Allow assigning and filtering issuables by ancestor group labels

22 files changed, 478 insertions, 47 deletions

diff --git a/app/assets/javascripts/filtered_search/filtered_search_dropdown_manager.js b/app/assets/javascripts/filtered_search/filtered_search_dropdown_manager.js
index e6390f0855b..d7e1de18d09 100644
--- a/app/assets/javascripts/filtered_search/filtered_search_dropdown_manager.js
+++ b/app/assets/javascripts/filtered_search/filtered_search_dropdown_manager.js
@@ -26,8 +26,8 @@ export default class FilteredSearchDropdownManager {
     this.filteredSearchInput = this.container.querySelector('.filtered-search');
     this.page = page;
     this.groupsOnly = isGroup;
-    this.groupAncestor = isGroupAncestor;
-    this.isGroupDecendent = isGroupDecendent;
+    this.includeAncestorGroups = isGroupAncestor;
+    this.includeDescendantGroups = isGroupDecendent;
 
     this.setupMapping();
 
@@ -108,7 +108,19 @@ export default class FilteredSearchDropdownManager {
   }
 
   getLabelsEndpoint() {
-    const endpoint = `${this.baseEndpoint}/labels.json`;
+    let endpoint = `${this.baseEndpoint}/labels.json?`;
+
+    if (this.groupsOnly) {
+      endpoint = `${endpoint}only_group_labels=true&`;
+    }
+
+    if (this.includeAncestorGroups) {
+      endpoint = `${endpoint}include_ancestor_groups=true&`;
+    }
+
+    if (this.includeDescendantGroups) {
+      endpoint = `${endpoint}include_descendant_groups=true`;
+    }
 
     return endpoint;
   }
diff --git a/app/assets/javascripts/filtered_search/filtered_search_manager.js b/app/assets/javascripts/filtered_search/filtered_search_manager.js
index 71b7e80335b..cf5ba1e1771 100644
--- a/app/assets/javascripts/filtered_search/filtered_search_manager.js
+++ b/app/assets/javascripts/filtered_search/filtered_search_manager.js
@@ -21,7 +21,7 @@ export default class FilteredSearchManager {
   constructor({
     page,
     isGroup = false,
-    isGroupAncestor = false,
+    isGroupAncestor = true,
     isGroupDecendent = false,
     filteredSearchTokenKeys = FilteredSearchTokenKeys,
     stateFiltersSelector = '.issues-state-filters',
@@ -86,6 +86,7 @@ export default class FilteredSearchManager {
         page: this.page,
         isGroup: this.isGroup,
         isGroupAncestor: this.isGroupAncestor,
+        isGroupDecendent: this.isGroupDecendent,
         filteredSearchTokenKeys: this.filteredSearchTokenKeys,
       });
 
diff --git a/app/assets/javascripts/pages/groups/issues/index.js b/app/assets/javascripts/pages/groups/issues/index.js
index d149b307e7f..914f804fdd3 100644
--- a/app/assets/javascripts/pages/groups/issues/index.js
+++ b/app/assets/javascripts/pages/groups/issues/index.js
@@ -5,6 +5,7 @@ import { FILTERED_SEARCH } from '~/pages/constants';
 document.addEventListener('DOMContentLoaded', () => {
   initFilteredSearch({
     page: FILTERED_SEARCH.ISSUES,
+    isGroupDecendent: true,
   });
   projectSelect();
 });
diff --git a/app/assets/javascripts/pages/groups/merge_requests/index.js b/app/assets/javascripts/pages/groups/merge_requests/index.js
index a5cc1f34b63..1600faa3611 100644
--- a/app/assets/javascripts/pages/groups/merge_requests/index.js
+++ b/app/assets/javascripts/pages/groups/merge_requests/index.js
@@ -5,6 +5,7 @@ import { FILTERED_SEARCH } from '~/pages/constants';
 document.addEventListener('DOMContentLoaded', () => {
   initFilteredSearch({
     page: FILTERED_SEARCH.MERGE_REQUESTS,
+    isGroupDecendent: true,
   });
   projectSelect();
 });
diff --git a/app/controllers/projects/labels_controller.rb b/app/controllers/projects/labels_controller.rb
index 516198b1b8a..91016f6494e 100644
--- a/app/controllers/projects/labels_controller.rb
+++ b/app/controllers/projects/labels_controller.rb
@@ -150,7 +150,8 @@ class Projects::LabelsController < Projects::ApplicationController
   end
 
