diff --git a/docs/reference/api.md b/docs/reference/api.md
index 4b495fef69e..f692742d247 100644
--- a/docs/reference/api.md
+++ b/docs/reference/api.md
@@ -138,6 +138,8 @@ _Appears in:_
 | `template` _[PodTemplateSpec](https://kubernetes.io/docs/reference/generated/kubernetes-api/v1.28/#podtemplatespec-v1-core)_ | Template is the exact pod template used in K8s deployments, statefulsets, etc. |  |  |
 | `headService` _[Service](https://kubernetes.io/docs/reference/generated/kubernetes-api/v1.28/#service-v1-core)_ | HeadService is the Kubernetes service of the head pod. |  |  |
 | `enableIngress` _boolean_ | EnableIngress indicates whether operator should create ingress object for head service or not. |  |  |
+| `resources` _object (keys:string, values:string)_ | Resources specifies the resource quantities for the head group.<br />These values override the resources passed to `rayStartParams` for the group, but<br />have no effect on the resources set at the K8s Pod container level. |  |  |
+| `labels` _object (keys:string, values:string)_ | Labels specifies the Ray node labels for the head group.<br />These labels will also be added to the Pods of this head group and override the `--labels`<br />argument passed to `rayStartParams`. |  |  |
 | `rayStartParams` _object (keys:string, values:string)_ | RayStartParams are the params of the start command: node-manager-port, object-store-memory, ... |  |  |
 | `serviceType` _[ServiceType](https://kubernetes.io/docs/reference/generated/kubernetes-api/v1.28/#servicetype-v1-core)_ | ServiceType is Kubernetes service type of the head service. it will be used by the workers to connect to the head pod |  |  |
 
@@ -417,6 +419,8 @@ _Appears in:_
 | `minReplicas` _integer_ | MinReplicas denotes the minimum number of desired Pods for this worker group. | 0 |  |
 | `maxReplicas` _integer_ | MaxReplicas denotes the maximum number of desired Pods for this worker group, and the default value is maxInt32. | 2147483647 |  |
 | `idleTimeoutSeconds` _integer_ | IdleTimeoutSeconds denotes the number of seconds to wait before the v2 autoscaler terminates an idle worker pod of this type.<br />This value is only used with the Ray Autoscaler enabled and defaults to the value set by the AutoscalingConfig if not specified for this worker group. |  |  |
+| `resources` _object (keys:string, values:string)_ | Resources specifies the resource quantities for this worker group.<br />These values override the resources passed to `rayStartParams` for the group, but<br />have no effect on the resources set at the K8s Pod container level. |  |  |
+| `labels` _object (keys:string, values:string)_ | Labels specifies the Ray node labels for this worker group.<br />These labels will also be added to the Pods of this worker group and override the `--labels`<br />argument passed to `rayStartParams`. |  |  |
 | `rayStartParams` _object (keys:string, values:string)_ | RayStartParams are the params of the start command: address, object-store-memory, ... |  |  |
 | `template` _[PodTemplateSpec](https://kubernetes.io/docs/reference/generated/kubernetes-api/v1.28/#podtemplatespec-v1-core)_ | Template is a pod template for the worker |  |  |
 | `scaleStrategy` _[ScaleStrategy](#scalestrategy)_ | ScaleStrategy defines which pods to remove |  |  |
diff --git a/helm-chart/kuberay-operator/crds/ray.io_rayclusters.yaml b/helm-chart/kuberay-operator/crds/ray.io_rayclusters.yaml
index a8e1f1df8f1..29a303bbb35 100644
--- a/helm-chart/kuberay-operator/crds/ray.io_rayclusters.yaml
+++ b/helm-chart/kuberay-operator/crds/ray.io_rayclusters.yaml
@@ -631,10 +631,18 @@ spec:
                             type: object
                         type: object
                     type: object
+                  labels:
+                    additionalProperties:
+                      type: string
+                    type: object
                   rayStartParams:
                     additionalProperties:
                       type: string
                     type: object
+                  resources:
+                    additionalProperties:
+                      type: string
+                    type: object
                   serviceType:
                     type: string
                   template:
@@ -4332,6 +4340,10 @@ spec:
                     idleTimeoutSeconds:
                       format: int32
                       type: integer
+                    labels:
+                      additionalProperties:
+                        type: string
+                      type: object
                     maxReplicas:
                       default: 2147483647
