diff --git a/pkg/logql/log/fmt.go b/pkg/logql/log/fmt.go
index c69aa3d40bb0..74eb0262d39d 100644
--- a/pkg/logql/log/fmt.go
+++ b/pkg/logql/log/fmt.go
@@ -391,9 +391,9 @@ func (lf *LabelsFormatter) Process(ts int64, l []byte, lbs *LabelsBuilder) ([]by
 	defer smp.Put(m)
 	for _, f := range lf.formats {
 		if f.Rename {
-			v, category, ok := lbs.GetWithCategory(f.Value)
+			v, _, ok := lbs.GetWithCategory(f.Value)
 			if ok {
-				lbs.Set(category, f.Name, v)
+				lbs.Set(ParsedLabel, f.Name, v)
 				lbs.Del(f.Value)
 			}
 			continue
diff --git a/pkg/logql/log/fmt_test.go b/pkg/logql/log/fmt_test.go
index 2028d2e00bf8..9cb449a7bfdd 100644
--- a/pkg/logql/log/fmt_test.go
+++ b/pkg/logql/log/fmt_test.go
@@ -515,6 +515,22 @@ func Test_labelsFormatter_Format(t *testing.T) {
 		in   labels.Labels
 		want labels.Labels
 	}{
+		{
+			"rename label",
+			mustNewLabelsFormatter([]LabelFmt{
+				NewRenameLabelFmt("baz", "foo"),
+			}),
+			labels.FromStrings("foo", "blip", "bar", "blop"),
+			labels.FromStrings("bar", "blop", "baz", "blip"),
+		},
+		{
+			"rename and overwrite existing label",
+			mustNewLabelsFormatter([]LabelFmt{
+				NewRenameLabelFmt("bar", "foo"),
+			}),
+			labels.FromStrings("foo", "blip", "bar", "blop"),
+			labels.FromStrings("bar", "blip"),
+		},
 		{
 			"combined with template",
 			mustNewLabelsFormatter([]LabelFmt{NewTemplateLabelFmt("foo", "{{.foo}} and {{.bar}}")}),