diff --git a/pkg/admission/admission_controller.go b/pkg/admission/admission_controller.go
index 3b058da6b..35c3fecb0 100644
--- a/pkg/admission/admission_controller.go
+++ b/pkg/admission/admission_controller.go
@@ -322,7 +322,7 @@ func (c *AdmissionController) processPodUpdate(req *admissionv1.AdmissionRequest
 
 func (c *AdmissionController) shouldProcessAdmissionReview(namespace string, labels map[string]string) bool {
 	if c.shouldProcessNamespace(namespace) &&
-		(labels[constants.LabelApplicationID] != "" || labels[constants.SparkLabelAppID] != "" || c.shouldLabelNamespace(namespace)) {
+		(labels[constants.CanonicalLabelApplicationID] != "" || labels[constants.LabelApplicationID] != "" || labels[constants.SparkLabelAppID] != "" || c.shouldLabelNamespace(namespace)) {
 		return true
 	}
 
diff --git a/pkg/admission/admission_controller_test.go b/pkg/admission/admission_controller_test.go
index 88bf8d6a8..e5c66189e 100644
--- a/pkg/admission/admission_controller_test.go
+++ b/pkg/admission/admission_controller_test.go
@@ -81,9 +81,11 @@ func TestUpdateLabels(t *testing.T) {
 	assert.Equal(t, patch[0].Op, "add")
 	assert.Equal(t, patch[0].Path, "/metadata/labels")
 	if updatedMap, ok := patch[0].Value.(map[string]string); ok {
-		assert.Equal(t, len(updatedMap), 3)
+		assert.Equal(t, len(updatedMap), 5)
 		assert.Equal(t, updatedMap["random"], "random")
+		assert.Equal(t, updatedMap[constants.CanonicalLabelQueueName], "root.default")
 		assert.Equal(t, updatedMap[constants.LabelQueueName], "root.default")
+		assert.Equal(t, strings.HasPrefix(updatedMap[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(updatedMap[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("patch info content is not as expected")
@@ -104,8 +106,8 @@ func TestUpdateLabels(t *testing.T) {
 			UID:             "7f5fd6c5d5",
 			ResourceVersion: "10654",
 			Labels: map[string]string{
-				"random":                     "random",
-				constants.LabelApplicationID: "app-0001",
+				"random":                              "random",
+				constants.CanonicalLabelApplicationID: "app-0001",
 			},
 		},
 		Spec:   v1.PodSpec{},
@@ -117,9 +119,11 @@ func TestUpdateLabels(t *testing.T) {
 	assert.Equal(t, patch[0].Op, "add")
 	assert.Equal(t, patch[0].Path, "/metadata/labels")
 	if updatedMap, ok := patch[0].Value.(map[string]string); ok {
-		assert.Equal(t, len(updatedMap), 3)
+		assert.Equal(t, len(updatedMap), 5)
 		assert.Equal(t, updatedMap["random"], "random")
+		assert.Equal(t, updatedMap[constants.CanonicalLabelQueueName], "root.default")
 		assert.Equal(t, updatedMap[constants.LabelQueueName], "root.default")
+		assert.Equal(t, updatedMap[constants.CanonicalLabelApplicationID], "app-0001")
 		assert.Equal(t, updatedMap[constants.LabelApplicationID], "app-0001")
 	} else {
 		t.Fatal("patch info content is not as expected")
@@ -140,8 +144,8 @@ func TestUpdateLabels(t *testing.T) {
 			UID:             "7f5fd6c5d5",
 			ResourceVersion: "10654",
 			Labels: map[string]string{
-				"random":                 "random",
-				constants.LabelQueueName: "root.abc",
+				"random":                          "random",
+				constants.CanonicalLabelQueueName: "root.abc",
 			},
 		},
 		Spec:   v1.PodSpec{},
@@ -154,9 +158,11 @@ func TestUpdateLabels(t *testing.T) {
 	assert.Equal(t, patch[0].Op, "add")
 	assert.Equal(t, patch[0].Path, "/metadata/labels")
 	if updatedMap, ok := patch[0].Value.(map[string]string); ok {
-		assert.Equal(t, len(updatedMap), 3)
+		assert.Equal(t, len(updatedMap), 5)
 		assert.Equal(t, updatedMap["random"], "random")
+		assert.Equal(t, updatedMap[constants.CanonicalLabelQueueName], "root.abc")
 		assert.Equal(t, updatedMap[constants.LabelQueueName], "root.abc")
+		assert.Equal(t, strings.HasPrefix(updatedMap[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(updatedMap[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("patch info content is not as expected")
@@ -186,8 +192,10 @@ func TestUpdateLabels(t *testing.T) {
 	assert.Equal(t, patch[0].Op, "add")
 	assert.Equal(t, patch[0].Path, "/metadata/labels")
 	if updatedMap, ok := patch[0].Value.(map[string]string); ok {
-		assert.Equal(t, len(updatedMap), 2)
+		assert.Equal(t, len(updatedMap), 4)
+		assert.Equal(t, updatedMap[constants.CanonicalLabelQueueName], "root.default")
 		assert.Equal(t, updatedMap[constants.LabelQueueName], "root.default")
+		assert.Equal(t, strings.HasPrefix(updatedMap[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(updatedMap[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("patch info content is not as expected")
@@ -214,8 +222,10 @@ func TestUpdateLabels(t *testing.T) {
 	assert.Equal(t, patch[0].Op, "add")
 	assert.Equal(t, patch[0].Path, "/metadata/labels")
 	if updatedMap, ok := patch[0].Value.(map[string]string); ok {
-		assert.Equal(t, len(updatedMap), 2)
+		assert.Equal(t, len(updatedMap), 4)
+		assert.Equal(t, updatedMap[constants.CanonicalLabelQueueName], "root.default")
 		assert.Equal(t, updatedMap[constants.LabelQueueName], "root.default")
+		assert.Equal(t, strings.HasPrefix(updatedMap[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(updatedMap[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("patch info content is not as expected")
@@ -240,8 +250,10 @@ func TestUpdateLabels(t *testing.T) {
 	assert.Equal(t, patch[0].Op, "add")
 	assert.Equal(t, patch[0].Path, "/metadata/labels")
 	if updatedMap, ok := patch[0].Value.(map[string]string); ok {
-		assert.Equal(t, len(updatedMap), 2)
+		assert.Equal(t, len(updatedMap), 4)
+		assert.Equal(t, updatedMap[constants.CanonicalLabelQueueName], "root.default")
 		assert.Equal(t, updatedMap[constants.LabelQueueName], "root.default")
+		assert.Equal(t, strings.HasPrefix(updatedMap[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(updatedMap[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("patch info content is not as expected")
diff --git a/pkg/admission/util.go b/pkg/admission/util.go
index fe994da72..5276b5b61 100644
--- a/pkg/admission/util.go
+++ b/pkg/admission/util.go
@@ -35,10 +35,11 @@ func updatePodLabel(pod *v1.Pod, namespace string, generateUniqueAppIds bool, de
 		result[k] = v
 	}
 
