diff --git a/google/cloud/spanner_v1/client.py b/google/cloud/spanner_v1/client.py
index b433f0c7b0..f4cd6ef910 100644
--- a/google/cloud/spanner_v1/client.py
+++ b/google/cloud/spanner_v1/client.py
@@ -289,6 +289,7 @@ def instance(
         configuration_name=None,
         display_name=None,
         node_count=DEFAULT_NODE_COUNT,
+        labels=None,
     ):
         """Factory to create a instance associated with this client.
 
@@ -313,6 +314,9 @@ def instance(
         :param node_count: (Optional) The number of nodes in the instance's
                             cluster; used to set up the instance's cluster.
 
+        :type labels: dict (str -> str) or None
+        :param labels: (Optional) User-assigned labels for this instance.
+
         :rtype: :class:`~google.cloud.spanner_v1.instance.Instance`
         :returns: an instance owned by this client.
         """
@@ -323,6 +327,7 @@ def instance(
             node_count,
             display_name,
             self._emulator_host,
+            labels,
         )
 
     def list_instances(self, filter_="", page_size=None):
diff --git a/google/cloud/spanner_v1/instance.py b/google/cloud/spanner_v1/instance.py
index be49dd2d84..e6972487a7 100644
--- a/google/cloud/spanner_v1/instance.py
+++ b/google/cloud/spanner_v1/instance.py
@@ -99,6 +99,9 @@ class Instance(object):
                          Cloud Console UI. (Must be between 4 and 30
                          characters.) If this value is not set in the
                          constructor, will fall back to the instance ID.
+
+    :type labels: dict (str -> str) or None
+    :param labels: (Optional) User-assigned labels for this instance.
     """
 
     def __init__(
@@ -109,6 +112,7 @@ def __init__(
         node_count=DEFAULT_NODE_COUNT,
         display_name=None,
         emulator_host=None,
+        labels=None,
     ):
         self.instance_id = instance_id
         self._client = client
@@ -116,6 +120,9 @@ def __init__(
         self.node_count = node_count
         self.display_name = display_name or instance_id
         self.emulator_host = emulator_host
+        if labels is None:
+            labels = {}
+        self.labels = labels
 
     def _update_from_pb(self, instance_pb):
         """Refresh self from the server-provided protobuf.
@@ -127,6 +134,7 @@ def _update_from_pb(self, instance_pb):
         self.display_name = instance_pb.display_name
         self.configuration_name = instance_pb.config
         self.node_count = instance_pb.node_count
+        self.labels = instance_pb.labels
 
     @classmethod
     def from_pb(cls, instance_pb, client):
@@ -242,6 +250,7 @@ def create(self):
             config=self.configuration_name,
             display_name=self.display_name,
             node_count=self.node_count,
+            labels=self.labels,
         )
         metadata = _metadata_with_prefix(self.name)
 
@@ -296,7 +305,7 @@ def update(self):
 
         .. note::
 
-            Updates the ``display_name`` and ``node_count``. To change those
+            Updates the ``display_name``, ``node_count`` and ``labels``. To change those
             values before updating, set them via
 
             .. code:: python
@@ -316,8 +325,9 @@ def update(self):
             config=self.configuration_name,
             display_name=self.display_name,
             node_count=self.node_count,
+            labels=self.labels,
         )
-        field_mask = FieldMask(paths=["config", "display_name", "node_count"])
+        field_mask = FieldMask(paths=["config", "display_name", "node_count", "labels"])
         metadata = _metadata_with_prefix(self.name)
 
         future = api.update_instance(
diff --git a/tests/unit/test_client.py b/tests/unit/test_client.py
index a3001e61ae..9c260c5f95 100644
--- a/tests/unit/test_client.py
+++ b/tests/unit/test_client.py
@@ -37,6 +37,7 @@ class TestClient(unittest.TestCase):
     INSTANCE_NAME = "%s/instances/%s" % (PATH, INSTANCE_ID)
     DISPLAY_NAME = "display-name"
     NODE_COUNT = 5
+    LABELS = {"test": "true"}
     TIMEOUT_SECONDS = 80
 
