diff --git a/lib/features/modeling/behavior/LabelBehavior.js b/lib/features/modeling/behavior/LabelBehavior.js
index 15cd1e93..725c68ff 100644
--- a/lib/features/modeling/behavior/LabelBehavior.js
+++ b/lib/features/modeling/behavior/LabelBehavior.js
@@ -12,6 +12,7 @@ import {
 import {
   isLabelExternal,
   getExternalLabelMid,
+  hasExternalLabel
 } from '../../../util/LabelUtil';
 
 import {
@@ -20,6 +21,28 @@ import {
 
 import CommandInterceptor from 'diagram-js/lib/command/CommandInterceptor';
 
+import {
+  getNewAttachPoint
+} from 'diagram-js/lib/util/AttachUtil';
+
+import {
+  getMid,
+  roundPoint
+} from 'diagram-js/lib/layout/LayoutUtil';
+
+import {
+  delta
+} from 'diagram-js/lib/util/PositionUtil';
+
+import {
+  sortBy
+} from 'min-dash';
+
+import {
+  getDistancePointLine,
+  perpendicularFoot
+} from './util/GeometricUtil';
+
 var DEFAULT_LABEL_DIMENSIONS = {
   width: 90,
   height: 20
@@ -207,6 +230,32 @@ export default function LabelBehavior(
     }
   });
 
+
+  // move external label after resizing
+  this.postExecute('shape.resize', function(event) {
+
+    var context = event.context,
+        shape = context.shape,
+        newBounds = context.newBounds,
+        oldBounds = context.oldBounds;
+
+    if (hasExternalLabel(shape)) {
+
+      var label = shape.label,
+          labelMid = getMid(label),
+          edges = asEdges(oldBounds);
+
+      // get nearest border point to label as reference point
+      var referencePoint = getReferencePoint(labelMid, edges);
+
+      var delta = getReferencePointDelta(referencePoint, oldBounds, newBounds);
+
+      modeling.moveShape(label, delta);
+
+    }
+
+  });
+
 }
 