+	canonicalAppID := utils.GetPodLabelValue(pod, constants.CanonicalLabelApplicationID)
 	sparkAppID := utils.GetPodLabelValue(pod, constants.SparkLabelAppID)
 	labelAppID := utils.GetPodLabelValue(pod, constants.LabelApplicationID)
 	annotationAppID := utils.GetPodAnnotationValue(pod, constants.AnnotationApplicationID)
-	if sparkAppID == "" && labelAppID == "" && annotationAppID == "" {
+	if canonicalAppID == "" && sparkAppID == "" && labelAppID == "" && annotationAppID == "" {
 		// if app id not exist, generate one
 		// for each namespace, we group unnamed pods to one single app - if GenerateUniqueAppId is not set
 		// if GenerateUniqueAppId:
@@ -46,19 +47,31 @@ func updatePodLabel(pod *v1.Pod, namespace string, generateUniqueAppIds bool, de
 		// else
 		// 		application ID convention: ${AUTO_GEN_PREFIX}-${NAMESPACE}-${AUTO_GEN_SUFFIX}
 		generatedID := utils.GenerateApplicationID(namespace, generateUniqueAppIds, string(pod.UID))
+
+		result[constants.CanonicalLabelApplicationID] = generatedID
+		// Deprecated: After 1.7.0, admission controller will only add canonical label if application ID was not set
 		result[constants.LabelApplicationID] = generatedID
+	} else if canonicalAppID != "" {
+		// Deprecated: Added in 1.6.0 for backward compatibility, in case the prior shim version can't handle canonical label
+		result[constants.LabelApplicationID] = canonicalAppID
 	}
 