   def find_labels
-    @available_labels ||= LabelsFinder.new(current_user, project_id: @project.id).execute
+    @available_labels ||=
+      LabelsFinder.new(current_user, project_id: @project.id, include_ancestor_groups: params[:include_ancestor_groups]).execute
   end
 
   def authorize_admin_labels!
diff --git a/app/finders/labels_finder.rb b/app/finders/labels_finder.rb
index 780c0fdb03e..afd1f824b32 100644
--- a/app/finders/labels_finder.rb
+++ b/app/finders/labels_finder.rb
@@ -28,9 +28,10 @@ class LabelsFinder < UnionFinder
       if project
         if project.group.present?
           labels_table = Label.arel_table
+          group_ids = group_ids_for(project.group)
 
           label_ids << Label.where(
-            labels_table[:type].eq('GroupLabel').and(labels_table[:group_id].eq(project.group.id)).or(
+            labels_table[:type].eq('GroupLabel').and(labels_table[:group_id].in(group_ids)).or(
               labels_table[:type].eq('ProjectLabel').and(labels_table[:project_id].eq(project.id))
             )
           )
@@ -38,11 +39,14 @@ class LabelsFinder < UnionFinder
           label_ids << project.labels
         end
       end
-    elsif only_group_labels?
-      label_ids << Label.where(group_id: group_ids)
     else
+      if group?
+        group = Group.find(params[:group_id])
+        label_ids << Label.where(group_id: group_ids_for(group))
+      end
+
       label_ids << Label.where(group_id: projects.group_ids)
-      label_ids << Label.where(project_id: projects.select(:id))
+      label_ids << Label.where(project_id: projects.select(:id)) unless only_group_labels?
     end
 
     label_ids
@@ -59,22 +63,33 @@ class LabelsFinder < UnionFinder
     items.where(title: title)
   end
 
-  def group_ids
+  # Gets redacted array of group ids
+  # which can include the ancestors and descendants of the requested group.
+  def group_ids_for(group)
     strong_memoize(:group_ids) do
-      groups_user_can_read_labels(groups_to_include).map(&:id)
+      groups = groups_to_include(group)
+
+      groups_user_can_read_labels(groups).map(&:id)
     end
   end
 
-  def groups_to_include
-    group = Group.find(params[:group_id])
+  def groups_to_include(group)
     groups = [group]
 
-    groups += group.ancestors if params[:include_ancestor_groups].present?
-    groups += group.descendants if params[:include_descendant_groups].present?
+    groups += group.ancestors if include_ancestor_groups?
+    groups += group.descendants if include_descendant_groups?
 
     groups
   end
 
+  def include_ancestor_groups?
+    params[:include_ancestor_groups]
+  end
+
+  def include_descendant_groups?
+    params[:include_descendant_groups]
+  end
+
   def group?
     params[:group_id].present?
   end
diff --git a/app/helpers/boards_helper.rb b/app/helpers/boards_helper.rb
index 275e892b2e6..af878bcf9a0 100644
--- a/app/helpers/boards_helper.rb
+++ b/app/helpers/boards_helper.rb
@@ -53,10 +53,12 @@ module BoardsHelper
   end
 
   def board_list_data
+    include_descendant_groups = @group&.present?
+
     {
       toggle: "dropdown",
-      list_labels_path: labels_filter_path(true),
-      labels: labels_filter_path(true),
+      list_labels_path: labels_filter_path(true, include_ancestor_groups: true),
+      labels: labels_filter_path(true, include_descendant_groups: include_descendant_groups),
       labels_endpoint: @labels_endpoint,
       namespace_path: @namespace_path,
       project_path: @project&.path,
diff --git a/app/helpers/labels_helper.rb b/app/helpers/labels_helper.rb
index 87ff607dc3f..c4a6a1e4bb3 100644
--- a/app/helpers/labels_helper.rb
+++ b/app/helpers/labels_helper.rb
@@ -129,13 +129,17 @@ module LabelsHelper
     end
   end
 
