diff --git a/pkg/conversions/tags_conversion.go b/pkg/conversions/tags_conversion.go
new file mode 100644
index 00000000..4636c8a5
--- /dev/null
+++ b/pkg/conversions/tags_conversion.go
@@ -0,0 +1,59 @@
+package conversions
+
+import (
+	"github.com/aws/aws-sdk-go/aws"
+	appmeshsdk "github.com/aws/aws-sdk-go/service/appmesh"
+)
+
+func Convert_CRD_Labls_To_SDK_TagChangeSet(crdLabels map[string]string, sdkTags []*appmeshsdk.TagRef) (map[string][]*appmeshsdk.TagRef, error) {
+	add := make(map[string]string)
+	remove := make(map[string]string)
+	existing := make(map[string]string)
+
+	for _, tag := range sdkTags {
+		k := *tag.Key
+		v := *tag.Value
+		existing[k] = v
+
+		if _, found := crdLabels[k]; !found {
+			remove[k] = v
+		}
+	}
+
+	for k, v := range crdLabels {
+		if current, found := existing[k]; found {
+			if v != current {
+				add[k] = v
+			}
+		} else {
+			add[k] = v
+		}
+	}
+
+	sdkAdd, err := Convert_CRD_Labels_To_SDK_Tags(add)
+	if err != nil {
+		return nil, err
+	}
+
+	sdkRemove, err := Convert_CRD_Labels_To_SDK_Tags(remove)
+	if err != nil {
+		return nil, err
+	}
+
+	sdkChangeset := make(map[string][]*appmeshsdk.TagRef)
+	sdkChangeset["add"] = sdkAdd
+	sdkChangeset["remove"] = sdkRemove
+
+	return sdkChangeset, nil
+}
+
+func Convert_CRD_Labels_To_SDK_Tags(crdObj map[string]string) ([]*appmeshsdk.TagRef, error) {
+	sdkObj := []*appmeshsdk.TagRef{}
+	for k, v := range crdObj {
+		sdkObj = append(sdkObj, &appmeshsdk.TagRef{
+			Key:   aws.String(k),
+			Value: aws.String(v),
+		})
+	}
+	return sdkObj, nil
+}
diff --git a/pkg/mesh/resource_manager.go b/pkg/mesh/resource_manager.go
index 8b030325..ac2edd88 100644
--- a/pkg/mesh/resource_manager.go
+++ b/pkg/mesh/resource_manager.go
@@ -111,6 +111,11 @@ func (m *defaultResourceManager) createSDKMesh(ctx context.Context, ms *appmesh.
 	if err != nil {
 		return nil, err
 	}
+
+	if err = m.tagSDKMesh(ctx, ms, resp.Mesh); err != nil {
+		return nil, err
+	}
+
 	return resp.Mesh, nil
 }
 
@@ -120,6 +125,12 @@ func (m *defaultResourceManager) updateSDKMesh(ctx context.Context, sdkMS *appme
 	if err != nil {
 		return nil, err
 	}
+
+	// Update tags before checking spec
+	if err = m.tagSDKMesh(ctx, ms, sdkMS); err != nil {
+		return nil, err
+	}
+
 	opts := cmpopts.EquateEmpty()
 	if cmp.Equal(desiredSDKMSSpec, actualSDKMSSpec, opts) {
 		return sdkMS, nil
@@ -149,6 +160,51 @@ func (m *defaultResourceManager) updateSDKMesh(ctx context.Context, sdkMS *appme
 	return resp.Mesh, nil
 }
 
+func (m *defaultResourceManager) tagSDKMesh(ctx context.Context, ms *appmesh.Mesh, sdkMS *appmeshsdk.MeshData) error {
+	resp, err := m.appMeshSDK.ListTagsForResource(&appmeshsdk.ListTagsForResourceInput{
+		ResourceArn: sdkMS.Metadata.Arn,
+	})
+	if err != nil {
+		return err
+	}
+
+	changeset, err := conversions.Convert_CRD_Labls_To_SDK_TagChangeSet(ms.Labels, resp.Tags)
+	if err != nil {
+		return err
+	}
+
+	// Nothing to do, up to date
+	if len(changeset["add"]) == 0 && len(changeset["remove"]) == 0 {
+		return nil
+	}
+
+	// Add missing tags
+	if len(changeset["add"]) > 0 {
+		if _, err = m.appMeshSDK.TagResource(&appmeshsdk.TagResourceInput{
+			ResourceArn: sdkMS.Metadata.Arn,
+			Tags:        changeset["add"],
+		}); err != nil {
+			return err
+		}
+	}
+
+	// Remove tags that are no longer labels
+	if len(changeset["remove"]) > 0 {
+		tagkeys := []*string{}
+		for _, tag := range changeset["remove"] {
+			tagkeys = append(tagkeys, tag.Key)
+		}
+		if _, err = m.appMeshSDK.UntagResource(&appmeshsdk.UntagResourceInput{
+			ResourceArn: sdkMS.Metadata.Arn,
+			TagKeys:     tagkeys,
+		}); err != nil {
+			return err
+		}
+	}
+
+	return nil
+}
+
 func (m *defaultResourceManager) deleteSDKMesh(ctx context.Context, sdkMS *appmeshsdk.MeshData, ms *appmesh.Mesh) error {
 	if !m.isSDKMeshOwnedByCRDMesh(ctx, sdkMS, ms) {
 		m.log.V(1).Info("skip mesh deletion since its not owned",