diff --git a/workspace-server/src/__tests__/services/GmailService.test.ts b/workspace-server/src/__tests__/services/GmailService.test.ts
index bb6731a..0f7d7a4 100644
--- a/workspace-server/src/__tests__/services/GmailService.test.ts
+++ b/workspace-server/src/__tests__/services/GmailService.test.ts
@@ -830,4 +830,86 @@ describe('GmailService', () => {
       expect(response.error).toBe('Failed to list labels');
     });
   });
+
+  describe('createLabel', () => {
+    it('should create a label with default visibility', async () => {
+      const mockLabel = {
+        id: 'Label_1',
+        name: 'Test Label',
+        type: 'user',
+        labelListVisibility: 'labelShow',
+        messageListVisibility: 'show',
+      };
+
+      mockGmailAPI.users.labels.create.mockResolvedValue({
+        data: mockLabel,
+      });
+
+      const result = await gmailService.createLabel({
+        name: 'Test Label',
+      });
+
+      expect(mockGmailAPI.users.labels.create).toHaveBeenCalledWith({
+        userId: 'me',
+        requestBody: {
+          name: 'Test Label',
+          labelListVisibility: 'labelShow',
+          messageListVisibility: 'show',
+        },
+      });
+
+      const response = JSON.parse(result.content[0].text);
+      expect(response).toEqual({
+        ...mockLabel,
+        status: 'created',
+      });
+    });
+
+    it('should create a label with custom visibility settings', async () => {
+      const mockLabel = {
+        id: 'Label_2',
+        name: 'Hidden Label',
+        type: 'user',
+        labelListVisibility: 'labelHide',
+        messageListVisibility: 'hide',
+      };
+
+      mockGmailAPI.users.labels.create.mockResolvedValue({
+        data: mockLabel,
+      });
+
+      const result = await gmailService.createLabel({
+        name: 'Hidden Label',
+        labelListVisibility: 'labelHide',
+        messageListVisibility: 'hide',
+      });
+
+      expect(mockGmailAPI.users.labels.create).toHaveBeenCalledWith({
+        userId: 'me',
+        requestBody: {
+          name: 'Hidden Label',
+          labelListVisibility: 'labelHide',
+          messageListVisibility: 'hide',
+        },
+      });
+
+      const response = JSON.parse(result.content[0].text);
+      expect(response).toEqual({
+        ...mockLabel,
+        status: 'created',
+      });
+    });
+
+    it('should handle create label errors', async () => {
+      const apiError = new Error('Label already exists');
+      mockGmailAPI.users.labels.create.mockRejectedValue(apiError);
+
+      const result = await gmailService.createLabel({
+        name: 'Duplicate Label',
+      });
+
+      const response = JSON.parse(result.content[0].text);
+      expect(response.error).toBe('Label already exists');
+    });
+  });
 });
diff --git a/workspace-server/src/index.ts b/workspace-server/src/index.ts
index becce91..ba20bed 100644
--- a/workspace-server/src/index.ts
+++ b/workspace-server/src/index.ts
@@ -1002,6 +1002,30 @@ There are a list of system labels that can be modified on a message:
     gmailService.listLabels,
   );
 
+  server.registerTool(
+    'gmail.createLabel',
+    {
+      description:
+        'Create a new Gmail label. Labels help organize emails into categories.',
+      inputSchema: {
+        name: z.string().min(1).describe('The display name of the label.'),
+        labelListVisibility: z
+          .enum(['labelShow', 'labelHide', 'labelShowIfUnread'])
+          .optional()
+          .describe(
+            'Visibility of the label in the label list. Defaults to "labelShow".',
+          ),
+        messageListVisibility: z
+          .enum(['show', 'hide'])
+          .optional()
+          .describe(
+            'Visibility of messages with this label in the message list. Defaults to "show".',
+          ),
+      },
+    },
+    gmailService.createLabel,
+  );
+
   // Time tools
   server.registerTool(
     'time.getCurrentDate',
diff --git a/workspace-server/src/services/GmailService.ts b/workspace-server/src/services/GmailService.ts
index 04b3cab..e988cf3 100644
--- a/workspace-server/src/services/GmailService.ts
+++ b/workspace-server/src/services/GmailService.ts
@@ -489,6 +489,57 @@ export class GmailService {
     }
   };
 
+  public createLabel = async ({
+    name,
+    labelListVisibility = 'labelShow',
+    messageListVisibility = 'show',
+  }: {
+    name: string;
+    labelListVisibility?: 'labelShow' | 'labelHide' | 'labelShowIfUnread';
+    messageListVisibility?: 'show' | 'hide';
+  }) => {
+    try {
+      logToFile(`Creating Gmail label: ${name}`);
+
+      const gmail = await this.getGmailClient();
+
+      const response = await gmail.users.labels.create({
+        userId: 'me',
+        requestBody: {
+          name,
+          labelListVisibility,
+          messageListVisibility,
+        },
+      });
+
+      const label = response.data;
+
+      logToFile(`Created label: ${label.name} with id: ${label.id}`);
+
+      return {
+        content: [
+          {
+            type: 'text' as const,
+            text: JSON.stringify(
+              {
+                id: label.id,
+                name: label.name,
+                type: label.type,
+                messageListVisibility: label.messageListVisibility,
+                labelListVisibility: label.labelListVisibility,
+                status: 'created',
+              },
+              null,
+              2,
+            ),
+          },
+        ],
+      };
+    } catch (error) {
+      return this.handleError(error, 'gmail.createLabel');
+    }
+  };
+
   private extractAttachmentsAndBody(
     payload: gmail_v1.Schema$MessagePart,
     result: { body: string; attachments: GmailAttachment[] } = {