diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2b16d2b2e6c..c6a9b8bc820 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -88,6 +88,8 @@ All notable changes to this project will be documented in this file.
   (<https://github.com/openvinotoolkit/training_extensions/pull/4016>)
 - Fix multilabel_accuracy of MixedHLabelAccuracy
   (<https://github.com/openvinotoolkit/training_extensions/pull/4042>)
+- Fix wrong indices setting in HLabelInfo
+  (<https://github.com/openvinotoolkit/training_extensions/pull/4044>)
 
 ## \[v2.1.0\]
 
diff --git a/README.md b/README.md
index f185b9c1d96..435415abb0f 100644
--- a/README.md
+++ b/README.md
@@ -212,6 +212,7 @@ In addition to the examples above, please refer to the documentation for tutoria
 - Fix num_trials calculation on dataset length less than num_class
 - Fix out_features in HierarchicalCBAMClsHead
 - Fix multilabel_accuracy of MixedHLabelAccuracy
+- Fix wrong indices setting in HLabelInfo
 
 ### Known issues
 
diff --git a/docs/source/guide/release_notes/index.rst b/docs/source/guide/release_notes/index.rst
index 965cbb1f377..e0b8dc86383 100644
--- a/docs/source/guide/release_notes/index.rst
+++ b/docs/source/guide/release_notes/index.rst
@@ -54,6 +54,7 @@ Bug fixes
 - Fix num_trials calculation on dataset length less than num_class
 - Fix out_features in HierarchicalCBAMClsHead
 - Fix multilabel_accuracy of MixedHLabelAccuracy
+- Fix wrong indices setting in HLabelInfo
 
 v2.1.0 (2024.07)
 ----------------
diff --git a/src/otx/__init__.py b/src/otx/__init__.py
index 87cf0e846ff..6924cfdb186 100644
--- a/src/otx/__init__.py
+++ b/src/otx/__init__.py
@@ -3,7 +3,7 @@
 # Copyright (C) 2024 Intel Corporation
 # SPDX-License-Identifier: Apache-2.0
 
-__version__ = "2.2.0rc8"
+__version__ = "2.2.0rc9"
 
 import os
 from pathlib import Path
diff --git a/src/otx/core/types/label.py b/src/otx/core/types/label.py
index 7f00aa0b496..b9e26b48511 100644
--- a/src/otx/core/types/label.py
+++ b/src/otx/core/types/label.py
@@ -264,6 +264,8 @@ def convert_labels_if_needed(
             single_label_group_info["class_to_idx"],
         )
 
+        label_to_idx = {lbl: i for i, lbl in enumerate(merged_class_to_idx.keys())}
+
         return HLabelInfo(
             label_names=label_names,
             label_groups=all_groups,
@@ -273,7 +275,7 @@ def convert_labels_if_needed(
             num_single_label_classes=exclusive_group_info["num_single_label_classes"],
             class_to_group_idx=merged_class_to_idx,
             all_groups=all_groups,
-            label_to_idx=dm_label_categories._indices,  # noqa: SLF001
+            label_to_idx=label_to_idx,
             label_tree_edges=get_label_tree_edges(dm_label_categories.items),
             empty_multiclass_head_indices=[],  # consider the label removing case
         )
diff --git a/tests/unit/core/types/test_label.py b/tests/unit/core/types/test_label.py
index 78daec6982e..3ae1ae1f463 100644
--- a/tests/unit/core/types/test_label.py
+++ b/tests/unit/core/types/test_label.py
@@ -1,7 +1,10 @@
 # Copyright (C) 2024 Intel Corporation
 # SPDX-License-Identifier: Apache-2.0
+from __future__ import annotations
 
-from otx.core.types.label import NullLabelInfo, SegLabelInfo
+from datumaro import LabelCategories
+from datumaro.components.annotation import GroupType
+from otx.core.types.label import HLabelInfo, NullLabelInfo, SegLabelInfo
 
 
 def test_as_json(fxt_label_info):
@@ -18,3 +21,34 @@ def test_seg_label_info():
     )
     assert SegLabelInfo.from_num_classes(1) == SegLabelInfo(["background", "label_0"], [["background", "label_0"]])
     assert SegLabelInfo.from_num_classes(0) == NullLabelInfo()
+
+
+# Unit test
+def test_hlabel_info():
+    labels = [
+        LabelCategories.Category(name="car", parent="vehicle"),
+        LabelCategories.Category(name="truck", parent="vehicle"),
+        LabelCategories.Category(name="plush toy", parent="plush toy"),
+        LabelCategories.Category(name="No class"),
+    ]
+    label_groups = [
+        LabelCategories.LabelGroup(
+            name="Detection labels___vehicle",
+            labels=["car", "truck"],
+            group_type=GroupType.EXCLUSIVE,
+        ),
+        LabelCategories.LabelGroup(
+            name="Detection labels___plush toy",
+            labels=["plush toy"],
+            group_type=GroupType.EXCLUSIVE,
+        ),
+        LabelCategories.LabelGroup(name="No class", labels=["No class"], group_type=GroupType.RESTRICTED),
+    ]
+    dm_label_categories = LabelCategories(items=labels, label_groups=label_groups)
+
+    hlabel_info = HLabelInfo.from_dm_label_groups(dm_label_categories)
+
+    # Check if class_to_group_idx and label_to_idx have the same keys
+    assert list(hlabel_info.class_to_group_idx.keys()) == list(
+        hlabel_info.label_to_idx.keys(),
+    ), "class_to_group_idx and label_to_idx keys do not match"