a/plugins/modules/coe_cluster_template.py
+++ b/plugins/modules/coe_cluster_template.py
@@ -433,6 +433,9 @@ class COEClusterTemplateModule(OpenStackModule):
             if isinstance(labels, str):
                 labels = dict([tuple(kv.split(":"))
                                for kv in labels.split(",")])
+            elif isinstance(labels, dict):
+                labels = dict({str(k): str(v)
+                               for k, v in labels.items()})
             if labels != cluster_template['labels']:
                 non_updateable_keys.append('labels')