diff --git a/magnumclient/common/utils.py b/magnumclient/common/utils.py
index 57ce02e9..af5642fa 100644
--- a/magnumclient/common/utils.py
+++ b/magnumclient/common/utils.py
@@ -78,7 +78,13 @@ def args_array_to_patch(op, attributes):
             attr = '/' + attr
         if op in ['add', 'replace']:
             path, value = split_and_deserialize(attr)
-            patch.append({'op': op, 'path': path, 'value': value})
+            if path == "/labels":
+                a = []
+                a.append(value)
+                value = str(handle_labels(a))
+                patch.append({'op': op, 'path': path, 'value': value})
+            else:
+                patch.append({'op': op, 'path': path, 'value': value})
 
         elif op == "remove":
             # For remove only the key is needed
diff --git a/magnumclient/tests/v1/test_clustertemplates_shell.py b/magnumclient/tests/v1/test_clustertemplates_shell.py
index bb53ff67..67bce87a 100644
--- a/magnumclient/tests/v1/test_clustertemplates_shell.py
+++ b/magnumclient/tests/v1/test_clustertemplates_shell.py
@@ -679,6 +679,15 @@ class ShellTest(shell_test_base.TestCommandLineArgument):
                  {'op': 'add', 'path': '/test1', 'value': 'test1'}]
         mock_update.assert_called_once_with('test', patch)
 
+    @mock.patch(
+        'magnumclient.v1.cluster_templates.ClusterTemplateManager.update')
+    def test_cluster_template_update_label(self, mock_update):
+        self._test_arg_success('cluster-template-update test '
+                               'replace labels=key1=val1')
+        patch = [{'op': 'replace', 'path': '/labels',
+                 'value': "{'key1': 'val1'}"}]
+        mock_update.assert_called_once_with('test', patch)
+
     @mock.patch(
         'magnumclient.v1.cluster_templates.ClusterTemplateManager.update')
     def test_cluster_template_update_failure_wrong_op(self, mock_update):