diff --git a/app/Http/Controllers/Api/ServicesController.php b/app/Http/Controllers/Api/ServicesController.php
index b4fe4e47b..32097443e 100644
--- a/app/Http/Controllers/Api/ServicesController.php
+++ b/app/Http/Controllers/Api/ServicesController.php
@@ -222,6 +222,7 @@ public function services(Request $request)
                             ),
                         ],
                         'force_domain_override' => ['type' => 'boolean', 'default' => false, 'description' => 'Force domain override even if conflicts are detected.'],
+                        'is_container_label_escape_enabled' => ['type' => 'boolean', 'default' => true, 'description' => 'Escape special characters in labels. By default, $ (and other chars) is escaped. If you want to use env variables inside the labels, turn this off.'],
                     ],
                 ),
             ),
@@ -288,7 +289,7 @@ public function services(Request $request)
     )]
     public function create_service(Request $request)
     {
-        $allowedFields = ['type', 'name', 'description', 'project_uuid', 'environment_name', 'environment_uuid', 'server_uuid', 'destination_uuid', 'instant_deploy', 'docker_compose_raw', 'urls', 'force_domain_override'];
+        $allowedFields = ['type', 'name', 'description', 'project_uuid', 'environment_name', 'environment_uuid', 'server_uuid', 'destination_uuid', 'instant_deploy', 'docker_compose_raw', 'urls', 'force_domain_override', 'is_container_label_escape_enabled'];
 
         $teamId = getTeamIdFromToken();
         if (is_null($teamId)) {
@@ -317,6 +318,7 @@ public function create_service(Request $request)
             'urls.*.name' => 'string|required',
             'urls.*.url' => 'string|nullable',
             'force_domain_override' => 'boolean',
+            'is_container_label_escape_enabled' => 'boolean',
         ];
         $validationMessages = [
             'urls.*.array' => 'An item in the urls array has invalid fields. Only name and url fields are supported.',
@@ -429,6 +431,9 @@ public function create_service(Request $request)
                 $service = Service::create($servicePayload);
                 $service->name = $request->name ?? "$oneClickServiceName-".$service->uuid;
                 $service->description = $request->description;
+                if ($request->has('is_container_label_escape_enabled')) {
+                    $service->is_container_label_escape_enabled = $request->boolean('is_container_label_escape_enabled');
+                }
                 $service->save();
                 if ($oneClickDotEnvs?->count() > 0) {
                     $oneClickDotEnvs->each(function ($value) use ($service) {
@@ -485,7 +490,7 @@ public function create_service(Request $request)
 
             return response()->json(['message' => 'Service not found.', 'valid_service_types' => $serviceKeys], 404);
         } elseif (filled($request->docker_compose_raw)) {
-            $allowedFields = ['name', 'description', 'project_uuid', 'environment_name', 'environment_uuid', 'server_uuid', 'destination_uuid', 'instant_deploy', 'docker_compose_raw', 'connect_to_docker_network', 'urls', 'force_domain_override'];
+            $allowedFields = ['name', 'description', 'project_uuid', 'environment_name', 'environment_uuid', 'server_uuid', 'destination_uuid', 'instant_deploy', 'docker_compose_raw', 'connect_to_docker_network', 'urls', 'force_domain_override', 'is_container_label_escape_enabled'];
 
             $validationRules = [
                 'project_uuid' => 'string|required',
@@ -503,6 +508,7 @@ public function create_service(Request $request)
                 'urls.*.name' => 'string|required',
                 'urls.*.url' => 'string|nullable',
                 'force_domain_override' => 'boolean',
+                'is_container_label_escape_enabled' => 'boolean',
             ];
             $validationMessages = [
                 'urls.*.array' => 'An item in the urls array has invalid fields. Only name and url fields are supported.',
@@ -609,6 +615,9 @@ public function create_service(Request $request)
             $service->destination_id = $destination->id;
             $service->destination_type = $destination->getMorphClass();
             $service->connect_to_docker_network = $connectToDockerNetwork;
+            if ($request->has('is_container_label_escape_enabled')) {
+                $service->is_container_label_escape_enabled = $request->boolean('is_container_label_escape_enabled');
+            }
             $service->save();
 
             $service->parse(isNew: true);
@@ -835,6 +844,7 @@ public function delete_by_uuid(Request $request)
                                 ),
                             ],
                             'force_domain_override' => ['type' => 'boolean', 'default' => false, 'description' => 'Force domain override even if conflicts are detected.'],
+                            'is_container_label_escape_enabled' => ['type' => 'boolean', 'default' => true, 'description' => 'Escape special characters in labels. By default, $ (and other chars) is escaped. If you want to use env variables inside the labels, turn this off.'],
                         ],
                     )
                 ),
@@ -923,7 +933,7 @@ public function update_by_uuid(Request $request)
 
