diff --git a/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/BulkLabelActions.vue b/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/BulkLabelActions.vue
index bbbf30090..e46f45da5 100644
--- a/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/BulkLabelActions.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/BulkLabelActions.vue
@@ -14,6 +14,11 @@ const props = defineProps({
     type: String,
     default: 'conversation',
   },
+  action: {
+    type: String,
+    default: 'assign',
+    validator: value => ['assign', 'remove'].includes(value),
+  },
   isLoading: {
     type: Boolean,
     default: false,
@@ -22,9 +27,13 @@ const props = defineProps({
     type: Boolean,
     default: false,
   },
+  appliedLabels: {
+    type: Array,
+    default: null,
+  },
 });
 
-const emit = defineEmits(['assign']);
+const emit = defineEmits(['assign', 'remove']);
 
 const { t } = useI18n();
 
@@ -35,17 +44,43 @@ const [showDropdown, toggleDropdown] = useToggle(false);
 const selectedLabels = ref([]);
 
 const isTypeContact = computed(() => props.type === 'contact');
+const isRemoveAction = computed(() => props.action === 'remove');
 
-const buttonLabel = computed(() =>
-  props.type === 'contact' ? t('CONTACTS_BULK_ACTIONS.ASSIGN_LABELS') : ''
+const buttonLabel = computed(() => {
+  if (!isTypeContact.value) return '';
+
+  return isRemoveAction.value
+    ? t('CONTACTS_BULK_ACTIONS.REMOVE_LABELS')
+    : t('CONTACTS_BULK_ACTIONS.ASSIGN_LABELS');
+});
+
+const tooltipLabel = computed(() =>
+  isRemoveAction.value
+    ? t('BULK_ACTION.LABELS.REMOVE_LABELS')
+    : t('BULK_ACTION.LABELS.ASSIGN_LABELS')
+);
+
+const confirmLabel = computed(() =>
+  isRemoveAction.value
+    ? t('BULK_ACTION.LABELS.REMOVE_SELECTED_LABELS')
+    : t('BULK_ACTION.LABELS.ASSIGN_SELECTED_LABELS')
 );
 
 const isLabelSelected = labelTitle => {
   return selectedLabels.value.includes(labelTitle);
 };
 
+const visibleLabels = computed(() => {
+  if (!isRemoveAction.value || props.appliedLabels === null) {
+    return labels.value;
+  }
+
+  const applied = new Set(props.appliedLabels);
+  return labels.value.filter(label => applied.has(label.title));
+});
+
 const labelMenuItems = computed(() => {
-  return labels.value.map(label => ({
+  return visibleLabels.value.map(label => ({
     action: 'select',
     value: label.title,
     label: label.title,
@@ -64,9 +99,13 @@ const toggleLabelSelection = labelTitle => {
   }
 };
 
-const handleAssign = () => {
+const handleApply = () => {
   if (selectedLabels.value.length > 0) {
-    emit('assign', selectedLabels.value);
+    if (isRemoveAction.value) {
+      emit('remove', selectedLabels.value);
+    } else {
+      emit('assign', selectedLabels.value);
+    }
     toggleDropdown(false);
     selectedLabels.value = [];
   }
@@ -81,9 +120,9 @@ const handleDismiss = () => {
 <template>
   <div ref="containerRef" class="relative">
     <NextButton
-      v-tooltip="isTypeContact ? '' : $t('BULK_ACTION.LABELS.ASSIGN_LABELS')"
+      v-tooltip="tooltipLabel"
       :label="buttonLabel"
-      icon="i-lucide-tag"
+      :icon="isRemoveAction ? 'i-woot-tag-remove' : 'i-lucide-tag'"
       slate
       :size="isTypeContact ? 'sm' : 'xs'"
       ghost
@@ -148,9 +187,9 @@ const handleDismiss = () => {
             <NextButton
               sm
               class="w-full [&>span:nth-child(2)]:hidden md:[&>span:nth-child(2)]:inline-flex"
-              :label="t('BULK_ACTION.LABELS.ASSIGN_SELECTED_LABELS')"
+              :label="confirmLabel"
               :disabled="!selectedLabels.length"
-              @click="handleAssign"
+              @click="handleApply"
             />
           </div>
         </template>
diff --git a/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/Index.vue b/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/Index.vue
index 145e89bde..eef70cf02 100644
--- a/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/Index.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/Index.vue
@@ -1,5 +1,6 @@
 <script setup>
 import { ref, computed, onMounted, onUnmounted, useAttrs } from 'vue';
+import { useMapGetter } from 'dashboard/composables/store.js';
 import { getUnixTime } from 'date-fns';
 import { findSnoozeTime } from 'dashboard/helper/snoozeHelpers';
 import { emitter } from 'shared/helpers/mitt';
@@ -55,12 +56,25 @@ defineOptions({
 const attrs = useAttrs();
 
