diff --git a/es2panda/parser/statementParser.cpp b/es2panda/parser/statementParser.cpp
index b9c73c0ad85f75fccc6d04d60996a78efc32f5c3..92917ba74cd9ae177bc89a2eb44993afb1628fe5 100644
--- a/es2panda/parser/statementParser.cpp
+++ b/es2panda/parser/statementParser.cpp
@@ -1045,7 +1045,7 @@ ir::ContinueStatement *ParserImpl::ParseContinueStatement()
     const auto &label = lexer_->GetToken().Ident();
     const ParserContext *labelCtx = context_.FindLabel(label);
 
-    if (!labelCtx || !(labelCtx->Status() & ParserStatus::IN_ITERATION) ||
+    if (!labelCtx || !(labelCtx->Status() & (ParserStatus::IN_ITERATION | ParserStatus::IN_LABELED)) ||
        (labelCtx->Status() & ParserStatus::DISALLOW_CONTINUE)) {
         ThrowSyntaxError("Undefined label");
     }
diff --git a/es2panda/test/compiler/js/language/statements/labeled/test-labeled-iteration-continue-target-expected.txt b/es2panda/test/compiler/js/language/statements/labeled/test-labeled-iteration-continue-target-expected.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9766475a4185a151dc9d56d614ffb9aaea3bfd42
--- /dev/null
+++ b/es2panda/test/compiler/js/language/statements/labeled/test-labeled-iteration-continue-target-expected.txt
@@ -0,0 +1 @@
+ok
diff --git a/es2panda/test/compiler/js/language/statements/labeled/test-labeled-iteration-continue-target.js b/es2panda/test/compiler/js/language/statements/labeled/test-labeled-iteration-continue-target.js
new file mode 100644
index 0000000000000000000000000000000000000000..3aeb237278d571ae8377417280ef3a9515742e88
--- /dev/null
+++ b/es2panda/test/compiler/js/language/statements/labeled/test-labeled-iteration-continue-target.js
@@ -0,0 +1,7 @@
+let a = 1;
+target1:
+target2:
+while(a--) {
+    continue target1;
+}
+print("ok");
\ No newline at end of file
diff --git a/es2panda/test/parser/js/test-labeled-iteration-continue-target-expected.txt b/es2panda/test/parser/js/test-labeled-iteration-continue-target-expected.txt
new file mode 100644
index 0000000000000000000000000000000000000000..6f1d4caf172c20ade4efcd5d4b3af9582794f636
--- /dev/null
+++ b/es2panda/test/parser/js/test-labeled-iteration-continue-target-expected.txt
@@ -0,0 +1,210 @@
+{
+  "type": "Program",
+  "statements": [
+    {
+      "type": "VariableDeclaration",
+      "declarations": [
+        {
+          "type": "VariableDeclarator",
+          "id": {
+            "type": "Identifier",
+            "name": "a",
+            "loc": {
+              "start": {
+                "line": 1,
+                "column": 5
+              },
+              "end": {
+                "line": 1,
+                "column": 6
+              }
+            }
+          },
+          "init": {
+            "type": "NumberLiteral",
+            "value": 1,
+            "loc": {
+              "start": {
+                "line": 1,
+                "column": 9
+              },
+              "end": {
+                "line": 1,
+                "column": 10
+              }
+            }
+          },
+          "loc": {
+            "start": {
+              "line": 1,
+              "column": 5
+            },
+            "end": {
+              "line": 1,
+              "column": 10
+            }
+          }
+        }
+      ],
+      "kind": "let",
+      "loc": {
+        "start": {
+          "line": 1,
+          "column": 1
+        },
+        "end": {
+          "line": 1,
+          "column": 11
+        }
+      }
+    },
+    {
+      "type": "LabelledStatement",
+      "label": {
+        "type": "Identifier",
+        "name": "target1",
+        "loc": {
+          "start": {
+            "line": 2,
+            "column": 1
+          },
+          "end": {
+            "line": 2,
+            "column": 8
+          }
+        }
+      },
+      "body": {
+        "type": "LabelledStatement",
+        "label": {
+          "type": "Identifier",
+          "name": "target2",
+          "loc": {
+            "start": {
+              "line": 3,
+              "column": 1
+            },
+            "end": {
+              "line": 3,
+              "column": 8
+            }
+          }
+        },
+        "body": {
+          "type": "WhileStatement",
+          "test": {
+            "type": "UpdateExpression",
+            "operator": "--",
+            "prefix": false,
+            "argument": {
+              "type": "Identifier",
+              "name": "a",
+              "loc": {
+                "start": {
+                  "line": 4,
+                  "column": 7
