diff --git a/third_party/move/move-compiler-v2/src/bytecode_generator.rs b/third_party/move/move-compiler-v2/src/bytecode_generator.rs
index 16248e056d369..035daf7f1c6ba 100644
--- a/third_party/move/move-compiler-v2/src/bytecode_generator.rs
+++ b/third_party/move/move-compiler-v2/src/bytecode_generator.rs
@@ -447,11 +447,11 @@ impl<'env> Generator<'env> {
                 self.emit_with(*id, |attr| Bytecode::Jump(attr, continue_label));
                 self.emit_with(*id, |attr| Bytecode::Label(attr, break_label));
             },
-            ExpData::LoopCont(id, 0, do_continue) => {
+            ExpData::LoopCont(id, nest, do_continue) => {
                 if let Some(LoopContext {
                     continue_label,
                     break_label,
-                }) = self.loops.last()
+                }) = self.loops.iter().rev().nth(*nest)
                 {
                     let target = if *do_continue {
                         *continue_label
@@ -463,9 +463,6 @@ impl<'env> Generator<'env> {
                     self.error(*id, "missing enclosing loop statement")
                 }
             },
-            ExpData::LoopCont(_, _, _) => {
-                unimplemented!("continue/break with nesting")
-            },
             ExpData::SpecBlock(id, spec) => {
                 // Map locals in spec to assigned temporaries.
                 let mut replacer = |id, target| {
diff --git a/third_party/move/move-compiler-v2/tests/bytecode-generator/loop_labels.exp b/third_party/move/move-compiler-v2/tests/bytecode-generator/loop_labels.exp
new file mode 100644
index 0000000000000..247f1e144dfdb
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/bytecode-generator/loop_labels.exp
@@ -0,0 +1,78 @@
+// -- Model dump before bytecode pipeline
+module 0x815::test {
+    private fun f1() {
+        loop {
+          loop {
+            loop {
+              if true {
+                loop {
+                  if false {
+                    continue[3]
+                  } else {
+                    break[1]
+                  };
+                  break
+                }
+              } else {
+                continue[2]
+              }
+            }
+          };
+          break
+        }
+    }
+} // end 0x815::test
+
+// -- Sourcified model before bytecode pipeline
+module 0x815::test {
+    fun f1() {
+        'l0: loop {
+            loop 'l1: loop if (true) loop {
+                if (false) continue 'l0 else break 'l1;
+                break
+            } else continue 'l0;
+            break
+        }
+    }
+}
+
+============ initial bytecode ================
+
+[variant baseline]
+fun test::f1() {
+     var $t0: bool
+     var $t1: bool
+  0: label L0
+  1: label L2
+  2: label L4
+  3: $t0 := true
+  4: if ($t0) goto 5 else goto 19
+  5: label L6
+  6: label L9
+  7: $t1 := false
+  8: if ($t1) goto 9 else goto 12
+  9: label L11
+ 10: goto 0
+ 11: goto 14
+ 12: label L12
+ 13: goto 23
+ 14: label L13
+ 15: goto 17
+ 16: goto 6
+ 17: label L10
+ 18: goto 21
+ 19: label L7
+ 20: goto 0
+ 21: label L8
+ 22: goto 2
+ 23: label L5
+ 24: goto 1
+ 25: label L3
+ 26: goto 28
+ 27: goto 0
+ 28: label L1
+ 29: return ()
+}
+
+
+============ bytecode verification succeeded ========
diff --git a/third_party/move/move-compiler-v2/tests/bytecode-generator/loop_labels.move b/third_party/move/move-compiler-v2/tests/bytecode-generator/loop_labels.move
new file mode 100644
index 0000000000000..e91763e82ae00
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/bytecode-generator/loop_labels.move
@@ -0,0 +1,14 @@
+module 0x815::test {
+    fun f1() {
+        'outer: loop {
+            // unlabeled loop, but counts in nesting in AST
+            loop {
+                'inner: loop if (true) loop {
+                    if (false) continue 'outer else break 'inner;
+                    break
+                } else continue 'outer
+            };
+            break
+        }
+    }
+}
diff --git a/third_party/move/move-compiler-v2/tests/checking-lang-v1/loop_labels.exp b/third_party/move/move-compiler-v2/tests/checking-lang-v1/loop_labels.exp
new file mode 100644
index 0000000000000..e7af6bf3d09a0
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking-lang-v1/loop_labels.exp
@@ -0,0 +1,31 @@
+
+Diagnostics:
+error: unsupported language construct
+  ┌─ tests/checking-lang-v1/loop_labels.move:3:9
+  │
+3 │         'outer: loop {
+  │         ^^^^^^ Move language construct `'outer` is not enabled until version 2.1
+
+error: unsupported language construct
+  ┌─ tests/checking-lang-v1/loop_labels.move:6:17
+  │
+6 │                 'inner: loop if (true) loop {
+  │                 ^^^^^^ Move language construct `'inner` is not enabled until version 2.1
+
+error: unsupported language construct
+  ┌─ tests/checking-lang-v1/loop_labels.move:7:41
+  │
+7 │                     if (false) continue 'outer else break 'inner;
