diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7ca04151b..7368a33f3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -21,6 +21,7 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 - Added `Get-PnPIsSiteAliasAvailable` which allows checking if a certain alias is still available to create a new site collection with [PR #2698](https://github.com/pnp/PnP-PowerShell/pull/2698)
 - Added `Get-PnPFooter` and `Set-PnPFooter` to work with the footer shown on Modern Communication pages [PR #2634](https://github.com/pnp/PnP-PowerShell/pull/2634)
 - Added ability to getting and setting the title and logo shown in the footer of a Modern Communication site [PR #2715](https://github.com/pnp/PnP-PowerShell/pull/2715)
+- Added `-SensitivityLabel` option to `New-PnPSite` which allows for directly assigning a sensitivity label to a SharePoint sitecollection when creating it. Requires modern sensitivity labels and E5 licenses to be enabled on the tenant. [PR #2713](https://github.com/pnp/PnP-PowerShell/pull/2713)
 - Added `Get-PnPOffice365CurrentServiceStatus`, `Get-PnPOffice365HistoricalServiceStatus`, `Get-PnPOffice365ServiceMessage` and `Get-PnPOffice365Services` to retrieve information from the Office 365 Management API regarding the Office 365 services [PR #2684](https://github.com/pnp/PnP-PowerShell/pull/2684)
 
 ### Changed
@@ -37,6 +38,7 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 - James May [fowl2]
 - Marc D Anderson [sympmarc]
 - Kunj Balkrishna Sangani [kunj-sangani]
+- Gautam Sheth [gautamdsheth]
 
 ## [3.21.2005.0]
 
diff --git a/Commands/Admin/NewSite.cs b/Commands/Admin/NewSite.cs
index 071af5356..a06717f0b 100644
--- a/Commands/Admin/NewSite.cs
+++ b/Commands/Admin/NewSite.cs
@@ -58,7 +58,9 @@ namespace SharePointPnP.PowerShell.Commands
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Description", Mandatory = false, HelpMessage = @"Specifies the description of the new site collection", ParameterSetName = ParameterSet_COMMUNICATIONBUILTINDESIGN)]
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Description", Mandatory = false, HelpMessage = @"Specifies the description of the new site collection", ParameterSetName = ParameterSet_COMMUNICATIONCUSTOMDESIGN)]
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Classification", Mandatory = false, HelpMessage = @"Specifies the classification of the new site collection", ParameterSetName = ParameterSet_COMMUNICATIONBUILTINDESIGN)]
-    [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Classification", Mandatory = false, HelpMessage = @"Specifies the classification of the new site collection", ParameterSetName = ParameterSet_COMMUNICATIONCUSTOMDESIGN)]
+    [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Classification", Mandatory = false, HelpMessage = @"Specifies the classification of the new site collection", ParameterSetName = ParameterSet_COMMUNICATIONCUSTOMDESIGN)]    
+    [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "SensitivityLabel", Mandatory = false, HelpMessage = @"Specifies the sensitivity label of the new site collection", ParameterSetName = ParameterSet_COMMUNICATIONBUILTINDESIGN)]
+    [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "SensitivityLabel", Mandatory = false, HelpMessage = @"Specifies the sensitivity label of the new site collection", ParameterSetName = ParameterSet_COMMUNICATIONCUSTOMDESIGN)]
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Owner", Mandatory = false, HelpMessage = @"Specifies the owner of the site. Specify the value as a string array: ""user@domain.com""", ParameterSetName = ParameterSet_COMMUNICATIONBUILTINDESIGN)]
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Owner", Mandatory = false, HelpMessage = @"Specifies the owner of the site. Specify the value as a string array: ""user@domain.com""", ParameterSetName = ParameterSet_COMMUNICATIONCUSTOMDESIGN)]
     [CmdletAdditionalParameter(ParameterType = typeof(OfficeDevPnP.Core.Enums.Office365Geography), ParameterName = "PreferredDataLocation", Mandatory = false, HelpMessage = @"Allows specifying in which geography the SharePoint site collection should be created. I.e. NAM, EUR, APC. For a full list of available regions, see https://docs.microsoft.com/office365/enterprise/multi-geo-add-group-with-pdl#geo-location-codes. Only supported on multi-geo enabled tenants.", ParameterSetName = ParameterSet_COMMUNICATIONBUILTINDESIGN)]
@@ -74,6 +76,7 @@ namespace SharePointPnP.PowerShell.Commands
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Alias", Mandatory = true, HelpMessage = @"Specifies the alias of the new site collection which represents the part of the URL that will be assigned to the site behind 'https://tenant.sharepoint.com/sites/' or 'https://tenant.sharepoint.com/teams/' based on the managed path configuration in the SharePoint Online Admin portal, this parameter only applies to Modern Team Sites", ParameterSetName = ParameterSet_TEAM)]
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Description", Mandatory = false, HelpMessage = @"Specifies the description of the new site collection", ParameterSetName = ParameterSet_TEAM)]
     [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "Classification", Mandatory = false, HelpMessage = @"Specifies the classification of the new site collection", ParameterSetName = ParameterSet_TEAM)]
+    [CmdletAdditionalParameter(ParameterType = typeof(string), ParameterName = "SensitivityLabel", Mandatory = false, HelpMessage = @"Specifies the sensitivity label of the new site collection", ParameterSetName = ParameterSet_TEAM)]
     [CmdletAdditionalParameter(ParameterType = typeof(SwitchParameter), ParameterName = "IsPublic", Mandatory = false, HelpMessage = @"Specifies if the Office 365 Group should be public. Defaults to private.", ParameterSetName = ParameterSet_TEAM)]
     [CmdletAdditionalParameter(ParameterType = typeof(string[]), ParameterName = "Owners", Mandatory = false, HelpMessage = @"Specifies the owners of the site. Specify the value as a string array: ""user@domain.com"",""anotheruser@domain.com""", ParameterSetName = ParameterSet_TEAM)]
     [CmdletAdditionalParameter(ParameterType = typeof(OfficeDevPnP.Core.Enums.Office365Geography), ParameterName = "PreferredDataLocation", Mandatory = false, HelpMessage = @"Allows specifying in which geography the SharePoint site collection should be created. I.e. NAM, EUR, APC. For a full list of available regions, see https://docs.microsoft.com/office365/enterprise/multi-geo-add-group-with-pdl#geo-location-codes. Only supported on multi-geo enabled tenants.", ParameterSetName = ParameterSet_TEAM)]
@@ -145,6 +148,7 @@ protected override void ExecuteCmdlet()
                 }
                 creationInformation.Owner = _communicationSiteParameters.Owner;
                 creationInformation.PreferredDataLocation = _communicationSiteParameters.PreferredDataLocation;
+                creationInformation.SensitivityLabel = _communicationSiteParameters.SensitivityLabel;
 
