diff --git a/Dockerfile b/Dockerfile
index 8c6c38f..1a0a9b6 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -5,7 +5,7 @@ ARG TARGETOS
 ARG TARGETARCH
 
 # Install necessary dependencies
-RUN apk add --no-cache
+RUN apk add --no-cache curl jq
 COPY init-scripts /init-scripts
 COPY scripts /tmp/scripts
 
diff --git a/init-scripts/run.sh b/init-scripts/run.sh
index 42bd0fc..5efeb67 100755
--- a/init-scripts/run.sh
+++ b/init-scripts/run.sh
@@ -6,7 +6,26 @@ set -o pipefail
 # set -o xtrace # Uncomment this line for debugging purposes
 
 cp -r /tmp/scripts/* /opt/kafka/init-scripts
-
-# TODO(): kafka rack id extraction from pod scheduled node using label
+if [[ -n "${TOPOLOGY_KEY:-}" && -n "${NODE_NAME:-}" ]]; then
+  TOKEN=$(cat /var/run/secrets/kubernetes.io/serviceaccount/token)
+  APISERVER="https://kubernetes.default.svc"
+  CACERT="/var/run/secrets/kubernetes.io/serviceaccount/ca.crt"
+  RESPONSE=$(curl -s --cacert $CACERT --header "Authorization: Bearer $TOKEN" \
+        --header "Accept: application/json" \
+        $APISERVER/api/v1/nodes/$NODE_NAME)
+  if [ $? -ne 0 ]; then
+    echo "Error: Failed to query API server" >&2
+    exit 1
+  fi
+  echo $RESPONSE
+  LABEL_VALUE=$(echo $RESPONSE | jq -r ".metadata.labels.\"$TOPOLOGY_KEY\" // error(\"Label $TOPOLOGY_KEY not found\")")
+  # if error returned from here, exit
+  if [ $? -ne 0 ]; then
+    echo "Error: Label $TOPOLOGY_KEY not found on node $NODE_NAME" >&2
+    exit 1
+  fi
+  echo "broker.rack=$LABEL_VALUE" >> /opt/kafka/init-scripts/rack.properties
+  echo "Set broker.rack=$LABEL_VALUE for node $NODE_NAME"
+fi
 
 echo "Kafka Initializing Done!!"
diff --git a/scripts/setup.sh b/scripts/setup.sh
index e06020b..f20ba86 100755
--- a/scripts/setup.sh
+++ b/scripts/setup.sh
@@ -209,6 +209,16 @@ update_configuration() {
     cat "$operator_config" "$server_config" | awk -F'=' '!seen[$1]++' > "$server_config.updated"
     mv "$server_config.updated" "$final_config_path"
   fi
+  # If $process_roles is not controller and /opt/kafka/init-scripts/rack.properties file exists,
+  # append or replace rack.id in final_config_path
+  if [[ "$process_roles" != "controller" && -f /opt/kafka/init-scripts/rack.properties ]]; then
+    if grep -q "^broker.rack=" "$final_config_path"; then
+      sed -i "s/^broker.rack=.*/$(grep '^broker.rack=' /opt/kafka/init-scripts/rack.properties)/" "$final_config_path"
+    else
+      cat /opt/kafka/init-scripts/rack.properties >> "$final_config_path"
+    fi
+  fi
+
   info "Updated configuration file by process_roles"
 }