diff --git a/data/transactions/logic/assembler.go b/data/transactions/logic/assembler.go
index ddadd606d0..29569e9542 100644
--- a/data/transactions/logic/assembler.go
+++ b/data/transactions/logic/assembler.go
@@ -1254,9 +1254,12 @@ func disBnz(dis *disassembleState) {
 	dis.nextpc = dis.pc + 3
 	offset := (uint(dis.program[dis.pc+1]) << 8) | uint(dis.program[dis.pc+2])
 	target := int(offset) + dis.pc + 3
-	dis.labelCount++
-	label := fmt.Sprintf("label%d", dis.labelCount)
-	dis.putLabel(label, target)
+	label, labelExists := dis.pendingLabels[target]
+	if !labelExists {
+		dis.labelCount++
+		label = fmt.Sprintf("label%d", dis.labelCount)
+		dis.putLabel(label, target)
+	}
 	_, dis.err = fmt.Fprintf(dis.out, "bnz %s\n", label)
 }
 
diff --git a/data/transactions/logic/assembler_test.go b/data/transactions/logic/assembler_test.go
index 584b6b03e4..7888cc3810 100644
--- a/data/transactions/logic/assembler_test.go
+++ b/data/transactions/logic/assembler_test.go
@@ -270,16 +270,19 @@ len
 arg 5
 len
 +
+bnz label1
 global MinTxnFee
 global MinBalance
 global MaxTxnLife
 txn Sender
 txn Fee
+bnz label1
 txn FirstValid
 txn LastValid
 txn Note
 txn Receiver
 txn Amount
+label1:
 txn CloseRemainderTo
 txn VotePK
 txn SelectionPK