diff --git a/app/controllers/shared/api.php b/app/controllers/shared/api.php
index 5166429e32..8254a22ac0 100644
--- a/app/controllers/shared/api.php
+++ b/app/controllers/shared/api.php
@@ -98,6 +98,9 @@ Http::init()
     ->inject('authorization')
     ->action(function (Http $utopia, Request $request, Database $dbForPlatform, Database $dbForProject, Audit $queueForAudits, Document $project, User $user, ?Document $session, array $servers, string $mode, Document $team, ?Key $apiKey, Authorization $authorization) {
         $route = $utopia->getRoute();
+        if ($route === null) {
+            throw new AppwriteException(AppwriteException::GENERAL_ROUTE_NOT_FOUND);
+        }
 
         /**
          * Handle user authentication and session validation.
@@ -489,6 +492,10 @@ Http::init()
         $request->setUser($user);
 
         $route = $utopia->getRoute();
+        if ($route === null) {
+            throw new AppwriteException(AppwriteException::GENERAL_ROUTE_NOT_FOUND);
+        }
+
         $path = $route->getMatchedPath();
         $databaseType = match (true) {
             str_contains($path, '/documentsdb') => DATABASE_TYPE_DOCUMENTSDB,
diff --git a/src/Appwrite/Platform/Modules/Projects/Http/Projects/Labels/Update.php b/src/Appwrite/Platform/Modules/Project/Http/Project/Labels/Update.php
similarity index 60%
rename from src/Appwrite/Platform/Modules/Projects/Http/Projects/Labels/Update.php
rename to src/Appwrite/Platform/Modules/Project/Http/Project/Labels/Update.php
index de11bb0091..24d1c48cf1 100644
--- a/src/Appwrite/Platform/Modules/Projects/Http/Projects/Labels/Update.php
+++ b/src/Appwrite/Platform/Modules/Project/Http/Project/Labels/Update.php
@@ -1,20 +1,15 @@
 <?php
 
-namespace Appwrite\Platform\Modules\Projects\Http\Projects\Labels;
+namespace Appwrite\Platform\Modules\Project\Http\Project\Labels;
 
-use Appwrite\Extend\Exception;
 use Appwrite\Platform\Action;
 use Appwrite\SDK\AuthType;
-use Appwrite\SDK\ContentType;
 use Appwrite\SDK\Method;
 use Appwrite\SDK\Response as SDKResponse;
-use Appwrite\Utopia\Database\Validator\Queries\Projects;
 use Appwrite\Utopia\Response;
 use Utopia\Database\Database;
 use Utopia\Database\Document;
-use Utopia\Database\Validator\UID;
 use Utopia\Platform\Scope\HTTP;
-use Utopia\Validator;
 use Utopia\Validator\ArrayList;
 use Utopia\Validator\Text;
 
@@ -27,39 +22,37 @@ class Update extends Action
         return 'updateProjectLabels';
     }
 
-    protected function getQueriesValidator(): Validator
-    {
-        return new Projects();
-    }
-
     public function __construct()
     {
         $this
             ->setHttpMethod(Action::HTTP_REQUEST_METHOD_PUT)
-            ->setHttpPath('/v1/projects/:projectId/labels')
+            ->setHttpPath('/v1/project/labels')
+            ->httpAlias('/v1/projects/:projectId/labels')
             ->desc('Update project labels')
-            ->groups(['api', 'projects'])
-            ->label('scope', 'projects.write')
+            ->groups(['api', 'project'])
+            ->label('scope', 'project.write')
+            ->label('event', 'labels.*.update')
+            ->label('audits.event', 'project.labels.update')
+            ->label('audits.resource', 'project.labels/{response.$id}')
             ->label('sdk', new Method(
-                namespace: 'projects',
-                group: 'projects',
+                namespace: 'project',
+                group: null,
                 name: 'updateLabels',
                 description: <<<EOT
-                Update the project labels by its unique ID. Labels can be used to easily filter projects in an organization.
+                Update the project labels. Labels can be used to easily filter projects in an organization.
                 EOT,
-                auth: [AuthType::ADMIN],
+                auth: [AuthType::ADMIN, AuthType::KEY],
                 responses: [
                     new SDKResponse(
                         code: Response::STATUS_CODE_OK,
-                        model: Response::MODEL_PROJECT
+                        model: Response::MODEL_PROJECT,
                     )
                 ],
-                contentType: ContentType::JSON
             ))
-            ->param('projectId', '', new UID(), 'Project unique ID.')
             ->param('labels', [], new ArrayList(new Text(36, allowList: [...Text::NUMBERS, ...Text::ALPHABET_UPPER, ...Text::ALPHABET_LOWER]), APP_LIMIT_ARRAY_LABELS_SIZE), 'Array of project labels. Replaces the previous labels. Maximum of ' . APP_LIMIT_ARRAY_LABELS_SIZE . ' labels are allowed, each up to 36 alphanumeric characters long.')
             ->inject('response')
             ->inject('dbForPlatform')
+            ->inject('project')
             ->callback($this->action(...));
     }
 