         $this->authorize('update', $service);
 
-        $allowedFields = ['name', 'description', 'instant_deploy', 'docker_compose_raw', 'connect_to_docker_network', 'urls', 'force_domain_override'];
+        $allowedFields = ['name', 'description', 'instant_deploy', 'docker_compose_raw', 'connect_to_docker_network', 'urls', 'force_domain_override', 'is_container_label_escape_enabled'];
 
         $validationRules = [
             'name' => 'string|max:255',
@@ -936,6 +946,7 @@ public function update_by_uuid(Request $request)
             'urls.*.name' => 'string|required',
             'urls.*.url' => 'string|nullable',
             'force_domain_override' => 'boolean',
+            'is_container_label_escape_enabled' => 'boolean',
         ];
         $validationMessages = [
             'urls.*.array' => 'An item in the urls array has invalid fields. Only name and url fields are supported.',
@@ -1001,6 +1012,9 @@ public function update_by_uuid(Request $request)
         if ($request->has('connect_to_docker_network')) {
             $service->connect_to_docker_network = $request->connect_to_docker_network;
         }
+        if ($request->has('is_container_label_escape_enabled')) {
+            $service->is_container_label_escape_enabled = $request->boolean('is_container_label_escape_enabled');
+        }
         $service->save();
 
         $service->parse();
diff --git a/tests/Feature/ServiceContainerLabelEscapeApiTest.php b/tests/Feature/ServiceContainerLabelEscapeApiTest.php
new file mode 100644
index 000000000..895d776f0
--- /dev/null
+++ b/tests/Feature/ServiceContainerLabelEscapeApiTest.php
@@ -0,0 +1,75 @@
+<?php
+
+use App\Models\InstanceSettings;
+use App\Models\Project;
+use App\Models\Server;
+use App\Models\Service;
+use App\Models\StandaloneDocker;
+use App\Models\Team;
+use App\Models\User;
+use Illuminate\Foundation\Testing\RefreshDatabase;
+
+uses(RefreshDatabase::class);
+
+beforeEach(function () {
+    InstanceSettings::create(['id' => 0, 'is_api_enabled' => true]);
+
+    $this->team = Team::factory()->create();
+    $this->user = User::factory()->create();
+    $this->team->members()->attach($this->user->id, ['role' => 'owner']);
+
+    session(['currentTeam' => $this->team]);
+
+    $this->token = $this->user->createToken('test-token', ['*']);
+    $this->bearerToken = $this->token->plainTextToken;
+
+    $this->server = Server::factory()->create(['team_id' => $this->team->id]);
+    $this->destination = StandaloneDocker::where('server_id', $this->server->id)->first();
+    $this->project = Project::factory()->create(['team_id' => $this->team->id]);
+    $this->environment = $this->project->environments()->first();
+});
+
+function serviceContainerLabelAuthHeaders($bearerToken): array
+{
+    return [
+        'Authorization' => 'Bearer '.$bearerToken,
+        'Content-Type' => 'application/json',
+    ];
+}
+
+describe('PATCH /api/v1/services/{uuid}', function () {
+    test('accepts is_container_label_escape_enabled field', function () {
+        $service = Service::factory()->create([
+            'server_id' => $this->server->id,
+            'destination_id' => $this->destination->id,
+            'destination_type' => $this->destination->getMorphClass(),
+            'environment_id' => $this->environment->id,
+        ]);
+
+        $response = $this->withHeaders(serviceContainerLabelAuthHeaders($this->bearerToken))
+            ->patchJson("/api/v1/services/{$service->uuid}", [
+                'is_container_label_escape_enabled' => false,
+            ]);
+
+        $response->assertStatus(200);
+
+        $service->refresh();
+        expect($service->is_container_label_escape_enabled)->toBeFalse();
+    });
+
+    test('rejects invalid is_container_label_escape_enabled value', function () {
+        $service = Service::factory()->create([
+            'server_id' => $this->server->id,
+            'destination_id' => $this->destination->id,
+            'destination_type' => $this->destination->getMorphClass(),
+            'environment_id' => $this->environment->id,
+        ]);
+
+        $response = $this->withHeaders(serviceContainerLabelAuthHeaders($this->bearerToken))
+            ->patchJson("/api/v1/services/{$service->uuid}", [
+                'is_container_label_escape_enabled' => 'not-a-boolean',
+            ]);
+
+        $response->assertStatus(422);
+    });
+});