diff --git a/controllers/api/v1alpha1/cfserviceinstance_types.go b/controllers/api/v1alpha1/cfserviceinstance_types.go
index 529f7d076..f1b330207 100644
--- a/controllers/api/v1alpha1/cfserviceinstance_types.go
+++ b/controllers/api/v1alpha1/cfserviceinstance_types.go
@@ -47,7 +47,8 @@ type CFServiceInstanceSpec struct {
 	Type InstanceType `json:"type"`
 
 	// Service label to use when adding this instance to VCAP_SERVICES. If not
-	// set, the service instance Type would be used.
+	// set, the service instance Type would be used. For managed services the
+	// value is defaulted to the offering name
 	// +optional
 	ServiceLabel *string `json:"serviceLabel,omitempty"`
 
diff --git a/controllers/controllers/services/instances/managed/controller.go b/controllers/controllers/services/instances/managed/controller.go
index 8a4c7a19a..33e5180ef 100644
--- a/controllers/controllers/services/instances/managed/controller.go
+++ b/controllers/controllers/services/instances/managed/controller.go
@@ -24,6 +24,7 @@ import (
 
 	korifiv1alpha1 "code.cloudfoundry.org/korifi/controllers/api/v1alpha1"
 	"code.cloudfoundry.org/korifi/controllers/controllers/services/osbapi"
+	"code.cloudfoundry.org/korifi/tools"
 	"code.cloudfoundry.org/korifi/tools/k8s"
 
 	"github.com/go-logr/logr"
@@ -121,6 +122,10 @@ func (r *Reconciler) ReconcileResource(ctx context.Context, serviceInstance *kor
 		return ctrl.Result{}, err
 	}
 
+	if serviceInstance.Spec.ServiceLabel == nil {
+		serviceInstance.Spec.ServiceLabel = tools.PtrTo(serviceOffering.Spec.Name)
+	}
+
 	osbapiClient, err := r.osbapiClientFactory.CreateClient(ctx, serviceBroker)
 	if err != nil {
 		log.Error(err, "failed to create broker client", "broker", serviceBroker.Name)
diff --git a/controllers/controllers/services/instances/managed/controller_test.go b/controllers/controllers/services/instances/managed/controller_test.go
index b9774763a..fd352791a 100644
--- a/controllers/controllers/services/instances/managed/controller_test.go
+++ b/controllers/controllers/services/instances/managed/controller_test.go
@@ -12,9 +12,11 @@ import (
 	"code.cloudfoundry.org/korifi/controllers/controllers/services/osbapi/fake"
 	"code.cloudfoundry.org/korifi/model/services"
 	. "code.cloudfoundry.org/korifi/tests/matchers"
+	"code.cloudfoundry.org/korifi/tools"
 	"code.cloudfoundry.org/korifi/tools/k8s"
 	. "github.com/onsi/ginkgo/v2"
 	. "github.com/onsi/gomega"
+	. "github.com/onsi/gomega/gstruct"
 	corev1 "k8s.io/api/core/v1"
 	k8serrors "k8s.io/apimachinery/pkg/api/errors"
 	"k8s.io/apimachinery/pkg/api/meta"
@@ -79,6 +81,7 @@ var _ = Describe("CFServiceInstance", func() {
 			},
 			Spec: korifiv1alpha1.CFServiceOfferingSpec{
 				ServiceOffering: services.ServiceOffering{
+					Name: "service-offering-name",
 					BrokerCatalog: services.ServiceBrokerCatalog{
 						ID: "service-offering-id",
 					},
@@ -152,6 +155,28 @@ var _ = Describe("CFServiceInstance", func() {
 		}).Should(Succeed())
 	})
 
+	It("defaults the service label to the service offering name", func() {
+		Eventually(func(g Gomega) {
+			g.Expect(adminClient.Get(ctx, client.ObjectKeyFromObject(instance), instance)).To(Succeed())
+			g.Expect(instance.Spec.ServiceLabel).To(PointTo(Equal("service-offering-name")))
+		}).Should(Succeed())
+	})
+
+	When("the service label is set", func() {
+		BeforeEach(func() {
+			Expect(k8s.Patch(ctx, adminClient, instance, func() {
+				instance.Spec.ServiceLabel = tools.PtrTo("custom-service-label")
+			})).To(Succeed())
+		})
+
+		It("does not override it", func() {
+			Consistently(func(g Gomega) {
+				g.Expect(adminClient.Get(ctx, client.ObjectKeyFromObject(instance), instance)).To(Succeed())
+				g.Expect(instance.Spec.ServiceLabel).To(PointTo(Equal("custom-service-label")))
+			}).Should(Succeed())
+		})
+	})
+
 	It("provisions the service", func() {
 		Eventually(func(g Gomega) {
 			g.Expect(brokerClient.ProvisionCallCount()).To(Equal(1))
diff --git a/controllers/controllers/services/instances/managed/suite_test.go b/controllers/controllers/services/instances/managed/suite_test.go
index b3a626302..4d0ad2303 100644
--- a/controllers/controllers/services/instances/managed/suite_test.go
+++ b/controllers/controllers/services/instances/managed/suite_test.go
@@ -56,6 +56,8 @@ var (
 func TestAPIs(t *testing.T) {
 	SetDefaultEventuallyTimeout(30 * time.Second)
 	SetDefaultEventuallyPollingInterval(250 * time.Millisecond)
+	SetDefaultConsistentlyDuration(5 * time.Second)
+	SetDefaultConsistentlyPollingInterval(250 * time.Millisecond)
 
 	RegisterFailHandler(Fail)
 	RunSpecs(t, "Services Instance Controller Integration Suite")
diff --git a/helm/korifi/controllers/crds/korifi.cloudfoundry.org_cfserviceinstances.yaml b/helm/korifi/controllers/crds/korifi.cloudfoundry.org_cfserviceinstances.yaml
index 7750bc9c5..b0c48f3c9 100644
--- a/helm/korifi/controllers/crds/korifi.cloudfoundry.org_cfserviceinstances.yaml
+++ b/helm/korifi/controllers/crds/korifi.cloudfoundry.org_cfserviceinstances.yaml
@@ -62,7 +62,8 @@ spec:
               serviceLabel:
                 description: |-
                   Service label to use when adding this instance to VCAP_SERVICES. If not
-                  set, the service instance Type would be used.
+                  set, the service instance Type would be used. For managed services the
+                  value is defaulted to the offering name
                 type: string
               tags:
                 description: Tags are used by apps to identify service instances