diff --git a/package-lock.json b/package-lock.json
index 3b4193a15d..91e1e17b87 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,6 +1,6 @@
 {
   "name": "aries-framework-javascript",
-  "version": "0.0.1-datatransfer.0",
+  "version": "0.0.1-datatransfer.1",
   "lockfileVersion": 1,
   "requires": true,
   "dependencies": {
diff --git a/package.json b/package.json
index 575945ce03..665346fad7 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "aries-framework-javascript",
-  "version": "0.0.1-datatransfer.1",
+  "version": "0.0.1-datatransfer.2",
   "license": "Apache-2.0",
   "main": "build/src/index.js",
   "types": "build/src/index.d.ts",
diff --git a/src/modules/connections/__tests__/ConnectionService.test.ts b/src/modules/connections/__tests__/ConnectionService.test.ts
index 1c8170d1b0..64b12ccfb4 100644
--- a/src/modules/connections/__tests__/ConnectionService.test.ts
+++ b/src/modules/connections/__tests__/ConnectionService.test.ts
@@ -211,6 +211,7 @@ describe('ConnectionService', () => {
       expect(connection.invitation).toMatchObject(invitation)
       expect(connection.alias).toBeUndefined()
       expect(connectionAlias.alias).toBe('test-alias')
+      expect(connection.theirLabel).toBe('test label')
     })
 
     it('returns a connection record with the autoAcceptConnection parameter from the config', async () => {
@@ -302,7 +303,7 @@ describe('ConnectionService', () => {
 
   describe('processRequest', () => {
     it('returns a connection record containing the information from the connection request', async () => {
-      expect.assertions(5)
+      expect.assertions(6)
 
       const connectionRecord = getMockConnection({
         state: ConnectionState.Invited,
@@ -343,6 +344,7 @@ describe('ConnectionService', () => {
       expect(processedConnection.theirDid).toBe(theirDid)
       // TODO: we should transform theirDidDoc to didDoc instance after retrieving from persistence
       expect(processedConnection.theirDidDoc).toEqual(theirDidDoc)
+      expect(processedConnection.theirLabel).toBe('test-label')
       expect(processedConnection.tags.theirKey).toBe(theirVerkey)
       expect(processedConnection.tags.threadId).toBe(connectionRequest.id)
     })
diff --git a/src/modules/connections/repository/ConnectionRecord.ts b/src/modules/connections/repository/ConnectionRecord.ts
index 33593efacc..de7d63ee3a 100644
--- a/src/modules/connections/repository/ConnectionRecord.ts
+++ b/src/modules/connections/repository/ConnectionRecord.ts
@@ -22,6 +22,7 @@ interface ConnectionProps {
   role: ConnectionRole
   endpoint?: string
   alias?: string
+  theirLabel?: string
   autoAcceptConnection?: boolean
 }
 
@@ -47,6 +48,7 @@ export class ConnectionRecord extends BaseRecord implements ConnectionStoragePro
   public role: ConnectionRole
   public endpoint?: string
   public alias?: string
+  public theirLabel?: string
   public autoAcceptConnection?: boolean
   public tags: ConnectionTags
 
@@ -64,6 +66,7 @@ export class ConnectionRecord extends BaseRecord implements ConnectionStoragePro
     this.role = props.role
     this.endpoint = props.endpoint
     this.alias = props.alias
+    this.theirLabel = props.theirLabel
     this.autoAcceptConnection = props.autoAcceptConnection
     this.tags = props.tags
     this.invitation = props.invitation
diff --git a/src/modules/connections/services/ConnectionService.ts b/src/modules/connections/services/ConnectionService.ts
index 3b9e72c7b5..a3b1c6140d 100644
--- a/src/modules/connections/services/ConnectionService.ts
+++ b/src/modules/connections/services/ConnectionService.ts
@@ -114,6 +114,7 @@ export class ConnectionService extends EventEmitter {
       role: ConnectionRole.Invitee,
       state: ConnectionState.Invited,
       alias: config?.alias,
+      theirLabel: invitation.label,
       autoAcceptConnection: config?.autoAcceptConnection,
       invitation,
       tags: {
@@ -186,6 +187,7 @@ export class ConnectionService extends EventEmitter {
 
     connectionRecord.theirDid = message.connection.did
     connectionRecord.theirDidDoc = message.connection.didDoc
+    connectionRecord.theirLabel = message.label
 
     if (!connectionRecord.theirKey) {
       throw new Error(`Connection with id ${connectionRecord.id} has no recipient keys.`)
@@ -353,6 +355,7 @@ export class ConnectionService extends EventEmitter {
     state: ConnectionState
     invitation?: ConnectionInvitationMessage
     alias?: string
+    theirLabel?: string
     autoAcceptConnection?: boolean
     tags?: ConnectionTags
   }): Promise<ConnectionRecord> {
@@ -394,6 +397,7 @@ export class ConnectionService extends EventEmitter {
       },
       invitation: options.invitation,
       alias: options.alias,
+      theirLabel: options.theirLabel,
       autoAcceptConnection: options.autoAcceptConnection,
     })