-  def labels_filter_path(only_group_labels = false)
+  def labels_filter_path(only_group_labels = false, include_ancestor_groups: true, include_descendant_groups: false)
     project = @target_project || @project
 
+    options = {}
+    options[:include_ancestor_groups] = include_ancestor_groups if include_ancestor_groups
+    options[:include_descendant_groups] = include_descendant_groups if include_descendant_groups
+
     if project
-      project_labels_path(project, :json)
+      project_labels_path(project, :json, options)
     elsif @group
-      options = { only_group_labels: only_group_labels } if only_group_labels
+      options[:only_group_labels] = only_group_labels if only_group_labels
       group_labels_path(@group, :json, options)
     else
       dashboard_labels_path(:json)
diff --git a/app/services/boards/lists/create_service.rb b/app/services/boards/lists/create_service.rb
index bebc90c7a8d..02f1c709374 100644
--- a/app/services/boards/lists/create_service.rb
+++ b/app/services/boards/lists/create_service.rb
@@ -12,11 +12,15 @@ module Boards
       private
 
       def available_labels_for(board)
+        options = { include_ancestor_groups: true }
+
         if board.group_board?
-          parent.labels
+          options.merge!(group_id: parent.id, only_group_labels: true)
         else
-          LabelsFinder.new(current_user, project_id: parent.id).execute
+          options[:project_id] = parent.id
         end
+
+        LabelsFinder.new(current_user, options).execute
       end
 
       def next_position(board)
diff --git a/app/services/issuable_base_service.rb b/app/services/issuable_base_service.rb
index 02fb48108fb..91ec702fbc6 100644
--- a/app/services/issuable_base_service.rb
+++ b/app/services/issuable_base_service.rb
@@ -106,7 +106,7 @@ class IssuableBaseService < BaseService
   end
 
   def available_labels
-    @available_labels ||= LabelsFinder.new(current_user, project_id: @project.id).execute
+    @available_labels ||= LabelsFinder.new(current_user, project_id: @project.id, include_ancestor_groups: true).execute
   end
 
   def handle_quick_actions_on_create(issuable)
diff --git a/app/services/projects/autocomplete_service.rb b/app/services/projects/autocomplete_service.rb
index e61ecb696d0..346971138b1 100644
--- a/app/services/projects/autocomplete_service.rb
+++ b/app/services/projects/autocomplete_service.rb
@@ -21,7 +21,8 @@ module Projects
     end
 
     def labels(target = nil)
-      labels = LabelsFinder.new(current_user, project_id: project.id).execute.select([:color, :title])
+      labels = LabelsFinder.new(current_user, project_id: project.id, include_ancestor_groups: true)
+        .execute.select([:color, :title])
 
       return labels unless target&.respond_to?(:labels)
 
diff --git a/app/services/quick_actions/interpret_service.rb b/app/services/quick_actions/interpret_service.rb
index cba49faac31..6cc51b6ee1b 100644
--- a/app/services/quick_actions/interpret_service.rb
+++ b/app/services/quick_actions/interpret_service.rb
@@ -200,7 +200,7 @@ module QuickActions
     end
     params '~label1 ~"label 2"'
     condition do
-      available_labels = LabelsFinder.new(current_user, project_id: project.id).execute
+      available_labels = LabelsFinder.new(current_user, project_id: project.id, include_ancestor_groups: true).execute
 
       current_user.can?(:"admin_#{issuable.to_ability_name}", project) &&
         available_labels.any?
@@ -562,7 +562,7 @@ module QuickActions
 
     def find_labels(labels_param)
       extract_references(labels_param, :label) |
-        LabelsFinder.new(current_user, project_id: project.id, name: labels_param.split).execute
+        LabelsFinder.new(current_user, project_id: project.id, name: labels_param.split, include_ancestor_groups: true).execute
     end
 
     def find_label_references(labels_param)
@@ -593,6 +593,7 @@ module QuickActions
 
     def extract_references(arg, type)
       ext = Gitlab::ReferenceExtractor.new(project, current_user)
+
       ext.analyze(arg, author: current_user)
 