+                },
+                "end": {
+                  "line": 4,
+                  "column": 8
+                }
+              }
+            },
+            "loc": {
+              "start": {
+                "line": 4,
+                "column": 7
+              },
+              "end": {
+                "line": 4,
+                "column": 10
+              }
+            }
+          },
+          "body": {
+            "type": "BlockStatement",
+            "statements": [
+              {
+                "type": "ContinueStatement",
+                "label": {
+                  "type": "Identifier",
+                  "name": "target1",
+                  "loc": {
+                    "start": {
+                      "line": 5,
+                      "column": 14
+                    },
+                    "end": {
+                      "line": 5,
+                      "column": 21
+                    }
+                  }
+                },
+                "loc": {
+                  "start": {
+                    "line": 5,
+                    "column": 5
+                  },
+                  "end": {
+                    "line": 5,
+                    "column": 22
+                  }
+                }
+              }
+            ],
+            "loc": {
+              "start": {
+                "line": 4,
+                "column": 12
+              },
+              "end": {
+                "line": 6,
+                "column": 2
+              }
+            }
+          },
+          "loc": {
+            "start": {
+              "line": 4,
+              "column": 1
+            },
+            "end": {
+              "line": 6,
+              "column": 2
+            }
+          }
+        },
+        "loc": {
+          "start": {
+            "line": 3,
+            "column": 1
+          },
+          "end": {
+            "line": 6,
+            "column": 2
+          }
+        }
+      },
+      "loc": {
+        "start": {
+          "line": 2,
+          "column": 1
+        },
+        "end": {
+          "line": 6,
+          "column": 2
+        }
+      }
+    }
+  ],
+  "loc": {
+    "start": {
+      "line": 1,
+      "column": 1
+    },
+    "end": {
+      "line": 6,
+      "column": 2
+    }
+  }
+}
diff --git a/es2panda/test/parser/js/test-labeled-iteration-continue-target.js b/es2panda/test/parser/js/test-labeled-iteration-continue-target.js
new file mode 100644
index 0000000000000000000000000000000000000000..56b1b14efc55d637cdbd37c55ce12f6805771522
--- /dev/null
+++ b/es2panda/test/parser/js/test-labeled-iteration-continue-target.js
@@ -0,0 +1,6 @@
+let a = 1;
+target1:
+target2:
+while(a--) {
+    continue target1;
+}
\ No newline at end of file
diff --git a/es2panda/test/test_tsc_ignore_list.txt b/es2panda/test/test_tsc_ignore_list.txt
index 8c112aa8bc9d092e8ea0e379b2b61aba9bb8640e..64fbe477b659e1dfac5cff2135f5af139ad942d4 100644
--- a/es2panda/test/test_tsc_ignore_list.txt
+++ b/es2panda/test/test_tsc_ignore_list.txt
@@ -5,7 +5,6 @@ es2panda/test/TypeScript/tests/cases/compiler/collisionArgumentsInType.ts
 es2panda/test/TypeScript/tests/cases/compiler/collisionArgumentsInterfaceMembers.ts
 es2panda/test/TypeScript/tests/cases/compiler/computedPropertiesTransformedInOtherwiseNonTSClasses.ts
 es2panda/test/TypeScript/tests/cases/compiler/constructorOverloads5.ts
-es2panda/test/TypeScript/tests/cases/compiler/continueTarget3.ts
 es2panda/test/TypeScript/tests/cases/compiler/elidedEmbeddedStatementsReplacedWithSemicolon.ts
 es2panda/test/TypeScript/tests/cases/compiler/emitBundleWithShebang1.ts
 es2panda/test/TypeScript/tests/cases/compiler/exportAsNamespace.d.ts
@@ -73,7 +72,6 @@ es2panda/test/TypeScript/tests/cases/conformance/interfaces/interfaceDeclaration
 es2panda/test/TypeScript/tests/cases/conformance/interfaces/interfaceDeclarations/asiPreventsParsingAsInterface03.ts
 es2panda/test/TypeScript/tests/cases/conformance/interfaces/interfaceDeclarations/asiPreventsParsingAsInterface04.ts
 es2panda/test/TypeScript/tests/cases/conformance/parser/ecmascript5/RegressionTests/parser579071.ts
-es2panda/test/TypeScript/tests/cases/conformance/parser/ecmascript5/Statements/ContinueStatements/parser_continueTarget3.ts
 es2panda/test/TypeScript/tests/cases/conformance/parser/ecmascript5/parserUnicodeWhitespaceCharacter1.ts
 es2panda/test/TypeScript/tests/cases/conformance/scanner/ecmascript3/scannerES3NumericLiteral2.ts
 es2panda/test/TypeScript/tests/cases/conformance/types/keyof/keyofAndIndexedAccess.ts