diff --git a/src/backend/core/admin.py b/src/backend/core/admin.py
index efa49c12..48c93dd7 100644
--- a/src/backend/core/admin.py
+++ b/src/backend/core/admin.py
@@ -5,6 +5,8 @@ from django.contrib.auth import admin as auth_admin
 from django.shortcuts import redirect
 from django.template.response import TemplateResponse
 from django.urls import path
+from django.utils.html import escape, format_html
+from django.utils.text import slugify
 from django.utils.translation import gettext_lazy as _
 
 from core.services.import_service import ImportService
@@ -149,10 +151,79 @@ class ThreadAdmin(admin.ModelAdmin):
         "id",
         "subject",
         "snippet",
+        "get_labels",
         "messaged_at",
         "created_at",
         "updated_at",
     )
+    search_fields = ("subject", "snippet", "labels__name")
+    list_filter = ("labels",)
+    fieldsets = (
+        (None, {"fields": ("subject", "snippet", "display_labels")}),
+        (
+            _("Statistics"),
+            {
+                "fields": (
+                    "count_unread",
+                    "count_trashed",
+                    "count_draft",
+                    "count_starred",
+                    "count_sender",
+                    "count_messages",
+                ),
+                "classes": ("collapse",),
+            },
+        ),
+        (
+            _("Metadata"),
+            {
+                "fields": ("sender_names", "created_at", "updated_at", "messaged_at"),
+                "classes": ("collapse",),
+            },
+        ),
+    )
+    readonly_fields = (
+        "display_labels",
+        "count_unread",
+        "count_trashed",
+        "count_draft",
+        "count_starred",
+        "count_sender",
+        "count_messages",
+        "messaged_at",
+        "sender_names",
+        "created_at",
+        "updated_at",
+    )
+
+    def get_labels(self, obj):
+        """Return a comma-separated list of labels for the thread."""
+        return ", ".join(label.name for label in obj.labels.all())
+
+    get_labels.short_description = _("Labels")
+    get_labels.admin_order_field = "labels__name"
+
+    def display_labels(self, obj):
+        """Display labels with their colors in the detail view."""
+        if not obj.labels.exists():
+            return _("No labels")
+
+        # Create a list of formatted label spans
+        label_spans = []
+        for label in obj.labels.all():
+            # Create each label span using format_html
+            label_span = format_html(
+                '<span style="display: inline-block; padding: 2px 8px; margin: 2px; '
+                'border-radius: 3px; background-color: {}; color: white;">{}</span>',
+                label.color,
+                escape(label.name),
+            )
+            label_spans.append(label_span)
+
+        # Join all spans with a space using format_html
+        return format_html(" ".join(label_spans))
+
+    display_labels.short_description = _("Labels")
 
 
 class MessageRecipientInline(admin.TabularInline):
@@ -282,3 +353,43 @@ class MessageRecipientAdmin(admin.ModelAdmin):
 
     list_display = ("id", "message", "contact", "type")
     search_fields = ("message__subject", "contact__name", "contact__email")
+
+
+@admin.register(models.Label)
+class LabelAdmin(admin.ModelAdmin):
+    """Admin class for the Label model"""
+
+    list_display = ("id", "name", "slug", "mailbox", "color")
+    search_fields = ("name", "mailbox__local_part", "mailbox__domain__name")
+    filter_horizontal = ("threads",)
+    list_filter = ("mailbox",)
+    readonly_fields = ("slug",)
+    list_display = (
+        "id",
+        "name",
+        "slug",
+        "mailbox",
+        "color",
+        "depth",
+        "basename",
+        "parent_name",
+    )
+    list_filter = ("mailbox",)
+
+    def get_basename(self, obj):
+        """Return the display name of the label."""
+        return obj.basename
+
+    def get_parent_name(self, obj):
+        """Return the display name of the label."""
+        return obj.parent_name
+
+    def get_depth(self, obj):
+        """Return the display name of the label."""
+        return obj.depth
+
+    def save_model(self, request, obj, form, change):
+        """Generate slug from name before saving."""
+        if not obj.slug or (change and "name" in form.changed_data):
+            obj.slug = slugify(obj.name.replace("/", "-"))
+        super().save_model(request, obj, form, change)
diff --git a/src/backend/core/migrations/0015_label.py b/src/backend/core/migrations/0015_label.py
new file mode 100644
index 00000000..9ae9e34f
--- /dev/null
+++ b/src/backend/core/migrations/0015_label.py
@@ -0,0 +1,35 @@
+# Generated by Django 5.1.8 on 2025-06-10 08:55
+
+import django.db.models.deletion
+import uuid
+from django.db import migrations, models
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('core', '0014_alter_mailbox_local_part'),
+    ]
+
+    operations = [
+        migrations.CreateModel(
+            name='Label',
+            fields=[
+                ('id', models.UUIDField(default=uuid.uuid4, editable=False, help_text='primary key for the record as UUID', primary_key=True, serialize=False, verbose_name='id')),
+                ('created_at', models.DateTimeField(auto_now_add=True, help_text='date and time at which a record was created', verbose_name='created on')),
+                ('updated_at', models.DateTimeField(auto_now=True, help_text='date and time at which a record was last updated', verbose_name='updated on')),
+                ('name', models.CharField(help_text="Name of the label/folder (can use slashes for hierarchy, e.g. 'Work/Projects')", max_length=255, verbose_name='name')),
+                ('slug', models.SlugField(help_text='URL-friendly version of the name', max_length=255, verbose_name='slug')),
+                ('color', models.CharField(default='#E3E3FD', help_text='Color of the label in hex format (e.g. #FF0000)', max_length=7, verbose_name='color')),
+                ('mailbox', models.ForeignKey(help_text='Mailbox that owns this label', on_delete=django.db.models.deletion.CASCADE, related_name='labels', to='core.mailbox')),
+                ('threads', models.ManyToManyField(blank=True, help_text='Threads that have this label', related_name='labels', to='core.thread')),
+            ],
+            options={
+                'verbose_name': 'label',
+                'verbose_name_plural': 'labels',
+                'db_table': 'messages_label',
+                'ordering': ['name'],
+                'unique_together': {('slug', 'mailbox')},
+            },
+        ),
+    ]
diff --git a/src/backend/core/models.py b/src/backend/core/models.py
index 4c29b86f..0b745881 100644
--- a/src/backend/core/models.py
+++ b/src/backend/core/models.py
@@ -13,6 +13,7 @@ from django.contrib.auth import models as auth_models
 from django.contrib.auth.base_user import AbstractBaseUser
 from django.core import validators
 from django.db import models
+from django.utils.text import slugify
 from django.utils.translation import gettext_lazy as _
 
