A mechanism for applying security category labels to multi-tenant applications of a node in a PaaS environment is disclosed. A method of embodiments includes generating, by a virtual machine (VM), a unique security category label (SCL) for each local user identification (UID) maintained by the VM, assigning, for each local UID maintained by the VM, the unique SCL associated with the local UID to one or more Internet Protocol (IP) addresses mapped to the local UID, receiving a request to initialize an application on the VM, assigning a local UID of the local UIDs maintained by the VM to the application, assigning files of the application the unique SCL associated with the local UID of the application, and assigning the unique SCL associated with the local UID of the application to a running process of the application.