 const {
+  selectedConversations,
   onAssignAgent,
   onAssignLabels,
+  onRemoveLabels,
   onAssignTeamsForBulk: onAssignTeam,
   onUpdateConversations,
 } = useBulkActions();
 
+const getConversationById = useMapGetter('getConversationById');
+
+const appliedLabelsForSelection = computed(() => {
+  const applied = new Set();
+  selectedConversations.value.forEach(id => {
+    const conversation = getConversationById.value(id);
+    (conversation?.labels || []).forEach(label => applied.add(label));
+  });
+  return Array.from(applied);
+});
+
 const showCustomTimeSnoozeModal = ref(false);
 
 function onCmdSnoozeConversation(snoozeType) {
@@ -161,6 +175,11 @@ onUnmounted(() => {
         </div>
         <div class="flex items-center gap-2">
           <BulkLabelActions @assign="onAssignLabels" />
+          <BulkLabelActions
+            action="remove"
+            :applied-labels="appliedLabelsForSelection"
+            @remove="onRemoveLabels"
+          />
           <BulkUpdateActions
             :show-resolve="!showResolvedAction"
             :show-reopen="!showOpenAction"
diff --git a/app/javascript/dashboard/composables/chatlist/useBulkActions.js b/app/javascript/dashboard/composables/chatlist/useBulkActions.js
index 772c6e7d8..9d38dd434 100644
--- a/app/javascript/dashboard/composables/chatlist/useBulkActions.js
+++ b/app/javascript/dashboard/composables/chatlist/useBulkActions.js
@@ -108,7 +108,7 @@ export function useBulkActions() {
     }
   }
 
-  // Only used in context menu
+  // Used by both context menu and bulk action bar.
   async function onRemoveLabels(labelsToRemove, conversationId = null) {
     try {
       await store.dispatch('bulkActions/process', {
@@ -119,14 +119,24 @@ export function useBulkActions() {
         },
       });
 
-      useAlert(
-        t('CONVERSATION.CARD_CONTEXT_MENU.API.LABEL_REMOVAL.SUCCESFUL', {
-          labelName: labelsToRemove[0],
-          conversationId,
-        })
-      );
+      // Context-menu remove should not disturb an existing bulk selection.
+      if (conversationId) {
+        useAlert(
+          t('CONVERSATION.CARD_CONTEXT_MENU.API.LABEL_REMOVAL.SUCCESFUL', {
+            labelName: labelsToRemove[0],
+            conversationId,
+          })
+        );
+      } else {
+        store.dispatch('bulkActions/clearSelectedConversationIds');
+        useAlert(t('BULK_ACTION.LABELS.REMOVE_SUCCESFUL'));
+      }
     } catch (err) {
-      useAlert(t('CONVERSATION.CARD_CONTEXT_MENU.API.LABEL_REMOVAL.FAILED'));
+      useAlert(
+        conversationId
+          ? t('CONVERSATION.CARD_CONTEXT_MENU.API.LABEL_REMOVAL.FAILED')
+          : t('BULK_ACTION.LABELS.REMOVE_FAILED')
+      );
     }
   }
 
