diff --git a/onnxruntime/core/optimizer/graph_transformer_utils.cc b/onnxruntime/core/optimizer/graph_transformer_utils.cc
index 63612c47f9..b67670a0e9 100644
--- a/onnxruntime/core/optimizer/graph_transformer_utils.cc
+++ b/onnxruntime/core/optimizer/graph_transformer_utils.cc
@@ -45,6 +45,7 @@
 #include "core/optimizer/identical_children_consolidation.h"
 #include "core/optimizer/identity_elimination.h"
 #include "core/optimizer/layer_norm_fusion.h"
+#include "core/optimizer/label_encoder_fusion.h"
 #include "core/optimizer/matmul_activation_fusion.h"
 #include "core/optimizer/matmul_add_fusion.h"
 #include "core/optimizer/matmul_integer_to_float.h"
@@ -133,6 +134,7 @@ InlinedVector<std::unique_ptr<RewriteRule>> GenerateRewriteRules(
       rules.push_back(std::make_unique<MatmulBNFusion>());
       rules.push_back(std::make_unique<ClipQuantFusion>());
       rules.push_back(std::make_unique<ReluQuantFusion>());
+      rules.push_back(std::make_unique<LabelEncoderFusion>());
       break;
 
     case TransformerLevel::Level2:
diff --git a/onnxruntime/core/optimizer/label_encoder_fusion.cc b/onnxruntime/core/optimizer/label_encoder_fusion.cc
new file mode 100644
index 0000000000..043cd31b88
--- /dev/null
+++ b/onnxruntime/core/optimizer/label_encoder_fusion.cc
@@ -0,0 +1,162 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+#include <unordered_map>
+#include <vector>
+#include <string>
+
+#include "core/optimizer/label_encoder_fusion.h"
+#include "core/framework/op_node_proto_helper.h"
+#include "core/graph/graph_utils.h"
+#include "core/optimizer/utils.h"
+
+namespace onnxruntime {
+
+#define KEYS_ATTR_NAME(T) ("keys_" + GetTypename<T>() + "s")
+#define VALUES_ATTR_NAME(T) ("values_" + GetTypename<T>() + "s")
+#define DEFAULT_VALUE_ATTR_NAME(T) ("default_" + GetTypename<T>())
+
+// May be needed somewhere else
+// Think about moving into utils
+template <typename>
+[[maybe_unused]] constexpr bool false_for_T = false;
+
+template <typename T>
+std::string GetTypename() {
+  if constexpr (std::is_same<T, int64_t>()) {
+    return "int64";
+  } else if constexpr (std::is_same<T, std::string>()) {
+    return "string";
+  } else if constexpr (std::is_same<T, float>()) {
+    return "float";
+  } else {
+    static_assert(false_for_T<T>, "Unsupported type");
+  }
+}
+
+template <typename T1, typename T2, typename T3>
+bool LabelEncoderFusion::IsValidForFusion(const Node& node, const Node& next_node) const {
+  return (node.GetAttributes().find(KEYS_ATTR_NAME(T1)) != node.GetAttributes().end() &&
+          node.GetAttributes().find(VALUES_ATTR_NAME(T2)) != node.GetAttributes().end() &&
+          next_node.GetAttributes().find(KEYS_ATTR_NAME(T2)) != next_node.GetAttributes().end() &&
+          next_node.GetAttributes().find(VALUES_ATTR_NAME(T3)) != next_node.GetAttributes().end());
+}
+
+/**
+Transform that fuses two consecutive LabelEncoder nodes
+into one LabelEncoder node.
+ */
+bool LabelEncoderFusion::SatisfyCondition(const Graph& graph, const Node& node, const logging::Logger& /*logger*/) const {
+  if (!graph_utils::IsSupportedOptypeVersionAndDomain(
+          node, "LabelEncoder", {2, 4}, "ai.onnx.ml") ||
+      node.GetOutputEdgesCount() != 1) {
+    return false;
+  }
+
+  const auto& next_node = *node.OutputNodesBegin();
+  if (!graph_utils::IsSupportedOptypeVersionAndDomain(next_node, "LabelEncoder", {4}, "ai.onnx.ml") ||
+      // Make sure the two nodes do not span execution providers.