@@ -67,17 +60,11 @@ class Update extends Action
      * @param array<string> $labels
      */
     public function action(
-        string $projectId,
         array $labels,
         Response $response,
-        Database $dbForPlatform
+        Database $dbForPlatform,
+        Document $project
     ): void {
-        $project = $dbForPlatform->getDocument('projects', $projectId);
-
-        if ($project->isEmpty()) {
-            throw new Exception(Exception::PROJECT_NOT_FOUND);
-        }
-
         $labels = (array) \array_values(\array_unique($labels));
 
         $project = $dbForPlatform->updateDocument('projects', $project->getId(), new Document(['labels' => $labels]));
diff --git a/src/Appwrite/Platform/Modules/Project/Services/Http.php b/src/Appwrite/Platform/Modules/Project/Services/Http.php
index 049ff78969..ad61947750 100644
--- a/src/Appwrite/Platform/Modules/Project/Services/Http.php
+++ b/src/Appwrite/Platform/Modules/Project/Services/Http.php
@@ -16,6 +16,7 @@ use Appwrite\Platform\Modules\Project\Http\Project\Platforms\Web\Update as Updat
 use Appwrite\Platform\Modules\Project\Http\Project\Platforms\Windows\Create as CreateWindowsPlatform;
 use Appwrite\Platform\Modules\Project\Http\Project\Platforms\Windows\Update as UpdateWindowsPlatform;
 use Appwrite\Platform\Modules\Project\Http\Project\Platforms\XList as ListPlatforms;
+use Appwrite\Platform\Modules\Project\Http\Project\Labels\Update as UpdateProjectLabels;
 use Appwrite\Platform\Modules\Project\Http\Project\Variables\Create as CreateVariable;
 use Appwrite\Platform\Modules\Project\Http\Project\Variables\Delete as DeleteVariable;
 use Appwrite\Platform\Modules\Project\Http\Project\Variables\Get as GetVariable;
@@ -31,6 +32,9 @@ class Http extends Service
 
         // Hooks
         $this->addAction(Init::getName(), new Init());
+        
+        // Project
+        $this->addAction(UpdateProjectLabels::getName(), new UpdateProjectLabels());
 
         // Variables
         $this->addAction(CreateVariable::getName(), new CreateVariable());
diff --git a/src/Appwrite/Platform/Modules/Projects/Services/Http.php b/src/Appwrite/Platform/Modules/Projects/Services/Http.php
index 8b0d6f87c8..8275e664d5 100644
--- a/src/Appwrite/Platform/Modules/Projects/Services/Http.php
+++ b/src/Appwrite/Platform/Modules/Projects/Services/Http.php
@@ -8,7 +8,6 @@ use Appwrite\Platform\Modules\Projects\Http\DevKeys\Get as GetDevKey;
 use Appwrite\Platform\Modules\Projects\Http\DevKeys\Update as UpdateDevKey;
 use Appwrite\Platform\Modules\Projects\Http\DevKeys\XList as ListDevKeys;
 use Appwrite\Platform\Modules\Projects\Http\Projects\Create as CreateProject;
-use Appwrite\Platform\Modules\Projects\Http\Projects\Labels\Update as UpdateProjectLabels;
 use Appwrite\Platform\Modules\Projects\Http\Projects\Team\Update as UpdateProjectTeam;
 use Appwrite\Platform\Modules\Projects\Http\Projects\Update as UpdateProject;
 use Appwrite\Platform\Modules\Projects\Http\Projects\XList as ListProjects;
@@ -31,7 +30,6 @@ class Http extends Service
         $this->addAction(CreateProject::getName(), new CreateProject());
         $this->addAction(UpdateProject::getName(), new UpdateProject());
         $this->addAction(ListProjects::getName(), new ListProjects());
-        $this->addAction(UpdateProjectLabels::getName(), new UpdateProjectLabels());
         $this->addAction(UpdateProjectTeam::getName(), new UpdateProjectTeam());
 
