diff --git a/source/extensions/stat_sinks/metrics_service/config.cc b/source/extensions/stat_sinks/metrics_service/config.cc
index a711335b01f75..ad34c75e63056 100644
--- a/source/extensions/stat_sinks/metrics_service/config.cc
+++ b/source/extensions/stat_sinks/metrics_service/config.cc
@@ -38,8 +38,9 @@ MetricsServiceSinkFactory::createStatsSink(const Protobuf::Message& config,
 
   return std::make_unique<MetricsServiceSink<envoy::service::metrics::v3::StreamMetricsMessage,
                                              envoy::service::metrics::v3::StreamMetricsResponse>>(
-      grpc_metrics_streamer, sink_config.emit_tags_as_labels(),
-      PROTOBUF_GET_WRAPPED_OR_DEFAULT(sink_config, report_counters_as_deltas, false));
+      grpc_metrics_streamer,
+      PROTOBUF_GET_WRAPPED_OR_DEFAULT(sink_config, report_counters_as_deltas, false),
+      sink_config.emit_tags_as_labels());
 }
 
 ProtobufTypes::MessagePtr MetricsServiceSinkFactory::createEmptyConfigProto() {
diff --git a/test/extensions/stats_sinks/metrics_service/grpc_metrics_service_impl_test.cc b/test/extensions/stats_sinks/metrics_service/grpc_metrics_service_impl_test.cc
index 769983b8e1437..dd83b5d695b6d 100644
--- a/test/extensions/stats_sinks/metrics_service/grpc_metrics_service_impl_test.cc
+++ b/test/extensions/stats_sinks/metrics_service/grpc_metrics_service_impl_test.cc
@@ -9,6 +9,8 @@
 #include "test/mocks/thread_local/mocks.h"
 #include "test/test_common/simulated_time_system.h"
 
+#include "io/prometheus/client/metrics.pb.h"
+
 using namespace std::chrono_literals;
 using testing::_;
 using testing::InSequence;
@@ -186,17 +188,43 @@ TEST_F(MetricsServiceSinkTest, ReportCountersValues) {
 
 // Test that verifies counters are reported as the delta between flushes when configured to do so.
 TEST_F(MetricsServiceSinkTest, ReportCountersAsDeltas) {
-  MetricsServiceSink<envoy::service::metrics::v3::StreamMetricsMessage,
-                     envoy::service::metrics::v3::StreamMetricsResponse>
-      sink(streamer_, true, false);
-
   addCounterToSnapshot("test_counter", 1, 100);
+  counter_storage_.back()->setTagExtractedName("tag-counter-name");
+  counter_storage_.back()->setTags({{"a", "b"}});
 
-  EXPECT_CALL(*streamer_, send(_)).WillOnce(Invoke([](MetricsPtr&& metrics) {
-    EXPECT_EQ(1, metrics->size());
-    EXPECT_EQ(1, (*metrics)[0].metric(0).counter().value());
-  }));
-  sink.flush(snapshot_);
+  {
+    // This test won't emit any labels.
+    MetricsServiceSink<envoy::service::metrics::v3::StreamMetricsMessage,
+                       envoy::service::metrics::v3::StreamMetricsResponse>
+        sink(streamer_, true, false);
+
+    EXPECT_CALL(*streamer_, send(_)).WillOnce(Invoke([](MetricsPtr&& metrics) {
+      ASSERT_EQ(1, metrics->size());
+      EXPECT_EQ("test_counter", (*metrics)[0].name());
+
+      const auto& metric = (*metrics)[0].metric(0);
+      EXPECT_EQ(1, metric.counter().value());
+      EXPECT_EQ(0, metric.label().size());
+    }));
+    sink.flush(snapshot_);
+  }
+
+  {
+    // This test will emit labels.
+    MetricsServiceSink<envoy::service::metrics::v3::StreamMetricsMessage,
+                       envoy::service::metrics::v3::StreamMetricsResponse>
+        sink(streamer_, true, true);
+
+    EXPECT_CALL(*streamer_, send(_)).WillOnce(Invoke([](MetricsPtr&& metrics) {
+      ASSERT_EQ(1, metrics->size());
+      EXPECT_EQ("tag-counter-name", (*metrics)[0].name());
+
+      const auto& metric = (*metrics)[0].metric(0);
+      EXPECT_EQ(1, metric.counter().value());
+      EXPECT_EQ(1, metric.label().size());
+    }));
+    sink.flush(snapshot_);
+  }
 }
 
 // Test the behavior of tag emission based on the emit_tags_as_label flag.
@@ -217,7 +245,7 @@ TEST_F(MetricsServiceSinkTest, ReportMetricsWithTags) {
     // When the emit_tags flag is false, we don't emit the tags and use the full name.
     MetricsServiceSink<envoy::service::metrics::v3::StreamMetricsMessage,
                        envoy::service::metrics::v3::StreamMetricsResponse>
-        sink(streamer_, true, false);
+        sink(streamer_, false, false);
 
     EXPECT_CALL(*streamer_, send(_)).WillOnce(Invoke([](MetricsPtr&& metrics) {
       EXPECT_EQ(4, metrics->size());
@@ -244,7 +272,7 @@ TEST_F(MetricsServiceSinkTest, ReportMetricsWithTags) {
   // When the emit_tags flag is true, we emit the tags as labels and use the tag extracted name.
   MetricsServiceSink<envoy::service::metrics::v3::StreamMetricsMessage,
                      envoy::service::metrics::v3::StreamMetricsResponse>
-      sink(streamer_, true, true);
+      sink(streamer_, false, true);
 
   EXPECT_CALL(*streamer_, send(_)).WillOnce(Invoke([&expected_label_pair](MetricsPtr&& metrics) {
     EXPECT_EQ(4, metrics->size());