+	canonicalQueueName := utils.GetPodLabelValue(pod, constants.CanonicalLabelQueueName)
 	labelQueueName := utils.GetPodLabelValue(pod, constants.LabelQueueName)
 	annotationQueueName := utils.GetPodAnnotationValue(pod, constants.AnnotationQueueName)
-	if labelQueueName == "" && annotationQueueName == "" {
+	if canonicalQueueName == "" && labelQueueName == "" && annotationQueueName == "" {
 		// if queueName not exist, generate one
 		// if defaultQueueName is "", skip adding default queue name to the pod labels
 		if defaultQueueName != "" {
 			// for undefined configuration, am_conf will add 'root.default' to retain existing behavior
 			// if a custom name is configured for default queue, it will be used instead of root.default
+			result[constants.CanonicalLabelQueueName] = defaultQueueName
+			// Deprecated: After 1.7.0, admission controller will only add canonical label if queue was not set
 			result[constants.LabelQueueName] = defaultQueueName
 		}
+	} else if canonicalQueueName != "" {
+		// Deprecated: Added in 1.6.0 for backward compatibility, in case the prior shim version can't handle canonical label
+		result[constants.LabelQueueName] = canonicalQueueName
 	}
 
 	return result
diff --git a/pkg/admission/util_test.go b/pkg/admission/util_test.go
index fa28c824c..2181bd5a1 100644
--- a/pkg/admission/util_test.go
+++ b/pkg/admission/util_test.go
@@ -70,8 +70,8 @@ func createTestingPodWithMeta() *v1.Pod {
 
 func createTestingPodWithLabels(appId string, queue string) *v1.Pod {
 	pod := createTestingPodWithMeta()
-	pod.ObjectMeta.Labels[constants.LabelApplicationID] = appId
-	pod.ObjectMeta.Labels[constants.LabelQueueName] = queue
+	pod.ObjectMeta.Labels[constants.CanonicalLabelApplicationID] = appId
+	pod.ObjectMeta.Labels[constants.CanonicalLabelQueueName] = queue
 
 	return pod
 }
@@ -111,21 +111,25 @@ func TestUpdatePodLabelForAdmissionController(t *testing.T) {
 	// we generate new appId/queue labels
 	pod := createTestingPodWithMeta()
 	if result := updatePodLabel(pod, "default", false, defaultQueueName); result != nil {
-		assert.Equal(t, len(result), 3)
+		assert.Equal(t, len(result), 5)
 		assert.Equal(t, result["random"], "random")
+		assert.Equal(t, strings.HasPrefix(result[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(result[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], defaultQueueName)
 		assert.Equal(t, result[constants.LabelQueueName], defaultQueueName)
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
 	}
 
-	// verify if applicationId and queue is given in the labels,
-	// we won't modify it
+	// verify if appId/queue is given in the canonical labels
+	// we won't modify the value and will add it to non-canonical label for backward compatibility
 	pod = createTestingPodWithLabels(dummyAppId, dummyQueueName)
 	if result := updatePodLabel(pod, "default", false, defaultQueueName); result != nil {
-		assert.Equal(t, len(result), 3)
+		assert.Equal(t, len(result), 5)
 		assert.Equal(t, result["random"], "random")
+		assert.Equal(t, result[constants.CanonicalLabelApplicationID], dummyAppId)
 		assert.Equal(t, result[constants.LabelApplicationID], dummyAppId)
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], dummyQueueName)
 		assert.Equal(t, result[constants.LabelQueueName], dummyQueueName)
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
@@ -147,8 +151,10 @@ func TestUpdatePodLabelForAdmissionController(t *testing.T) {
 	pod = createTestingPodNoNamespaceAndLabels()
 
 	if result := updatePodLabel(pod, "default", false, defaultQueueName); result != nil {
-		assert.Equal(t, len(result), 2)
+		assert.Equal(t, len(result), 4)
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], defaultQueueName)
 		assert.Equal(t, result[constants.LabelQueueName], defaultQueueName)
+		assert.Equal(t, strings.HasPrefix(result[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(result[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
@@ -157,8 +163,10 @@ func TestUpdatePodLabelForAdmissionController(t *testing.T) {
 	// pod name might be empty, it can comes from generatedName
 	pod = createTestingPodWithGenerateName()
 	if result := updatePodLabel(pod, "default", false, defaultQueueName); result != nil {
-		assert.Equal(t, len(result), 2)
+		assert.Equal(t, len(result), 4)
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], defaultQueueName)
 		assert.Equal(t, result[constants.LabelQueueName], defaultQueueName)
+		assert.Equal(t, strings.HasPrefix(result[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(result[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
@@ -166,8 +174,10 @@ func TestUpdatePodLabelForAdmissionController(t *testing.T) {
 
