diff --git a/bundle/config/mutator/process_target_mode.go b/bundle/config/mutator/process_target_mode.go
index 592e3612cf..e57509452e 100644
--- a/bundle/config/mutator/process_target_mode.go
+++ b/bundle/config/mutator/process_target_mode.go
@@ -70,7 +70,7 @@ func transformDevelopmentMode(b *bundle.Bundle) error {
 
 	for i := range r.Models {
 		r.Models[i].Name = prefix + r.Models[i].Name
-		r.Models[i].Tags = append(r.Models[i].Tags, ml.ModelTag{Key: "dev", Value: ""})
+		r.Models[i].Tags = append(r.Models[i].Tags, ml.ModelTag{Key: "dev", Value: tagValue})
 	}
 
 	for i := range r.Experiments {
diff --git a/bundle/config/mutator/process_target_mode_test.go b/bundle/config/mutator/process_target_mode_test.go
index 6d80258039..a5f61284c7 100644
--- a/bundle/config/mutator/process_target_mode_test.go
+++ b/bundle/config/mutator/process_target_mode_test.go
@@ -138,6 +138,7 @@ func TestProcessTargetModeDevelopment(t *testing.T) {
 
 	// Model 1
 	assert.Equal(t, "[dev lennart] model1", b.Config.Resources.Models["model1"].Name)
+	assert.Contains(t, b.Config.Resources.Models["model1"].Tags, ml.ModelTag{Key: "dev", Value: "lennart"})
 
 	// Model serving endpoint 1
 	assert.Equal(t, "dev_lennart_servingendpoint1", b.Config.Resources.ModelServingEndpoints["servingendpoint1"].Name)