                       format: int32
@@ -4352,6 +4364,10 @@ spec:
                       default: 0
                       format: int32
                       type: integer
+                    resources:
+                      additionalProperties:
+                        type: string
+                      type: object
                     scaleStrategy:
                       properties:
                         workersToDelete:
diff --git a/helm-chart/kuberay-operator/crds/ray.io_rayjobs.yaml b/helm-chart/kuberay-operator/crds/ray.io_rayjobs.yaml
index 8f8679ca607..1cc94efd59d 100644
--- a/helm-chart/kuberay-operator/crds/ray.io_rayjobs.yaml
+++ b/helm-chart/kuberay-operator/crds/ray.io_rayjobs.yaml
@@ -681,10 +681,18 @@ spec:
                                 type: object
                             type: object
                         type: object
+                      labels:
+                        additionalProperties:
+                          type: string
+                        type: object
                       rayStartParams:
                         additionalProperties:
                           type: string
                         type: object
+                      resources:
+                        additionalProperties:
+                          type: string
+                        type: object
                       serviceType:
                         type: string
                       template:
@@ -4382,6 +4390,10 @@ spec:
                         idleTimeoutSeconds:
                           format: int32
                           type: integer
+                        labels:
+                          additionalProperties:
+                            type: string
+                          type: object
                         maxReplicas:
                           default: 2147483647
                           format: int32
@@ -4402,6 +4414,10 @@ spec:
                           default: 0
                           format: int32
                           type: integer
+                        resources:
+                          additionalProperties:
+                            type: string
+                          type: object
                         scaleStrategy:
                           properties:
                             workersToDelete:
diff --git a/helm-chart/kuberay-operator/crds/ray.io_rayservices.yaml b/helm-chart/kuberay-operator/crds/ray.io_rayservices.yaml
index a86457fac1a..e2d61172a3c 100644
--- a/helm-chart/kuberay-operator/crds/ray.io_rayservices.yaml
+++ b/helm-chart/kuberay-operator/crds/ray.io_rayservices.yaml
@@ -611,10 +611,18 @@ spec:
                                 type: object
                             type: object
                         type: object
+                      labels:
+                        additionalProperties:
+                          type: string
+                        type: object
                       rayStartParams:
                         additionalProperties:
                           type: string
                         type: object
+                      resources:
+                        additionalProperties:
+                          type: string
+                        type: object
                       serviceType:
                         type: string
                       template:
@@ -4312,6 +4320,10 @@ spec:
                         idleTimeoutSeconds:
                           format: int32
                           type: integer
+                        labels:
+                          additionalProperties:
+                            type: string
+                          type: object
                         maxReplicas:
                           default: 2147483647
                           format: int32
@@ -4332,6 +4344,10 @@ spec:
                           default: 0
                           format: int32
                           type: integer
+                        resources:
+                          additionalProperties:
+                            type: string
+                          type: object
                         scaleStrategy:
                           properties:
                             workersToDelete:
diff --git a/ray-operator/apis/ray/v1/raycluster_types.go b/ray-operator/apis/ray/v1/raycluster_types.go
index 4ac12c79725..6a6d40b8278 100644
--- a/ray-operator/apis/ray/v1/raycluster_types.go
+++ b/ray-operator/apis/ray/v1/raycluster_types.go
@@ -75,6 +75,16 @@ type HeadGroupSpec struct {
 	// EnableIngress indicates whether operator should create ingress object for head service or not.