       ext.references(type)
diff --git a/app/views/shared/issuable/_sidebar.html.haml b/app/views/shared/issuable/_sidebar.html.haml
index 6afcd447f28..975b9cb4729 100644
--- a/app/views/shared/issuable/_sidebar.html.haml
+++ b/app/views/shared/issuable/_sidebar.html.haml
@@ -107,7 +107,7 @@
             - selected_labels.each do |label|
               = hidden_field_tag "#{issuable.to_ability_name}[label_names][]", label.id, id: nil
             .dropdown
-              %button.dropdown-menu-toggle.js-label-select.js-multiselect.js-label-sidebar-dropdown{ type: "button", data: {toggle: "dropdown", default_label: "Labels", field_name: "#{issuable.to_ability_name}[label_names][]", ability_name: issuable.to_ability_name, show_no: "true", show_any: "true", namespace_path: @project.try(:namespace).try(:full_path), project_path: @project.try(:path), issue_update: issuable_json_path(issuable), labels: (project_labels_path(@project, :json) if @project) } }
+              %button.dropdown-menu-toggle.js-label-select.js-multiselect.js-label-sidebar-dropdown{ type: "button", data: {toggle: "dropdown", default_label: "Labels", field_name: "#{issuable.to_ability_name}[label_names][]", ability_name: issuable.to_ability_name, show_no: "true", show_any: "true", namespace_path: @project.try(:namespace).try(:full_path), project_path: @project.try(:path), issue_update: issuable_json_path(issuable), labels: (labels_filter_path(false) if @project) } }
                 %span.dropdown-toggle-text{ class: ("is-default" if selected_labels.empty?) }
                   = multi_label_name(selected_labels, "Labels")
                 = icon('chevron-down', 'aria-hidden': 'true')
diff --git a/changelogs/unreleased/issue_40915.yml b/changelogs/unreleased/issue_40915.yml
new file mode 100644
index 00000000000..2b6d98e69a6
--- /dev/null
+++ b/changelogs/unreleased/issue_40915.yml
@@ -0,0 +1,5 @@
+---
+title: Allow assigning and filtering issuables by ancestor group labels
+merge_request:
+author:
+type: added
diff --git a/doc/user/project/labels.md b/doc/user/project/labels.md
index dabffaec5fa..a89a1206170 100644
--- a/doc/user/project/labels.md
+++ b/doc/user/project/labels.md
@@ -9,7 +9,7 @@ Labels allow you to categorize issues or merge requests using descriptive titles
 In GitLab, you can create project and group labels:
 
 - **Project labels** can be assigned to issues or merge requests in that project only. 
-- **Group labels** can be assigned to any issue or merge request of any project in that group. 
+- **Group labels** can be assigned to any issue or merge request of any project in that group or subgroup.
 - In the [future](https://gitlab.com/gitlab-org/gitlab-ce/issues/40915), you will be able to assign group labels to issues and merge reqeusts of projects in [subgroups](../group/subgroups/index.md).
 
 ## Creating labels
@@ -74,9 +74,9 @@ Every issue and merge request can be assigned any number of labels. The labels a
 
 ### Filtering in list pages
 
-From the project issue list page and the project merge request list page, you can [filter](../search/index.md#issues-and-merge-requests) by both group labels and project labels.
+From the project issue list page and the project merge request list page, you can [filter](../search/index.md#issues-and-merge-requests) by both group (including subgroup ancestors) labels and project labels.
 
-From the group issue list page and the group merge request list page, you can [filter](../search/index.md#issues-and-merge-requests) by both group labels and project labels.
+From the group issue list page and the group merge request list page, you can [filter](../search/index.md#issues-and-merge-requests) by both group labels (including subgroup ancestors and subgroup descendants) and project labels.
 
