diff --git a/Composer/packages/lib/code-editor/src/lu/InsertEntityButton.tsx b/Composer/packages/lib/code-editor/src/lu/InsertEntityButton.tsx
index 2c680ad5d6..6541441b4a 100644
--- a/Composer/packages/lib/code-editor/src/lu/InsertEntityButton.tsx
+++ b/Composer/packages/lib/code-editor/src/lu/InsertEntityButton.tsx
@@ -53,26 +53,18 @@ export const InsertEntityButton = React.memo((props: Props) => {
     [onInsertEntity]
   );
 
-  const { menuProps, noEntities } = useLabelingMenuProps(labelingMenuVisible ? 'disable' : 'none', luFile, itemClick, {
-    menuHeaderText: labelingMenuVisible ? formatMessage('Tag entity') : undefined,
-  });
+  const { menuProps, noEntities } = useLabelingMenuProps(labelingMenuVisible ? 'disable' : 'none', luFile, itemClick);
 
-  const mode = React.useMemo(() => (labelingMenuVisible ? 'tag' : 'insert'), [labelingMenuVisible]);
-  const disabled = React.useMemo(
-    () => noEntities || (mode === 'tag' && tagEntityDisabled) || (mode === 'insert' && insertEntityDisabled),
-    [mode, noEntities, insertEntityDisabled, tagEntityDisabled]
-  );
+  const disabled = React.useMemo(() => noEntities || insertEntityDisabled || labelingMenuVisible, [
+    noEntities,
+    insertEntityDisabled,
+    tagEntityDisabled,
+    labelingMenuVisible,
+  ]);
 
-  const { iconName, text } = React.useMemo(
-    () => getLuToolbarItemTextAndIcon(labelingMenuVisible ? 'tagEntity' : 'useEntity'),
-    [labelingMenuVisible]
-  );
+  const { iconName, text } = React.useMemo(() => getLuToolbarItemTextAndIcon('useEntity'), []);
 
-  const CommandBarButton = React.useMemo(
-    () =>
-      getCommandBarButton(labelingMenuVisible ? formatMessage('Tag entity') : formatMessage('Insert defined entity')),
-    [labelingMenuVisible]
-  );
+  const CommandBarButton = React.useMemo(() => getCommandBarButton(formatMessage('Insert defined entity')), []);
 
   return (
     <CommandBarButton
diff --git a/Composer/packages/lib/code-editor/src/lu/LuLabelingMenu.tsx b/Composer/packages/lib/code-editor/src/lu/LuLabelingMenu.tsx
index 5ee16f0533..cd7b796bd5 100644
--- a/Composer/packages/lib/code-editor/src/lu/LuLabelingMenu.tsx
+++ b/Composer/packages/lib/code-editor/src/lu/LuLabelingMenu.tsx
@@ -87,7 +87,7 @@ export const LuLabelingMenu = ({ editor, luFile, onMenuToggled, onInsertEntity }
   );
 
   const { menuProps, noEntities } = useLabelingMenuProps('filter', luFile, itemClick, {
-    menuHeaderText: formatMessage('Tag entity'),
+    menuHeaderText: formatMessage('Label entity'),
   });
 
   return menuTargetElm && !noEntities ? (
diff --git a/Composer/packages/lib/code-editor/src/lu/__test__/InsertEntityButton.test.tsx b/Composer/packages/lib/code-editor/src/lu/__test__/InsertEntityButton.test.tsx
index 998b2858c6..51fc8645fa 100644
--- a/Composer/packages/lib/code-editor/src/lu/__test__/InsertEntityButton.test.tsx
+++ b/Composer/packages/lib/code-editor/src/lu/__test__/InsertEntityButton.test.tsx
@@ -88,29 +88,4 @@ describe('<InsertEntityButton />', () => {
 
     expect((await screen.findAllByText(/.*target.*/)).length).toBe(1);
   });
-
-  it('Should disable non-ml entities when labeling menu is visible', async () => {
-    const container = render(
-      <InsertEntityButton
-        insertEntityDisabled
-        labelingMenuVisible
-        luFile={luFile}
-        tagEntityDisabled={false}
-        onInsertEntity={jest.fn()}
-      />
-    );
-
-    fireEvent.click(screen.getByTestId('menuButton'));
-    const elms = container.getAllByText('Prebuilt entity');
-
-    const allDisabled = elms.reduce((acc, elm) => {
-      if (!elm.closest('button')?.classList.contains('is-disabled')) {
-        acc = false;
-      }
-
-      return acc;
-    }, true);
-
-    expect(allDisabled).toBeTruthy();
-  });
 });
diff --git a/Composer/packages/lib/code-editor/src/lu/iconUtils.tsx b/Composer/packages/lib/code-editor/src/lu/iconUtils.tsx
index 361bec5278..0b69177d0e 100644
--- a/Composer/packages/lib/code-editor/src/lu/iconUtils.tsx
+++ b/Composer/packages/lib/code-editor/src/lu/iconUtils.tsx
@@ -13,9 +13,5 @@ export const getLuToolbarItemTextAndIcon = (kind: LuToolbarButtonKind): { iconNa
     case 'useEntity': {
       return { iconName: 'Insert', text: formatMessage('Insert entity') };
     }
-
-    case 'tagEntity': {
-      return { iconName: 'Highlight', text: formatMessage('Tag entity') };
-    }
   }
 };
diff --git a/Composer/packages/lib/code-editor/src/lu/types.ts b/Composer/packages/lib/code-editor/src/lu/types.ts
index f5a0633fb2..d78c8d0273 100644
--- a/Composer/packages/lib/code-editor/src/lu/types.ts
+++ b/Composer/packages/lib/code-editor/src/lu/types.ts
@@ -3,4 +3,4 @@
 
 export const toolbarSupportedLuEntityTypes = ['prebuilt', 'ml', 'list', 'composite', 'regex'] as const;
 export type ToolbarLuEntityType = typeof toolbarSupportedLuEntityTypes[number];
-export type LuToolbarButtonKind = 'useEntity' | 'defineEntity' | 'tagEntity';
+export type LuToolbarButtonKind = 'useEntity' | 'defineEntity';