diff --git a/app/javascript/dashboard/i18n/locale/en/bulkActions.json b/app/javascript/dashboard/i18n/locale/en/bulkActions.json
index 870ba9d82..0c8ea34f2 100644
--- a/app/javascript/dashboard/i18n/locale/en/bulkActions.json
+++ b/app/javascript/dashboard/i18n/locale/en/bulkActions.json
@@ -27,9 +27,13 @@
     },
     "LABELS": {
       "ASSIGN_LABELS": "Assign labels",
+      "REMOVE_LABELS": "Remove labels",
       "ASSIGN_SELECTED_LABELS": "Assign selected labels",
+      "REMOVE_SELECTED_LABELS": "Remove selected labels",
       "ASSIGN_SUCCESFUL": "Labels assigned successfully.",
-      "ASSIGN_FAILED": "Failed to assign labels. Please try again."
+      "ASSIGN_FAILED": "Failed to assign labels. Please try again.",
+      "REMOVE_SUCCESFUL": "Labels removed successfully.",
+      "REMOVE_FAILED": "Failed to remove labels. Please try again."
     },
     "TEAMS": {
       "NONE": "None",
diff --git a/app/javascript/dashboard/i18n/locale/en/contact.json b/app/javascript/dashboard/i18n/locale/en/contact.json
index 066d981f0..8d0b73dfc 100644
--- a/app/javascript/dashboard/i18n/locale/en/contact.json
+++ b/app/javascript/dashboard/i18n/locale/en/contact.json
@@ -586,8 +586,11 @@
   },
   "CONTACTS_BULK_ACTIONS": {
     "ASSIGN_LABELS": "Assign Labels",
+    "REMOVE_LABELS": "Remove Labels",
     "ASSIGN_LABELS_SUCCESS": "Labels assigned successfully.",
     "ASSIGN_LABELS_FAILED": "Failed to assign labels",
+    "REMOVE_LABELS_SUCCESS": "Labels removed successfully.",
+    "REMOVE_LABELS_FAILED": "Failed to remove labels",
     "DESCRIPTION": "Select the labels you want to add to the selected contacts.",
     "NO_LABELS_FOUND": "No labels available yet.",
     "SELECTED_COUNT": "{count} selected",
diff --git a/app/javascript/dashboard/routes/dashboard/contacts/components/ContactsBulkActionBar.vue b/app/javascript/dashboard/routes/dashboard/contacts/components/ContactsBulkActionBar.vue
index 627cb4383..810f4412e 100644
--- a/app/javascript/dashboard/routes/dashboard/contacts/components/ContactsBulkActionBar.vue
+++ b/app/javascript/dashboard/routes/dashboard/contacts/components/ContactsBulkActionBar.vue
@@ -25,6 +25,7 @@ const props = defineProps({
 const emit = defineEmits([
   'clearSelection',
   'assignLabels',
+  'removeLabels',
   'toggleAll',
   'deleteSelected',
 ]);
@@ -72,6 +73,10 @@ const selectionModel = computed({
 const handleAssignLabels = labels => {
   emit('assignLabels', labels);
 };
+
+const handleRemoveLabels = labels => {
+  emit('removeLabels', labels);
+};
 </script>
 
 <template>
@@ -103,6 +108,13 @@ const handleAssignLabels = labels => {
             :disabled="!selectedCount"
             @assign="handleAssignLabels"
           />
+          <BulkLabelActions
+            type="contact"
+            action="remove"
+            :is-loading="isLoading"
+            :disabled="!selectedCount"
+            @remove="handleRemoveLabels"
+          />
           <div class="w-px h-3 bg-n-weak rounded-lg" />
           <Policy :permissions="['administrator']">
             <Button
diff --git a/app/javascript/dashboard/routes/dashboard/contacts/pages/ContactsIndex.vue b/app/javascript/dashboard/routes/dashboard/contacts/pages/ContactsIndex.vue
index b072fa67d..951416f0f 100644
--- a/app/javascript/dashboard/routes/dashboard/contacts/pages/ContactsIndex.vue
+++ b/app/javascript/dashboard/routes/dashboard/contacts/pages/ContactsIndex.vue
@@ -351,6 +351,28 @@ const assignLabels = async labels => {
   }
 };
 
+const removeLabels = async labels => {
+  if (!labels.length || !selectedContactIds.value.length) {
+    return;
+  }
+
+  isBulkActionLoading.value = true;
+  try {
+    await BulkActionsAPI.create({
+      type: 'Contact',
+      ids: selectedContactIds.value,
+      labels: { remove: labels },
+    });
+    useAlert(t('CONTACTS_BULK_ACTIONS.REMOVE_LABELS_SUCCESS'));
+    clearSelection();
+    await fetchContactsBasedOnContext(pageNumber.value);
+  } catch (error) {
+    useAlert(t('CONTACTS_BULK_ACTIONS.REMOVE_LABELS_FAILED'));
+  } finally {
+    isBulkActionLoading.value = false;
+  }
+};
+
 const deleteContacts = async () => {
   if (!selectedContactIds.value.length) {
     return;
@@ -514,6 +536,7 @@ onMounted(async () => {
           @toggle-all="toggleSelectAll"
           @clear-selection="clearSelection"
           @assign-labels="assignLabels"
+          @remove-labels="removeLabels"
           @delete-selected="openBulkDeleteDialog"
         />
         <ContactEmptyState
diff --git a/app/services/contacts/bulk_action_service.rb b/app/services/contacts/bulk_action_service.rb
index a0e11ad9a..7d8e2c4c3 100644
--- a/app/services/contacts/bulk_action_service.rb
+++ b/app/services/contacts/bulk_action_service.rb
@@ -8,6 +8,7 @@ class Contacts::BulkActionService
   def perform
     return delete_contacts if delete_requested?
     return assign_labels if labels_to_add.any?
+    return remove_labels if labels_to_remove.any?
 
