diff --git a/pkg/agent/controller/clusterip_service_test.go b/pkg/agent/controller/clusterip_service_test.go
index 4f8834734..98924fd89 100644
--- a/pkg/agent/controller/clusterip_service_test.go
+++ b/pkg/agent/controller/clusterip_service_test.go
@@ -20,6 +20,7 @@ package controller_test
 
 import (
 	"fmt"
+	"strconv"
 
 	. "github.com/onsi/ginkgo/v2"
 	"github.com/submariner-io/admiral/pkg/resource"
@@ -244,6 +245,7 @@ func testClusterIPServiceInOneCluster() {
 						constants.MCSLabelSourceCluster: t.cluster1.clusterID,
 						mcsv1a1.LabelServiceName:        service.Name,
 						constants.LabelSourceNamespace:  service.Namespace,
+						constants.LabelIsHeadless:       strconv.FormatBool(false),
 					},
 				},
 				AddressType: discovery.AddressTypeIPv4,
@@ -438,7 +440,7 @@ func testClusterIPServiceWithMultipleEPS() {
 		t.cluster1.serviceEndpointSlices = append(t.cluster1.serviceEndpointSlices, discovery.EndpointSlice{
 			ObjectMeta: metav1.ObjectMeta{
 				Name:   fmt.Sprintf("%s-%s2", serviceName, clusterID1),
-				Labels: map[string]string{discovery.LabelServiceName: serviceName},
+				Labels: t.cluster1.serviceEndpointSlices[0].Labels,
 			},
 			AddressType: discovery.AddressTypeIPv4,
 			Endpoints: []discovery.Endpoint{
diff --git a/pkg/agent/controller/controller_suite_test.go b/pkg/agent/controller/controller_suite_test.go
index 4c0d6adfe..fc3209403 100644
--- a/pkg/agent/controller/controller_suite_test.go
+++ b/pkg/agent/controller/controller_suite_test.go
@@ -27,6 +27,7 @@ import (
 	"reflect"
 	"sort"
 	"strconv"
+	"strings"
 	"testing"
 	"time"
 
@@ -173,6 +174,10 @@ func newTestDiver() *testDriver {
 				ObjectMeta: metav1.ObjectMeta{
 					Name:      serviceName,
 					Namespace: serviceNamespace,
+					Labels: map[string]string{
+						"service-label1": "value1",
+						"service-label2": "value2",
+					},
 				},
 				Spec: corev1.ServiceSpec{
 					ClusterIP: "10.253.9.1",
@@ -189,8 +194,11 @@ func newTestDiver() *testDriver {
 			serviceEndpointSlices: []discovery.EndpointSlice{
 				{
 					ObjectMeta: metav1.ObjectMeta{
-						Name:   fmt.Sprintf("%s-%s1", serviceName, clusterID1),
-						Labels: map[string]string{discovery.LabelServiceName: serviceName},
+						Name: fmt.Sprintf("%s-%s1", serviceName, clusterID1),
+						Labels: map[string]string{
+							discovery.LabelServiceName:      serviceName,
+							"kubernetes.io/cluster-service": "true",
+						},
 					},
 					AddressType: discovery.AddressTypeIPv4,
 					Endpoints: []discovery.Endpoint{
@@ -319,6 +327,10 @@ func (t *testDriver) afterEach() {
 }
 
 func (c *cluster) init(syncerConfig *broker.SyncerConfig) {
+	for k, v := range c.service.Labels {
+		c.serviceEndpointSlices[0].Labels[k] = v
+	}
+
 	c.serviceIP = c.service.Spec.ClusterIP
 
 	c.localDynClient = dynamicfake.NewSimpleDynamicClient(syncerConfig.Scheme)
@@ -713,10 +725,16 @@ func awaitEndpointSlice(client dynamic.ResourceInterface, serviceName string, ex
 		Fail(fmt.Sprintf("EndpointSlice for %s/%s not found", expected.Namespace, expected.Name))
 	}
 
-	for k, v := range expected.Labels {
-		Expect(endpointSlice.Labels).To(HaveKeyWithValue(k, v))
+	actualLabels := map[string]string{}
+
+	for k, v := range endpointSlice.Labels {
+		if !strings.HasPrefix(k, "submariner-io/") {
+			actualLabels[k] = v
+		}
 	}
 
+	Expect(actualLabels).To(Equal(expected.Labels))
+
 	for k, v := range expected.Annotations {
 		Expect(endpointSlice.Annotations).To(HaveKeyWithValue(k, v))
 	}
@@ -800,6 +818,10 @@ func (t *testDriver) awaitEndpointSlice(c *cluster) {
 		AddressType: discovery.AddressTypeIPv4,
 	}
 
+	for k, v := range c.service.Labels {
+		epsTemplate.Labels[k] = v
+	}
+
 	var expected []discovery.EndpointSlice
 
 	if isHeadless {
@@ -811,6 +833,7 @@ func (t *testDriver) awaitEndpointSlice(c *cluster) {
 			eps.Endpoints = c.headlessEndpointAddresses[i]
 			eps.Ports = c.serviceEndpointSlices[i].Ports
 			eps.Name = c.serviceEndpointSlices[i].Name
+			eps.Labels[constants.LabelSourceName] = c.serviceEndpointSlices[i].Name
 			expected = append(expected, *eps)
 		}
 	} else {
diff --git a/pkg/agent/controller/headless_service_test.go b/pkg/agent/controller/headless_service_test.go
index 10e5c90b0..3d4688564 100644
--- a/pkg/agent/controller/headless_service_test.go
+++ b/pkg/agent/controller/headless_service_test.go
@@ -137,7 +137,7 @@ var _ = Describe("Headless Service export", func() {
 			t.cluster1.serviceEndpointSlices = append(t.cluster1.serviceEndpointSlices, discovery.EndpointSlice{
 				ObjectMeta: metav1.ObjectMeta{
 					Name:   fmt.Sprintf("%s-%s2", serviceName, clusterID1),
-					Labels: map[string]string{discovery.LabelServiceName: serviceName},
+					Labels: t.cluster1.serviceEndpointSlices[0].Labels,
 				},
 				AddressType: discovery.AddressTypeIPv4,
 				Endpoints: []discovery.Endpoint{
diff --git a/pkg/agent/controller/service_endpoint_slices.go b/pkg/agent/controller/service_endpoint_slices.go
index 60620e5f7..9c7d8d5d3 100644
--- a/pkg/agent/controller/service_endpoint_slices.go
+++ b/pkg/agent/controller/service_endpoint_slices.go
@@ -23,6 +23,7 @@ import (
 	"encoding/json"
 	"fmt"
 	"strconv"
+	"strings"
 
 	"github.com/pkg/errors"
 	"github.com/submariner-io/admiral/pkg/federate"
@@ -265,6 +266,12 @@ func (c *ServiceEndpointSliceController) newEndpointSliceFrom(serviceEPS *discov
 		AddressType: serviceEPS.AddressType,
 	}
 
+	for k, v := range serviceEPS.Labels {
+		if !strings.Contains(k, "kubernetes.io/") {
+			eps.Labels[k] = v
+		}
+	}
+
 	if c.isHeadless() {
 		eps.Labels[constants.LabelSourceName] = serviceEPS.Name
 	}