+      next_node.GetExecutionProviderType() != node.GetExecutionProviderType()) {
+    return false;
+  }
+
+  if (graph.NodeProducesGraphOutput(node)) {
+    return false;
+  }
+
+  // Is one of the supported operations
+  return IsValidForFusion<std::string, std::string, std::string>(node, next_node) ||
+         IsValidForFusion<std::string, std::string, int64_t>(node, next_node) ||
+         IsValidForFusion<std::string, int64_t, std::string>(node, next_node) ||
+         IsValidForFusion<std::string, int64_t, int64_t>(node, next_node) ||
+         IsValidForFusion<int64_t, std::string, std::string>(node, next_node) ||
+         IsValidForFusion<int64_t, std::string, int64_t>(node, next_node) ||
+         IsValidForFusion<int64_t, int64_t, std::string>(node, next_node) ||
+         IsValidForFusion<int64_t, int64_t, int64_t>(node, next_node);
+}
+
+/**
+Since we need to be polymorphic on the datatype
+we will dispatch to this method from the main Apply
+*/
+template <typename T1, typename T2, typename T3>
+Status LabelEncoderFusion::ApplyHelper(
+    Graph& graph,
+    Node& node,
+    Node& next_node,
+    RewriteRuleEffect& rule_effect) const {
+  ProtoHelperNodeContext node_helper_ctx(node);
+  OpNodeProtoHelper<ProtoHelperNodeContext> node_helper(&node_helper_ctx);
+
+  ProtoHelperNodeContext next_node_helper_ctx(next_node);
+  OpNodeProtoHelper<ProtoHelperNodeContext> next_node_helper(&next_node_helper_ctx);
+
+  const std::vector<T1> node_keys =
+      node_helper.GetAttrsOrDefault<T1>(KEYS_ATTR_NAME(T1));
+  const std::vector<T2> node_values =
+      node_helper.GetAttrsOrDefault<T2>(VALUES_ATTR_NAME(T2));
+  const T2 node_default =
+      node_helper.GetAttr<T2>(DEFAULT_VALUE_ATTR_NAME(T2));
+
+  const std::vector<T2> next_node_keys =
+      next_node_helper.GetAttrsOrDefault<T2>(KEYS_ATTR_NAME(T2));
+  const std::vector<T3> next_node_values =
+      next_node_helper.GetAttrsOrDefault<T3>(VALUES_ATTR_NAME(T3));
+  const T3 next_node_default =
+      next_node_helper.GetAttr<T3>(DEFAULT_VALUE_ATTR_NAME(T3));
+
+  const auto getFromMapDefault = [](const auto& mp, const auto key, const auto def) {
+    return (mp.find(key) == mp.end()) ? def : mp.at(key);
+  };
+
+  // Perform value propagation through the second label encoder
+  std::unordered_map<T2, T3> mapping = {};
+  for (size_t i = 0; i < next_node_keys.size(); i++) {
+    mapping[next_node_keys[i]] = next_node_values[i];
+  }
+
+  std::vector<T3> new_node_values = {};
+  const auto new_node_default = getFromMapDefault(mapping, node_default, next_node_default);
+
+  for (const T2& node_value : node_values) {
+    new_node_values.push_back(getFromMapDefault(mapping, node_value, next_node_default));
+  }
+
+  // Remove old attributes:
+  // The keys attribute is correct, we just reroute
+  // the values
+  node.ClearAttribute(VALUES_ATTR_NAME(T2));
+  node.ClearAttribute(DEFAULT_VALUE_ATTR_NAME(T2));
+
+  node.AddAttribute(VALUES_ATTR_NAME(T3), new_node_values);
+  node.AddAttribute(DEFAULT_VALUE_ATTR_NAME(T3), new_node_default);
+
+  graph_utils::FinalizeNodeFusion(graph, node, next_node);
+
+  rule_effect = RewriteRuleEffect::kModifiedRestOfGraph;
+
+  return Status::OK();
+}
+
+#define FUSE_IF_VALID(T1, T2, T3)                      \
+  if (IsValidForFusion<T1, T2, T3>(node, next_node)) { \
+    return ApplyHelper<T1, T2, T3>(                    \
+        graph, node, next_node, rule_effect);          \
+  }
+
+Status LabelEncoderFusion::Apply(Graph& graph, Node& node, RewriteRuleEffect& rule_effect, const logging::Logger& /*logger*/) const {
+  auto& next_node = *graph.GetNode(node.OutputNodesBegin()->Index());