 ![Labels group issues](img/labels_group_issues.png)
 
diff --git a/lib/api/helpers.rb b/lib/api/helpers.rb
index e59e8a45908..61c138a7dec 100644
--- a/lib/api/helpers.rb
+++ b/lib/api/helpers.rb
@@ -83,12 +83,13 @@ module API
     end
 
     def available_labels_for(label_parent)
-      search_params =
-        if label_parent.is_a?(Project)
-          { project_id: label_parent.id }
-        else
-          { group_id: label_parent.id, only_group_labels: true }
-        end
+      search_params = { include_ancestor_groups: true }
+
+      if label_parent.is_a?(Project)
+        search_params[:project_id] = label_parent.id
+      else
+        search_params.merge!(group_id: label_parent.id, only_group_labels: true)
+      end
 
       LabelsFinder.new(current_user, search_params).execute
     end
diff --git a/lib/banzai/filter/label_reference_filter.rb b/lib/banzai/filter/label_reference_filter.rb
index d5360ad8f68..6bddcaf8b11 100644
--- a/lib/banzai/filter/label_reference_filter.rb
+++ b/lib/banzai/filter/label_reference_filter.rb
@@ -41,7 +41,7 @@ module Banzai
       end
 
       def find_labels(project)
-        LabelsFinder.new(nil, project_id: project.id).execute(skip_authorization: true)
+        LabelsFinder.new(nil, project_id: project.id, include_ancestor_groups: true).execute(skip_authorization: true)
       end
 
       # Parameters to pass to `Label.find_by` based on the given arguments
diff --git a/spec/features/issues/filtered_search/filter_issues_spec.rb b/spec/features/issues/filtered_search/filter_issues_spec.rb
index b3c50964810..08ba91a2682 100644
--- a/spec/features/issues/filtered_search/filter_issues_spec.rb
+++ b/spec/features/issues/filtered_search/filter_issues_spec.rb
@@ -22,15 +22,6 @@ describe 'Filter issues', :js do
     end
   end
 
-  def expect_issues_list_count(open_count, closed_count = 0)
-    all_count = open_count + closed_count
-
-    expect(page).to have_issuable_counts(open: open_count, closed: closed_count, all: all_count)
-    page.within '.issues-list' do
-      expect(page).to have_selector('.issue', count: open_count)
-    end
-  end
-
   before do
     project.add_master(user)
 