 	// +optional
 	EnableIngress *bool `json:"enableIngress,omitempty"`
+	// Resources specifies the resource quantities for the head group.
+	// These values override the resources passed to `rayStartParams` for the group, but
+	// have no effect on the resources set at the K8s Pod container level.
+	// +optional
+	Resources map[string]string `json:"resources,omitempty"`
+	// Labels specifies the Ray node labels for the head group.
+	// These labels will also be added to the Pods of this head group and override the `--labels`
+	// argument passed to `rayStartParams`.
+	// +optional
+	Labels map[string]string `json:"labels,omitempty"`
 	// RayStartParams are the params of the start command: node-manager-port, object-store-memory, ...
 	// +optional
 	RayStartParams map[string]string `json:"rayStartParams"`
@@ -106,6 +116,16 @@ type WorkerGroupSpec struct {
 	// This value is only used with the Ray Autoscaler enabled and defaults to the value set by the AutoscalingConfig if not specified for this worker group.
 	// +optional
 	IdleTimeoutSeconds *int32 `json:"idleTimeoutSeconds,omitempty"`
+	// Resources specifies the resource quantities for this worker group.
+	// These values override the resources passed to `rayStartParams` for the group, but
+	// have no effect on the resources set at the K8s Pod container level.
+	// +optional
+	Resources map[string]string `json:"resources,omitempty"`
+	// Labels specifies the Ray node labels for this worker group.
+	// These labels will also be added to the Pods of this worker group and override the `--labels`
+	// argument passed to `rayStartParams`.
+	// +optional
+	Labels map[string]string `json:"labels,omitempty"`
 	// RayStartParams are the params of the start command: address, object-store-memory, ...
 	// +optional
 	RayStartParams map[string]string `json:"rayStartParams"`
diff --git a/ray-operator/apis/ray/v1/zz_generated.deepcopy.go b/ray-operator/apis/ray/v1/zz_generated.deepcopy.go
index b4cb5decf12..b5f981b91a4 100644
--- a/ray-operator/apis/ray/v1/zz_generated.deepcopy.go
+++ b/ray-operator/apis/ray/v1/zz_generated.deepcopy.go
@@ -179,6 +179,20 @@ func (in *HeadGroupSpec) DeepCopyInto(out *HeadGroupSpec) {
 		*out = new(bool)
 		**out = **in
 	}
+	if in.Resources != nil {
+		in, out := &in.Resources, &out.Resources
+		*out = make(map[string]string, len(*in))
+		for key, val := range *in {
+			(*out)[key] = val
+		}
+	}
+	if in.Labels != nil {
+		in, out := &in.Labels, &out.Labels
+		*out = make(map[string]string, len(*in))
+		for key, val := range *in {
+			(*out)[key] = val
+		}
+	}
 	if in.RayStartParams != nil {
 		in, out := &in.RayStartParams, &out.RayStartParams
 		*out = make(map[string]string, len(*in))
@@ -827,6 +841,20 @@ func (in *WorkerGroupSpec) DeepCopyInto(out *WorkerGroupSpec) {
 		*out = new(int32)
 		**out = **in
 	}
+	if in.Resources != nil {
+		in, out := &in.Resources, &out.Resources
+		*out = make(map[string]string, len(*in))
+		for key, val := range *in {
+			(*out)[key] = val
+		}
+	}
+	if in.Labels != nil {
+		in, out := &in.Labels, &out.Labels
+		*out = make(map[string]string, len(*in))
+		for key, val := range *in {
+			(*out)[key] = val
+		}
+	}
 	if in.RayStartParams != nil {
 		in, out := &in.RayStartParams, &out.RayStartParams
 		*out = make(map[string]string, len(*in))
diff --git a/ray-operator/config/crd/bases/ray.io_rayclusters.yaml b/ray-operator/config/crd/bases/ray.io_rayclusters.yaml
index a8e1f1df8f1..29a303bbb35 100644
--- a/ray-operator/config/crd/bases/ray.io_rayclusters.yaml
+++ b/ray-operator/config/crd/bases/ray.io_rayclusters.yaml
@@ -631,10 +631,18 @@ spec:
                             type: object
                         type: object
                     type: object
+                  labels:
+                    additionalProperties:
+                      type: string
+                    type: object
                   rayStartParams:
                     additionalProperties:
                       type: string
                     type: object
+                  resources:
+                    additionalProperties:
+                      type: string
+                    type: object
                   serviceType:
                     type: string
                   template:
@@ -4332,6 +4340,10 @@ spec:
                     idleTimeoutSeconds:
                       format: int32
                       type: integer
+                    labels:
+                      additionalProperties:
+                        type: string
+                      type: object
                     maxReplicas:
                       default: 2147483647
                       format: int32
