diff --git a/gtk/gtklabel.c b/gtk/gtklabel.c
index 48f363b3c1..bfa231b9d9 100644
--- a/gtk/gtklabel.c
+++ b/gtk/gtklabel.c
@@ -2981,8 +2981,18 @@ gtk_label_recalculate (GtkLabel *self)
   gtk_label_clear_layout (self);
   gtk_label_clear_select_info (self);
 
-  if (self->use_markup || self->use_underline)
-    gtk_label_set_markup_internal (self, self->label, self->use_underline);
+  if (self->use_markup)
+    {
+      gtk_label_set_markup_internal (self, self->label, self->use_underline);
+    }
+  else if (self->use_underline)
+    {
+      char *text;
+
+      text = g_markup_escape_text (self->label, -1);
+      gtk_label_set_markup_internal (self, text, TRUE);
+      g_free (text);
+    }
   else
     {
       g_clear_pointer (&self->markup_attrs, pango_attr_list_unref);
diff --git a/testsuite/gtk/label.c b/testsuite/gtk/label.c
index c075e15139..3b1531a36b 100644
--- a/testsuite/gtk/label.c
+++ b/testsuite/gtk/label.c
@@ -196,12 +196,35 @@ test_label_markup (void)
   gtk_window_destroy (GTK_WINDOW (window));
 }
 
+static void
+test_label_underline (void)
+{
+  GtkWidget *window;
+  GtkWidget *label;
+
+  window = gtk_window_new ();
+
+  label = gtk_label_new ("");
+
+  gtk_window_set_child (GTK_WINDOW (window), label);
+  gtk_window_set_mnemonics_visible (GTK_WINDOW (window), TRUE);
+
+  gtk_label_set_use_markup (GTK_LABEL (label), FALSE);
+  gtk_label_set_use_underline (GTK_LABEL (label), TRUE);
+  gtk_label_set_label (GTK_LABEL (label), "tes_t & no markup <<");
+
+  g_assert_cmpint (gtk_label_get_mnemonic_keyval (GTK_LABEL (label)), ==, GDK_KEY_t);
+
+  gtk_window_destroy (GTK_WINDOW (window));
+}
+
 int
 main (int argc, char *argv[])
 {
   gtk_test_init (&argc, &argv);
 
   g_test_add_func ("/label/markup-parse", test_label_markup);
+  g_test_add_func ("/label/underline-parse", test_label_underline);
 
   return g_test_run ();
 }