diff --git a/internal/kubectl/create.go b/internal/kubectl/create.go
index 314f2dd8b..3b8c48225 100644
--- a/internal/kubectl/create.go
+++ b/internal/kubectl/create.go
@@ -23,7 +23,7 @@ import (
 )
 
 var createCmd = &cobra.Command{
-	Use:   "create -n PARENT CHILD",
+	Use:   "create -n PARENT CHILD [-a] key1=value1 [-l] key1=value1,key2=value2",
 	Short: "Creates a subnamespace under the given parent.",
 	Args:  cobra.ExactArgs(1),
 	Run: func(cmd *cobra.Command, args []string) {
@@ -32,12 +32,17 @@ var createCmd = &cobra.Command{
 			fmt.Println("Error: parent must be set via --namespace or -n")
 			os.Exit(1)
 		}
+		annotations, _ := cmd.Flags().GetStringToString("annotations")
+		labels, _ := cmd.Flags().GetStringToString("labels")
+
 		// Create the anchor, the custom resource representing the subnamespace.
-		client.createAnchor(parent, args[0])
+		client.createAnchor(parent, args[0], annotations, labels)
 	},
 }
 
 func newCreateCmd() *cobra.Command {
 	createCmd.Flags().StringP("namespace", "n", "", "The parent namespace for the new subnamespace")
+	createCmd.Flags().StringToStringP("annotations", "a", make(map[string]string, 0), "The annotations to add on subnamespace")
+	createCmd.Flags().StringToStringP("labels", "l", make(map[string]string, 0), "The labels to add on subnamespace")
 	return createCmd
 }
diff --git a/internal/kubectl/root.go b/internal/kubectl/root.go
index 8e35e1ece..790ef60b5 100644
--- a/internal/kubectl/root.go
+++ b/internal/kubectl/root.go
@@ -48,7 +48,7 @@ type anchorStatus map[string]string
 type Client interface {
 	getHierarchy(nnm string) *api.HierarchyConfiguration
 	updateHierarchy(hier *api.HierarchyConfiguration, reason string)
-	createAnchor(nnm string, hnnm string)
+	createAnchor(nnm string, hnnm string, annotations, labels map[string]string)
 	deleteAnchor(nnm string, hnnm string)
 	getAnchorStatus(nnm string) anchorStatus
 	getHNCConfig() *api.HNCConfiguration
@@ -173,13 +173,19 @@ func (cl *realClient) updateHierarchy(hier *api.HierarchyConfiguration, reason s
 	}
 }
 
-func (cl *realClient) createAnchor(nnm string, hnnm string) {
+func (cl *realClient) createAnchor(nnm string, hnnm string, annotations, labels map[string]string) {
 	ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
 	defer cancel()
 
 	anchor := &api.SubnamespaceAnchor{}
 	anchor.Name = hnnm
 	anchor.Namespace = nnm
+	if len(annotations) > 0 {
+		anchor.Spec.Annotations = mapToMetaKVP(annotations)
+	}
+	if len(labels) > 0 {
+		anchor.Spec.Labels = mapToMetaKVP(labels)
+	}
 	err := hncClient.Post().Resource(api.Anchors).Namespace(nnm).Name(hnnm).Body(anchor).Do(ctx).Error()
 	if err != nil {
 		fmt.Printf("\nCould not create subnamespace anchor.\nReason: %s\n", err)
@@ -253,3 +259,11 @@ func (cl *realClient) getHRQ(names []string, nnm string) *api.HierarchicalResour
 	}
 	return hrqList
 }
+
+func mapToMetaKVP(m map[string]string) []api.MetaKVP {
+	var kvps []api.MetaKVP
+	for k, v := range m {
+		kvps = append(kvps, api.MetaKVP{Key: k, Value: v})
+	}
+	return kvps
+}
diff --git a/test/e2e/issues_test.go b/test/e2e/issues_test.go
index 7280f7015..9b791f0cc 100644
--- a/test/e2e/issues_test.go
+++ b/test/e2e/issues_test.go
@@ -1,6 +1,7 @@
 package e2e
 
 import (
+	"fmt"
 	"time"
 
 	. "github.com/onsi/ginkgo/v2"
@@ -12,6 +13,7 @@ var _ = Describe("Issues", func() {
 	const (
 		nsParent   = "parent"
 		nsChild    = "child"
+		nsChild2   = "child2"
 		nsSub1     = "sub1"
 		nsSub2     = "sub2"
 		nsSub1Sub1 = "sub1-sub1"
@@ -386,6 +388,21 @@ spec:
 		MustRun("kubectl annotate secret my-creds -n", nsParent, "propagate.hnc.x-k8s.io/all-")
 		RunShouldNotContain("my-creds", defTimeout, "kubectl -n", nsChild, "get secrets")
 	})
+
+	// NB: this test requires managed labels and annotations to be set in the test environment - hnstest/.*
+	It("Should create namespace with annotations and labels while using kubetl hns - issue #305", func() {
+		CreateNamespace(nsParent)
+		// should let it run without the annotations and label flags
+		MustRun(fmt.Sprintf("kubectl hns create -n %s", nsParent), nsChild)
+		// should let it run with the annotations and label flags and create ns with provided annotations and labels
+		MustRun(fmt.Sprintf("kubectl hns create -n %s --annotations hnstest/foo=bar --labels hnstest/foo=bar", nsParent), nsChild2)
+		RunShouldContain("bar", defTimeout, "kubectl get ns", nsChild2, "-o=jsonpath='{.metadata.annotations.hnstest/foo}'")
+		RunShouldContain("bar", defTimeout, "kubectl get ns", nsChild2, "-o=jsonpath='{.metadata.labels.hnstest/foo}'")
+		// cleanup - set for deletion
+		MustRun("kubectl label --overwrite ns", nsChild, "hnc.x-k8s.io/testNamespace=true")
+		MustRun("kubectl label --overwrite ns", nsChild2, "hnc.x-k8s.io/testNamespace=true")
+
+	})
 })
 
 var _ = Describe("Issues with bad anchors", func() {