+  │                                         ^^^^^^ Move language construct `'outer` is not enabled until version 2.1
+
+error: unsupported language construct
+  ┌─ tests/checking-lang-v1/loop_labels.move:7:59
+  │
+7 │                     if (false) continue 'outer else break 'inner;
+  │                                                           ^^^^^^ Move language construct `'inner` is not enabled until version 2.1
+
+error: unsupported language construct
+  ┌─ tests/checking-lang-v1/loop_labels.move:9:33
+  │
+9 │                 } else continue 'outer
+  │                                 ^^^^^^ Move language construct `'outer` is not enabled until version 2.1
diff --git a/third_party/move/move-compiler-v2/tests/checking-lang-v1/loop_labels.move b/third_party/move/move-compiler-v2/tests/checking-lang-v1/loop_labels.move
new file mode 100644
index 0000000000000..e91763e82ae00
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking-lang-v1/loop_labels.move
@@ -0,0 +1,14 @@
+module 0x815::test {
+    fun f1() {
+        'outer: loop {
+            // unlabeled loop, but counts in nesting in AST
+            loop {
+                'inner: loop if (true) loop {
+                    if (false) continue 'outer else break 'inner;
+                    break
+                } else continue 'outer
+            };
+            break
+        }
+    }
+}
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_err.exp b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_err.exp
new file mode 100644
index 0000000000000..fd0b9ddf3ef67
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_err.exp
@@ -0,0 +1,21 @@
+
+Diagnostics:
+error: label `'outer` undefined
+  ┌─ tests/checking/control_flow/loop_labels_check_err.move:3:15
+  │
+3 │         break 'outer;
+  │               ^^^^^^
+
+error: label `'inner` undefined
+  ┌─ tests/checking/control_flow/loop_labels_check_err.move:5:19
+  │
+5 │             break 'inner
+  │                   ^^^^^^
+
+error: label `'l1` already used by outer loop
+   ┌─ tests/checking/control_flow/loop_labels_check_err.move:11:19
+   │
+11 │         'l1: loop 'l1: loop {};
+   │         ---       ^^^
+   │         │
+   │         outer definition of label
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_err.move b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_err.move
new file mode 100644
index 0000000000000..6a1a1f616934e
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_err.move
@@ -0,0 +1,14 @@
+module 0x815::test {
+    fun undefined_label() {
+        break 'outer;
+        'outer: loop {
+            break 'inner
+        }
+    }
+
+    fun duplicate_label() {
+        'l1: loop {};
+        'l1: loop 'l1: loop {};
+        'l1: loop {}
+    }
+}
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_ok.exp b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_ok.exp
new file mode 100644
index 0000000000000..3bf1a2816123f
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_ok.exp
@@ -0,0 +1,37 @@
+// -- Model dump before bytecode pipeline
+module 0x815::test {
+    private fun f1() {
+        loop {
+          loop {
+            loop {
+              if true {
+                loop {
+                  if false {
+                    continue[3]
+                  } else {
+                    break[1]
+                  };
+                  break
+                }
+              } else {
+                continue[2]
+              }
+            }
+          };
+          break
+        }
+    }
+} // end 0x815::test
+
+// -- Sourcified model before bytecode pipeline
+module 0x815::test {
+    fun f1() {
+        'l0: loop {
+            loop 'l1: loop if (true) loop {
+                if (false) continue 'l0 else break 'l1;
+                break
+            } else continue 'l0;
+            break
+        }
+    }
+}
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_ok.move b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_ok.move
new file mode 100644
index 0000000000000..e91763e82ae00
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_check_ok.move
@@ -0,0 +1,14 @@
+module 0x815::test {
+    fun f1() {
+        'outer: loop {
+            // unlabeled loop, but counts in nesting in AST
+            loop {
+                'inner: loop if (true) loop {
+                    if (false) continue 'outer else break 'inner;
+                    break
+                } else continue 'outer
+            };
+            break
+        }
+    }
+}
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err1.exp b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err1.exp
new file mode 100644
index 0000000000000..7cb036dbc78d3
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err1.exp
@@ -0,0 +1,10 @@
+
+Diagnostics:
+error: unexpected token
+  ┌─ tests/checking/control_flow/loop_labels_parse_err1.move:3:13
+  │
+3 │         'a: if (true) false else true
+  │             ^^
+  │             │
