diff --git a/app/assets/stylesheets/pages/issues.scss b/app/assets/stylesheets/pages/issues.scss
index 3e7fc3fa52cadfc29f2ae2edc6b3dea51637a22e..e9d43f33c2d8657637b091db12459607f4fa5acb 100644
--- a/app/assets/stylesheets/pages/issues.scss
+++ b/app/assets/stylesheets/pages/issues.scss
@@ -55,9 +55,27 @@ ul.related-merge-requests > li {
 }
 
 .merge-request-status {
-  color: $gl-gray;
-  font-size: 15px;
-  font-weight: bold;
+  font-size: 13px;
+  padding: 0px 5px;
+  color: #FFF;
+  height: 20px;
+  border-radius: 3px;
+  line-height: 18px;
+
+  &.merged {
+    border: 1px solid #2A96CC;
+    background: #2D9FD8;
+  }
+
+  &.closed {
+    border: 1px solid #C5254D;
+    background: #D62954;
+  }
+
+  &.open {
+    border: 1px solid #2EA65E;
+    background: #31AF64;
+  }
 }
 
 .merge-request,
diff --git a/app/views/projects/issues/_merge_requests.html.haml b/app/views/projects/issues/_merge_requests.html.haml
index 31d3ec2327611d50c0ed01c6252ad8b118417bf5..747bfa554cba540f684ff6885dc569678ee90eff 100644
--- a/app/views/projects/issues/_merge_requests.html.haml
+++ b/app/views/projects/issues/_merge_requests.html.haml
@@ -19,11 +19,17 @@
             in
             - project = merge_request.target_project
             = link_to project.name_with_namespace, namespace_project_path(project.namespace, project)
-        %span.merge-request-status.prepend-left-10
-          - if merge_request.merged?
-            MERGED
-          - elsif merge_request.closed?
-            CLOSED
+
+        - if merge_request.merged?
+          %span.merge-request-status.prepend-left-10.merged
+            Merged
+        - elsif merge_request.closed?
+          %span.merge-request-status.prepend-left-10.closed
+            Closed
+        - else
+          %span.merge-request-status.prepend-left-10.open
+            Open
+
     - if @closed_by_merge_requests.present?
       %li
         = render partial: 'projects/issues/closed_by_box', locals: {merge_request_count: @merge_requests.count}
diff --git a/changelogs/unreleased/related-mr-labels.yml b/changelogs/unreleased/related-mr-labels.yml
new file mode 100644
index 0000000000000000000000000000000000000000..268e0eab8702651a6d01e0a67bcd55e3e511f09c
--- /dev/null
+++ b/changelogs/unreleased/related-mr-labels.yml
@@ -0,0 +1,4 @@
+---
+title: Added colored labels to related MR list.
+merge_request: 7486
+author: Didem Acet