diff --git a/.changelog/6941.txt b/.changelog/6941.txt
new file mode 100644
index 00000000000..93ba954f9e4
--- /dev/null
+++ b/.changelog/6941.txt
@@ -0,0 +1,3 @@
+```release-note:enhancement
+container: supported in-place update for `labels` in `google_container_node_pool`
+```
diff --git a/google/node_config.go b/google/node_config.go
index e31eb06eb09..0d880ee4720 100644
--- a/google/node_config.go
+++ b/google/node_config.go
@@ -144,7 +144,6 @@ func schemaNodeConfig() *schema.Schema {
 					Optional: true,
 					// Computed=true because GKE Sandbox will automatically add labels to nodes that can/cannot run sandboxed pods.
 					Computed:    true,
-					ForceNew:    true,
 					Elem:        &schema.Schema{Type: schema.TypeString},
 					Description: `The map of Kubernetes labels (key/value pairs) to be applied to each node. These will added in addition to any default label(s) that Kubernetes may apply to the node.`,
 				},
diff --git a/google/resource_container_cluster.go b/google/resource_container_cluster.go
index 599377287f2..7f51bbd8bd8 100644
--- a/google/resource_container_cluster.go
+++ b/google/resource_container_cluster.go
@@ -80,6 +80,7 @@ var (
 	}
 
 	forceNewClusterNodeConfigFields = []string{
+		"labels",
 		"workload_metadata_config",
 	}
 
diff --git a/google/resource_container_node_pool.go b/google/resource_container_node_pool.go
index 35f085c363b..777e4b0e35c 100644
--- a/google/resource_container_node_pool.go
+++ b/google/resource_container_node_pool.go
@@ -1269,6 +1269,44 @@ func nodePoolUpdate(d *schema.ResourceData, meta interface{}, nodePoolInfo *Node
 			log.Printf("[INFO] Updated resource labels for node pool %s", name)
 		}
 
+		if d.HasChange(prefix + "node_config.0.labels") {
+			req := &container.UpdateNodePoolRequest{
+				Name: name,
+			}
+
+			if v, ok := d.GetOk(prefix + "node_config.0.labels"); ok {
+				labels := v.(map[string]interface{})
+				req.Labels = &container.NodeLabels{
+					Labels: convertStringMap(labels),
+				}
+			}
+
+			updateF := func() error {
+				clusterNodePoolsUpdateCall := config.NewContainerClient(userAgent).Projects.Locations.Clusters.NodePools.Update(nodePoolInfo.fullyQualifiedName(name), req)
+				if config.UserProjectOverride {
+					clusterNodePoolsUpdateCall.Header().Add("X-Goog-User-Project", nodePoolInfo.project)
+				}
+				op, err := clusterNodePoolsUpdateCall.Do()
+				if err != nil {
+					return err
+				}
+
+				// Wait until it's updated
+				return containerOperationWait(config, op,
+					nodePoolInfo.project,
+					nodePoolInfo.location,
+					"updating GKE node pool labels", userAgent,
+					timeout)
+			}
+
+			// Call update serially.
+			if err := retryWhileIncompatibleOperation(timeout, npLockKey, updateF); err != nil {
+				return err
+			}
+
+			log.Printf("[INFO] Updated labels for node pool %s", name)
+		}
+
 		if d.HasChange(prefix + "node_config.0.image_type") {
 			req := &container.UpdateClusterRequest{
 				Update: &container.ClusterUpdate{
diff --git a/google/resource_container_node_pool_test.go b/google/resource_container_node_pool_test.go
index 74d3f179bcf..2e8fc1cf315 100644
--- a/google/resource_container_node_pool_test.go
+++ b/google/resource_container_node_pool_test.go
@@ -1606,12 +1606,6 @@ resource "google_container_node_pool" "np_with_node_config" {
     ]
     preemptible      = true
     min_cpu_platform = "Intel Broadwell"
-	
-    tags = ["ga"]
-
-	resource_labels = {
-      "key1" = "value"
-    }
 
     taint {
       key    = "taint_key"
@@ -1627,6 +1621,16 @@ resource "google_container_node_pool" "np_with_node_config" {
 
     // Updatable fields
     image_type = "COS_CONTAINERD"
+
+    tags = ["foo"]
+
+    labels = {
+      "test.terraform.io/key1" = "foo"
+    }
+
+    resource_labels = {
+      "key1" = "foo"
+    }
   }
 }
 `, cluster, nodePool)
@@ -1657,13 +1661,6 @@ resource "google_container_node_pool" "np_with_node_config" {
     preemptible      = true
     min_cpu_platform = "Intel Broadwell"
 
-    tags = ["beta"]
-
-	resource_labels = {
-      "key1" = "value1"
-	  "key2" = "value2"
-    }
-
     taint {
       key    = "taint_key"
       value  = "taint_value"
@@ -1678,6 +1675,18 @@ resource "google_container_node_pool" "np_with_node_config" {
 
     // Updatable fields
     image_type = "UBUNTU_CONTAINERD"
+
+    tags = ["bar", "foobar"]
+
+    labels = {
+      "test.terraform.io/key1" = "bar"
+      "test.terraform.io/key2" = "foo"
+    }
+
+    resource_labels = {
+      "key1" = "bar"
+      "key2" = "foo"
+    }
   }
 }
 `, cluster, nodePool)