diff --git a/tests/test_labels.py b/tests/test_labels.py
new file mode 100644
index 00000000..1e90cf16
--- /dev/null
+++ b/tests/test_labels.py
@@ -0,0 +1,37 @@
+"""
+Test if labels are supplied correctly to the container
+"""
+import time
+from repo2docker.app import Repo2Docker
+from repo2docker import __version__
+import pytest
+
+
+@pytest.mark.parametrize('ref', ['some-branch', None])
+def test_labels(ref, tmpdir):
+    app = Repo2Docker()
+    if ref is not None:
+        argv = ['--ref', ref, str(tmpdir)]
+    else:
+        argv = [str(tmpdir)]
+    app.initialize(argv)
+    app.debug = True
+    app.run = False
+    app.start()  # This just build the image and does not run it.
+    container = app.start_container()
+    expected_labels = {
+        'repo2docker.ref': str(ref),
+        'repo2docker.repo': str(tmpdir),
+        'repo2docker.version': __version__,
+    }
+
+    # wait a bit for the container to be ready
+    # give the container a chance to start
+    time.sleep(1)
+
+    try:
+        assert container.labels == expected_labels
+    finally:
+        # stop the container
+        container.stop()
+        app.wait_for_container(container)