diff --git a/device.c b/device.c
index 413ba5c8a..6a2ae40e8 100644
--- a/device.c
+++ b/device.c
@@ -355,12 +355,12 @@ void iio_device_set_pdata(struct iio_device *dev, struct iio_device_pdata *d)
 }
 
 struct iio_channel * iio_device_add_channel(struct iio_device *dev, long index,
-					    const char *id, const char *name,
+					    const char *id, const char *name, const char *label,
 					    bool output, bool scan_element,
 					    const struct iio_data_format *fmt)
 {
 	struct iio_channel *chn, **chns;
-	char *new_id, *new_name = NULL;
+	char *new_id, *new_name = NULL, *new_label = NULL;
 	unsigned int i;
 
 	chn = zalloc(sizeof(*chn));
@@ -377,8 +377,15 @@ struct iio_channel * iio_device_add_channel(struct iio_device *dev, long index,
 			goto err_free_id;
 	}
 
+	if (label) {
+		new_label = iio_strdup(label);
+		if (!new_label)
+			goto err_free_name;
+	}
+
 	chn->id = new_id;
 	chn->name = new_name;
+	chn->label = new_label;
 	chn->dev = dev;
 	chn->is_output = output;
 	chn->is_scan_element = scan_element;
@@ -391,7 +398,7 @@ struct iio_channel * iio_device_add_channel(struct iio_device *dev, long index,
 
 	chns = realloc(dev->channels, (dev->nb_channels + 1) * sizeof(*chn));
 	if (!chns)
-		goto err_free_name;
+		goto err_free_label;
 
 	chns[dev->nb_channels++] = chn;
 	dev->channels = chns;
@@ -408,6 +415,8 @@ struct iio_channel * iio_device_add_channel(struct iio_device *dev, long index,
 
 	return chn;
 
+err_free_label:
+	free(new_label);
 err_free_name:
 	free(new_name);
 err_free_id:
diff --git a/include/iio/iio-backend.h b/include/iio/iio-backend.h
index 823da8a9b..2fd2640b7 100644
--- a/include/iio/iio-backend.h
+++ b/include/iio/iio-backend.h
@@ -168,8 +168,9 @@ iio_context_add_device(struct iio_context *ctx,
 
 __api struct iio_channel *
 iio_device_add_channel(struct iio_device *dev, long index,
-		       const char *id, const char *name, bool output,
-		       bool scan_element, const struct iio_data_format *fmt);
+		       const char *id, const char *name, const char *label,
+			   bool output, bool scan_element,
+			   const struct iio_data_format *fmt);
 
 __api int
 iio_context_add_attr(struct iio_context *ctx,
diff --git a/local.c b/local.c
index 9322c4b67..3fbb23906 100644
--- a/local.c
+++ b/local.c
@@ -1235,11 +1235,12 @@ static int add_events(struct iio_device *dev, const char *devpath)
 
 static int create_device(void *d, const char *path)
 {
-	unsigned int i;
+	unsigned int i, j;
 	int ret;
 	struct iio_context *ctx = d;
 	struct iio_device *dev;
 	const char *id, *name_ptr = NULL, *label_ptr = NULL;
+	const char *chn_label_ptr = NULL;
 	char name[512], label[512];
 
 	id = strrchr(path, '/') + 1;
@@ -1281,6 +1282,16 @@ static int create_device(void *d, const char *path)
 		if (ret < 0)
 			goto err_free_scan_elements;
 
+		for (j = 0; j < chn->attrlist.num; ++j) {
+			if (!strcmp(chn->attrlist.attrs[j].name, "label")) {
+				ret = local_do_read_dev_attr(id, 0, chn->attrlist.attrs[j].filename, label, sizeof(label), IIO_ATTR_TYPE_CHANNEL);
+				if (ret > 0) {
+					chn_label_ptr = label;
+					chn->label = iio_strdup(chn_label_ptr);
+				}
+			}
+		}
+
 		ret = handle_scan_elements(chn);
 		free_protected_attrs(chn);
 		if (ret < 0)
diff --git a/xml.c b/xml.c
index 729363d77..e1fb049e2 100644
--- a/xml.c
+++ b/xml.c
@@ -144,7 +144,7 @@ static int create_channel(struct iio_device *dev, xmlNode *node)
 	xmlAttr *attr;
 	struct iio_channel *chn;
 	int err = -ENOMEM;
-	char *name_ptr = NULL, *id_ptr = NULL;
+	char *name_ptr = NULL, *label_ptr = NULL, *id_ptr = NULL;
 	bool output = false;
 	bool scan_element = false;
 	long index = -ENOENT;
@@ -158,6 +158,10 @@ static int create_channel(struct iio_device *dev, xmlNode *node)
 			name_ptr = iio_strdup(content);
 			if (!name_ptr)
 				goto err_free_name_id;
+		} else if (!strcmp(name, "label")) {
+			label_ptr = iio_strdup(content);
+			if (!label_ptr)
+				goto err_free_name_id;
 		} else if (!strcmp(name, "id")) {
 			id_ptr = iio_strdup(content);
 			if (!id_ptr)
@@ -190,14 +194,15 @@ static int create_channel(struct iio_device *dev, xmlNode *node)
 		}
 	}
 
-	chn = iio_device_add_channel(dev, index, id_ptr, name_ptr, output,
-				     scan_element, &format);
+	chn = iio_device_add_channel(dev, index, id_ptr, name_ptr, label_ptr,
+				     output, scan_element, &format);
 	if (!chn) {
 		err = -ENOMEM;
 		goto err_free_name_id;
 	}
 
 	free(name_ptr);
+	free(label_ptr);
 	free(id_ptr);
 
 	for (n = node->children; n; n = n->next) {
@@ -217,6 +222,7 @@ static int create_channel(struct iio_device *dev, xmlNode *node)
 
 err_free_name_id:
 	free(name_ptr);
+	free(label_ptr);
 	free(id_ptr);
 	return err;
 }