diff --git a/CHANGELOG.md b/CHANGELOG.md
index f4dc25b..19be349 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,15 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+### Changed
+
+- **An unknown `--label` now says which labels exist.** `create` and `update`
+  used to print `label 'x' not found, skipping.` and agents answered it with
+  `linear labels create x`. The warning now adds a did-you-mean for a near
+  miss and the team's actual labels ("Labels are owner-managed: pick one of
+  the team's 25 (…); full list: linear labels"), so the fix at that moment is
+  picking one, not minting one. (PHNX-4105)
+
 ## [0.24.1] - 2026-09-15
 
 ### Changed
diff --git a/linear b/linear
index 14da2c3..74248b4 100755
--- a/linear
+++ b/linear
@@ -1094,6 +1094,21 @@ def _suggest(value: str, names: list[str]) -> str:
     return f" Did you mean: {', '.join(close)}?" if close else ""
 
 
+def _unknown_label_message(label: str, names: list[str]) -> str:
+    """Why a label was skipped and what to use instead. Labels are the owner's
+    taxonomy, so the fix is picking an existing one, never creating it — the
+    message says so at the moment an agent would otherwise reach for
+    `linear labels create`."""
+    if not names:
+        return (f"label '{label}' not found, skipping. The team has no labels yet; "
+                "labels are owner-managed, so ask the owner rather than creating one.")
+    names = sorted(names, key=str.lower)  # stable, scannable; the API order is creation order
+    shown = ", ".join(names[:12]) + (", …" if len(names) > 12 else "")
+    return (f"label '{label}' not found, skipping.{_suggest(label, names)} "
+            f"Labels are owner-managed: pick one of the team's {len(names)} labels "
+            f"({shown}); full list: linear labels.")
+
+
 def _sort_by_recent(nodes: list[dict]) -> list[dict]:
     return sorted(
         nodes,
@@ -3477,7 +3492,7 @@ def _apply_update(args, cfg, api_key, team_id, issue, single=True,
                         label_ids.append(label_map[lbl])
                         added.append(lbl)
                 else:
-                    print(f"Warning: label '{lbl}' not found, skipping.", file=sys.stderr)
+                    print("Warning: " + _unknown_label_message(lbl, list(label_map)), file=sys.stderr)
 
             removed = []
             for lbl in args.unlabel or []:
@@ -4010,7 +4025,7 @@ def _build_create_input(api_key: str, team_id: str, cfg: dict, fields: dict,
             if lbl in label_map:
                 label_ids.append(label_map[lbl])
             else:
-                warn(f"label '{lbl}' not found, skipping.")
+                warn(_unknown_label_message(lbl, list(label_map)))
         if label_ids:
             input_obj["labelIds"] = label_ids
 
diff --git a/test_linear.py b/test_linear.py
index a74e70c..7f7e316 100644
--- a/test_linear.py
+++ b/test_linear.py
@@ -3710,6 +3710,51 @@ def test_live_ollama_ranks_the_matching_ticket_first(self):
             self.assertAlmostEqual(a, b, places=2)
 
 
+class UnknownLabelMessageTests(unittest.TestCase):
+    """A skipped label names the real labels so the fix is picking one, not
+    creating one."""
+
+    NAMES = ["engineering", "Bug", "Feature", "Improvement", "growth", "security"]
+
+    def test_names_the_team_labels_and_the_full_list_command(self):
+        msg = linear_cli._unknown_label_message("prix-api-audit", self.NAMES)
+        self.assertTrue(msg.startswith("label 'prix-api-audit' not found, skipping."))
+        self.assertIn("Labels are owner-managed: pick one of the team's 6 labels (Bug, engineering, Feature, growth, Improvement, security)", msg)
+        self.assertIn("full list: linear labels.", msg)
+        self.assertNotIn("Did you mean", msg)
+
+    def test_empty_team_says_so_instead_of_a_zero_count(self):
+        msg = linear_cli._unknown_label_message("foo", [])
+        self.assertIn("The team has no labels yet", msg)
+        self.assertNotIn("team's 0", msg)
+
+    def test_near_miss_gets_a_did_you_mean(self):
+        msg = linear_cli._unknown_label_message("bugs", self.NAMES)
+        self.assertIn("Did you mean: Bug?", msg)
+
+    def test_long_lists_are_elided(self):
+        names = [f"label-{i}" for i in range(20)]
+        msg = linear_cli._unknown_label_message("zzz", names)
+        self.assertIn("team's 20 labels (label-0, label-1, label-10, ", msg)
+        self.assertIn("label-19, …)", msg)
+        self.assertNotIn("label-2,", msg)
+
+    def test_create_path_prints_the_hint_and_still_builds_the_input(self):
+        original = linear_cli.list_team_labels
+        linear_cli.list_team_labels = lambda _a, _t: [{"name": n, "id": f"id-{n}"} for n in self.NAMES]
+        err = io.StringIO()
+        try:
+            with contextlib.redirect_stderr(err):
+                obj, error = linear_cli._build_create_input(
+                    "k", "team-id", {}, {"title": "x", "skip_milestone": True, "force": True,
+                     "label": ["engineering", "prix-api-audit"]})
+        finally:
+            linear_cli.list_team_labels = original
+        self.assertIsNone(error)
+        self.assertEqual(obj["labelIds"], ["id-engineering"])
+        self.assertIn("label 'prix-api-audit' not found, skipping. Labels are owner-managed", err.getvalue())
+
+
 # --- board cache -------------------------------------------------------------
 
 def _board_node(ident, title, updated, project_id="proj-a"):