+
+  FUSE_IF_VALID(std::string, std::string, std::string);
+  FUSE_IF_VALID(std::string, std::string, int64_t);
+  FUSE_IF_VALID(std::string, int64_t, std::string);
+  FUSE_IF_VALID(std::string, int64_t, int64_t);
+  FUSE_IF_VALID(int64_t, std::string, std::string);
+  FUSE_IF_VALID(int64_t, std::string, int64_t);
+  FUSE_IF_VALID(int64_t, int64_t, std::string);
+  FUSE_IF_VALID(int64_t, int64_t, int64_t);
+
+  return Status::OK();
+}
+
+}  // namespace onnxruntime
diff --git a/onnxruntime/core/optimizer/label_encoder_fusion.h b/onnxruntime/core/optimizer/label_encoder_fusion.h
new file mode 100644
index 0000000000..30d69f0dcf
--- /dev/null
+++ b/onnxruntime/core/optimizer/label_encoder_fusion.h
@@ -0,0 +1,35 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+#pragma once
+
+#include "core/optimizer/rewrite_rule.h"
+
+namespace onnxruntime {
+/**
+@Class LabelEncoderFusion
+
+Rewrite rule that fuses two LabelEncoder -> LabelEncoder nodes to a single
+LabelEncoder node.
+
+*/
+class LabelEncoderFusion : public RewriteRule {
+ public:
+  LabelEncoderFusion() noexcept : RewriteRule("LabelEncoderFusion") {}
+
+  std::vector<std::string> TargetOpTypes() const noexcept override {
+    return {"LabelEncoder"};
+  }
+
+ private:
+  bool SatisfyCondition(const Graph& graph, const Node& node, const logging::Logger& logger) const override;
+  Status Apply(Graph& graph, Node& node, RewriteRuleEffect& rule_effect, const logging::Logger& logger) const override;
+
+  template <typename T1, typename T2, typename T3>
+  Status ApplyHelper(Graph& graph, Node& node, Node& next_node, RewriteRuleEffect& rule_effect) const;
+
+  template <typename T1, typename T2, typename T3>
+  bool IsValidForFusion(const Node& node, const Node& next) const;
+};
+
+}  // namespace onnxruntime
diff --git a/onnxruntime/test/optimizer/graph_transform_test.cc b/onnxruntime/test/optimizer/graph_transform_test.cc
index 0d1f213618..d5e6ed7c10 100755
--- a/onnxruntime/test/optimizer/graph_transform_test.cc
+++ b/onnxruntime/test/optimizer/graph_transform_test.cc
@@ -69,6 +69,7 @@
 #include "core/optimizer/slice_elimination.h"
 #include "core/optimizer/unsqueeze_elimination.h"
 #include "core/optimizer/utils.h"
+#include "core/optimizer/label_encoder_fusion.h"
 #include "core/platform/env.h"
 #include "core/session/inference_session.h"
 #include "core/session/onnxruntime_session_options_config_keys.h"
@@ -1901,6 +1902,68 @@ TEST_F(GraphTransformationTests, DivMulFusion) {
   ASSERT_TRUE(op_to_count["Mul"] == 2);
 }
 
+TEST_F(GraphTransformationTests, LabelEncoderFusion) {
+  using common::INVALID_GRAPH;
+  constexpr const ORTCHAR_T* model_uri = MODEL_FOLDER "fusion/label_encoder.onnx";
+
+  NameMLValMap feeds;
+
+  constexpr size_t ALPH = 26;
+  OrtValue mlvalue_a;
+  std::vector<int64_t> dims_a = {ALPH};
+  std::vector<std::string> values_a = {};
+  for (char letter = 'a'; letter <= 'z'; letter++) {
+    values_a.emplace_back(1, letter);
+  }
+  CreateMLValue<std::string>(TestCPUExecutionProvider()->CreatePreferredAllocators()[0], dims_a,
+                             values_a, &mlvalue_a);
+  feeds.insert(std::make_pair("A", mlvalue_a));
+
+  bool is_implemented = true;
+
+  auto run_model_test = [&](TransformerLevel level, std::vector<OrtValue>& fetches, const int requiredLabelEncoderCount) {
+    SessionOptions session_options;
+    session_options.graph_optimization_level = level;
+    session_options.session_logid = "OptimizerTests";
+    InferenceSessionWrapper session{session_options, GetEnvironment()};
+
+    // If we did not initialize the session correctly, the operator is missing.