 inherits(LabelBehavior, CommandInterceptor);
@@ -216,4 +265,116 @@ LabelBehavior.$inject = [
   'modeling',
   'bpmnFactory',
   'textRenderer'
-];
\ No newline at end of file
+];
+
+// helpers //////////////////////
+
+/**
+ * Calculates a reference point delta relative to a new position
+ * of a certain element's bounds
+ *
+ * @param {Point} point
+ * @param {Bounds} oldBounds
+ * @param {Bounds} newBounds
+ *
+ * @return {Delta} delta
+ */
+export function getReferencePointDelta(referencePoint, oldBounds, newBounds) {
+
+  var newReferencePoint = getNewAttachPoint(referencePoint, oldBounds, newBounds);
+
+  return roundPoint(delta(newReferencePoint, referencePoint));
+}
+
+/**
+ * Generates the nearest point (reference point) for a given point
+ * onto given set of lines
+ *
+ * @param {Array<Point, Point>} lines
+ * @param {Point} point
+ *
+ * @param {Point}
+ */
+export function getReferencePoint(point, lines) {
+
+  if (!lines.length) {
+    return;
+  }
+
+  var nearestLine = getNearestLine(point, lines);
+
+  return perpendicularFoot(point, nearestLine);
+}
+
+/**
+ * Convert the given bounds to a lines array containing all edges
+ *
+ * @param {Bounds|Point} bounds
+ *
+ * @return Array<Point>
+ */
+export function asEdges(bounds) {
+  return [
+    [ // top
+      {
+        x: bounds.x,
+        y: bounds.y
+      },
+      {
+        x: bounds.x + (bounds.width || 0),
+        y: bounds.y
+      }
+    ],
+    [ // right
+      {
+        x: bounds.x + (bounds.width || 0),
+        y: bounds.y
+      },
+      {
+        x: bounds.x + (bounds.width || 0),
+        y: bounds.y + (bounds.height || 0)
+      }
+    ],
+    [ // bottom
+      {
+        x: bounds.x,
+        y: bounds.y + (bounds.height || 0)
+      },
+      {
+        x: bounds.x + (bounds.width || 0),
+        y: bounds.y + (bounds.height || 0)
+      }
+    ],
+    [ // left
+      {
+        x: bounds.x,
+        y: bounds.y
+      },
+      {
+        x: bounds.x,
+        y: bounds.y + (bounds.height || 0)
+      }
+    ]
+  ];
+}
+
+/**
+ * Returns the nearest line for a given point by distance
+ * @param {Point} point
+ * @param Array<Point> lines
+ *
+ * @return Array<Point>
+ */
+function getNearestLine(point, lines) {
+
+  var distances = lines.map(function(l) {
+    return {
+      line: l,
+      distance: getDistancePointLine(point, l)
+    };
+  });
+
+  var sorted = sortBy(distances, 'distance');
+
+  return sorted[0].line;
+}
\ No newline at end of file
diff --git a/test/spec/features/modeling/behavior/LabelBehavior.bpmn b/test/spec/features/modeling/behavior/LabelBehavior.bpmn
index 9f4a13b2..c8e4f239 100644
--- a/test/spec/features/modeling/behavior/LabelBehavior.bpmn
+++ b/test/spec/features/modeling/behavior/LabelBehavior.bpmn
@@ -1,5 +1,8 @@
 <?xml version="1.0" encoding="UTF-8"?>
-<bpmn:definitions xmlns:bpmn="http://www.omg.org/spec/BPMN/20100524/MODEL" xmlns:bpmndi="http://www.omg.org/spec/BPMN/20100524/DI" xmlns:dc="http://www.omg.org/spec/DD/20100524/DC" xmlns:di="http://www.omg.org/spec/DD/20100524/DI" id="Definitions_1" targetNamespace="http://bpmn.io/schema/bpmn" exporter="Camunda Modeler" exporterVersion="1.16.0-dev">
+<bpmn:definitions xmlns:bpmn="http://www.omg.org/spec/BPMN/20100524/MODEL" xmlns:bpmndi="http://www.omg.org/spec/BPMN/20100524/DI" xmlns:dc="http://www.omg.org/spec/DD/20100524/DC" xmlns:di="http://www.omg.org/spec/DD/20100524/DI" id="Definitions_1" targetNamespace="http://bpmn.io/schema/bpmn" exporter="Camunda Modeler" exporterVersion="3.2.0-dev">
+  <bpmn:category id="Category_1">
+    <bpmn:categoryValue id="CategoryValue_1" value="Value" />
+  </bpmn:category>
   <bpmn:process id="Process_1" isExecutable="false">
     <bpmn:startEvent id="StartEvent_1" name="foo" />
     <bpmn:task id="Task_1" />
@@ -8,6 +11,11 @@
       <bpmn:text>foo</bpmn:text>
     </bpmn:textAnnotation>
     <bpmn:association id="Association_1w715hc" sourceRef="Task_1" targetRef="TextAnnotation_1" />
+    <bpmn:group id="Group_1" categoryValueRef="CategoryValue_1" />
+    <bpmn:group id="Group_2" categoryValueRef="CategoryValue_1" />
+    <bpmn:group id="Group_3" categoryValueRef="CategoryValue_1" />
+    <bpmn:group id="Group_4" categoryValueRef="CategoryValue_1" />
+    <bpmn:group id="Group_5" categoryValueRef="CategoryValue_1" />
   </bpmn:process>
   <bpmndi:BPMNDiagram id="BPMNDiagram_1">
     <bpmndi:BPMNPlane id="BPMNPlane_1" bpmnElement="Process_1">
@@ -30,6 +38,36 @@
         <di:waypoint x="441" y="80" />
         <di:waypoint x="489" y="30" />
       </bpmndi:BPMNEdge>
+      <bpmndi:BPMNShape id="Group_1_di" bpmnElement="Group_1">
+        <dc:Bounds x="162" y="296" width="128" height="110" />
+        <bpmndi:BPMNLabel>
+          <dc:Bounds x="300" y="303" width="28" height="14" />
+        </bpmndi:BPMNLabel>
+      </bpmndi:BPMNShape>
+      <bpmndi:BPMNShape id="Group_2_di" bpmnElement="Group_2">
+        <dc:Bounds x="376" y="296" width="127" height="110" />
+        <bpmndi:BPMNLabel>
+          <dc:Bounds x="426" y="423" width="28" height="14" />
+        </bpmndi:BPMNLabel>
+      </bpmndi:BPMNShape>
+      <bpmndi:BPMNShape id="Group_3_di" bpmnElement="Group_3">
+        <dc:Bounds x="565" y="296" width="130" height="110" />
+        <bpmndi:BPMNLabel>
+          <dc:Bounds x="526" y="303" width="28" height="14" />
+        </bpmndi:BPMNLabel>
+      </bpmndi:BPMNShape>
+      <bpmndi:BPMNShape id="Group_4_di" bpmnElement="Group_4">
+        <dc:Bounds x="161" y="496" width="130" height="110" />
+        <bpmndi:BPMNLabel>
+          <dc:Bounds x="212" y="513" width="28" height="14" />
+        </bpmndi:BPMNLabel>
+      </bpmndi:BPMNShape>
+      <bpmndi:BPMNShape id="Group_5_di" bpmnElement="Group_5">
+        <dc:Bounds x="352" y="496" width="130" height="110" />
+        <bpmndi:BPMNLabel>
+          <dc:Bounds x="403" y="583" width="28" height="14" />
+        </bpmndi:BPMNLabel>
+      </bpmndi:BPMNShape>
     </bpmndi:BPMNPlane>
   </bpmndi:BPMNDiagram>
 </bpmn:definitions>
diff --git a/test/spec/features/modeling/behavior/LabelBehaviorSpec.js b/test/spec/features/modeling/behavior/LabelBehaviorSpec.js
index 8a2bf224..47821346 100644
--- a/test/spec/features/modeling/behavior/LabelBehaviorSpec.js
+++ b/test/spec/features/modeling/behavior/LabelBehaviorSpec.js
@@ -5,6 +5,14 @@ import {
   inject
 } from 'test/TestHelper';
 