     def _get_target_class(self):
@@ -518,6 +519,7 @@ def test_instance_factory_defaults(self):
         self.assertIsNone(instance.configuration_name)
         self.assertEqual(instance.display_name, self.INSTANCE_ID)
         self.assertEqual(instance.node_count, DEFAULT_NODE_COUNT)
+        self.assertEqual(instance.labels, {})
         self.assertIs(instance._client, client)
 
     def test_instance_factory_explicit(self):
@@ -531,6 +533,7 @@ def test_instance_factory_explicit(self):
             self.CONFIGURATION_NAME,
             display_name=self.DISPLAY_NAME,
             node_count=self.NODE_COUNT,
+            labels=self.LABELS,
         )
 
         self.assertIsInstance(instance, Instance)
@@ -538,6 +541,7 @@ def test_instance_factory_explicit(self):
         self.assertEqual(instance.configuration_name, self.CONFIGURATION_NAME)
         self.assertEqual(instance.display_name, self.DISPLAY_NAME)
         self.assertEqual(instance.node_count, self.NODE_COUNT)
+        self.assertEqual(instance.labels, self.LABELS)
         self.assertIs(instance._client, client)
 
     def test_list_instances(self):
diff --git a/tests/unit/test_instance.py b/tests/unit/test_instance.py
index 0694d438a2..082ef9e122 100644
--- a/tests/unit/test_instance.py
+++ b/tests/unit/test_instance.py
@@ -38,6 +38,7 @@ class TestInstance(unittest.TestCase):
     TIMEOUT_SECONDS = 1
     DATABASE_ID = "database_id"
     DATABASE_NAME = "%s/databases/%s" % (INSTANCE_NAME, DATABASE_ID)
+    LABELS = {"test": "true"}
 
     def _getTargetClass(self):
         from google.cloud.spanner_v1.instance import Instance
@@ -57,6 +58,7 @@ def test_constructor_defaults(self):
         self.assertIs(instance.configuration_name, None)
         self.assertEqual(instance.node_count, DEFAULT_NODE_COUNT)
         self.assertEqual(instance.display_name, self.INSTANCE_ID)
+        self.assertEqual(instance.labels, {})
 
     def test_constructor_non_default(self):
         DISPLAY_NAME = "display_name"
@@ -68,12 +70,14 @@ def test_constructor_non_default(self):
             configuration_name=self.CONFIG_NAME,
             node_count=self.NODE_COUNT,
             display_name=DISPLAY_NAME,
+            labels=self.LABELS,
         )
         self.assertEqual(instance.instance_id, self.INSTANCE_ID)
         self.assertIs(instance._client, client)
         self.assertEqual(instance.configuration_name, self.CONFIG_NAME)
         self.assertEqual(instance.node_count, self.NODE_COUNT)
         self.assertEqual(instance.display_name, DISPLAY_NAME)
+        self.assertEqual(instance.labels, self.LABELS)
 
     def test_copy(self):
         DISPLAY_NAME = "display_name"
@@ -145,6 +149,7 @@ def test_from_pb_success(self):
             name=self.INSTANCE_NAME,
             config=self.CONFIG_NAME,
             display_name=self.INSTANCE_ID,
+            labels=self.LABELS,
         )
 
         klass = self._getTargetClass()
@@ -153,6 +158,7 @@ def test_from_pb_success(self):
         self.assertEqual(instance._client, client)
         self.assertEqual(instance.instance_id, self.INSTANCE_ID)
         self.assertEqual(instance.configuration_name, self.CONFIG_NAME)
+        self.assertEqual(instance.labels, self.LABELS)
 
     def test_name_property(self):
         client = _Client(project=self.PROJECT)
@@ -160,6 +166,14 @@ def test_name_property(self):
         instance = self._make_one(self.INSTANCE_ID, client, self.CONFIG_NAME)
         self.assertEqual(instance.name, self.INSTANCE_NAME)
 