     Rails.logger.warn("Unknown contact bulk operation payload: #{@params.keys}")
     { success: false, error: 'unknown_operation' }
@@ -23,6 +24,14 @@ class Contacts::BulkActionService
     ).perform
   end
 
+  def remove_labels
+    Contacts::BulkRemoveLabelsService.new(
+      account: @account,
+      contact_ids: ids,
+      labels: labels_to_remove
+    ).perform
+  end
+
   def delete_contacts
     Contacts::BulkDeleteService.new(
       account: @account,
@@ -38,6 +47,10 @@ class Contacts::BulkActionService
     @labels_to_add ||= Array(@params.dig(:labels, :add)).reject(&:blank?)
   end
 
+  def labels_to_remove
+    @labels_to_remove ||= Array(@params.dig(:labels, :remove)).reject(&:blank?)
+  end
+
   def delete_requested?
     @params[:action_name] == 'delete'
   end
diff --git a/app/services/contacts/bulk_remove_labels_service.rb b/app/services/contacts/bulk_remove_labels_service.rb
new file mode 100644
index 000000000..1983c87d6
--- /dev/null
+++ b/app/services/contacts/bulk_remove_labels_service.rb
@@ -0,0 +1,19 @@
+class Contacts::BulkRemoveLabelsService
+  def initialize(account:, contact_ids:, labels:)
+    @account = account
+    @contact_ids = Array(contact_ids)
+    @labels = Array(labels).compact_blank
+  end
+
+  def perform
+    return { success: true, updated_contact_ids: [] } if @contact_ids.blank? || @labels.blank?
+
+    contacts = @account.contacts.where(id: @contact_ids)
+
+    contacts.find_each do |contact|
+      contact.update!(label_list: contact.label_list - @labels)
+    end
+
+    { success: true, updated_contact_ids: contacts.pluck(:id) }
+  end
+end
diff --git a/spec/controllers/api/v1/accounts/bulk_actions_controller_spec.rb b/spec/controllers/api/v1/accounts/bulk_actions_controller_spec.rb
index 7ee763dbc..1d378ab65 100644
--- a/spec/controllers/api/v1/accounts/bulk_actions_controller_spec.rb
+++ b/spec/controllers/api/v1/accounts/bulk_actions_controller_spec.rb
@@ -263,6 +263,31 @@ RSpec.describe 'Api::V1::Accounts::BulkActionsController', type: :request do
         expect(response).to have_http_status(:success)
       end
 
+      it 'permits contact label removal params' do
+        contact_one = create(:contact, account: account)
+        contact_two = create(:contact, account: account)
+
+        expect do
+          post "/api/v1/accounts/#{account.id}/bulk_actions",
+               headers: agent.create_new_auth_token,
+               params: {
+                 type: 'Contact',
+                 ids: [contact_one.id, contact_two.id],
+                 labels: { remove: %w[vip support] },
+                 extra: 'ignored'
+               }
+        end.to have_enqueued_job(Contacts::BulkActionJob).with(
+          account.id,
+          agent.id,
+          hash_including(
+            'ids' => [contact_one.id.to_s, contact_two.id.to_s],
+            'labels' => hash_including('remove' => %w[vip support])
+          )
+        )
+
+        expect(response).to have_http_status(:success)
+      end
+
       it 'returns unauthorized for delete action when user is not admin' do
         contact = create(:contact, account: account)
 
