diff --git a/charts/falco/CHANGELOG.md b/charts/falco/CHANGELOG.md
index 39c40db59..116575517 100644
--- a/charts/falco/CHANGELOG.md
+++ b/charts/falco/CHANGELOG.md
@@ -3,6 +3,11 @@
 This file documents all notable changes to Falco Helm Chart. The release
 numbering uses [semantic versioning](http://semver.org).
 
+## v4.16.1
+
+* fix(falco/serviceMonitor): set service label selector
+* new(falco/tests): add unit tests for serviceMonitor label selector
+
 ## v4.16.0
 
 * bump falcosidekick dependency to v0.9.* to match with future versions
diff --git a/charts/falco/Chart.yaml b/charts/falco/Chart.yaml
index 3400a4cfd..ff7962299 100644
--- a/charts/falco/Chart.yaml
+++ b/charts/falco/Chart.yaml
@@ -1,6 +1,6 @@
 apiVersion: v2
 name: falco
-version: 4.16.0
+version: 4.16.1
 appVersion: "0.39.2"
 description: Falco
 keywords:
diff --git a/charts/falco/README.md b/charts/falco/README.md
index b7af9856a..e606cedc2 100644
--- a/charts/falco/README.md
+++ b/charts/falco/README.md
@@ -581,7 +581,7 @@ If you use a Proxy in your cluster, the requests between `Falco` and `Falcosidek
 
 ## Configuration
 
-The following table lists the main configurable parameters of the falco chart v4.16.0 and their default values. See [values.yaml](./values.yaml) for full list.
+The following table lists the main configurable parameters of the falco chart v4.16.1 and their default values. See [values.yaml](./values.yaml) for full list.
 
 ## Values
 
diff --git a/charts/falco/templates/serviceMonitor.yaml b/charts/falco/templates/serviceMonitor.yaml
index 0dea6dd6e..6a80b7137 100644
--- a/charts/falco/templates/serviceMonitor.yaml
+++ b/charts/falco/templates/serviceMonitor.yaml
@@ -37,6 +37,9 @@ spec:
   selector:
     matchLabels:
       {{- include "falco.selectorLabels" . | nindent 6 }}
+      {{- with .Values.serviceMonitor.selector }}
+      {{- toYaml . | nindent 6 }}
+      {{- end }}
       type: "falco-metrics"
   namespaceSelector:
     matchNames:
diff --git a/charts/falco/tests/unit/serviceMonitorTemplate_test.go b/charts/falco/tests/unit/serviceMonitorTemplate_test.go
index b2fcb3745..ea914e281 100644
--- a/charts/falco/tests/unit/serviceMonitorTemplate_test.go
+++ b/charts/falco/tests/unit/serviceMonitorTemplate_test.go
@@ -83,7 +83,12 @@ func (s *serviceMonitorTemplateTest) TestEndpoint() {
 }
 
 func (s *serviceMonitorTemplateTest) TestNamespaceSelector() {
-	options := &helm.Options{SetValues: map[string]string{"serviceMonitor.create": "true"}}
+	selectorsLabelJson := `{
+			"app.kubernetes.io/instance": "my-falco",
+			"foo": "bar"
+		}`
+	options := &helm.Options{SetValues: map[string]string{"serviceMonitor.create": "true"},
+		SetJsonValues: map[string]string{"serviceMonitor.selector": selectorsLabelJson}}
 	output := helm.RenderTemplate(s.T(), options, s.chartPath, s.releaseName, s.templates)
 
 	var svcMonitor monitoringv1.ServiceMonitor
@@ -91,3 +96,64 @@ func (s *serviceMonitorTemplateTest) TestNamespaceSelector() {
 	s.Len(svcMonitor.Spec.NamespaceSelector.MatchNames, 1)
 	s.Equal("default", svcMonitor.Spec.NamespaceSelector.MatchNames[0])
 }
+
+func (s *serviceMonitorTemplateTest) TestServiceMonitorSelector() {
+	testCases := []struct {
+		name     string
+		values   string
+		expected map[string]string
+	}{
+		{
+			"defaultValues",
+			"",
+			map[string]string{
+				"app.kubernetes.io/instance": "falco-test",
+				"app.kubernetes.io/name":     "falco",
+				"type":                       "falco-metrics",
+			},
+		},
+		{
+			"customValues",
+			`{
+			"foo": "bar"
+		}`,
+			map[string]string{
+				"app.kubernetes.io/instance": "falco-test",
+				"app.kubernetes.io/name":     "falco",
+				"foo":                        "bar",
+				"type":                       "falco-metrics",
+			},
+		},
+		{
+			"overwriteDefaultValues",
+			`{
+			"app.kubernetes.io/instance": "falco-overwrite",
+			"foo": "bar"
+		}`,
+			map[string]string{
+				"app.kubernetes.io/instance": "falco-overwrite",
+				"app.kubernetes.io/name":     "falco",
+				"foo":                        "bar",
+				"type":                       "falco-metrics",
+			},
+		},
+	}
+
+	for _, testCase := range testCases {
+		testCase := testCase
+
+		s.Run(testCase.name, func() {
+			subT := s.T()
+			subT.Parallel()
+
+			options := &helm.Options{SetValues: map[string]string{"serviceMonitor.create": "true"},
+				SetJsonValues: map[string]string{"serviceMonitor.selector": testCase.values}}
+			output := helm.RenderTemplate(s.T(), options, s.chartPath, s.releaseName, s.templates)
+
+			var svcMonitor monitoringv1.ServiceMonitor
+			helm.UnmarshalK8SYaml(s.T(), output, &svcMonitor)
+
+			s.Equal(testCase.expected, svcMonitor.Spec.Selector.MatchLabels, "should be the same")
+		})
+	}
+}