diff --git a/CHANGELOG b/CHANGELOG
index 3c47a1289c..86b4224653 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -30,6 +30,7 @@ v 8.9.1 (unreleased)
   - Fix merge requests project settings help link anchor. !4873
   - Fix 404 when accessing pipelines as guest user on public projects. !4881
   - Bump gitlab_git to 10.2.3 to fix false truncated warnings with ISO-8559 files. !4884
+  - Apply selected value as label. !4886
 
 v 8.9.0
   - Fix builds API response not including commit data
diff --git a/app/assets/javascripts/blob/template_selector.js.coffee b/app/assets/javascripts/blob/template_selector.js.coffee
index e76e303189..40c9169bea 100644
--- a/app/assets/javascripts/blob/template_selector.js.coffee
+++ b/app/assets/javascripts/blob/template_selector.js.coffee
@@ -19,6 +19,7 @@ class @TemplateSelector
       data: @data,
       filterable: true,
       selectable: true,
+      toggleLabel: @toggleLabel,
       search:
         fields: ['name']
       clicked: @onClick
@@ -31,6 +32,9 @@ class @TemplateSelector
       @onFilenameUpdate()
     )
 
+  toggleLabel: (item) ->
+    item.name
+
   onFilenameUpdate: ->
     return unless @$input.length
 
diff --git a/spec/features/projects/files/gitignore_dropdown_spec.rb b/spec/features/projects/files/gitignore_dropdown_spec.rb
index 073a83b689..9ebef505b9 100644
--- a/spec/features/projects/files/gitignore_dropdown_spec.rb
+++ b/spec/features/projects/files/gitignore_dropdown_spec.rb
@@ -24,6 +24,7 @@ feature 'User wants to add a .gitignore file', feature: true do
     end
     wait_for_ajax
 
+    expect(page).to have_css('.gitignore-selector .dropdown-toggle-text', text: 'Rails')
     expect(page).to have_content('/.bundle')
     expect(page).to have_content('# Gemfile.lock, .ruby-version, .ruby-gemset')
   end
diff --git a/spec/features/projects/files/gitlab_ci_yml_dropdown_spec.rb b/spec/features/projects/files/gitlab_ci_yml_dropdown_spec.rb
index d516e8ce55..b8c06c383f 100644
--- a/spec/features/projects/files/gitlab_ci_yml_dropdown_spec.rb
+++ b/spec/features/projects/files/gitlab_ci_yml_dropdown_spec.rb
@@ -24,6 +24,7 @@ feature 'User wants to add a .gitlab-ci.yml file', feature: true do
     end
     wait_for_ajax
 
+    expect(page).to have_css('.gitlab-ci-yml-selector .dropdown-toggle-text', text: 'jekyll')
     expect(page).to have_content('This file is a template, and might need editing before it works on your project')
     expect(page).to have_content('jekyll build -d test')
   end