 	pod = createMinimalTestingPod()
 	if result := updatePodLabel(pod, "default", false, defaultQueueName); result != nil {
-		assert.Equal(t, len(result), 2)
+		assert.Equal(t, len(result), 4)
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], defaultQueueName)
 		assert.Equal(t, result[constants.LabelQueueName], defaultQueueName)
+		assert.Equal(t, strings.HasPrefix(result[constants.CanonicalLabelApplicationID], constants.AutoGenAppPrefix), true)
 		assert.Equal(t, strings.HasPrefix(result[constants.LabelApplicationID], constants.AutoGenAppPrefix), true)
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
@@ -178,9 +188,11 @@ func TestDefaultQueueName(t *testing.T) {
 	defaultConf := createConfig()
 	pod := createTestingPodWithMeta()
 	if result := updatePodLabel(pod, defaultConf.GetNamespace(), defaultConf.GetGenerateUniqueAppIds(), defaultConf.GetDefaultQueueName()); result != nil {
-		assert.Equal(t, len(result), 3)
+		assert.Equal(t, len(result), 5)
 		assert.Equal(t, result["random"], "random")
+		assert.Equal(t, result[constants.CanonicalLabelApplicationID], "yunikorn-default-autogen")
 		assert.Equal(t, result[constants.LabelApplicationID], "yunikorn-default-autogen")
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], "root.default")
 		assert.Equal(t, result[constants.LabelQueueName], "root.default")
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
@@ -190,9 +202,11 @@ func TestDefaultQueueName(t *testing.T) {
 		conf.AMFilteringDefaultQueueName: "",
 	})
 	if result := updatePodLabel(pod, queueNameEmptyConf.GetNamespace(), queueNameEmptyConf.GetGenerateUniqueAppIds(), queueNameEmptyConf.GetDefaultQueueName()); result != nil {
-		assert.Equal(t, len(result), 2)
+		assert.Equal(t, len(result), 3)
 		assert.Equal(t, result["random"], "random")
+		assert.Equal(t, result[constants.CanonicalLabelApplicationID], "yunikorn-default-autogen")
 		assert.Equal(t, result[constants.LabelApplicationID], "yunikorn-default-autogen")
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], "")
 		assert.Equal(t, result[constants.LabelQueueName], "")
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
@@ -202,9 +216,11 @@ func TestDefaultQueueName(t *testing.T) {
 		conf.AMFilteringDefaultQueueName: "yunikorn",
 	})
 	if result := updatePodLabel(pod, customQueueNameConf.GetNamespace(), customQueueNameConf.GetGenerateUniqueAppIds(), customQueueNameConf.GetDefaultQueueName()); result != nil {
-		assert.Equal(t, len(result), 3)
+		assert.Equal(t, len(result), 5)
 		assert.Equal(t, result["random"], "random")
+		assert.Equal(t, result[constants.CanonicalLabelApplicationID], "yunikorn-default-autogen")
 		assert.Equal(t, result[constants.LabelApplicationID], "yunikorn-default-autogen")
+		assert.Assert(t, result[constants.CanonicalLabelQueueName] != "yunikorn")
 		assert.Assert(t, result[constants.LabelQueueName] != "yunikorn")
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
@@ -215,9 +231,11 @@ func TestDefaultQueueName(t *testing.T) {
 	})
 	if result := updatePodLabel(pod, customValidQueueNameConf.GetNamespace(),
 		customValidQueueNameConf.GetGenerateUniqueAppIds(), customValidQueueNameConf.GetDefaultQueueName()); result != nil {
-		assert.Equal(t, len(result), 3)
+		assert.Equal(t, len(result), 5)
 		assert.Equal(t, result["random"], "random")
+		assert.Equal(t, result[constants.CanonicalLabelApplicationID], "yunikorn-default-autogen")
 		assert.Equal(t, result[constants.LabelApplicationID], "yunikorn-default-autogen")
+		assert.Equal(t, result[constants.CanonicalLabelQueueName], "root.yunikorn")
 		assert.Equal(t, result[constants.LabelQueueName], "root.yunikorn")
 	} else {
 		t.Fatal("UpdatePodLabelForAdmissionController is not as expected")
diff --git a/pkg/common/constants/constants.go b/pkg/common/constants/constants.go
index 7a4c415d4..bdee70a8e 100644
--- a/pkg/common/constants/constants.go
+++ b/pkg/common/constants/constants.go
@@ -38,9 +38,11 @@ const DomainYuniKornInternal = siCommon.DomainYuniKornInternal
 const LabelApp = "app"
 const LabelApplicationID = "applicationId"
 const AnnotationApplicationID = DomainYuniKorn + "app-id"
+const CanonicalLabelApplicationID = DomainYuniKorn + "app-id"
 const LabelQueueName = "queue"
 const RootQueue = "root"
 const AnnotationQueueName = DomainYuniKorn + "queue"
+const CanonicalLabelQueueName = DomainYuniKorn + "queue"
 const AnnotationParentQueue = DomainYuniKorn + "parentqueue"
 const ApplicationDefaultQueue = "root.default"
 const DefaultPartition = "default"