@@ -4352,6 +4364,10 @@ spec:
                       default: 0
                       format: int32
                       type: integer
+                    resources:
+                      additionalProperties:
+                        type: string
+                      type: object
                     scaleStrategy:
                       properties:
                         workersToDelete:
diff --git a/ray-operator/config/crd/bases/ray.io_rayjobs.yaml b/ray-operator/config/crd/bases/ray.io_rayjobs.yaml
index 8f8679ca607..1cc94efd59d 100644
--- a/ray-operator/config/crd/bases/ray.io_rayjobs.yaml
+++ b/ray-operator/config/crd/bases/ray.io_rayjobs.yaml
@@ -681,10 +681,18 @@ spec:
                                 type: object
                             type: object
                         type: object
+                      labels:
+                        additionalProperties:
+                          type: string
+                        type: object
                       rayStartParams:
                         additionalProperties:
                           type: string
                         type: object
+                      resources:
+                        additionalProperties:
+                          type: string
+                        type: object
                       serviceType:
                         type: string
                       template:
@@ -4382,6 +4390,10 @@ spec:
                         idleTimeoutSeconds:
                           format: int32
                           type: integer
+                        labels:
+                          additionalProperties:
+                            type: string
+                          type: object
                         maxReplicas:
                           default: 2147483647
                           format: int32
@@ -4402,6 +4414,10 @@ spec:
                           default: 0
                           format: int32
                           type: integer
+                        resources:
+                          additionalProperties:
+                            type: string
+                          type: object
                         scaleStrategy:
                           properties:
                             workersToDelete:
diff --git a/ray-operator/config/crd/bases/ray.io_rayservices.yaml b/ray-operator/config/crd/bases/ray.io_rayservices.yaml
index a86457fac1a..e2d61172a3c 100644
--- a/ray-operator/config/crd/bases/ray.io_rayservices.yaml
+++ b/ray-operator/config/crd/bases/ray.io_rayservices.yaml
@@ -611,10 +611,18 @@ spec:
                                 type: object
                             type: object
                         type: object
+                      labels:
+                        additionalProperties:
+                          type: string
+                        type: object
                       rayStartParams:
                         additionalProperties:
                           type: string
                         type: object
+                      resources:
+                        additionalProperties:
+                          type: string
+                        type: object
                       serviceType:
                         type: string
                       template:
@@ -4312,6 +4320,10 @@ spec:
                         idleTimeoutSeconds:
                           format: int32
                           type: integer
+                        labels:
+                          additionalProperties:
+                            type: string
+                          type: object
                         maxReplicas:
                           default: 2147483647
                           format: int32
@@ -4332,6 +4344,10 @@ spec:
                           default: 0
                           format: int32
                           type: integer
+                        resources:
+                          additionalProperties:
+                            type: string
+                          type: object
                         scaleStrategy:
                           properties:
                             workersToDelete:
diff --git a/ray-operator/controllers/ray/common/pod.go b/ray-operator/controllers/ray/common/pod.go
index 2b5aae59e3e..1eb086d2eb2 100644
--- a/ray-operator/controllers/ray/common/pod.go
+++ b/ray-operator/controllers/ray/common/pod.go
@@ -172,10 +172,16 @@ func DefaultHeadPodTemplate(ctx context.Context, instance rayv1.RayCluster, head
 	// This ensures privilege of KubeRay users are contained within the namespace of the RayCluster.