         $this->addAction(CreateSchedule::getName(), new CreateSchedule());
diff --git a/tests/e2e/General/UsageTest.php b/tests/e2e/General/UsageTest.php
index eea53d9ea8..f6eb963967 100644
--- a/tests/e2e/General/UsageTest.php
+++ b/tests/e2e/General/UsageTest.php
@@ -1324,8 +1324,8 @@ class UsageTest extends Scope
             $this->assertEquals($requestsTotal, $response['body']['requests'][array_key_last($response['body']['requests'])]['value']);
             $this->validateDates($response['body']['requests']);
             // vectordbTotal should reflect only VectorsDB instances, not relational databases.
-            $this->assertEquals($vectordbTotal, $response['body']['vectordbDatabasesTotal']);
-            $this->assertEquals($documentsTotal, $response['body']['vectordbDocumentsTotal']);
+            $this->assertEquals($vectordbTotal, $response['body']['vectorsdbDatabasesTotal']);
+            $this->assertEquals($documentsTotal, $response['body']['vectorsdbDocumentsTotal']);
         });
 
         $response = $this->client->call(
diff --git a/tests/e2e/Services/Project/LabelsBase.php b/tests/e2e/Services/Project/LabelsBase.php
new file mode 100644
index 0000000000..2b7074ef46
--- /dev/null
+++ b/tests/e2e/Services/Project/LabelsBase.php
@@ -0,0 +1,224 @@
+<?php
+
+namespace Tests\E2E\Services\Project;
+
+trait LabelsBase
+{
+    // Update labels tests
+
+    public function testUpdateLabels(): void
+    {
+        $response = $this->updateLabels(['frontend', 'backend']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertIsArray($response['body']['labels']);
+        $this->assertCount(2, $response['body']['labels']);
+        $this->assertContains('frontend', $response['body']['labels']);
+        $this->assertContains('backend', $response['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsReplace(): void
+    {
+        $response = $this->updateLabels(['alpha', 'beta']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(2, $response['body']['labels']);
+        $this->assertContains('alpha', $response['body']['labels']);
+        $this->assertContains('beta', $response['body']['labels']);
+
+        // Replace with new labels
+        $response = $this->updateLabels(['gamma', 'delta', 'epsilon']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(3, $response['body']['labels']);
+        $this->assertContains('gamma', $response['body']['labels']);
+        $this->assertContains('delta', $response['body']['labels']);
+        $this->assertContains('epsilon', $response['body']['labels']);
+        $this->assertNotContains('alpha', $response['body']['labels']);
+        $this->assertNotContains('beta', $response['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsEmpty(): void
+    {
+        // Set some labels first
+        $response = $this->updateLabels(['toRemove']);
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(1, $response['body']['labels']);
+
+        // Clear all labels
+        $response = $this->updateLabels([]);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertIsArray($response['body']['labels']);
+        $this->assertCount(0, $response['body']['labels']);
+    }
+
+    public function testUpdateLabelsDeduplicated(): void
+    {
+        $response = $this->updateLabels(['duplicate', 'duplicate', 'unique']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(2, $response['body']['labels']);
+        $this->assertContains('duplicate', $response['body']['labels']);
+        $this->assertContains('unique', $response['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsSingleLabel(): void
+    {
+        $response = $this->updateLabels(['solo']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(1, $response['body']['labels']);
+        $this->assertContains('solo', $response['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsWithoutAuthentication(): void
+    {
+        $response = $this->updateLabels(['unauthorized'], false);
+
+        $this->assertSame(401, $response['headers']['status-code']);
+    }
+
+    public function testUpdateLabelsInvalidLabelTooLong(): void
+    {
+        $response = $this->updateLabels([str_repeat('a', 37)]);
+
+        $this->assertSame(400, $response['headers']['status-code']);
+    }
+
+    public function testUpdateLabelsInvalidLabelCharacters(): void
+    {
+        $response = $this->updateLabels(['invalid-label!']);
+
+        $this->assertSame(400, $response['headers']['status-code']);