+    if (!session.Load(model_uri).IsOK() || !session.Initialize().IsOK()) {
+      is_implemented = false;
+      return;
+    }
+
+    // Count if the number of LabelEncoders is as expected
+    std::map<std::string, int> op_to_count = CountOpsInGraph(session.GetGraph());
+    ASSERT_TRUE(op_to_count["ai.onnx.ml.LabelEncoder"] == requiredLabelEncoderCount);
+
+    std::vector<std::string> output_names = {};
+    for (const auto& output : session.GetGraph().GetOutputs()) {
+      output_names.push_back(output->Name());
+    }
+
+    RunOptions run_options;
+    ASSERT_STATUS_OK(session.Run(run_options, feeds, output_names, &fetches));
+  };
+
+  // run model with and w/o optimizations and compare the results
+  std::vector<OrtValue> unoptimized_fetches;
+  run_model_test(TransformerLevel::Default, unoptimized_fetches, 11);
+
+  std::vector<OrtValue> optimized_fetches;
+  run_model_test(TransformerLevel::MaxLevel, optimized_fetches, 7);
+
+  // If there was a problem loading the model, do not compare the 2 results
+  if (!is_implemented) {
+    GTEST_SKIP();
+    return;
+  }
+
+  // Compare results
+  auto ret = CompareOrtValue(optimized_fetches[0], unoptimized_fetches[0], 0.0, 0.0, false);
+  EXPECT_EQ(ret.first, COMPARE_RESULT::SUCCESS) << ret.second;
+}
+
 TEST_F(GraphTransformationTests, NotWhereFusion) {
   constexpr const ORTCHAR_T* model_uri = MODEL_FOLDER "fusion/not_where.onnx";
   std::shared_ptr<Model> model;
diff --git a/onnxruntime/test/testdata/transform/fusion/label_encoder.onnx b/onnxruntime/test/testdata/transform/fusion/label_encoder.onnx
new file mode 100644
index 0000000000..ffc28ed256
Binary files /dev/null and b/onnxruntime/test/testdata/transform/fusion/label_encoder.onnx differ
diff --git a/onnxruntime/test/testdata/transform/fusion/label_encoder.py b/onnxruntime/test/testdata/transform/fusion/label_encoder.py
new file mode 100644
index 0000000000..96c203547a
--- /dev/null
+++ b/onnxruntime/test/testdata/transform/fusion/label_encoder.py
@@ -0,0 +1,163 @@
+from onnx import OperatorSetIdProto, TensorProto, helper, save
+
+opsets = []
+onnxdomain = OperatorSetIdProto()
+onnxdomain.version = 19
+onnxdomain.domain = ""  # The empty string ("") or absence of this field implies the operator set that is defined as part of the ONNX specification.