+    def test_labels_property(self):
+        client = _Client(project=self.PROJECT)
+
+        instance = self._make_one(
+            self.INSTANCE_ID, client, self.CONFIG_NAME, labels=self.LABELS
+        )
+        self.assertEqual(instance.labels, self.LABELS)
+
     def test___eq__(self):
         client = object()
         instance1 = self._make_one(self.INSTANCE_ID, client, self.CONFIG_NAME)
@@ -231,6 +245,7 @@ def test_create_success(self):
             configuration_name=self.CONFIG_NAME,
             display_name=self.DISPLAY_NAME,
             node_count=self.NODE_COUNT,
+            labels=self.LABELS,
         )
 
         future = instance.create()
@@ -244,6 +259,7 @@ def test_create_success(self):
         self.assertEqual(instance.config, self.CONFIG_NAME)
         self.assertEqual(instance.display_name, self.DISPLAY_NAME)
         self.assertEqual(instance.node_count, self.NODE_COUNT)
+        self.assertEqual(instance.labels, self.LABELS)
         self.assertEqual(metadata, [("google-cloud-resource-prefix", instance.name)])
 
     def test_exists_instance_grpc_error(self):
@@ -327,6 +343,7 @@ def test_reload_success(self):
             config=self.CONFIG_NAME,
             display_name=self.DISPLAY_NAME,
             node_count=self.NODE_COUNT,
+            labels=self.LABELS,
         )
         api = client.instance_admin_api = _FauxInstanceAdminAPI(
             _get_instance_response=instance_pb
@@ -338,6 +355,7 @@ def test_reload_success(self):
         self.assertEqual(instance.configuration_name, self.CONFIG_NAME)
         self.assertEqual(instance.node_count, self.NODE_COUNT)
         self.assertEqual(instance.display_name, self.DISPLAY_NAME)
+        self.assertEqual(instance.labels, self.LABELS)
 
         name, metadata = api._got_instance
         self.assertEqual(name, self.INSTANCE_NAME)
@@ -371,7 +389,9 @@ def test_update_not_found(self):
             instance.update()
 
         instance, field_mask, metadata = api._updated_instance
-        self.assertEqual(field_mask.paths, ["config", "display_name", "node_count"])
+        self.assertEqual(
+            field_mask.paths, ["config", "display_name", "node_count", "labels"]
+        )
         self.assertEqual(instance.name, self.INSTANCE_NAME)
         self.assertEqual(instance.config, self.CONFIG_NAME)
         self.assertEqual(instance.display_name, self.INSTANCE_ID)
@@ -390,6 +410,7 @@ def test_update_success(self):
             configuration_name=self.CONFIG_NAME,
             node_count=self.NODE_COUNT,
             display_name=self.DISPLAY_NAME,
+            labels=self.LABELS,
         )
 
         future = instance.update()
@@ -397,11 +418,14 @@ def test_update_success(self):
         self.assertIs(future, op_future)
 
         instance, field_mask, metadata = api._updated_instance
-        self.assertEqual(field_mask.paths, ["config", "display_name", "node_count"])
+        self.assertEqual(
+            field_mask.paths, ["config", "display_name", "node_count", "labels"]
+        )
         self.assertEqual(instance.name, self.INSTANCE_NAME)
         self.assertEqual(instance.config, self.CONFIG_NAME)
         self.assertEqual(instance.display_name, self.DISPLAY_NAME)
         self.assertEqual(instance.node_count, self.NODE_COUNT)
+        self.assertEqual(instance.labels, self.LABELS)
         self.assertEqual(metadata, [("google-cloud-resource-prefix", instance.name)])
 
     def test_delete_grpc_error(self):