+  │             Unexpected 'if'
+  │             Expected one of: 'while' or 'loop'
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err1.move b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err1.move
new file mode 100644
index 0000000000000..319268dd01537
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err1.move
@@ -0,0 +1,5 @@
+module 0x815::test {
+    fun f1(): bool {
+        'a: if (true) false else true
+    }
+}
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err2.exp b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err2.exp
new file mode 100644
index 0000000000000..fb01360a4250c
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err2.exp
@@ -0,0 +1,10 @@
+
+Diagnostics:
+error: unexpected token
+  ┌─ tests/checking/control_flow/loop_labels_parse_err2.move:3:13
+  │
+3 │         'a: if (true) false else true
+  │             ^^
+  │             │
+  │             Unexpected 'if'
+  │             Expected one of: 'while' or 'loop'
diff --git a/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err2.move b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err2.move
new file mode 100644
index 0000000000000..319268dd01537
--- /dev/null
+++ b/third_party/move/move-compiler-v2/tests/checking/control_flow/loop_labels_parse_err2.move
@@ -0,0 +1,5 @@
+module 0x815::test {
+    fun f1(): bool {
+        'a: if (true) false else true
+    }
+}
diff --git a/third_party/move/move-compiler-v2/tests/testsuite.rs b/third_party/move/move-compiler-v2/tests/testsuite.rs
index ba34279b86a38..6c5c577cd16e8 100644
--- a/third_party/move/move-compiler-v2/tests/testsuite.rs
+++ b/third_party/move/move-compiler-v2/tests/testsuite.rs
@@ -106,7 +106,7 @@ const TEST_CONFIGS: Lazy<BTreeMap<&str, TestConfig>> = Lazy::new(|| {
         // Turn optimization on by default. Some configs below may turn it off.
         .set_experiment(Experiment::OPTIMIZE, true)
         .set_experiment(Experiment::OPTIMIZE_WAITING_FOR_COMPARE_TESTS, true)
-        .set_language_version(LanguageVersion::V2_0);
+        .set_language_version(LanguageVersion::V2_1);
     opts.testing = true;
     let configs = vec![
         // --- Tests for checking and ast processing
@@ -723,7 +723,7 @@ const TEST_CONFIGS: Lazy<BTreeMap<&str, TestConfig>> = Lazy::new(|| {
             include: vec!["/op-equal/"],
             exclude: vec![],
             exp_suffix: None,
-            options: opts.clone().set_language_version(LanguageVersion::V2_1),
+            options: opts.clone(),
             // Run the entire compiler pipeline to double-check the result
             stop_after: StopAfter::FileFormat,
             dump_ast: DumpLevel::EndStage,
diff --git a/third_party/move/move-compiler-v2/transactional-tests/tests/no-v1-comparison/loop_labels.exp b/third_party/move/move-compiler-v2/transactional-tests/tests/no-v1-comparison/loop_labels.exp
new file mode 100644
index 0000000000000..6cd67db3f6472
--- /dev/null
+++ b/third_party/move/move-compiler-v2/transactional-tests/tests/no-v1-comparison/loop_labels.exp
@@ -0,0 +1 @@
+processed 1 task
diff --git a/third_party/move/move-compiler-v2/transactional-tests/tests/no-v1-comparison/loop_labels.move b/third_party/move/move-compiler-v2/transactional-tests/tests/no-v1-comparison/loop_labels.move
new file mode 100644
index 0000000000000..b1c0cf1f69c32
--- /dev/null
+++ b/third_party/move/move-compiler-v2/transactional-tests/tests/no-v1-comparison/loop_labels.move
@@ -0,0 +1,18 @@
+//# run
+script {
+    fun main() {
+        let result = 0;
+        'outer: while (result < 100) {
+            while (result < 50) {
+                'inner: while (result < 30) {
+                    result += 1;
+                    continue 'outer
+               };
+               result += 10;
+               continue 'outer
+            };
+            result += 20
+        };
+        assert!(result == 110);
+    }
+}
diff --git a/third_party/move/move-compiler/src/expansion/ast.rs b/third_party/move/move-compiler/src/expansion/ast.rs
index 880234d6fc715..47db86f2654ba 100644
--- a/third_party/move/move-compiler/src/expansion/ast.rs
+++ b/third_party/move/move-compiler/src/expansion/ast.rs
@@ -5,7 +5,7 @@
 use crate::{
     expansion::translate::is_valid_struct_constant_or_schema_name,
     parser::ast::{
-        self as P, Ability, Ability_, BinOp, CallKind, ConstantName, Field, FunctionName,
+        self as P, Ability, Ability_, BinOp, CallKind, ConstantName, Field, FunctionName, Label,
         ModuleName, QuantKind, SpecApplyPattern, StructName, UnaryOp, UseDecl, Var, VariantName,
         ENTRY_MODIFIER,
     },
@@ -25,7 +25,6 @@ use std::{
     fmt,
     hash::Hash,
 };
-
 //**************************************************************************************************
 // Program
 //**************************************************************************************************
@@ -504,8 +503,8 @@ pub enum Exp_ {
 
     IfElse(Box<Exp>, Box<Exp>, Box<Exp>),
     Match(Box<Exp>, Vec<Spanned<(LValueList, Option<Exp>, Exp)>>),
-    While(Box<Exp>, Box<Exp>),
-    Loop(Box<Exp>),
+    While(Option<Label>, Box<Exp>, Box<Exp>),
+    Loop(Option<Label>, Box<Exp>),
     Block(Sequence),
     Lambda(TypedLValueList, Box<Exp>),
     Quant(
@@ -522,8 +521,8 @@ pub enum Exp_ {
 
     Return(Box<Exp>),
     Abort(Box<Exp>),
-    Break,
-    Continue,
+    Break(Option<Label>),
+    Continue(Option<Label>),
 
     Dereference(Box<Exp>),
     UnaryExp(UnaryOp, Box<Exp>),
@@ -1644,13 +1643,19 @@ impl AstDebug for Exp_ {
                 w.write(" else ");
                 f.ast_debug(w);
             },
-            E::While(b, e) => {
+            E::While(l, b, e) => {
+                if let Some(l) = l {
+                    w.write(&format!("{}: ", l.value().as_str()))
+                }
                 w.write("while (");
                 b.ast_debug(w);
                 w.write(")");
                 e.ast_debug(w);
             },
-            E::Loop(e) => {
+            E::Loop(l, e) => {
+                if let Some(l) = l {
+                    w.write(&format!("{}: ", l.value().as_str()))
+                }
                 w.write("loop ");
                 e.ast_debug(w);
             },
@@ -1720,8 +1725,18 @@ impl AstDebug for Exp_ {
                 w.write("abort ");
                 e.ast_debug(w);
             },
-            E::Break => w.write("break"),
-            E::Continue => w.write("continue"),
+            E::Break(l) => {
+                w.write("break");
+                if let Some(l) = l {
+                    w.write(format!(" {}", l.value().as_str()));
+                }
+            },
+            E::Continue(l) => {
+                w.write("continue");
+                if let Some(l) = l {
+                    w.write(format!(" {}", l.value().as_str()));
+                }
+            },
             E::Dereference(e) => {
                 w.write("*");
                 e.ast_debug(w)
diff --git a/third_party/move/move-compiler/src/expansion/dependency_ordering.rs b/third_party/move/move-compiler/src/expansion/dependency_ordering.rs
index 9912bd62634ff..732161adb2bc5 100644
--- a/third_party/move/move-compiler/src/expansion/dependency_ordering.rs
+++ b/third_party/move/move-compiler/src/expansion/dependency_ordering.rs
@@ -435,8 +435,8 @@ fn exp(context: &mut Context, sp!(_loc, e_): &E::Exp) {
 
         E::Unit { .. }
         | E::UnresolvedError
-        | E::Break
-        | E::Continue
+        | E::Break(_)
+        | E::Continue(_)
         | E::Spec(_, _, _)
         | E::Value(_)
         | E::Move(_)
@@ -478,7 +478,7 @@ fn exp(context: &mut Context, sp!(_loc, e_): &E::Exp) {
             }
         },
 
-        E::BinopExp(e1, _, e2) | E::Mutate(e1, e2) | E::While(e1, e2) | E::Index(e1, e2) => {
+        E::BinopExp(e1, _, e2) | E::Mutate(e1, e2) | E::While(_, e1, e2) | E::Index(e1, e2) => {
             exp(context, e1);
             exp(context, e2)
         },
@@ -492,7 +492,7 @@ fn exp(context: &mut Context, sp!(_loc, e_): &E::Exp) {
             exp(context, e);
         },
 