+    }
+
+    public function testUpdateLabelsAlphanumericOnly(): void
+    {
+        $response = $this->updateLabels(['ABC123', 'lowercase', 'UPPERCASE', '0123456789']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(4, $response['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsMaxLength(): void
+    {
+        $label = str_repeat('a', 36);
+        $response = $this->updateLabels([$label]);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(1, $response['body']['labels']);
+        $this->assertContains($label, $response['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsIdempotent(): void
+    {
+        $labels = ['stable', 'production'];
+
+        $first = $this->updateLabels($labels);
+        $this->assertSame(200, $first['headers']['status-code']);
+
+        $second = $this->updateLabels($labels);
+        $this->assertSame(200, $second['headers']['status-code']);
+
+        $this->assertSame($first['body']['labels'], $second['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsDeduplicatedOrder(): void
+    {
+        $response = $this->updateLabels(['b', 'a', 'b']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertCount(2, $response['body']['labels']);
+        $this->assertSame('b', $response['body']['labels'][0]);
+        $this->assertSame('a', $response['body']['labels'][1]);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    public function testUpdateLabelsInvalidHyphen(): void
+    {
+        $response = $this->updateLabels(['my-label']);
+
+        $this->assertSame(400, $response['headers']['status-code']);
+    }
+
+    public function testUpdateLabelsInvalidUnderscore(): void
+    {
+        $response = $this->updateLabels(['my_label']);
+
+        $this->assertSame(400, $response['headers']['status-code']);
+    }
+
+    public function testUpdateLabelsInvalidSpace(): void
+    {
+        $response = $this->updateLabels(['my label']);
+
+        $this->assertSame(400, $response['headers']['status-code']);
+    }
+
+    public function testUpdateLabelsInvalidEmptyString(): void
+    {
+        $response = $this->updateLabels(['']);
+
+        $this->assertSame(400, $response['headers']['status-code']);
+    }
+
+    public function testUpdateLabelsResponseModel(): void
+    {
+        $response = $this->updateLabels(['test']);
+
+        $this->assertSame(200, $response['headers']['status-code']);
+        $this->assertArrayHasKey('$id', $response['body']);
+        $this->assertArrayHasKey('name', $response['body']);
+        $this->assertArrayHasKey('labels', $response['body']);
+        $this->assertIsArray($response['body']['labels']);
+        $this->assertContains('test', $response['body']['labels']);
+
+        // Cleanup
+        $this->updateLabels([]);
+    }
+
+    // Helpers
+
+    /**
+     * @param array<string> $labels
+     */
+    protected function updateLabels(array $labels, bool $authenticated = true): mixed
+    {
+        $headers = [
+            'content-type' => 'application/json',
+            'x-appwrite-project' => $this->getProject()['$id'],
+        ];
+
+        if ($authenticated) {
+            $headers = array_merge($headers, $this->getHeaders());
+        }
+
+        return $this->client->call(\Tests\E2E\Client::METHOD_PUT, '/project/labels', $headers, [
+            'labels' => $labels,
+        ]);
+    }
+}
diff --git a/tests/e2e/Services/Project/LabelsConsoleClientTest.php b/tests/e2e/Services/Project/LabelsConsoleClientTest.php
new file mode 100644
index 0000000000..dd724338d6
--- /dev/null
+++ b/tests/e2e/Services/Project/LabelsConsoleClientTest.php
@@ -0,0 +1,14 @@
+<?php
+
+namespace Tests\E2E\Services\Project;
+
+use Tests\E2E\Scopes\ProjectCustom;
+use Tests\E2E\Scopes\Scope;
+use Tests\E2E\Scopes\SideConsole;
+
+class LabelsConsoleClientTest extends Scope
+{
+    use LabelsBase;
+    use ProjectCustom;
+    use SideConsole;
+}
diff --git a/tests/e2e/Services/Project/LabelsCustomServerTest.php b/tests/e2e/Services/Project/LabelsCustomServerTest.php
new file mode 100644
index 0000000000..202d37fda2
--- /dev/null
+++ b/tests/e2e/Services/Project/LabelsCustomServerTest.php
@@ -0,0 +1,14 @@
+<?php
+
+namespace Tests\E2E\Services\Project;
+
+use Tests\E2E\Scopes\ProjectCustom;
+use Tests\E2E\Scopes\Scope;
+use Tests\E2E\Scopes\SideServer;
+
+class LabelsCustomServerTest extends Scope
+{
+    use LabelsBase;
+    use ProjectCustom;
+    use SideServer;
+}