 	podTemplate.ObjectMeta.Namespace = instance.Namespace
 
-	if podTemplate.Labels == nil {
-		podTemplate.Labels = make(map[string]string)
-	}
-	podTemplate.Labels = labelPod(rayv1.HeadNode, instance.Name, utils.RayNodeHeadGroupLabelValue, instance.Spec.HeadGroupSpec.Template.ObjectMeta.Labels)
+	// Update rayStartParams with top-level Resources for head group.
+	updateRayStartParamsResources(ctx, headSpec.RayStartParams, headSpec.Resources)
+
+	// Update --labels` in rayStartParams with top-level Labels for head group.
+	updateRayStartParamsLabels(headSpec.RayStartParams, headSpec.Labels)
+
+	// Merge K8s labels from the Pod template and the top-level `Labels` field.
+	mergedLabels := mergeLabels(headSpec.Template.ObjectMeta.Labels, headSpec.Labels)
+	podTemplate.Labels = labelPod(rayv1.HeadNode, instance.Name, utils.RayNodeHeadGroupLabelValue, mergedLabels)
+
 	headSpec.RayStartParams = setMissingRayStartParams(ctx, headSpec.RayStartParams, rayv1.HeadNode, headPort, "")
 
 	initTemplateAnnotations(instance, &podTemplate)
@@ -311,10 +317,17 @@ func DefaultWorkerPodTemplate(ctx context.Context, instance rayv1.RayCluster, wo
 	// If the replica of workers is more than 1, `ObjectMeta.Name` may cause name conflict errors.
 	// Hence, we set `ObjectMeta.Name` to an empty string, and use GenerateName to prevent name conflicts.
 	podTemplate.ObjectMeta.Name = ""
-	if podTemplate.Labels == nil {
-		podTemplate.Labels = make(map[string]string)
-	}
-	podTemplate.Labels = labelPod(rayv1.WorkerNode, instance.Name, workerSpec.GroupName, workerSpec.Template.ObjectMeta.Labels)
+
+	// Update rayStartParams with top-level Resources for worker group.
+	updateRayStartParamsResources(ctx, workerSpec.RayStartParams, workerSpec.Resources)
+
+	// Update --labels` in rayStartParams with top-level Labels for worker group.
+	updateRayStartParamsLabels(workerSpec.RayStartParams, workerSpec.Labels)
+
+	// Merge K8s labels from the Pod template and the top-level `Labels` field.
+	mergedLabels := mergeLabels(workerSpec.Template.ObjectMeta.Labels, workerSpec.Labels)
+	podTemplate.Labels = labelPod(rayv1.WorkerNode, instance.Name, workerSpec.GroupName, mergedLabels)
+
 	workerSpec.RayStartParams = setMissingRayStartParams(ctx, workerSpec.RayStartParams, rayv1.WorkerNode, headPort, fqdnRayIP)
 
 	initTemplateAnnotations(instance, &podTemplate)
@@ -1026,3 +1039,72 @@ func findMemoryReqOrLimit(container corev1.Container) (res *resource.Quantity) {
 	}
 	return nil
 }
+
+// updateRayStartParamsLabels reconciles `--labels` in rayStartParams based on group `Labels`.
+func updateRayStartParamsLabels(rayStartParams map[string]string, groupLabels map[string]string) {
+	if len(groupLabels) == 0 {
+		return
+	}
+	var labels []string
+	// Sort label keys for deterministic output.