+opsets.append(onnxdomain)
+
+msdomain = OperatorSetIdProto()
+msdomain.version = 1
+msdomain.domain = "com.microsoft"
+opsets.append(msdomain)
+
+ai_ml_domain = OperatorSetIdProto()
+ai_ml_domain.version = 4
+ai_ml_domain.domain = "ai.onnx.ml"
+opsets.append(ai_ml_domain)
+
+kwargs = {}
+kwargs["opset_imports"] = opsets
+
+
+def generate_model(model_name):
+    # Create models with consecutive label encoders
+    nodes = [  # subgraph
+        # string -> int -> string
+        helper.make_node(
+            "LabelEncoder",
+            ["A"],
+            ["le_1_int_1"],
+            "le_1_int_1",
+            domain="ai.onnx.ml",
+            keys_strings=["a", "b", "c"],
+            values_int64s=[0, 1, 2],
+        ),
+        helper.make_node(
+            "LabelEncoder",
+            ["le_1_int_1"],
+            ["le_1_string_2"],
+            "le_1_string_2",
+            domain="ai.onnx.ml",
+            keys_int64s=[2, 1, 0],
+            values_strings=["a", "b", "c"],
+            default_string="default",
+        ),
+        # string -> string -> string
+        helper.make_node(
+            "LabelEncoder",
+            ["A"],
+            ["le_2_string_1"],
+            "le_2_string_1",
+            domain="ai.onnx.ml",
+            keys_strings=["a", "b", "c"],
+            values_strings=["C", "B", "A"],
+            default_string="D",
+        ),
+        helper.make_node(
+            "LabelEncoder",
+            ["le_2_string_1"],
+            ["le_2_string_2"],
+            "le_2_string_2",
+            domain="ai.onnx.ml",
+            keys_strings=["A", "B", "C", "D"],
+            values_strings=["a", "b", "c", "d"],
+            default_string="default",
+        ),
+        # string -> string -> int -> string
+        helper.make_node(
+            "LabelEncoder",
+            ["A"],
+            ["le_3_string_1"],
+            "le_3_string_1",
+            domain="ai.onnx.ml",
+            keys_strings=["a", "b", "c"],
+            values_strings=["C", "B", "A"],
+        ),
+        helper.make_node(
+            "LabelEncoder",
+            ["le_3_string_1"],
+            ["le_3_int_2"],
+            "le_3_int_2",
+            domain="ai.onnx.ml",
+            keys_strings=["A", "B", "C"],
+            values_int64s=[1, 2, 3],
+            default_int64=-1,
+        ),
+        helper.make_node(
+            "LabelEncoder",
+            ["le_3_int_2"],
+            ["le_3_string_3"],
+            "le_3_string_3",
+            domain="ai.onnx.ml",
+            keys_int64s=[1, 2, 3],
+            values_strings=["a", "b", "c"],
+            default_string="d",
+        ),
+        # middle encoder is graph output
+        helper.make_node(
+            "LabelEncoder",
+            ["A"],
+            ["le_4_int_1"],
+            "le_4_int_1",
+            domain="ai.onnx.ml",
+            keys_strings=["a", "b", "c"],
+            values_int64s=[0, 1, 2],
+        ),
+        helper.make_node(
+            "LabelEncoder",
+            ["le_4_int_1"],
+            ["le_4_string_2"],
+            "le_4_string_2",
+            domain="ai.onnx.ml",
+            keys_int64s=[0, 1, 2],
+            values_strings=["a", "b", "c"],
+        ),
+        helper.make_node("Identity", ["le_4_int_1"], ["Y"], "output"),
+        # middle encoder is consumed twice
+        helper.make_node(
+            "LabelEncoder",
+            ["A"],
+            ["le_5_int_1"],
+            "le_5_int_1",
+            domain="ai.onnx.ml",
+            keys_strings=["a", "b", "c"],
+            values_int64s=[0, 1, 2],
+        ),
+        helper.make_node(
+            "LabelEncoder",
+            ["le_5_int_1"],
+            ["le_5_string_2"],
+            "le_5_string_2",
+            domain="ai.onnx.ml",
+            keys_int64s=[0, 1, 2],
+            values_strings=["a", "b", "c"],
+        ),
+        helper.make_node("Mul", ["le_5_int_1", "le_5_int_1"], ["mul_5"], "mul_5"),
+    ]
+
+    inputs = [  # inputs
+        helper.make_tensor_value_info("A", TensorProto.STRING, ["N"]),
+    ]
+
+    graph = helper.make_graph(
+        nodes,
+        "LabelEncoder",  # name
+        inputs,
+        [  # outputs
+            helper.make_tensor_value_info("le_1_string_2", TensorProto.STRING, ["N"]),
+            helper.make_tensor_value_info("le_2_string_2", TensorProto.STRING, ["N"]),
+            helper.make_tensor_value_info("le_3_string_3", TensorProto.STRING, ["N"]),
+            helper.make_tensor_value_info("le_4_string_2", TensorProto.STRING, ["N"]),
+            helper.make_tensor_value_info("Y", TensorProto.INT64, ["N"]),
+            helper.make_tensor_value_info("mul_5", TensorProto.INT64, ["N"]),
+        ],
+        [],
+    )
+
+    model = helper.make_model(graph, **kwargs)
+    save(model, model_name)
+
+
+if __name__ == "__main__":
+    generate_model("label_encoder.onnx")