diff --git a/field_collection.module b/field_collection.module
index 30f175e..6efceac 100644
--- a/field_collection.module
+++ b/field_collection.module
@@ -140,20 +140,34 @@ class FieldCollectionItemEntity extends Entity {
   }
 
   /**
+   * Returns the field instance label translated to interface language.
+   */
+  public function translatedInstanceLabel($langcode = NULL) {
+    if ($info = $this->instanceInfo()) {
+      if (module_exists('i18n_field')) {
+        return i18n_string("field:{$this->field_name}:{$info['bundle']}:label", $info['label'], array('langcode' => $langcode));
+      }
+      return $info['label'];
+    }
+  }
+
+  /**
    * Specifies the default label, which is picked up by label() by default.
    */
   public function defaultLabel() {
     // @todo make configurable.
-    if ($instance = $this->instanceInfo()) {
+    if ($this->fetchHostDetails()) {
       $field = $this->fieldInfo();
+      $label = $this->translatedInstanceLabel();
+
       if ($field['cardinality'] == 1) {
-        return $instance['label'];
+        return $label;
       }
       elseif ($this->item_id) {
-        return t('!instance_label @count', array('!instance_label' => $instance['label'], '@count' => $this->delta() + 1));
+        return t('!instance_label @count', array('!instance_label' => $label, '@count' => $this->delta() + 1));
       }
       else {
-        return t('New !instance_label', array('!instance_label' => $instance['label']));
+        return t('New !instance_label', array('!instance_label' => $label));
       }
     }
     return t('Unconnected field collection item');
diff --git a/field_collection.pages.inc b/field_collection.pages.inc
index 52c1f48..732e101 100644
--- a/field_collection.pages.inc
+++ b/field_collection.pages.inc
@@ -120,9 +120,6 @@ function field_collection_item_add($field_name, $entity_type, $entity_id, $revis
     return '';
   }
 
-  $title = ($field['cardinality'] == 1) ? $instance['label'] : t('Add new !instance_label', array('!instance_label' => drupal_strtolower($instance['label'])));
-  drupal_set_title($title);
-
   $field_collection_item = entity_create('field_collection_item', array('field_name' => $field_name));
   // Do not link the field collection item with the host entity at this point,
   // as during the form-workflow we have multiple field collection item entity
@@ -130,6 +127,9 @@ function field_collection_item_add($field_name, $entity_type, $entity_id, $revis
   // That way the link is going to be created when the item is saved.
   $field_collection_item->setHostEntity($entity_type, $entity, LANGUAGE_NONE, FALSE);
 
+  $title = ($field['cardinality'] == 1) ? $instance['label'] : t('Add new !instance_label', array('!instance_label' => $field_collection_item->translatedInstanceLabel()));
+  drupal_set_title($title);
+
   // Make sure the current user has access to create a field collection item.
   if (!field_collection_item_access('create', $field_collection_item)) {
     return MENU_ACCESS_DENIED;