diff --git a/bgpd/bgp_labelpool.c b/bgpd/bgp_labelpool.c
index 03987b6bbf..46443d9d18 100644
--- a/bgpd/bgp_labelpool.c
+++ b/bgpd/bgp_labelpool.c
@@ -494,8 +494,18 @@ void bgp_lp_release(
 				bf_release_index(chunk->allocated_map, index);
 				chunk->nfree += 1;
 				deallocated = true;
+				break;
 			}
 			assert(deallocated);
+			if (deallocated &&
+			    chunk->nfree == chunk->last - chunk->first + 1 &&
+			    lp_fifo_count(&lp->requests) == 0) {
+				bgp_zebra_release_label_range(chunk->first,
+							      chunk->last);
+				list_delete_node(lp->chunks, node);
+				lp_chunk_free(chunk);
+				lp->next_chunksize = LP_CHUNK_SIZE_MIN;
+			}
 		}
 	}
 }