diff --git a/app/assets/javascripts/extra/tracker.js b/app/assets/javascripts/extra/tracker.js
index a4fea6060..3ece43803 100644
--- a/app/assets/javascripts/extra/tracker.js
+++ b/app/assets/javascripts/extra/tracker.js
@@ -171,14 +171,13 @@ $(document).ready(function() {
     var clone = $(this).clone();
     form_new.find('#flag-span').fadeOut(0);
     form_new.find('#issue_labels').append(clone);
-    var labels = $('.current_labels');
-    labels.find('#'+$(this).attr('id')).remove();
-    labels.append(clone);
+    var labels = $('.manage_labels');
+    labels.append($(this).find('#'+$(this).attr('id')));
   });
 
   $('.remove_label.label.selected').live('click', function() {
     var id = $(this).attr('id');
-    $('.current_labels, #active_labels').find('#'+id+'.label.selected.remove_label').remove();
+    $('.manage_labels, #active_labels').find('#'+id+'.label.selected.remove_label').remove();
     var form = $('.form.issue');
     if(form.find('.remove_label.label.selected').length == 1) {
       form.find('#flag-span').fadeIn(0);
@@ -189,6 +188,7 @@ $(document).ready(function() {
     label.removeClass('selected').addClass('add_label').removeClass('remove_label');
     label.find('.labeltext.selected').attr('style', '').removeClass('selected');
     label.find('.flag').fadeIn(0);
+    $('.manage_labels').find('#'+$(this).attr('id')).remove();
   });
 
   $('.issue_status.switch_issue_status').live('click', function () {
@@ -249,7 +249,8 @@ $(document).ready(function() {
 
   $('.button.manage_labels').live('click', function() {
     $('form#search_labels, .button.update_labels').fadeIn(0);
-    $('.current_labels .label').addClass('remove_label selected').removeClass('nopointer');
+    $('.current_labels .label .labeltext.selected').parent().addClass('remove_label selected').removeClass('nopointer');
+    $('.current_labels .label .labeltext:not(.selected)').parent().addClass('add_label').removeClass('nopointer');
     $(this).fadeOut(0);
   });
 
diff --git a/app/controllers/issues_controller.rb b/app/controllers/issues_controller.rb
index 16e7acebe..63e8e1e6b 100644
--- a/app/controllers/issues_controller.rb
+++ b/app/controllers/issues_controller.rb
@@ -68,7 +68,7 @@ class IssuesController < ApplicationController
       status = 200 if @issue.update_attributes(params[:issue])
       render :nothing => true, :status => (status || 500), :layout => false
     else
-      render :nothing => true, :status => 200, :layout => false 
+      render :nothing => true, :status => 200, :layout => false
     end
   end
 
@@ -102,11 +102,6 @@ class IssuesController < ApplicationController
     render 'issues/_search_collaborators', :layout => false
   end
 
-  def search_labels
-    @labels = @project.labels.where("labels.name ILIKE ?", "%#{params[:search_labels]}%").order('labels.name').limit(10)
-    render 'issues/_search_labels', :layout => false
-  end
-
   private
 
   def load_and_authorize_label
diff --git a/app/models/label.rb b/app/models/label.rb
index 3bfbab17d..cc031d15a 100644
--- a/app/models/label.rb
+++ b/app/models/label.rb
@@ -6,4 +6,5 @@ class Label < ActiveRecord::Base
   validates :name, :uniqueness => { :scope => :project_id}
   validates :name, :color, :presence => true
   validates :color, :format => { :with => /\A([A-Fa-f0-9]{6}|[A-Fa-f0-9]{3})\z/, :message => I18n.t('layout.issues.invalid_labels')}
+
 end
diff --git a/app/views/issues/_manage_sidebar.html.haml b/app/views/issues/_manage_sidebar.html.haml
index 89c8f140d..bd70ac04c 100644
--- a/app/views/issues/_manage_sidebar.html.haml
+++ b/app/views/issues/_manage_sidebar.html.haml
@@ -23,7 +23,7 @@
                 .both
       - else
         .people.nopointer
-          .avatar=image_tag(@issue.user.avatar(25), :alt => 'avatar')
+          .avatar=image_tag avatar_url(@issue.user), :alt => 'avatar'
           .name="#{@issue.user.uname} (#{@issue.user.name})"
           .both
       =link_to(t('layout.issues.label_manage'), '#', :class => "button tmargin10 manage_executor") if can_manage
@@ -36,26 +36,23 @@
 