+	keys := make([]string, 0, len(groupLabels))
+	for k := range groupLabels {
+		keys = append(keys, k)
+	}
+	sort.Strings(keys)
+
+	for _, k := range keys {
+		labels = append(labels, fmt.Sprintf("%s=%s", k, groupLabels[k]))
+	}
+	rayStartParams["labels"] = strings.Join(labels, ",")
+}
+
+// updateRayStartParamsResources reconciles rayStartParams based on the top-level `Resources` field.
+func updateRayStartParamsResources(ctx context.Context, rayStartParams map[string]string, groupResources map[string]string) {
+	log := ctrl.LoggerFrom(ctx)
+
+	if len(groupResources) == 0 {
+		return
+	}
+	// Override relevant rayStartParams fields to ensure consistency.
+	rayResourcesJson := make(map[string]float64)
+	for name, quantity := range groupResources {
+		q, err := resource.ParseQuantity(quantity)
+		if err != nil {
+			log.Info("Skipping resource %s: failed to parse quantity '%s': %v", name, quantity, err)
+			continue
+		}
+
+		if name == string(corev1.ResourceCPU) {
+			rayStartParams["num-cpus"] = strconv.FormatInt(q.Value(), 10)
+		} else if name == string(corev1.ResourceMemory) {
+			rayStartParams["memory"] = strconv.FormatInt(q.Value(), 10)
+		} else if utils.IsGPUResourceKey(name) {
+			rayStartParams["num-gpus"] = strconv.FormatInt(q.Value(), 10)
+		} else {
+			rayResourcesJson[name] = q.AsApproximateFloat64()
+		}
+	}
+
+	if len(rayResourcesJson) > 0 {
+		jsonBytes, err := json.Marshal(rayResourcesJson)
+		if err != nil {
+			log.Error(err, "Failed to marshal Ray Resources JSON for rayStartParams.")
+			return
+		}
+		rayStartParams["resources"] = fmt.Sprintf("'%s'", string(jsonBytes))
+	}
+}
+
+// mergeLabels combines labels from a pod template and a group `labels` spec,
+// with the top-level labels field taking precedence.
+func mergeLabels(templateLabels map[string]string, groupLabels map[string]string) map[string]string {
+	merged := make(map[string]string)
+	for k, v := range templateLabels {
+		merged[k] = v
+	}
+	for k, v := range groupLabels {
+		merged[k] = v
+	}
+	return merged
+}
diff --git a/ray-operator/controllers/ray/common/pod_test.go b/ray-operator/controllers/ray/common/pod_test.go
index 907b5326efc..8b26b4bee5f 100644
--- a/ray-operator/controllers/ray/common/pod_test.go
+++ b/ray-operator/controllers/ray/common/pod_test.go
@@ -1888,3 +1888,171 @@ func TestSetAutoscalerV2EnvVars(t *testing.T) {
 		})
 	}
 }
+
+func TestMergeLabels(t *testing.T) {
+	tests := map[string]struct {
+		templateSpecLabels map[string]string
+		workerGroupLabels  map[string]string
+		expectedLabels     map[string]string
+	}{
+		"Non-overlapping labels don't override.": {
+			templateSpecLabels: map[string]string{"pod-label-key": "pod-label-value"},
+			workerGroupLabels:  map[string]string{"ray/io:some-label": "ray-node-label-value"},
+			expectedLabels:     map[string]string{"pod-label-key": "pod-label-value", "ray/io:some-label": "ray-node-label-value"},
+		},
+		"Overlapping labels override with precedence for group `Labels`.": {
+			templateSpecLabels: map[string]string{"accelerator-type": "GPU", "market-type": "spot"},
+			workerGroupLabels:  map[string]string{"accelerator-type": "TPU-V6E"},
+			expectedLabels:     map[string]string{"accelerator-type": "TPU-V6E", "market-type": "spot"},
+		},
+		"Empty Pod Spec labels.": {
+			templateSpecLabels: map[string]string{},
+			workerGroupLabels:  map[string]string{"group-labels": "group-label-value"},
+			expectedLabels:     map[string]string{"group-labels": "group-label-value"},
