diff --git a/behave/features/git-obs-staging-group.feature b/behave/features/git-obs-staging-group.feature
index d6c3f2bc..c1649642 100644
--- a/behave/features/git-obs-staging-group.feature
+++ b/behave/features/git-obs-staging-group.feature
@@ -32,12 +32,16 @@ Background:
 Scenario: Scenario 1: staging group --no-ssh-strict-host-key-checking with --target and existing PR
     When I execute git-obs with args "-G alice staging group --no-ssh-strict-host-key-checking --target=pool/test-GitPkgA#1 pool/test-GitPkgA#2"
     Then the exit code is 0
+     And stdout contains "Unable to add the 'staging/In Progress' label to pull request pool/test-GitPkgA#2"
+     And stdout contains "Unable to remove the 'staging/Backlog' label from pull request pool/test-GitPkgA#2"
      And I execute git-obs with args "-G alice pr get pool/test-GitPkgA#1"
     Then the exit code is 0
      And stdout contains "State       : open"
      And stdout contains "Description : PR: foo/bar!1"
      # It should also contain the reference from #2
      And stdout contains "PR: foo/bar!2"
+     And stdout doesn't contain "staging/In Progress"
+     And stdout contains "staging/Backlog"
      And I execute git-obs with args "-G alice pr get pool/test-GitPkgA#2"
     Then the exit code is 0
      And stdout contains "State       : closed"
@@ -47,6 +51,13 @@ Scenario: Scenario 1: staging group --no-ssh-strict-host-key-checking with --tar
 Scenario: Scenario 2: staging group --no-ssh-strict-host-key-checking with --target and --remove-pr-references
     When I execute git-obs with args "-G alice staging group --no-ssh-strict-host-key-checking --target=pool/test-GitPkgA#1 pool/test-GitPkgA#2 --remove-pr-references"
     Then the exit code is 0
+     And stdout contains "Unable to add the 'staging/In Progress' label to pull request pool/test-GitPkgA#2"
+     And stdout contains "Unable to remove the 'staging/Backlog' label from pull request pool/test-GitPkgA#2"
+     And I execute git-obs with args "-G alice pr get pool/test-GitPkgA#1"
+    Then the exit code is 0
+     And stdout contains "State       : open"
+     And stdout doesn't contain "staging/In Progress"
+     And stdout contains "staging/Backlog"
      And I execute git-obs with args "-G alice pr get pool/test-GitPkgA#2"
     Then the exit code is 0
      And stdout contains "State       : closed"
@@ -61,6 +72,8 @@ Scenario: Scenario 3: staging group --no-ssh-strict-host-key-checking without --
      And stdout contains "State       : open"
      And stdout contains "PR: foo/bar!1"
      And stdout contains "PR: foo/bar!2"
+     And stdout contains "Labels      : staging/In Progress"
+     And stdout doesn't contain "staging/Backlog"
      And I execute git-obs with args "-G alice pr get pool/test-GitPkgA#1"
     Then the exit code is 0
      # PR #1 should be closed because it was merged into #3
@@ -78,6 +91,8 @@ Scenario: Scenario 4: staging group --no-ssh-strict-host-key-checking without --
     Then the exit code is 0
      And stdout contains "PR: foo/bar!1"
      And stdout contains "PR: foo/bar!2"
+     And stdout contains "Labels      : staging/In Progress"
+     And stdout doesn't contain "staging/Backlog"
      And I execute git-obs with args "-G alice pr get pool/test-GitPkgA#1"
     Then the exit code is 0
      And stdout contains "State       : closed"
@@ -104,6 +119,8 @@ Scenario: Scenario 5: staging group --no-ssh-strict-host-key-checking by another
      And stdout contains "Author      : Bob \(bob@example.com\)"
      And stdout contains "PR: foo/bar!1"
      And stdout contains "PR: foo/bar!2"
+     And stdout contains "Labels      : staging/In Progress"
+     And stdout doesn't contain "staging/Backlog"
 
 @destructive
 Scenario: Scenario 6: staging group --no-ssh-strict-host-key-checking by another user with push permissions to the target repository
@@ -125,3 +142,5 @@ Scenario: Scenario 6: staging group --no-ssh-strict-host-key-checking by another
      And stdout contains "Source      : pool/test-GitPkgA"
      And stdout contains "PR: foo/bar!1"
      And stdout contains "PR: foo/bar!2"
+     And stdout contains "Labels      : staging/In Progress"
+     And stdout doesn't contain "staging/Backlog"
diff --git a/osc/commands_git/staging_group.py b/osc/commands_git/staging_group.py
index 8acf1c90..ca66b5b5 100644
--- a/osc/commands_git/staging_group.py
+++ b/osc/commands_git/staging_group.py
@@ -151,6 +151,30 @@ class StagingGroupCommand(osc.commandline_git.GitObsCommand):
                 allow_maintainer_edit=True,
             )
 
+            # update labels
+            try:
+                gitea_api.PullRequest.add_labels(
+                    self.gitea_conn,
+                    target_pr_obj.base_owner,
+                    target_pr_obj.base_repo,
+                    int(target_pr_obj.number),
+                    labels=[gitea_api.StagingPullRequestWrapper.INPROGRESS_LABEL],
+                )
+            except Exception as e:
+                print(f"Unable to add the '{gitea_api.StagingPullRequestWrapper.INPROGRESS_LABEL}' label to pull request {pr_obj.id}: {e}")
+
+            try:
+                if gitea_api.StagingPullRequestWrapper.BACKLOG_LABEL in target_pr_obj.labels:
+                    gitea_api.PullRequest.remove_labels(
+                        self.gitea_conn,
+                        target_pr_obj.base_owner,
+                        target_pr_obj.base_repo,
+                        int(target_pr_obj.number),
+                        labels=[gitea_api.StagingPullRequestWrapper.BACKLOG_LABEL],
+                    )
+            except Exception as e:
+                print(f"Unable to remove the '{gitea_api.StagingPullRequestWrapper.BACKLOG_LABEL}' label from pull request {pr_obj.id}: {e}")
+
         else:
             has_push_access = False
             if not args.fork_owner: