diff --git a/internal/webhook/appwrapper_webhook_test.go b/internal/webhook/appwrapper_webhook_test.go
index e308defc..5cb7205d 100644
--- a/internal/webhook/appwrapper_webhook_test.go
+++ b/internal/webhook/appwrapper_webhook_test.go
@@ -41,6 +41,23 @@ var _ = Describe("AppWrapper Webhook Tests", func() {
 			Expect(k8sClient.Delete(ctx, aw)).To(Succeed())
 		})
 
+		It("Default queue name is set", func() {
+			aw := toAppWrapper(pod(100))
+
+			Expect(k8sClient.Create(ctx, aw)).To(Succeed())
+			Expect(aw.Labels[QueueNameLabel]).Should(BeIdenticalTo(defaultQueueName), "aw should be labeled with the default queue name")
+			Expect(k8sClient.Delete(ctx, aw)).To(Succeed())
+		})
+
+		It("Provided queue name is not overridden by default queue name", func() {
+			aw := toAppWrapper(pod(100))
+			aw.Labels = utilmaps.MergeKeepFirst(map[string]string{QueueNameLabel: userProvidedQueueName}, aw.Labels)
+
+			Expect(k8sClient.Create(ctx, aw)).To(Succeed())
+			Expect(aw.Labels[QueueNameLabel]).Should(BeIdenticalTo(userProvidedQueueName), "queue name should not be overridden")
+			Expect(k8sClient.Delete(ctx, aw)).To(Succeed())
+		})
+
 		It("User name and ID are set", func() {
 			aw := toAppWrapper(pod(100))
 			aw.Labels = utilmaps.MergeKeepFirst(map[string]string{AppWrapperUsernameLabel: "bad", AppWrapperUserIDLabel: "bad"}, aw.Labels)
diff --git a/internal/webhook/suite_test.go b/internal/webhook/suite_test.go
index 94763aec..c3ed18af 100644
--- a/internal/webhook/suite_test.go
+++ b/internal/webhook/suite_test.go
@@ -62,6 +62,8 @@ var cancel context.CancelFunc
 
 const limitedUserName = "limited-user"
 const limitedUserID = "8da0fcfe-6d7f-4f44-b433-d91d22cc1b8c"
+const defaultQueueName = "default-queue"
+const userProvidedQueueName = "user-queue"
 
 func TestControllers(t *testing.T) {
 	RegisterFailHandler(Fail)
@@ -157,7 +159,9 @@ var _ = BeforeSuite(func() {
 	})
 	Expect(err).NotTo(HaveOccurred())
 
-	err = (&AppWrapperWebhook{Config: config.NewAppWrapperConfig()}).SetupWebhookWithManager(mgr)
+	conf := config.NewAppWrapperConfig()
+	conf.QueueName = defaultQueueName // add default queue name
+	err = (&AppWrapperWebhook{Config: conf}).SetupWebhookWithManager(mgr)
 	Expect(err).NotTo(HaveOccurred())
 
 	//+kubebuilder:scaffold:webhook