diff --git a/zebra/label_manager.c b/zebra/label_manager.c
index b1c64bc5e243..9304e2a392b8 100644
--- a/zebra/label_manager.c
+++ b/zebra/label_manager.c
@@ -417,13 +417,14 @@ int release_label_chunk(uint8_t proto, unsigned short instance,
 				 "%s: Daemon mismatch!!", __func__);
 			continue;
 		}
-		lmc->proto = NO_PROTO;
-		lmc->instance = 0;
-		lmc->session_id = 0;
-		lmc->keep = 0;
 		ret = 0;
 		break;
 	}
+	if (lmc) {
+		list_delete_node(lbl_mgr.lc_list, node);
+		delete_label_chunk(lmc);
+	}
+
 	if (ret != 0)
 		flog_err(EC_ZEBRA_LM_UNRELEASED_CHUNK,
 			 "%s: Label chunk not released!!", __func__);