diff --git a/ansible/roles/prometheus/templates/prometheus.yml.j2 b/ansible/roles/prometheus/templates/prometheus.yml.j2
index 9cb76ab4b8..e56bb19ab4 100644
--- a/ansible/roles/prometheus/templates/prometheus.yml.j2
+++ b/ansible/roles/prometheus/templates/prometheus.yml.j2
@@ -226,6 +226,10 @@ scrape_configs:
     static_configs:
 {% for host in groups['ironic-conductor'] %}
       - targets: ["{{ 'api' | kolla_address(host) | put_address_in_context('url') }}:{{ hostvars[host]['ironic_prometheus_exporter_port'] }}"]
+{% if hostvars[host].prometheus_instance_label | default(false, true) %}
+        labels:
+          instance: "{{ hostvars[host].prometheus_instance_label }}"
+{% endif %}
 {% endfor %}
 {% endif %}
 
@@ -247,5 +251,9 @@ alerting:
     - targets:
 {% for host in groups["prometheus-alertmanager"] %}
         - '{{ 'api' | kolla_address(host) | put_address_in_context('url') }}:{{ hostvars[host]['prometheus_alertmanager_port'] }}'
+{% if hostvars[host].prometheus_instance_label | default(false, true) %}
+        labels:
+          instance: "{{ hostvars[host].prometheus_instance_label }}"
+{% endif %}
 {% endfor %}
 {% endif %}
diff --git a/releasenotes/notes/prom-friendly-label-fix-dc665f81a0aa1081.yaml b/releasenotes/notes/prom-friendly-label-fix-dc665f81a0aa1081.yaml
new file mode 100644
index 0000000000..8810faffaa
--- /dev/null
+++ b/releasenotes/notes/prom-friendly-label-fix-dc665f81a0aa1081.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Adds missing support for friendly labels for Prometheus Ironic exporter and
+    Alertmanager metrics. `LP#2041855
+    <https://bugs.launchpad.net/kolla-ansible/+bug/2041855>`__