diff --git a/app/views/shared/issuable/_search_bar.html.haml b/app/views/shared/issuable/_search_bar.html.haml
index bdb573cb8fd6d1599fa695d1609cb7dbecdda8fc..6f0b760069896866638b201dd8d694b4c988ba5a 100644
--- a/app/views/shared/issuable/_search_bar.html.haml
+++ b/app/views/shared/issuable/_search_bar.html.haml
@@ -98,7 +98,7 @@
           - if type == :boards
             - if can?(current_user, :admin_list, @project)
               .dropdown.prepend-left-10#js-add-list
-                %button.btn.btn-create.btn-inverted.js-new-board-list{ type: "button", data: { toggle: "dropdown", labels: labels_filter_path, namespace_path: @project.try(:namespace).try(:path), project_path: @project.try(:path) } }
+                %button.btn.btn-create.btn-inverted.js-new-board-list{ type: "button", data: { toggle: "dropdown", labels: labels_filter_path, namespace_path: @project.try(:namespace).try(:full_path), project_path: @project.try(:path) } }
                   Add list
                 .dropdown-menu.dropdown-menu-paging.dropdown-menu-align-right.dropdown-menu-issues-board-new.dropdown-menu-selectable
                   = render partial: "shared/issuable/label_page_default", locals: { show_footer: true, show_create: true, show_boards_content: true, title: "Add list" }
diff --git a/changelogs/unreleased/35181-cannot-create-label-from-board-page.yml b/changelogs/unreleased/35181-cannot-create-label-from-board-page.yml
new file mode 100644
index 0000000000000000000000000000000000000000..4afe603720dbb9e3fd304aa806a8aecb9601102d
--- /dev/null
+++ b/changelogs/unreleased/35181-cannot-create-label-from-board-page.yml
@@ -0,0 +1,4 @@
+---
+title: Fix label creation from new list for subgroup projects
+merge_request:
+author:
diff --git a/spec/features/boards/boards_spec.rb b/spec/features/boards/boards_spec.rb
index 3d7e26c7e1957a29e852ddac40b3ebf698bf3b08..b939fb5e89e055414c2a931b1fb8edd679dbbb04 100644
--- a/spec/features/boards/boards_spec.rb
+++ b/spec/features/boards/boards_spec.rb
@@ -3,7 +3,8 @@ require 'rails_helper'
 describe 'Issue Boards', feature: true, js: true do
   include DragTo
 
-  let(:project) { create(:empty_project, :public) }
+  let(:group) { create(:group, :nested) }
+  let(:project) { create(:empty_project, :public, namespace: group) }
   let(:board)   { create(:board, project: project) }
   let(:user)    { create(:user) }
   let!(:user2)  { create(:user) }