diff --git a/common/src/app/common/files/shapes_builder.cljc b/common/src/app/common/files/shapes_builder.cljc
index 668f50fcaf..a70d6eef9b 100644
--- a/common/src/app/common/files/shapes_builder.cljc
+++ b/common/src/app/common/files/shapes_builder.cljc
@@ -677,6 +677,22 @@
          (remove is-style-fragment?)  ;; Filter style fragments and hex colors
          (filter #(contains? defs %)))))  ;; Only existing defs
 
+(defn resolve-element-name
+  "Pick the most user-meaningful name for an SVG element.
+
+  Inkscape (and editors following the same convention) write the
+  operator-given label to ``inkscape:label``/``sodipodi:label`` while
+  ``id`` holds an auto-generated technical id like ``path1234``.
+  Preferring the namespaced label keeps the layer/group/element names
+  the operator sees in their source editor across a paste/import
+  (#7869); the existing ``id`` and ``(tag->name tag)`` fallbacks keep
+  legacy SVGs that don't carry a label working unchanged."
+  [tag attrs]
+  (or (:inkscape:label attrs)
+      (:sodipodi:label attrs)
+      (:id attrs)
+      (tag->name tag)))
+
 (defn parse-svg-element
   [frame-id svg-data {:keys [tag attrs hidden] :as element} unames]
 
@@ -684,7 +700,7 @@
   ;; think we should handle this case early and avoid some code
   ;; execution
 
-  (let [name         (or (:id attrs) (tag->name tag))
+  (let [name         (resolve-element-name tag attrs)
         att-refs     (csvg/find-attr-references attrs)
         defs         (get svg-data :defs)
         valid-refs   (filter-valid-def-references att-refs defs)
diff --git a/common/test/common_tests/files/shapes_builder_test.cljc b/common/test/common_tests/files/shapes_builder_test.cljc
new file mode 100644
index 0000000000..05956918b2
--- /dev/null
+++ b/common/test/common_tests/files/shapes_builder_test.cljc
@@ -0,0 +1,52 @@
+;; This Source Code Form is subject to the terms of the Mozilla Public
+;; License, v. 2.0. If a copy of the MPL was not distributed with this
+;; file, You can obtain one at http://mozilla.org/MPL/2.0/.
+;;
+;; Copyright (c) KALEIDOS INC
+
+(ns common-tests.files.shapes-builder-test
+  (:require
+   [app.common.files.shapes-builder :as sb]
+   [clojure.test :as t]))
+
+;; Regression for https://github.com/penpot/penpot/issues/7869.
+;; ``parse-svg-element`` used to derive the shape name from
+;; ``(or (:id attrs) (tag->name tag))`` which dropped Inkscape-authored
+;; labels. ``tubax/xml->clj`` (the SVG parser the rest of the import
+;; pipeline already feeds these maps to) keeps namespaced attributes as
+;; ``:prefix:name`` keywords — same shape the codebase already reads
+;; ``:xlink:href`` from in this file (line 134) and in
+;; ``app.common.svg``.
+
+(t/deftest resolve-element-name-prefers-inkscape-label
+  (t/is (= "Layer 1"
+           (sb/resolve-element-name :g {:inkscape:label "Layer 1"
+                                        :id "g1234"}))))
+
+(t/deftest resolve-element-name-prefers-sodipodi-label-when-no-inkscape-label
+  (t/is (= "phone-icon"
+           (sb/resolve-element-name :path {:sodipodi:label "phone-icon"
+                                           :id "path5678"}))))
+
+(t/deftest resolve-element-name-falls-back-to-id-when-no-label-namespace
+  (t/is (= "manual-id"
+           (sb/resolve-element-name :rect {:id "manual-id"}))))
+
+(t/deftest resolve-element-name-falls-back-to-tag-name-when-no-id-and-no-label
+  ;; The tag->name mapping returns generic names for known SVG element
+  ;; tags. Asserting on the call result here (rather than a hardcoded
+  ;; string) keeps the test stable if the tag->name mapping is updated.
+  (t/is (some? (sb/resolve-element-name :rect {})))
+  (t/is (string? (sb/resolve-element-name :rect {}))))
+
+(t/deftest resolve-element-name-inkscape-label-wins-over-sodipodi-and-id
+  ;; Both label conventions and an id present together; the priority is
+  ;; inkscape > sodipodi > id > tag, matching the order operators expect
+  ;; (Inkscape's own UI shows ``inkscape:label`` as the canonical name).
+  (t/is (= "user-name"
+           (sb/resolve-element-name :g {:inkscape:label "user-name"
+                                        :sodipodi:label "stale-label"
+                                        :id "g1"}))))
+
+(t/deftest resolve-element-name-empty-attrs-uses-tag-fallback
+  (t/is (some? (sb/resolve-element-name :path {}))))
diff --git a/common/test/common_tests/runner.cljc b/common/test/common_tests/runner.cljc
index 06f7926c47..29540525db 100644
--- a/common/test/common_tests/runner.cljc
+++ b/common/test/common_tests/runner.cljc
@@ -15,6 +15,7 @@
    [common-tests.files-builder-test]
    [common-tests.files-changes-test]
    [common-tests.files-migrations-test]
+   [common-tests.files.shapes-builder-test]
    [common-tests.geom-align-test]
    [common-tests.geom-bounds-map-test]
    [common-tests.geom-flex-layout-test]