diff --git a/.changeset/fifty-berries-learn.md b/.changeset/fifty-berries-learn.md
new file mode 100644
index 0000000000..eb95d1febd
--- /dev/null
+++ b/.changeset/fifty-berries-learn.md
@@ -0,0 +1,40 @@
+---
+'@backstage/plugin-catalog': patch
+---
+
+---
+
+This change would allow consumers of plugin catalog to make use of labels just like tags from metadata.
+
+The intent of change is to show customised columns based on selected label with which entity is associated.
+For example: In example below category and visibility are type of labels associated with API entity.
+YAML for API entity
+
+```yaml
+apiVersion: backstage.io/v1alpha1
+kind: API
+metadata:
+  name: sample-api
+  description: API for sample
+  links:
+    - url: http://localhost:8080/swagger-ui.html
+      title: Swagger UI
+  tags:
+    - http
+  labels:
+    category: legacy
+    visibility: protected
+```
+
+Consumers can customise columns to include label column and show in api-docs list
+
+```typescript
+const columns = [
+  CatalogTable.columns.createNameColumn({ defaultKind: 'API' }),
+  CatalogTable.columns.createLabelColumn('category', { title: 'Category' }),
+  CatalogTable.columns.createLabelColumn('visibility', {
+    title: 'Visibility',
+    defaultValue: 'public',
+  }),
+];
+```
diff --git a/plugins/catalog/api-report.md b/plugins/catalog/api-report.md
index 377b62a1e6..71006b53b5 100644
--- a/plugins/catalog/api-report.md
+++ b/plugins/catalog/api-report.md
@@ -148,6 +148,15 @@ export const CatalogTable: {
           }
         | undefined,
     ): TableColumn<CatalogTableRow>;
+    createLabelColumn(
+      key: string,
+      options?:
+        | {
+            title?: string | undefined;
+            defaultValue?: string | undefined;
+          }
+        | undefined,
+    ): TableColumn<CatalogTableRow>;
   }>;
 };
 
diff --git a/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx b/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx
index bd78cecaf0..bb2f302a37 100644
--- a/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx
+++ b/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx
@@ -331,4 +331,42 @@ describe('CatalogTable component', () => {
 
     expect(getByText('Should be rendered')).toBeInTheDocument();
   });
+
+  it('should render the label column with customised title and value as specified', async () => {
+    const columns = [
+      CatalogTable.columns.createNameColumn({ defaultKind: 'API' }),
+      CatalogTable.columns.createLabelColumn('category', { title: 'Category' }),
+    ];
+    const entity = {
+      apiVersion: 'backstage.io/v1alpha1',
+      kind: 'API',
+      metadata: {
+        name: 'APIWithLabel',
+        labels: { category: 'generic' },
+      },
+    };
+    const expectedColumns = ['Name', 'Category', 'Actions'];
+
+    const { getAllByRole, getByText } = await renderInTestApp(
+      <ApiProvider apis={mockApis}>
+        <MockEntityListContextProvider value={{ entities: [entity] }}>
+          <CatalogTable columns={columns} />
+        </MockEntityListContextProvider>
+      </ApiProvider>,
+      {
+        mountedRoutes: {
+          '/catalog/:namespace/:kind/:name': entityRouteRef,
+        },
+      },
+    );
+
+    const columnHeader = getAllByRole('button').filter(
+      c => c.tagName === 'SPAN',
+    );
+    const columnHeaderLabels = columnHeader.map(c => c.textContent);
+    expect(columnHeaderLabels).toEqual(expectedColumns);
+
+    const labelCellValue = getByText('generic');
+    expect(labelCellValue).toBeInTheDocument();
+  });
 });
diff --git a/plugins/catalog/src/components/CatalogTable/columns.tsx b/plugins/catalog/src/components/CatalogTable/columns.tsx
index 19d160c0e2..68491f2e07 100644
--- a/plugins/catalog/src/components/CatalogTable/columns.tsx
+++ b/plugins/catalog/src/components/CatalogTable/columns.tsx
@@ -25,6 +25,31 @@ import { OverflowTooltip, TableColumn } from '@backstage/core-components';
 import { Entity } from '@backstage/catalog-model';
 import { JsonArray } from '@backstage/types';
 
+/**
+ * Renders label if exists in entities or default
+ * @param labels - Key value pairs of labels specified in entity metadata
+ * @param key - specified label key to be extracted from all labels
+ * @param defaultValue - shows default in case label key does not exist
+ * @returns Chip style component when label value exists undefined otherwise.
+ */
+const renderLabel = (
+  labels: Record<string, string> | undefined,
+  key: string,
+  defaultValue?: string,
+) => {
+  const specifiedLabelValue = (labels && labels[key]) || defaultValue;
+  return (
+    specifiedLabelValue && (
+      <Chip
+        key={specifiedLabelValue}
+        label={specifiedLabelValue}
+        size="small"
+        variant="outlined"
+      />
+    )
+  );
+};
+
 // The columnFactories symbol is not directly exported, but through the
 // CatalogTable.columns field.
 /** @public */
@@ -162,4 +187,20 @@ export const columnFactories = Object.freeze({
       searchable: true,
     };
   },
+  createLabelColumn(
+    key: string,
+    options?: { title?: string; defaultValue?: string },
+  ): TableColumn<CatalogTableRow> {
+    return {
+      title: options?.title || 'Label',
+      field: 'entity.metadata.labels',
+      cellStyle: {
+        padding: '0px 16px 0px 20px',
+      },
+      render: ({ entity }: { entity: Entity }) => (
+        <>{renderLabel(entity.metadata?.labels, key, options?.defaultValue)}</>
+      ),
+      width: 'auto',
+    };
+  },
 });