-        E::Loop(e)
+        E::Loop(_, e)
         | E::Return(e)
         | E::Abort(e)
         | E::Dereference(e)
diff --git a/third_party/move/move-compiler/src/expansion/translate.rs b/third_party/move/move-compiler/src/expansion/translate.rs
index 12cc0f80cc2af..ca954085198f3 100644
--- a/third_party/move/move-compiler/src/expansion/translate.rs
+++ b/third_party/move/move-compiler/src/expansion/translate.rs
@@ -2611,8 +2611,8 @@ fn exp_(context: &mut Context, sp!(loc, pe_): P::Exp) -> E::Exp {
                 .collect::<Vec<_>>();
             EE::Match(discriminator, match_arms)
         },
-        PE::While(pb, ploop) => EE::While(exp(context, *pb), exp(context, *ploop)),
-        PE::Loop(ploop) => EE::Loop(exp(context, *ploop)),
+        PE::While(label, pb, ploop) => EE::While(label, exp(context, *pb), exp(context, *ploop)),
+        PE::Loop(label, ploop) => EE::Loop(label, exp(context, *ploop)),
         PE::Block(seq) => EE::Block(sequence(context, loc, seq)),
         PE::Lambda(pbs, pe) => {
             let tbs_opt = typed_bind_list(context, pbs);
@@ -2767,8 +2767,8 @@ fn exp_(context: &mut Context, sp!(loc, pe_): P::Exp) -> E::Exp {
             EE::Return(ev)
         },
         PE::Abort(pe) => EE::Abort(exp(context, *pe)),
-        PE::Break => EE::Break,
-        PE::Continue => EE::Continue,
+        PE::Break(l) => EE::Break(l),
+        PE::Continue(l) => EE::Continue(l),
         PE::Dereference(pe) => EE::Dereference(exp(context, *pe)),
         PE::UnaryExp(op, pe) => EE::UnaryExp(op, exp(context, *pe)),
         PE::BinopExp(pl, op, pr) => {
@@ -3294,8 +3294,8 @@ fn unbound_names_exp(unbound: &mut UnboundNames, sp!(_, e_): &E::Exp) {
     use E::Exp_ as EE;
     match e_ {
         EE::Value(_)
-        | EE::Break
-        | EE::Continue
+        | EE::Break(_)
+        | EE::Continue(_)
         | EE::UnresolvedError
         | EE::Name(sp!(_, E::ModuleAccess_::ModuleAccess(..)), _)
         | EE::Unit { .. } => (),
@@ -3334,11 +3334,11 @@ fn unbound_names_exp(unbound: &mut UnboundNames, sp!(_, e_): &E::Exp) {
                 unbound_names_exp(unbound, &arm.value.2)
             }
         },
-        EE::While(econd, eloop) => {
+        EE::While(_, econd, eloop) => {
             unbound_names_exp(unbound, eloop);
             unbound_names_exp(unbound, econd)
         },
-        EE::Loop(eloop) => unbound_names_exp(unbound, eloop),
+        EE::Loop(_, eloop) => unbound_names_exp(unbound, eloop),
 
         EE::Block(seq) => unbound_names_sequence(unbound, seq),
         EE::Lambda(ls, er) => {
diff --git a/third_party/move/move-compiler/src/naming/translate.rs b/third_party/move/move-compiler/src/naming/translate.rs
index 640e235b3605d..ee37a1d68a8ac 100644
--- a/third_party/move/move-compiler/src/naming/translate.rs
+++ b/third_party/move/move-compiler/src/naming/translate.rs
@@ -938,8 +938,8 @@ fn exp_(context: &mut Context, e: E::Exp) -> N::Exp {
         EE::IfElse(eb, et, ef) => {
             NE::IfElse(exp(context, *eb), exp(context, *et), exp(context, *ef))
         },
-        EE::While(eb, el) => NE::While(exp(context, *eb), exp(context, *el)),
-        EE::Loop(el) => NE::Loop(exp(context, *el)),
+        EE::While(_, eb, el) => NE::While(exp(context, *eb), exp(context, *el)),
+        EE::Loop(_, el) => NE::Loop(exp(context, *el)),
         EE::Block(seq) => NE::Block(sequence(context, seq)),
         EE::Lambda(args, body) => {
             let bind_opt = bind_typed_list(context, args);
@@ -981,8 +981,8 @@ fn exp_(context: &mut Context, e: E::Exp) -> N::Exp {
 
         EE::Return(es) => NE::Return(exp(context, *es)),
         EE::Abort(es) => NE::Abort(exp(context, *es)),
-        EE::Break => NE::Break,
-        EE::Continue => NE::Continue,
+        EE::Break(_) => NE::Break,
+        EE::Continue(_) => NE::Continue,
 
         EE::Dereference(e) => NE::Dereference(exp(context, *e)),
         EE::UnaryExp(uop, e) => NE::UnaryExp(uop, exp(context, *e)),
diff --git a/third_party/move/move-compiler/src/parser/ast.rs b/third_party/move/move-compiler/src/parser/ast.rs
index 34e4dba75570d..86be3a5cdcdd2 100644
--- a/third_party/move/move-compiler/src/parser/ast.rs
+++ b/third_party/move/move-compiler/src/parser/ast.rs
@@ -502,6 +502,7 @@ pub type Type = Spanned<Type_>;
 //**************************************************************************************************
 
 new_name!(Var);
+new_name!(Label);
 
 #[derive(Debug, Clone, PartialEq)]
 pub enum Bind_ {
@@ -678,10 +679,10 @@ pub enum Exp_ {
 
     // if (eb) et else ef
     IfElse(Box<Exp>, Box<Exp>, Option<Box<Exp>>),
-    // while (eb) eloop
-    While(Box<Exp>, Box<Exp>),
-    // loop eloop
-    Loop(Box<Exp>),
+    // [label] while (eb) eloop
+    While(Option<Label>, Box<Exp>, Box<Exp>),
+    // [label] loop eloop
+    Loop(Option<Label>, Box<Exp>),
     // match (e) { b1 [ if c_1] => e1, ... }
     Match(Box<Exp>, Vec<Spanned<(BindList, Option<Exp>, Exp)>>),
 
@@ -710,9 +711,9 @@ pub enum Exp_ {
     // abort e
     Abort(Box<Exp>),
     // break
-    Break,
+    Break(Option<Label>),
     // continue
-    Continue,
+    Continue(Option<Label>),
 