                 var returnedContext = OfficeDevPnP.Core.Sites.SiteCollection.Create(ClientContext, creationInformation, noWait: !Wait);
                 //var results = ClientContext.CreateSiteAsync(creationInformation);
@@ -166,8 +170,9 @@ protected override void ExecuteCmdlet()
                 }
                 creationInformation.Owners = _teamSiteParameters.Owners;
                 creationInformation.PreferredDataLocation = _teamSiteParameters.PreferredDataLocation;
+                creationInformation.SensitivityLabel = _teamSiteParameters.SensitivityLabel;
 
-                var returnedContext = OfficeDevPnP.Core.Sites.SiteCollection.Create(ClientContext, creationInformation, noWait:!Wait, graphAccessToken: PnPConnection.CurrentConnection.TryGetAccessToken(TokenAudience.MicrosoftGraph));
+                var returnedContext = OfficeDevPnP.Core.Sites.SiteCollection.Create(ClientContext, creationInformation, noWait: !Wait, graphAccessToken: PnPConnection.CurrentConnection.TryGetAccessToken(TokenAudience.MicrosoftGraph));
                 //var results = ClientContext.CreateSiteAsync(creationInformation);
                 //var returnedContext = results.GetAwaiter().GetResult();
                 WriteObject(returnedContext.Url);
@@ -218,6 +223,10 @@ public class CommunicationSiteParameters
             [Parameter(Mandatory = false, ParameterSetName = ParameterSet_COMMUNICATIONBUILTINDESIGN)]
             [Parameter(Mandatory = false, ParameterSetName = ParameterSet_COMMUNICATIONCUSTOMDESIGN)]
             public OfficeDevPnP.Core.Enums.Office365Geography? PreferredDataLocation;
+
+            [Parameter(Mandatory = false, ParameterSetName = ParameterSet_COMMUNICATIONBUILTINDESIGN)]
+            [Parameter(Mandatory = false, ParameterSetName = ParameterSet_COMMUNICATIONCUSTOMDESIGN)]
+            public string SensitivityLabel;
         }
 
         public class TeamSiteParameters
@@ -245,7 +254,10 @@ public class TeamSiteParameters
 
             [Parameter(Mandatory = false, ParameterSetName = ParameterSet_TEAM)]
             public OfficeDevPnP.Core.Enums.Office365Geography? PreferredDataLocation;
+
+            [Parameter(Mandatory = false, ParameterSetName = ParameterSet_TEAM)]
+            public string SensitivityLabel;
         }
     }
 }
-#endif
+#endif
\ No newline at end of file