diff --git a/interactive_ai/libs/iai_core_py/iai_core/entities/label.py b/interactive_ai/libs/iai_core_py/iai_core/entities/label.py
index d36afa548f..c73ee81835 100644
--- a/interactive_ai/libs/iai_core_py/iai_core/entities/label.py
+++ b/interactive_ai/libs/iai_core_py/iai_core/entities/label.py
@@ -99,6 +99,8 @@ class Label(PersistentEntity):
         will be assigned upon saving. If the argument is None, it will be set to ID()
     :param is_anomalous: boolean that indicates whether the label is the
         Anomalous label. Always set to False for non-anomaly projects.
+    :param is_background: boolean that indicates whether the label is the background label.
+        This label is exclusive to semantic segmentation projects. False for other projects.
     """
 
     def __init__(  # noqa: PLR0913
@@ -111,6 +113,7 @@ def __init__(  # noqa: PLR0913
         creation_date: datetime.datetime | None = None,
         is_empty: bool = False,
         is_anomalous: bool = False,
+        is_background: bool = False,
         ephemeral: bool = True,
     ):
         color = Color.random() if color is None else color
@@ -123,6 +126,7 @@ def __init__(  # noqa: PLR0913
         self._is_empty = is_empty
         self._creation_date = creation_date
         self.is_anomalous = is_anomalous
+        self.is_background = is_background
         PersistentEntity.__init__(self, id_=id_, ephemeral=ephemeral)
 
     @property
@@ -138,8 +142,8 @@ def creation_date(self) -> datetime.datetime:
     def __repr__(self):
         """String representation of the label."""
         return (
-            f"Label({self.id_}, name={self.name}, hotkey={self.hotkey}, "
-            f"domain={self.domain}, color={self.color.hex_str}, is_anomalous={self.is_anomalous})"
+            f"Label({self.id_}, name={self.name}, hotkey={self.hotkey}, domain={self.domain}, "
+            f"color={self.color.hex_str}, is_anomalous={self.is_anomalous}, is_background={self.is_background})"
         )
 
     def __eq__(self, other: object) -> bool:
diff --git a/interactive_ai/libs/iai_core_py/iai_core/repos/mappers/mongodb_mappers/label_mapper.py b/interactive_ai/libs/iai_core_py/iai_core/repos/mappers/mongodb_mappers/label_mapper.py
index 3bcca7992f..2c6435d139 100644
--- a/interactive_ai/libs/iai_core_py/iai_core/repos/mappers/mongodb_mappers/label_mapper.py
+++ b/interactive_ai/libs/iai_core_py/iai_core/repos/mappers/mongodb_mappers/label_mapper.py
@@ -52,6 +52,7 @@ def forward(instance: Label) -> dict:
             "creation_date": DatetimeToMongo.forward(instance.creation_date),
             "is_empty": instance.is_empty,
             "is_anomalous": instance.is_anomalous,
+            "is_background": instance.is_background,
         }
 
     @staticmethod
@@ -70,6 +71,7 @@ def backward(instance: dict) -> Label:
             is_empty=instance.get("is_empty", False),
             id_=label_id,
             is_anomalous=instance.get("is_anomalous", False),
+            is_background=instance.get("is_background", False),
             ephemeral=False,
         )
 
diff --git a/interactive_ai/libs/iai_core_py/tests/repos/mappers/test_static_mappers.py b/interactive_ai/libs/iai_core_py/tests/repos/mappers/test_static_mappers.py
index 61a6f22805..267f0eee20 100644
--- a/interactive_ai/libs/iai_core_py/tests/repos/mappers/test_static_mappers.py
+++ b/interactive_ai/libs/iai_core_py/tests/repos/mappers/test_static_mappers.py
@@ -327,6 +327,7 @@ def test_label_mapper(self) -> None:
             is_empty=True,
             id_=LabelRepo.generate_id(),
             is_anomalous=True,
+            is_background=True,
             ephemeral=False,
         )
         verify_mongo_mapper(entity_to_map=label, mapper_class=LabelToMongo)