     // *e
     Dereference(Box<Exp>),
@@ -1882,13 +1883,19 @@ impl AstDebug for Exp_ {
                     arm.value.2.ast_debug(w)
                 }
             },
-            E::While(b, e) => {
+            E::While(l, b, e) => {
+                if let Some(l) = l {
+                    w.write(&format!("{}: ", l.value().as_str()))
+                }
                 w.write("while (");
                 b.ast_debug(w);
                 w.write(")");
                 e.ast_debug(w);
             },
-            E::Loop(e) => {
+            E::Loop(l, e) => {
+                if let Some(l) = l {
+                    w.write(&format!("{}: ", l.value().as_str()))
+                }
                 w.write("loop ");
                 e.ast_debug(w);
             },
@@ -1936,8 +1943,18 @@ impl AstDebug for Exp_ {
                 w.write("abort ");
                 e.ast_debug(w);
             },
-            E::Break => w.write("break"),
-            E::Continue => w.write("continue"),
+            E::Break(l) => {
+                w.write("break");
+                if let Some(l) = l {
+                    w.write(format!(" {}", l.value().as_str()));
+                }
+            },
+            E::Continue(l) => {
+                w.write("continue");
+                if let Some(l) = l {
+                    w.write(format!(" {}", l.value().as_str()));
+                }
+            },
             E::Dereference(e) => {
                 w.write("*");
                 e.ast_debug(w)
diff --git a/third_party/move/move-compiler/src/parser/lexer.rs b/third_party/move/move-compiler/src/parser/lexer.rs
index 89667fe8d8ea7..2cc7de1a052cd 100644
--- a/third_party/move/move-compiler/src/parser/lexer.rs
+++ b/third_party/move/move-compiler/src/parser/lexer.rs
@@ -92,6 +92,7 @@ pub enum Tok {
     NumSign,
     AtSign,
     Inline,
+    Label,
 }
 
 impl fmt::Display for Tok {
@@ -178,6 +179,7 @@ impl fmt::Display for Tok {
             Friend => "friend",
             NumSign => "#",
             AtSign => "@",
+            Label => "[Label]",
         };
         fmt::Display::fmt(s, formatter)
     }
@@ -505,6 +507,10 @@ fn find_token(
                 (get_name_token(&text[..len]), len)
             }
         },
+        '\'' => {
+            let len = get_name_len(&text[1..]);
+            (Tok::Label, 1 + len)
+        },
         '"' => {
             let line = &text.lines().next().unwrap()[1..];
             match get_string_len(line) {
diff --git a/third_party/move/move-compiler/src/parser/syntax.rs b/third_party/move/move-compiler/src/parser/syntax.rs
index 07f6cf531246a..13b814866eb76 100644
--- a/third_party/move/move-compiler/src/parser/syntax.rs
+++ b/third_party/move/move-compiler/src/parser/syntax.rs
@@ -1167,17 +1167,20 @@ fn parse_term(context: &mut Context) -> Result<Exp, Box<Diagnostic>> {
         },
         Tok::Break => {
             context.tokens.advance()?;
+            let label = parse_optional_label(context)?;
+
             if at_start_of_exp(context) {
                 let mut diag = unexpected_token_error(context.tokens, "the end of an expression");
                 diag.add_note("'break' with a value is not yet supported");
                 return Err(diag);
             }
-            Exp_::Break
+            Exp_::Break(label)
         },
 
         Tok::Continue => {
             context.tokens.advance()?;
-            Exp_::Continue
+            let label = parse_optional_label(context)?;
+            Exp_::Continue(label)
         },
 
         Tok::Identifier
@@ -1323,7 +1326,7 @@ fn parse_cast_or_test_exp(
 fn is_control_exp(tok: Tok) -> bool {
     matches!(
         tok,
-        Tok::If | Tok::While | Tok::Loop | Tok::Return | Tok::Abort
+        Tok::If | Tok::While | Tok::Loop | Tok::Return | Tok::Abort | Tok::Label
     )
 }
 