+import {
+  resizeBounds
+} from 'diagram-js/lib/features/resize/ResizeUtil';
+
+import {
+  pick
+} from 'min-dash';
+
 import modelingModule from 'lib/features/modeling';
 import coreModule from 'lib/core';
 
@@ -370,4 +378,251 @@ describe('behavior - LabelBehavior', function() {
 
   });
 
+
+  describe('resize label target', function() {
+
+    describe('should move label (outside)', function() {
+
+      it('to the top', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_2'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'se', {
+            x: 0,
+            y: -50
+          })
+        );
+
+        // then
+        expect(label.x).to.equal(labelBounds.x);
+        expect(label.y).to.be.below(labelBounds.y);
+
+      }));
+
+
+      it('to the right', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_1'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'se', {
+            x: 50,
+            y: 0
+          })
+        );
+
+        // then
+        expect(label.x).to.be.above(labelBounds.x);
+        expect(label.y).to.equal(labelBounds.y);
+
+      }));
+
+
+      it('to the bottom', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_2'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'se', {
+            x: 0,
+            y: 50
+          })
+        );
+
+        // then
+        expect(label.x).to.equal(labelBounds.x);
+        expect(label.y).to.be.above(labelBounds.y);
+
+      }));
+
+
+      it('to the left', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_3'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'sw', {
+            x: -50,
+            y: 0
+          })
+        );
+
+        // then
+        expect(label.x).to.be.below(labelBounds.x);
+        expect(label.y).to.equal(labelBounds.y);
+
+      }));
+
+
+      it('NOT if reference point not affected', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_2'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'ne', {
+            x: 0,
+            y: -50
+          })
+        );
+
+        // then
+        expect(getBounds(label)).to.eql(labelBounds);
+
+      }));
+
+    });
+
+
+    describe('should move label (inside)', function() {
+
+      it('to the top', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_4'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'nw', {
+            x: 0,
+            y: -50
+          })
+        );
+
+        // then
+        expect(label.x).to.equal(labelBounds.x);
+        expect(label.y).to.be.below(labelBounds.y);
+
+      }));
+
+
+      it('to the right', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_4'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'ne', {
+            x: 50,
+            y: 0
+          })
+        );
+
+        // then
+        expect(label.x).to.be.above(labelBounds.x);
+        expect(label.y).to.equal(labelBounds.y);
+
+      }));
+
+
+      it('to the bottom', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_5'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'sw', {
+            x: 0,
+            y: 50
+          })
+        );
+
+        // then
+        expect(label.x).to.equal(labelBounds.x);
+        expect(label.y).to.be.above(labelBounds.y);
+
+      }));
+
+
+
+      it('to the left', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_4'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'sw', {
+            x: -50,
+            y: 0
+          })
+        );
+
+        // then
+        expect(label.x).to.be.below(labelBounds.x);
+        expect(label.y).to.equal(labelBounds.y);
+
+      }));
+
+
+      it('NOT if reference point not affected', inject(function(elementRegistry, modeling) {
+
+        // given
+        var groupShape = elementRegistry.get('Group_4'),
+            label = groupShape.label,
+            labelBounds = getBounds(label);
+
+        // when
+        modeling.resizeShape(
+          groupShape,
+          resizeBounds(groupShape, 'se', {
+            x: 0,
+            y: 50
+          })
+        );
+
+        // then
+        expect(getBounds(label)).to.eql(labelBounds);
+
+      }));
+
+    });
+
+  });
+
 });
+
+// helper //////////
+
+function getBounds(element) {
+  return pick(element, [ 'x', 'y', 'width', 'height' ]);
+}