diff --git a/CHANGELOG.md b/CHANGELOG.md
index e25a3e485866..4a91834c25d4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -114,6 +114,13 @@ our [guidelines for writing a good changelog entry](https://github.com/biomejs/b
   }
 }
 ```
+- Fix [#3410](https://github.com/biomejs/biome/issues/3410) by correctly parsing break statements containing keywords. 
+  ```js
+  out: while (true) {
+    break out;
+  }
+  ```
+  Contributed by @ah-yu
 
 ## v1.8.3 (2024-06-27)
 
diff --git a/crates/biome_js_parser/src/syntax/stmt.rs b/crates/biome_js_parser/src/syntax/stmt.rs
index 6d18214e32e7..ff6393dd6aae 100644
--- a/crates/biome_js_parser/src/syntax/stmt.rs
+++ b/crates/biome_js_parser/src/syntax/stmt.rs
@@ -582,6 +582,9 @@ fn parse_throw_statement(p: &mut JsParser) -> ParsedSyntax {
 //    break foo;
 //   }
 // }
+// out: while (true) {
+//   break out;
+// }
 
 // test_err js break_stmt
 // function foo() { break; }
@@ -598,7 +601,7 @@ fn parse_break_statement(p: &mut JsParser) -> ParsedSyntax {
     let start = p.cur_range();
     p.expect(T![break]); // break keyword
 
-    let error = if !p.has_preceding_line_break() && p.at(T![ident]) {
+    let error = if !p.has_preceding_line_break() && is_at_identifier(p) {
         let label_name = p.cur_text();
 
         let error = match p.state().get_labelled_item(label_name) {
diff --git a/crates/biome_js_parser/test_data/inline/ok/break_stmt.js b/crates/biome_js_parser/test_data/inline/ok/break_stmt.js
index 1421378a30d3..eb0b6fb1009e 100644
--- a/crates/biome_js_parser/test_data/inline/ok/break_stmt.js
+++ b/crates/biome_js_parser/test_data/inline/ok/break_stmt.js
@@ -4,3 +4,6 @@ while (true) {
    break foo;
   }
 }
+out: while (true) {
+  break out;
+}
diff --git a/crates/biome_js_parser/test_data/inline/ok/break_stmt.rast b/crates/biome_js_parser/test_data/inline/ok/break_stmt.rast
index 1c6c5bdd973a..cd20c58bc99f 100644
--- a/crates/biome_js_parser/test_data/inline/ok/break_stmt.rast
+++ b/crates/biome_js_parser/test_data/inline/ok/break_stmt.rast
@@ -41,15 +41,42 @@ JsModule {
                 r_curly_token: R_CURLY@50..52 "}" [Newline("\n")] [],
             },
         },
+        JsLabeledStatement {
+            label: JsLabel {
+                value_token: IDENT@52..56 "out" [Newline("\n")] [],
+            },
+            colon_token: COLON@56..58 ":" [] [Whitespace(" ")],
+            body: JsWhileStatement {
+                while_token: WHILE_KW@58..64 "while" [] [Whitespace(" ")],
+                l_paren_token: L_PAREN@64..65 "(" [] [],
+                test: JsBooleanLiteralExpression {
+                    value_token: TRUE_KW@65..69 "true" [] [],
+                },
+                r_paren_token: R_PAREN@69..71 ")" [] [Whitespace(" ")],
+                body: JsBlockStatement {
+                    l_curly_token: L_CURLY@71..72 "{" [] [],
+                    statements: JsStatementList [
+                        JsBreakStatement {
+                            break_token: BREAK_KW@72..81 "break" [Newline("\n"), Whitespace("  ")] [Whitespace(" ")],
+                            label: JsLabel {
+                                value_token: IDENT@81..84 "out" [] [],
+                            },
+                            semicolon_token: SEMICOLON@84..85 ";" [] [],
+                        },
+                    ],
+                    r_curly_token: R_CURLY@85..87 "}" [Newline("\n")] [],
+                },
+            },
+        },
     ],
-    eof_token: EOF@52..53 "" [Newline("\n")] [],
+    eof_token: EOF@87..88 "" [Newline("\n")] [],
 }
 
-0: JS_MODULE@0..53
+0: JS_MODULE@0..88
   0: (empty)
   1: (empty)
   2: JS_DIRECTIVE_LIST@0..0
-  3: JS_MODULE_ITEM_LIST@0..52
+  3: JS_MODULE_ITEM_LIST@0..87
     0: JS_WHILE_STATEMENT@0..52
       0: WHILE_KW@0..6 "while" [] [Whitespace(" ")]
       1: L_PAREN@6..7 "(" [] []
@@ -77,4 +104,23 @@ JsModule {
                   2: SEMICOLON@45..46 ";" [] []
               2: R_CURLY@46..50 "}" [Newline("\n"), Whitespace("  ")] []
         2: R_CURLY@50..52 "}" [Newline("\n")] []
-  4: EOF@52..53 "" [Newline("\n")] []
+    1: JS_LABELED_STATEMENT@52..87
+      0: JS_LABEL@52..56
+        0: IDENT@52..56 "out" [Newline("\n")] []
+      1: COLON@56..58 ":" [] [Whitespace(" ")]
+      2: JS_WHILE_STATEMENT@58..87
+        0: WHILE_KW@58..64 "while" [] [Whitespace(" ")]
+        1: L_PAREN@64..65 "(" [] []
+        2: JS_BOOLEAN_LITERAL_EXPRESSION@65..69
+          0: TRUE_KW@65..69 "true" [] []
+        3: R_PAREN@69..71 ")" [] [Whitespace(" ")]
+        4: JS_BLOCK_STATEMENT@71..87
+          0: L_CURLY@71..72 "{" [] []
+          1: JS_STATEMENT_LIST@72..85
+            0: JS_BREAK_STATEMENT@72..85
+              0: BREAK_KW@72..81 "break" [Newline("\n"), Whitespace("  ")] [Whitespace(" ")]
+              1: JS_LABEL@81..84
+                0: IDENT@81..84 "out" [] []
+              2: SEMICOLON@84..85 ";" [] []
+          2: R_CURLY@85..87 "}" [Newline("\n")] []
+  4: EOF@87..88 "" [Newline("\n")] []