@@ -1392,6 +1395,17 @@ fn parse_spec_loop_invariant(context: &mut Context) -> Result<SequenceItem, Box<
 // should be,     if (cond) e1 else (e2 + 1)
 fn parse_control_exp(context: &mut Context) -> Result<(Exp, bool), Box<Diagnostic>> {
     let start_loc = context.tokens.start_loc();
+    let label = parse_optional_label(context)?;
+    if label.is_some() {
+        consume_token(context.tokens, Tok::Colon)?;
+        // Check here whether a label is actually allowed
+        if !matches!(context.tokens.peek(), Tok::While | Tok::Loop) {
+            return Err(unexpected_token_error(
+                context.tokens,
+                "one of: 'while' or 'loop'",
+            ));
+        }
+    };
     let (exp_, ends_in_block) = match context.tokens.peek() {
         Tok::If => {
             context.tokens.advance()?;
@@ -1414,12 +1428,15 @@ fn parse_control_exp(context: &mut Context) -> Result<(Exp, bool), Box<Diagnosti
             consume_token(context.tokens, Tok::RParen)?;
             let (eloop, ends_in_block) = parse_exp_or_control_sequence(context)?;
             let (econd, ends_in_block) = parse_spec_while_loop(context, econd, ends_in_block)?;
-            (Exp_::While(Box::new(econd), Box::new(eloop)), ends_in_block)
+            (
+                Exp_::While(label, Box::new(econd), Box::new(eloop)),
+                ends_in_block,
+            )
         },
         Tok::Loop => {
             context.tokens.advance()?;
             let (eloop, ends_in_block) = parse_exp_or_control_sequence(context)?;
-            (Exp_::Loop(Box::new(eloop)), ends_in_block)
+            (Exp_::Loop(label, Box::new(eloop)), ends_in_block)
         },
         Tok::Return => {
             context.tokens.advance()?;
@@ -1443,6 +1460,25 @@ fn parse_control_exp(context: &mut Context) -> Result<(Exp, bool), Box<Diagnosti
     Ok((exp, ends_in_block))
 }
 
+fn parse_optional_label(context: &mut Context) -> Result<Option<Label>, Box<Diagnostic>> {
+    if context.tokens.peek() == Tok::Label {
+        require_language_version(
+            context,
+            current_token_loc(context.tokens),
+            LanguageVersion::V2_1,
+            context.tokens.content(),
+        );
+        let label = Label(Name::new(
+            current_token_loc(context.tokens),
+            Symbol::from(context.tokens.content()),
+        ));
+        context.tokens.advance()?;
+        Ok(Some(label))
+    } else {
+        Ok(None)
+    }
+}
+
 // "for (iter in lower_bound..upper_bound) loop_body" transforms into
 // let iter = lower_bound;
 // let flag = false;
@@ -1601,7 +1637,7 @@ fn parse_for_loop(context: &mut Context) -> Result<(Exp, bool), Box<Diagnostic>>
     let loop_conditional = Exp_::IfElse(
         Box::new(loop_condition),
         Box::new(for_body),
-        Some(Box::new(sp(for_loc, Exp_::Break))),
+        Some(Box::new(sp(for_loc, Exp_::Break(None)))),
     );
     let loop_conditional = sp(
         for_loc,
@@ -1626,7 +1662,7 @@ fn parse_for_loop(context: &mut Context) -> Result<(Exp, bool), Box<Diagnostic>>
     );
     let loop_body = sp(
         for_loc,
-        Exp_::While(Box::new(while_condition), Box::new(body)),
+        Exp_::While(None, Box::new(while_condition), Box::new(body)),
     );
     let loop_body = sp(for_loc, SequenceItem_::Seq(Box::new(loop_body)));
 
diff --git a/third_party/move/move-model/src/builder/exp_builder.rs b/third_party/move/move-model/src/builder/exp_builder.rs
index 3082a062ebe9d..871bfcda81727 100644
--- a/third_party/move/move-model/src/builder/exp_builder.rs
+++ b/third_party/move/move-model/src/builder/exp_builder.rs
@@ -92,6 +92,8 @@ pub(crate) struct ExpTranslator<'env, 'translator, 'module_translator> {
     pub placeholder_map: BTreeMap<NodeId, ExpPlaceholder>,
     /// A flag to indicate whether to insert freeze operation
     pub insert_freeze: bool,
+    /// A stack of open loops and their optional label
+    pub loop_stack: Vec<Option<PA::Label>>,
 }
 
 #[derive(Debug)]
@@ -159,6 +161,7 @@ impl<'env, 'translator, 'module_translator> ExpTranslator<'env, 'translator, 'mo
             spec_block_map: BTreeMap::new(),
             placeholder_map: BTreeMap::new(),
             insert_freeze: true,
+            loop_stack: vec![],
         }
     }
 