diff --git a/spec/features/labels_hierarchy_spec.rb b/spec/features/labels_hierarchy_spec.rb
new file mode 100644
index 00000000000..99e1fb30d5b
--- /dev/null
+++ b/spec/features/labels_hierarchy_spec.rb
@@ -0,0 +1,305 @@
+require 'spec_helper'
+
+feature 'Labels Hierarchy', :js, :nested_groups do
+  include FilteredSearchHelpers
+
+  let!(:user) { create(:user) }
+  let!(:grandparent) { create(:group) }
+  let!(:parent) { create(:group, parent: grandparent) }
+  let!(:child) { create(:group, parent: parent) }
+  let!(:project_1) { create(:project, namespace: parent) }
+
+  let!(:grandparent_group_label) { create(:group_label, group: grandparent, title: 'Label_1') }
+  let!(:parent_group_label) { create(:group_label, group: parent, title: 'Label_2') }
+  let!(:child_group_label) { create(:group_label, group: child, title: 'Label_3') }
+  let!(:project_label_1) { create(:label, project: project_1, title: 'Label_4') }
+
+  before do
+    grandparent.add_owner(user)
+
+    sign_in(user)
+  end
+
+  shared_examples 'assigning labels from sidebar' do
+    it 'can assign all ancestors labels' do
+      [grandparent_group_label, parent_group_label, project_label_1].each do |label|
+        page.within('.block.labels') do
+          find('.edit-link').click
+        end
+
+        wait_for_requests
+
+        find('a.label-item', text: label.title).click
+        find('.dropdown-menu-close-icon').click
+
+        wait_for_requests
+
+        expect(page).to have_selector('span.label', text: label.title)
+      end
+    end
+
+    it 'does not find child group labels on dropdown' do
+      page.within('.block.labels') do
+        find('.edit-link').click
+      end
+
+      wait_for_requests
+
+      expect(page).not_to have_selector('span.label', text: child_group_label.title)
+    end
+  end
+
+  shared_examples 'filtering by ancestor labels for projects' do |board = false|
+    it 'filters by ancestor labels' do
+      [grandparent_group_label, parent_group_label, project_label_1].each do |label|
+        select_label_on_dropdown(label.title)
+
+        wait_for_requests
+
+        if board
+          expect(page).to have_selector('.card-title') do |card|
+            expect(card).to have_selector('a', text: labeled_issue.title)
+          end
+        else
+          expect_issues_list_count(1)
+          expect(page).to have_selector('span.issue-title-text', text: labeled_issue.title)
+        end
+      end
+    end
+
+    it 'does not filter by descendant group labels' do
+      filtered_search.set("label:")
+
+      wait_for_requests
+
+      expect(page).not_to have_selector('.btn-link', text: child_group_label.title)
+    end
+  end
+
+  shared_examples 'filtering by ancestor labels for groups' do |board = false|
+    let(:project_2) { create(:project, namespace: parent) }
+    let!(:project_label_2) { create(:label, project: project_2, title: 'Label_4') }
+
+    let(:project_3) { create(:project, namespace: child) }
+    let!(:group_label_3) { create(:group_label, group: child, title: 'Label_5') }
+    let!(:project_label_3) { create(:label, project: project_3, title: 'Label_6') }
+
+    let!(:labeled_issue_2) { create(:labeled_issue, project: project_2, labels: [grandparent_group_label, parent_group_label, project_label_2]) }
+    let!(:labeled_issue_3) { create(:labeled_issue, project: project_3, labels: [grandparent_group_label, parent_group_label, group_label_3]) }
+
+    let!(:issue_2) { create(:issue, project: project_2) }
+
+    it 'filters by ancestors and current group labels' do
+      [grandparent_group_label, parent_group_label].each do |label|
+        select_label_on_dropdown(label.title)
+
+        wait_for_requests
+
+        if board
+          expect(page).to have_selector('.card-title') do |card|
+            expect(card).to have_selector('a', text: labeled_issue.title)
+          end
+
+          expect(page).to have_selector('.card-title') do |card|
+            expect(card).to have_selector('a', text: labeled_issue_2.title)
+          end
+        else
+          expect_issues_list_count(3)
+          expect(page).to have_selector('span.issue-title-text', text: labeled_issue.title)
+          expect(page).to have_selector('span.issue-title-text', text: labeled_issue_2.title)
+          expect(page).to have_selector('span.issue-title-text', text: labeled_issue_3.title)
+        end
+      end
+    end
+
+    it 'filters by descendant group labels' do
+      wait_for_requests
+
+      if board
+        pending("Waiting for https://gitlab.com/gitlab-org/gitlab-ce/issues/44270")
+
+        select_label_on_dropdown(group_label_3.title)
+
+        expect(page).to have_selector('.card-title') do |card|
+          expect(card).to have_selector('a', text: labeled_issue_3.title)
+        end
+      else
+        select_label_on_dropdown(group_label_3.title)
+
+        expect_issues_list_count(1)
+        expect(page).to have_selector('span.issue-title-text', text: labeled_issue_3.title)
+      end
+    end
+
+    it 'does not filter by descendant group project labels' do
+      filtered_search.set("label:")
+
+      wait_for_requests
+
+      expect(page).not_to have_selector('.btn-link', text: project_label_3.title)