 from timezone_field import TimeZoneField
@@ -393,6 +394,100 @@ class Thread(BaseModel):
         )
 
 
+class Label(BaseModel):
+    """Label model to organize threads into folders using slash-based naming."""
+
+    name = models.CharField(
+        _("name"),
+        max_length=255,
+        help_text=_(
+            "Name of the label/folder (can use slashes for hierarchy, e.g. 'Work/Projects')"
+        ),
+    )
+    slug = models.SlugField(
+        _("slug"),
+        max_length=255,
+        help_text=_("URL-friendly version of the name"),
+    )
+    color = models.CharField(
+        _("color"),
+        max_length=7,
+        default="#E3E3FD",
+        help_text=_("Color of the label in hex format (e.g. #FF0000)"),
+    )
+    mailbox = models.ForeignKey(
+        "Mailbox",
+        on_delete=models.CASCADE,
+        related_name="labels",
+        help_text=_("Mailbox that owns this label"),
+    )
+    threads = models.ManyToManyField(
+        "Thread",
+        related_name="labels",
+        help_text=_("Threads that have this label"),
+        blank=True,
+    )
+
+    class Meta:
+        db_table = "messages_label"
+        verbose_name = _("label")
+        verbose_name_plural = _("labels")
+        unique_together = ("slug", "mailbox")
+        ordering = ["name"]
+
+    def __str__(self):
+        return f"{self.name} ({self.mailbox})"
+
+    def save(self, *args, **kwargs):
+        """Generate slug from name before saving."""
+        if not self.slug:
+            self.slug = slugify(self.name.replace("/", "-"))
+        super().save(*args, **kwargs)
+
+    @property
+    def parent_name(self):
+        """Get the parent label name if this is a subfolder."""
+        if "/" not in self.name:
+            return None
+        return self.name.rsplit("/", 1)[0]
+
+    @property
+    def basename(self):
+        """Get the base name of the label without parent path."""
+        return self.name.rsplit("/", maxsplit=1)[-1]
+
+    @property
+    def depth(self):
+        """Get the depth of the label in the hierarchy."""
+        return self.name.count("/")
+
+    @classmethod
+    def get_children(cls, mailbox, parent_name):
+        """Get all direct children of a parent label."""
+        if parent_name:
+            prefix = f"{parent_name}/"
+            # Get all labels that start with the parent prefix
+            labels = cls.objects.filter(
+                mailbox=mailbox,
+                name__startswith=prefix,
+            )
+            # Filter to only get direct children (one level deeper)
+            return [
+                label for label in labels if label.depth == parent_name.count("/") + 1
+            ]
+
+        # Get root level labels (no slashes)
+        return cls.objects.filter(
+            mailbox=mailbox,
+        ).exclude(name__contains="/")
+
+    def get_display_name(self):
+        """Return the display name of the label."""
+        if "/" not in self.name:
+            return self.name
+        return self.name.rsplit("/", maxsplit=1)[-1]
+
+
 class ThreadAccess(BaseModel):
     """Thread access model to store thread access information for a mailbox."""