diff --git a/asm/labels.c b/asm/labels.c
index b375ce555..9a5fd5d25 100644
--- a/asm/labels.c
+++ b/asm/labels.c
@@ -210,6 +210,9 @@ static union label *find_label(const char *label, bool create, bool *created)
     if (lptr || !create) {
         if (created)
             *created = false;
+        if (label_str)
+            nasm_free(label_str);
+
         return lptr;
     }