diff --git a/src/Entity/Paragraph.php b/src/Entity/Paragraph.php
index 8a0c689..8ddf054 100644
--- a/src/Entity/Paragraph.php
+++ b/src/Entity/Paragraph.php
@@ -134,16 +134,28 @@ class Paragraph extends ContentEntityBase implements ParagraphInterface {
    * {@inheritdoc}
    */
   public function label() {
-    $label = '';
+    $label = '(Orphan paragraph)';
     if ($parent = $this->getParentEntity()) {
       $parent_field = $this->get('parent_field_name')->value;
+      /** @var \Drupal\entity_reference_revisions\EntityReferenceRevisionsFieldItemList $values */
       $values = $parent->{$parent_field};
-      foreach ($values as $key => $value) {
-        if ($value->entity->id() == $this->id()) {
-          $label = $parent->label() . ' > ' . $value->getFieldDefinition()->getLabel();
-        } else {
-          // A previous or draft revision or a deleted stale Paragraph.
-          $label = $parent->label() . ' > ' . $value->getFieldDefinition()->getLabel() . ' (previous revision)';
+      if (empty($values)) {
+        // If there is a parent entity but the paragraph field is empty or none
+        // of its values match this entity, we assume it is a new revision that
+        // no longer references this paragraph.
+        $previous_revision = TRUE;
+      }
+      else {
+        $previous_revision = TRUE;
+        foreach ($values as $value) {
+          if ($value->entity->id() == $this->id()) {
+            $previous_revision = FALSE;
+            $label = $parent->label() . ' > ' . $value->getFieldDefinition()->getLabel();
+            break;
+          }
+        }
+        if ($previous_revision) {
+          $label = $parent->label() . ' > ' . $values->getFieldDefinition()->getLabel() . ' (previous revision)';
         }
       }
     }
diff --git a/tests/src/Functional/ParagraphsLabelTest.php b/tests/src/Functional/ParagraphsLabelTest.php
new file mode 100644
index 0000000..7e981f3
--- /dev/null
+++ b/tests/src/Functional/ParagraphsLabelTest.php
@@ -0,0 +1,77 @@
+<?php
+
+namespace Drupal\Tests\paragraphs\Functional;
+
+use Drupal\Tests\BrowserTestBase;
+use Drupal\Tests\paragraphs\FunctionalJavascript\ParagraphsTestBaseTrait;
+use Drupal\Tests\paragraphs\Traits\ParagraphsLastEntityQueryTrait;
+
+/**
+ * Tests Paragraphs label behavior.
+ *
+ * @group paragraphs
+ */
+class ParagraphsLabelTest extends BrowserTestBase {
+
+  use ParagraphsTestBaseTrait;
+  use ParagraphsLastEntityQueryTrait;
+
+  /**
+   * Modules to enable.
+   *
+   * @var string[]
+   */
+  public static $modules = [
+    'node',
+    'paragraphs_test',
+  ];
+
+  /**
+   * Tests the ::label() behavior on the paragraph entity.
+   */
+  public function testParagraphLabel() {
+    $this->addParagraphedContentType('paragraphed_test');
+
+    $admin = $this->drupalCreateUser([
+      'create paragraphed_test content',
+      'edit any paragraphed_test content',
+      'edit behavior plugin settings',
+      'administer paragraphs types',
+    ]);
+    $this->drupalLogin($admin);
+
+    // Add a text Paragraph type.
+    $paragraph_type = 'text_paragraph';
+    $this->addParagraphsType($paragraph_type);
+    $this->addFieldtoParagraphType($paragraph_type, 'field_text', 'string');
+
+    // Create a host node.
+    $this->drupalGet('node/add/paragraphed_test');
+    $edit = [
+      'title[0][value]' => 'Test Node',
+      'field_paragraphs[0][subform][field_text][0][value]' => 'Example text',
+    ];
+    $this->drupalPostForm(NULL, $edit, 'Save');
+
+    // By this point the label should include the parent entity's label and the
+    // field label.
+    $paragraph = $this->getLastEntityOfType('paragraph', TRUE);
+    $this->assertEquals('Test Node > field_paragraphs', $paragraph->label());
+
+    // Create a new revision without the paragraph and verify the label on the
+    // paragraph entity reflects that.
+    /** @var \Drupal\node\NodeInterface $node */
+    $node = $this->getLastEntityOfType('node', TRUE);
+    $node->set('field_paragraphs', []);
+    $node->setNewRevision(TRUE);
+    $node->save();
+    $paragraph = $this->getLastEntityOfType('paragraph', TRUE);
+    $this->assertEquals('Test Node > field_paragraphs (previous revision)', $paragraph->label());
+
+    // Delete the node and check if the label reflects that.
+    $node->delete();
+    $paragraph = $this->getLastEntityOfType('paragraph', TRUE);
+    $this->assertEquals('(Orphan paragraph)', $paragraph->label());
+  }
+
+}