diff --git a/services/repository/template.go b/services/repository/template.go
index 96033cb98d..c49e2cdde0 100644
--- a/services/repository/template.go
+++ b/services/repository/template.go
@@ -33,11 +33,12 @@ func GenerateIssueLabels(ctx context.Context, templateRepo, generateRepo *repo_m
 	newLabels := make([]*issues_model.Label, 0, len(templateLabels))
 	for _, templateLabel := range templateLabels {
 		newLabels = append(newLabels, &issues_model.Label{
-			RepoID:      generateRepo.ID,
-			Name:        templateLabel.Name,
-			Exclusive:   templateLabel.Exclusive,
-			Description: templateLabel.Description,
-			Color:       templateLabel.Color,
+			RepoID:         generateRepo.ID,
+			Name:           templateLabel.Name,
+			Exclusive:      templateLabel.Exclusive,
+			ExclusiveOrder: templateLabel.ExclusiveOrder,
+			Description:    templateLabel.Description,
+			Color:          templateLabel.Color,
 		})
 	}
 	return db.Insert(ctx, newLabels)
diff --git a/tests/integration/repo_test.go b/tests/integration/repo_test.go
index 1841598285..b036ffff35 100644
--- a/tests/integration/repo_test.go
+++ b/tests/integration/repo_test.go
@@ -13,6 +13,8 @@ import (
 	"testing"
 	"time"
 
+	"code.gitea.io/gitea/models/db"
+	issues_model "code.gitea.io/gitea/models/issues"
 	repo_model "code.gitea.io/gitea/models/repo"
 	"code.gitea.io/gitea/models/unit"
 	"code.gitea.io/gitea/models/unittest"
@@ -525,19 +527,39 @@ func TestGenerateRepository(t *testing.T) {
 	user2 := unittest.AssertExistsAndLoadBean(t, &user_model.User{ID: 2})
 	repo44 := unittest.AssertExistsAndLoadBean(t, &repo_model.Repository{ID: 44})
 
+	tmplRepoLabels := []*issues_model.Label{
+		{RepoID: 44, Name: "priority/high", Exclusive: true, ExclusiveOrder: 2, Color: "#ee0000", Description: "desc-high"},
+		{RepoID: 44, Name: "priority/low", Exclusive: true, ExclusiveOrder: 1, Color: "#0000ee", Description: "desc-low"},
+	}
+
+	require.NoError(t, issues_model.NewLabels(t.Context(), tmplRepoLabels...))
+
 	generatedRepo, err := repo_service.GenerateRepository(t.Context(), user2, user2, repo44, repo_service.GenerateRepoOptions{
-		Name:       "generated-from-template-44",
-		GitContent: true,
+		Name:        "generated-from-template-44",
+		GitContent:  true,
+		IssueLabels: true,
 	})
-	assert.NoError(t, err)
-	assert.NotNil(t, generatedRepo)
+	require.NoError(t, err)
+	require.NotNil(t, generatedRepo)
 
 	exist, err := util.IsExist(repo_model.RepoPath(user2.Name, generatedRepo.Name))
-	assert.NoError(t, err)
-	assert.True(t, exist)
+	require.NoError(t, err)
+	require.True(t, exist)
 
 	unittest.AssertExistsAndLoadBean(t, &repo_model.Repository{OwnerName: user2.Name, Name: generatedRepo.Name})
 
+	generatedLabels, err := issues_model.GetLabelsByRepoID(t.Context(), generatedRepo.ID, "", db.ListOptions{})
+	require.NoError(t, err)
+	require.Len(t, generatedLabels, len(tmplRepoLabels))
+	for i, tmplLabel := range tmplRepoLabels {
+		genLabel := generatedLabels[i]
+		assert.Equal(t, tmplLabel.Name, genLabel.Name)
+		assert.Equal(t, tmplLabel.Exclusive, genLabel.Exclusive)
+		assert.Equal(t, tmplLabel.ExclusiveOrder, genLabel.ExclusiveOrder)
+		assert.Equal(t, tmplLabel.Color, genLabel.Color)
+		assert.Equal(t, tmplLabel.Description, genLabel.Description)
+	}
+
 	err = repo_service.DeleteRepositoryDirectly(t.Context(), generatedRepo.ID)
 	assert.NoError(t, err)