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diff --git a/doc/user/project/labels.md b/doc/user/project/labels.md
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+++ 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)