+    end
+  end
+
+  context 'when creating new issuable' do
+    before do
+      visit new_project_issue_path(project_1)
+    end
+
+    it 'should be able to assign ancestor group labels' do
+      fill_in 'issue_title', with: 'new created issue'
+      fill_in 'issue_description', with: 'new issue description'
+
+      find(".js-label-select").click
+      wait_for_requests
+
+      find('a.label-item', text: grandparent_group_label.title).click
+      find('a.label-item', text: parent_group_label.title).click
+      find('a.label-item', text: project_label_1.title).click
+
+      find('.btn-create').click
+
+      expect(page.find('.issue-details h2.title')).to have_content('new created issue')
+      expect(page).to have_selector('span.label', text: grandparent_group_label.title)
+      expect(page).to have_selector('span.label', text: parent_group_label.title)
+      expect(page).to have_selector('span.label', text: project_label_1.title)
+    end
+  end
+
+  context 'issuable sidebar' do
+    let!(:issue) { create(:issue, project: project_1) }
+
+    context 'on issue sidebar' do
+      before do
+        visit project_issue_path(project_1, issue)
+      end
+
+      it_behaves_like 'assigning labels from sidebar'
+    end
+
+    context 'on project board issue sidebar' do
+      let(:board)   { create(:board, project: project_1) }
+
+      before do
+        visit project_board_path(project_1, board)
+
+        wait_for_requests
+
+        find('.card').click
+      end
+
+      it_behaves_like 'assigning labels from sidebar'
+    end
+
+    context 'on group board issue sidebar' do
+      let(:board)   { create(:board, group: parent) }
+
+      before do
+        visit group_board_path(parent, board)
+
+        wait_for_requests
+
+        find('.card').click
+      end
+
+      it_behaves_like 'assigning labels from sidebar'
+    end
+  end
+
+  context 'issuable filtering' do
+    let!(:labeled_issue) { create(:labeled_issue, project: project_1, labels: [grandparent_group_label, parent_group_label, project_label_1]) }
+    let!(:issue) { create(:issue, project: project_1) }
+
+    context 'on project issuable list' do
+      before do
+        visit project_issues_path(project_1)
+      end
+
+      it_behaves_like 'filtering by ancestor labels for projects'
+
+      it 'does not filter by descendant group labels' do
+        filtered_search.set("label:")
+
+        wait_for_requests
+
+        expect(page).not_to have_selector('.btn-link', text: child_group_label.title)
+      end
+    end
+
+    context 'on group issuable list' do
+      before do
+        visit issues_group_path(parent)
+      end
+
+      it_behaves_like 'filtering by ancestor labels for groups'
+    end
+
+    context 'on project boards filter' do
+      let(:board) { create(:board, project: project_1) }
+
+      before do
+        visit project_board_path(project_1, board)
+      end
+
+      it_behaves_like 'filtering by ancestor labels for projects', true
+    end
+
+    context 'on group boards filter' do
+      let(:board) { create(:board, group: parent) }
+
+      before do
+        visit group_board_path(parent, board)
+      end
+
+      it_behaves_like 'filtering by ancestor labels for groups', true
+    end
+  end
+
+  context 'creating boards lists' do
+    context 'on project boards' do
+      let(:board) { create(:board, project: project_1) }
+
+      before do
+        visit project_board_path(project_1, board)
+        find('.js-new-board-list').click
+        wait_for_requests
+      end
+
+      it 'creates lists from all ancestor labels' do
+        [grandparent_group_label, parent_group_label, project_label_1].each do |label|
+          find('a', text: label.title).click
+        end
+
+        wait_for_requests
+
+        expect(page).to have_selector('.board-title-text', text: grandparent_group_label.title)
+        expect(page).to have_selector('.board-title-text', text: parent_group_label.title)
+        expect(page).to have_selector('.board-title-text', text: project_label_1.title)
+      end
+    end
+
+    context 'on group boards' do
+      let(:board) { create(:board, group: parent) }
+
+      before do
+        visit group_board_path(parent, board)
+        find('.js-new-board-list').click
+        wait_for_requests
+      end
+
+      it 'creates lists from all ancestor group labels' do
+        [grandparent_group_label, parent_group_label].each do |label|
+          find('a', text: label.title).click
+        end
+
+        wait_for_requests
+
+        expect(page).to have_selector('.board-title-text', text: grandparent_group_label.title)
+        expect(page).to have_selector('.board-title-text', text: parent_group_label.title)
+      end
+
+      it 'does not create lists from descendant groups' do
+        expect(page).not_to have_selector('a', text: child_group_label.title)
+      end
+    end
+  end
+end
diff --git a/spec/finders/labels_finder_spec.rb b/spec/finders/labels_finder_spec.rb
index d434c501110..899d0d22819 100644
--- a/spec/finders/labels_finder_spec.rb
+++ b/spec/finders/labels_finder_spec.rb
@@ -71,6 +71,24 @@ describe LabelsFinder do
         end
       end
 
