The invention is directed toward techniques for Multi-Protocol Label Switching (MPLS) upstream label assignment for the Label Distribution Protocol (LDP). The techniques include extensions to the LDP that enable distribution of upstream assigned labels from an upstream router to two or more downstream routers of a tunnel established over a network. The tunnel may comprise a LDP Point to Multi-Point (P2MP) Label Switched Path (LSP), an Internet Protocol (IP) multicast tunnel, or a Resource Reservation Protocol with Traffic Engineering extensions (RSVP-TE) P2MP LSP. The techniques also include extensions to the LDP that enable a router to advertise upstream label assignment capability to neighboring routers in the network. The MPLS upstream label assignment using LDP described herein enables a branch router to avoid traffic replication on a Local Area Network (LAN) for LDP P2MP LSPs.