@@ -1545,10 +1548,12 @@ impl<'env, 'translator, 'module_translator> ExpTranslator<'env, 'translator, 'mo
             EA::Exp_::Match(discriminator, arms) => {
                 self.translate_match(loc, context, expected_type, discriminator, arms)
             },
-            EA::Exp_::While(cond, body) => {
+            EA::Exp_::While(label, cond, body) => {
                 let cond = self.translate_exp(cond, &Type::new_prim(PrimitiveType::Bool));
                 let body_type = self.check_type(&loc, &Type::unit(), expected_type, context);
+                self.push_loop_label(label);
                 let body = self.translate_exp(body, &body_type);
+                self.pop_loop_label();
                 let id = self.new_node_id_with_type_loc(&body_type, &loc);
                 ExpData::Loop(
                     id,
@@ -1561,8 +1566,10 @@ impl<'env, 'translator, 'module_translator> ExpTranslator<'env, 'translator, 'mo
                     .into_exp(),
                 )
             },
-            EA::Exp_::Loop(body) => {
+            EA::Exp_::Loop(label, body) => {
+                self.push_loop_label(label);
                 let body = self.translate_exp(body, &Type::unit());
+                self.pop_loop_label();
                 // See the Move book for below treatment: if the loop has no exit, the type
                 // is arbitrary, otherwise `()`.
                 let loop_type = if body.has_loop_exit() {
@@ -1573,15 +1580,17 @@ impl<'env, 'translator, 'module_translator> ExpTranslator<'env, 'translator, 'mo
                 let id = self.new_node_id_with_type_loc(&loop_type, &loc);
                 ExpData::Loop(id, body.into_exp())
             },
-            EA::Exp_::Break => {
+            EA::Exp_::Break(label) => {
+                let nest = self.find_loop_nest(label);
                 // Type of `break` is arbitrary
                 let id = self.new_node_id_with_type_loc(expected_type, &loc);
-                ExpData::LoopCont(id, 0, false)
+                ExpData::LoopCont(id, nest, false)
             },
-            EA::Exp_::Continue => {
+            EA::Exp_::Continue(label) => {
+                let nest = self.find_loop_nest(label);
                 // Type of `continue` is arbitrary
                 let id = self.new_node_id_with_type_loc(expected_type, &loc);
-                ExpData::LoopCont(id, 0, true)
+                ExpData::LoopCont(id, nest, true)
             },
             EA::Exp_::Block(seq) => self.translate_seq(&loc, seq, expected_type, context),
             EA::Exp_::Lambda(bindings, exp) => {
@@ -1875,6 +1884,55 @@ impl<'env, 'translator, 'module_translator> ExpTranslator<'env, 'translator, 'mo
         }
     }
 
+    fn find_loop_nest(&self, label: &Option<PA::Label>) -> usize {
+        if let Some(label) = label {
+            let label_sym = label.value();
+            self.loop_stack
+                .iter()
+                .rev()
+                .position(|s| s.map(|s| s.value()) == Some(label_sym))
+                .unwrap_or_else(|| {
+                    self.error(
+                        &self.to_loc(&label.loc()),
+                        &format!("label `{}` undefined", label.value().as_str()),
+                    );
+                    0
+                })
+        } else {
+            0
+        }
+    }
+
+    fn push_loop_label(&mut self, label: &Option<PA::Label>) {
+        if let Some(label) = label {
+            let label_sym = label.value();
+            if let Some(Some(outer)) = self
+                .loop_stack
+                .iter()
+                .find(|s| s.map(|s| s.value()) == Some(label_sym))
+            {
+                self.error_with_labels(
+                    &self.to_loc(&label.loc()),
+                    &format!(
+                        "label `{}` already used by outer loop",
+                        label.value().as_str()
+                    ),
+                    vec![(
+                        self.to_loc(&outer.loc()),
+                        "outer definition of label".to_string(),
+                    )],
+                );
+            }
+        }
+        self.loop_stack.push(*label)
+    }
+
+    fn pop_loop_label(&mut self) {
+        self.loop_stack
+            .pop()
+            .expect("expected loop stack to be balanced");
+    }
+
     /// Returns a map representing the current locals in scope and their associated declaration
     /// location, type and temp index.
     fn get_locals(&self) -> BTreeMap<Symbol, (Loc, Type, Option<TempIndex>)> {
diff --git a/third_party/move/move-model/src/lib.rs b/third_party/move/move-model/src/lib.rs
index 024d9db2ee2c0..0a1cec2780783 100644
--- a/third_party/move/move-model/src/lib.rs
+++ b/third_party/move/move-model/src/lib.rs
@@ -1169,14 +1169,15 @@ fn downgrade_exp_inlining_to_expansion(exp: &T::Exp) -> E::Exp {
             downgrade_exp_inlining_to_expansion(else_case).into(),
         ),
         UnannotatedExp_::While(cond, body) => Exp_::While(
+            None, // note that labels cannot be downgraded as they are not supported in v1
             downgrade_exp_inlining_to_expansion(cond).into(),
             downgrade_exp_inlining_to_expansion(body).into(),
         ),
         UnannotatedExp_::Loop { has_break: _, body } => {
-            Exp_::Loop(downgrade_exp_inlining_to_expansion(body).into())
+            Exp_::Loop(None, downgrade_exp_inlining_to_expansion(body).into())
         },
-        UnannotatedExp_::Break => Exp_::Break,
-        UnannotatedExp_::Continue => Exp_::Continue,
+        UnannotatedExp_::Break => Exp_::Break(None),
+        UnannotatedExp_::Continue => Exp_::Continue(None),
 
         UnannotatedExp_::Block(seq) => Exp_::Block(downgrade_sequence_inlining_to_expansion(seq)),
         UnannotatedExp_::Lambda(..) => {