+      context 'when group has no projects' do
+        let(:empty_group) { create(:group) }
+        let!(:empty_group_label_1) { create(:group_label, group: empty_group, title: 'Label 1 (empty group)') }
+        let!(:empty_group_label_2) { create(:group_label, group: empty_group, title: 'Label 2 (empty group)') }
+
+        before do
+          empty_group.add_developer(user)
+        end
+
+        context 'when only group labels is false' do
+          it 'returns group labels' do
+            finder = described_class.new(user, group_id: empty_group.id)
+
+            expect(finder.execute).to eq [empty_group_label_1, empty_group_label_2]
+          end
+        end
+      end
+
       context 'when including labels from group ancestors', :nested_groups do
         it 'returns labels from group and its ancestors' do
           private_group_1.add_developer(user)
@@ -110,7 +128,21 @@ describe LabelsFinder do
       end
     end
 
-    context 'filtering by project_id' do
+    context 'filtering by project_id', :nested_groups do
+      context 'when include_ancestor_groups is true' do
+        let!(:sub_project) { create(:project, namespace: private_subgroup_1 ) }
+        let!(:project_label) { create(:label, project: sub_project, title: 'Label 5') }
+        let(:finder) { described_class.new(user, project_id: sub_project.id, include_ancestor_groups: true) }
+
+        before do
+          private_group_1.add_developer(user)
+        end
+
+        it 'returns all ancestor labels' do
+          expect(finder.execute).to match_array([private_subgroup_label_1, private_group_label_1, project_label])
+        end
+      end
+
       it 'returns labels available for the project' do
         finder = described_class.new(user, project_id: project_1.id)
 
diff --git a/spec/requests/api/boards_spec.rb b/spec/requests/api/boards_spec.rb
index c6c10025f7f..92b614b087e 100644
--- a/spec/requests/api/boards_spec.rb
+++ b/spec/requests/api/boards_spec.rb
@@ -48,5 +48,36 @@ describe API::Boards do
       expect(json_response['label']['name']).to eq(group_label.title)
       expect(json_response['position']).to eq(3)
     end
+
+    it 'creates a new board list for ancestor group labels' do
+      group = create(:group)
+      sub_group = create(:group, parent: group)
+      group_label = create(:group_label, group: group)
+      board_parent.update(group: sub_group)
+      group.add_developer(user)
+      sub_group.add_developer(user)
+
+      post api(url, user), label_id: group_label.id
+
+      expect(response).to have_gitlab_http_status(201)
+      expect(json_response['label']['name']).to eq(group_label.title)
+    end
+  end
+
+  describe "POST /groups/:id/boards/lists", :nested_groups do
+    set(:group) { create(:group) }
+    set(:board_parent) { create(:group, parent: group ) }
+    let(:url) { "/groups/#{board_parent.id}/boards/#{board.id}/lists" }
+    set(:board) { create(:board, group: board_parent) }
+
+    it 'creates a new board list for ancestor group labels' do
+      group.add_developer(user)
+      group_label = create(:group_label, group: group)
+
+      post api(url, user), label_id: group_label.id
+
+      expect(response).to have_gitlab_http_status(201)
+      expect(json_response['label']['name']).to eq(group_label.title)
+    end
   end
 end
diff --git a/spec/support/filtered_search_helpers.rb b/spec/support/filtered_search_helpers.rb
index f3f96bd1f0a..5f42ff77fb2 100644
--- a/spec/support/filtered_search_helpers.rb
+++ b/spec/support/filtered_search_helpers.rb
@@ -21,6 +21,29 @@ module FilteredSearchHelpers
     end
   end
 
+  # Select a label clicking in the search dropdown instead
+  # of entering label names on the input.
+  def select_label_on_dropdown(label_title)
+    input_filtered_search("label:", submit: false)
+
+    within('#js-dropdown-label') do
+      wait_for_requests
+
+      find('li', text: label_title).click
+    end
+
+    filtered_search.send_keys(:enter)
+  end
+
+  def expect_issues_list_count(open_count, closed_count = 0)
+    all_count = open_count + closed_count
+
+    expect(page).to have_issuable_counts(open: open_count, closed: closed_count, all: all_count)
+    page.within '.issues-list' do
+      expect(page).to have_selector('.issue', count: open_count)
+    end
+  end
+
   # Enables input to be added character by character
   def input_filtered_search_keys(search_term)
     # Add an extra space to engage visual tokens