diff --git a/spec/services/contacts/bulk_action_service_spec.rb b/spec/services/contacts/bulk_action_service_spec.rb
index 0411c8455..77eeacff1 100644
--- a/spec/services/contacts/bulk_action_service_spec.rb
+++ b/spec/services/contacts/bulk_action_service_spec.rb
@@ -34,5 +34,19 @@ RSpec.describe Contacts::BulkActionService do
         service.perform
       end
     end
+
+    context 'when labels are removed' do
+      let(:params) { { ids: [10, 20], labels: { remove: %w[vip] }, extra: 'ignored' } }
+
+      it 'delegates to the bulk remove labels service with permitted params' do
+        bulk_remove_service = instance_double(Contacts::BulkRemoveLabelsService, perform: true)
+
+        expect(Contacts::BulkRemoveLabelsService).to receive(:new)
+          .with(account: account, contact_ids: [10, 20], labels: %w[vip])
+          .and_return(bulk_remove_service)
+
+        service.perform
+      end
+    end
   end
 end
diff --git a/spec/services/contacts/bulk_remove_labels_service_spec.rb b/spec/services/contacts/bulk_remove_labels_service_spec.rb
new file mode 100644
index 000000000..db5a7c530
--- /dev/null
+++ b/spec/services/contacts/bulk_remove_labels_service_spec.rb
@@ -0,0 +1,54 @@
+require 'rails_helper'
+
+RSpec.describe Contacts::BulkRemoveLabelsService do
+  subject(:service) do
+    described_class.new(
+      account: account,
+      contact_ids: [contact_one.id, contact_two.id, other_contact.id],
+      labels: labels
+    )
+  end
+
+  let(:account) { create(:account) }
+  let!(:contact_one) { create(:contact, account: account) }
+  let!(:contact_two) { create(:contact, account: account) }
+  let!(:other_contact) { create(:contact) }
+  let(:labels) { %w[vip] }
+
+  before do
+    contact_one.add_labels(%w[vip support])
+    contact_two.add_labels(%w[vip priority])
+    other_contact.add_labels(%w[vip support])
+  end
+
+  it 'removes labels from contacts that belong to the account' do
+    service.perform
+
+    expect(contact_one.reload.label_list).to contain_exactly('support')
+    expect(contact_two.reload.label_list).to contain_exactly('priority')
+  end
+
+  it 'does not remove labels from contacts outside the account' do
+    service.perform
+
+    expect(other_contact.reload.label_list).to contain_exactly('vip', 'support')
+  end
+
+  it 'returns ids of contacts that were updated' do
+    result = service.perform
+
+    expect(result[:success]).to be(true)
+    expect(result[:updated_contact_ids]).to contain_exactly(contact_one.id, contact_two.id)
+  end
+
+  it 'returns success with no updates when labels are blank' do
+    result = described_class.new(
+      account: account,
+      contact_ids: [contact_one.id],
+      labels: []
+    ).perform
+
+    expect(result).to eq(success: true, updated_contact_ids: [])
+    expect(contact_one.reload.label_list).to contain_exactly('vip', 'support')
+  end
+end
diff --git a/theme/icons.js b/theme/icons.js
index 281e21c23..0cf0b7199 100644
--- a/theme/icons.js
+++ b/theme/icons.js
@@ -445,5 +445,10 @@ export const icons = {
     width: 15,
     height: 15,
   },
+  'tag-remove': {
+    body: `<defs><mask id="cw-tagrm-cut"><rect width="24" height="24" fill="white"/><circle cx="7" cy="17" r="6.3" fill="black"/></mask><mask id="cw-tagrm-x"><rect width="24" height="24" fill="white"/><path d="M4.3 14.3 9.7 19.7M9.7 14.3 4.3 19.7" stroke="black" stroke-width="2.4" stroke-linecap="round"/></mask></defs><g transform="translate(24 0) scale(-1 1)"><path d="M12.586 2.586A2 2 0 0 0 11.172 2H4a2 2 0 0 0-2 2v7.172a2 2 0 0 0 .586 1.414l8.704 8.704a2.426 2.426 0 0 0 3.42 0l6.58-6.58a2.426 2.426 0 0 0 0-3.42z" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" mask="url(#cw-tagrm-cut)"/><circle cx="7.5" cy="7.5" r=".5" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round"/><circle cx="7" cy="17" r="6.5" fill="currentColor" mask="url(#cw-tagrm-x)"/></g>`,
+    width: 24,
+    height: 24,
+  },
   /** Ends */
 };