   .block
     %h3=t('layout.issues.labels')
-    - if @issue.persisted?
-      - if can_manage
-        =form_for :issue, :url => [@project, @issue], :method => :put, :html => { :class => 'edit_labels issue'} do |f|
-          .current_labels
-            - (@issue.labels || []).each do |label|
-              .label.nopointer{:id => "flag#{label.id}"}
-                .flag{:style => "display:none; background: ##{label.color}"}
-                .labeltext.selected{:style => "background: ##{label.color}"}=label.name
-                =hidden_field_tag "label-#{label.id}", label.id, :name => "issue[labelings_attributes][#{label.id}][label_id]"
-                .both
-      - else
-        - (@issue.labels || []).each do |label|
-          .label.nopointer
-            .labeltext.selected{:style => "background: ##{label.color};"}
-              =label.name
-            .both
-      =link_to(t('layout.issues.label_manage'), '#', :class => "button tmargin10 manage_labels") if can_manage
     - if can_manage
-      =form_tag search_labels_project_issues_path(@project), :id => 'search_labels', :method => :get, :style => @issue.persisted? ? 'display:none' : '' do
-        =tracker_search_field(:search_labels, t('layout.issues.search_labels'))
-      #manage_issue_labels_list
-        =render 'issues/search_labels'
-      =link_to(t('layout.issues.done'), '#', :class => "button tmargin10 update_labels", :style => 'display:none') if can_manage
+      .current_labels
+        - (@project.labels || []).each do |label|
+          - is_issue_label = @issue.labels.include? label
+          .label{:id => "flag#{label.id}", :class => @issue.persisted? ? 'nopointer' : 'add_label'}
+            .flag{:style => "background: ##{label.color}; #{is_issue_label ? 'display:none;' : ''}"}
+            .labeltext{:class => is_issue_label ? 'selected' : '', :style => is_issue_label ? "background: ##{label.color}" : ''}=label.name
+            .both=hidden_field_tag "flag#{label.id}", label.id, :name => "issue[labelings_attributes][#{label.id}][label_id]"
+      =form_for :issue, :url => [@project, @issue], :method => :put, :html => { :class => 'edit_labels issue'} do |f|
+        .manage_labels
+          - @issue.labels.each do |label|
+            =hidden_field_tag "flag#{label.id}", label.id, :name => "issue[labelings_attributes][#{label.id}][label_id]"
+    - else
+      - (@issue.labels || []).each do |label|
+        .label.nopointer
+          .labeltext.selected{:style => "background: ##{label.color};"}=label.name
+          .both
+    - if can_manage && @issue.persisted?
+      =link_to(t('layout.issues.label_manage'), '#', :class => "button tmargin10 manage_labels")
+      =link_to(t('layout.issues.done'), '#', :class => "button tmargin10 update_labels", :style => 'display:none')
diff --git a/app/views/issues/_search_labels.html.haml b/app/views/issues/_search_labels.html.haml
deleted file mode 100644
index b345a4b24..000000000
--- a/app/views/issues/_search_labels.html.haml
+++ /dev/null
@@ -1,6 +0,0 @@
-- (@labels || []).each do |label|
-  .add_label.label{:id => "flag#{label.id}"}
-    .flag{:style => "background: ##{label.color};"}
-    .labeltext=label.name
-    =hidden_field_tag "label-#{label.id}", label.id, :name => "issue[labelings_attributes][#{label.id}][label_id]"
-    .both
diff --git a/config/routes.rb b/config/routes.rb
index bd091836c..2fe701b6b 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -125,7 +125,6 @@ Rosa::Application.routes.draw do
       collection do
         post :create_label
         get :search_collaborators
-        get :search_labels
       end
     end
     post "labels/:label_id" => "issues#destroy_label", :as => :issues_delete_label