+		},
+		"Empty `Labels` field for group.": {
+			templateSpecLabels: map[string]string{"pod-label": "pod-label-value"},
+			workerGroupLabels:  map[string]string{},
+			expectedLabels:     map[string]string{"pod-label": "pod-label-value"},
+		},
+		"Both `Labels` and labels in Pod spec nil.": {
+			templateSpecLabels: nil,
+			workerGroupLabels:  nil,
+			expectedLabels:     map[string]string{},
+		},
+	}
+
+	for name, tc := range tests {
+		t.Run(name, func(t *testing.T) {
+			merged := mergeLabels(tc.templateSpecLabels, tc.workerGroupLabels)
+			assert.Equal(t, tc.expectedLabels, merged)
+		})
+	}
+}
+
+func TestUpdateRayStartParamsLabels(t *testing.T) {
+	tests := map[string]struct {
+		initialRayStartParams  map[string]string
+		groupLabels            map[string]string
+		expectedRayStartParams map[string]string
+	}{
+		"Set labels in group `Labels` to `--labels` empty rayStartParams.": {
+			initialRayStartParams: map[string]string{},
+			groupLabels: map[string]string{
+				"topology.kubernetes.io/zone": "us-central2",
+				"ray.io/node-group":           "worker-group-1",
+				"cloud.google.com/gke-spot":   "true",
+			},
+			// The output string is sorted alphabetically by key.
+			expectedRayStartParams: map[string]string{
+				"labels": "cloud.google.com/gke-spot=true,ray.io/node-group=worker-group-1,topology.kubernetes.io/zone=us-central2",
+			},
+		},
+		" group `Labels overwrites an existing '--labels' parameter in rayStartParams": {
+			initialRayStartParams: map[string]string{
+				"labels":    "old=label,to-be=replaced",
+				"resources": "some-resources", // should be retained
+			},
+			groupLabels: map[string]string{
+				"new": "label",
+			},
+			expectedRayStartParams: map[string]string{
+				"labels":    "new=label",
+				"resources": "some-resources",
+			},
+		},
+		"No-op when group `Labels` is nil": {
+			initialRayStartParams:  map[string]string{"labels": "some=labels"},
+			groupLabels:            nil,
+			expectedRayStartParams: map[string]string{"labels": "some=labels"},
+		},
+		"No-op when group `Labels` is empty": {
+			initialRayStartParams:  map[string]string{"labels": "some=labels"},
+			groupLabels:            map[string]string{},
+			expectedRayStartParams: map[string]string{"labels": "some=labels"},
+		},
+	}
+
+	for name, tc := range tests {
+		t.Run(name, func(t *testing.T) {
+			// copy of rayStartParams for test
+			rayStartParams := make(map[string]string)
+			for k, v := range tc.initialRayStartParams {
+				rayStartParams[k] = v
+			}
+
+			updateRayStartParamsLabels(rayStartParams, tc.groupLabels)
+
+			assert.Equal(t, tc.expectedRayStartParams, rayStartParams)
+		})
+	}
+}
+
+func TestUpdateRayStartParamsResources(t *testing.T) {
+	ctx := context.Background()
+
+	tests := map[string]struct {
+		initialRayStartParams  map[string]string
+		groupResources         map[string]string
+		expectedRayStartParams map[string]string
+		expectedK8sResources   corev1.ResourceList
+	}{
+		"No-op when group `Resources` is nil or empty": {
+			initialRayStartParams:  map[string]string{"existing": "true"},
+			groupResources:         nil,
+			expectedRayStartParams: map[string]string{"existing": "true"},
+		},
+		"Basic CPU and Memory set in `Resources` override rayStartParams": {
+			initialRayStartParams: map[string]string{},
+			groupResources: map[string]string{
+				string(corev1.ResourceCPU):    "2",
+				string(corev1.ResourceMemory): "4Gi",
+			},
+			expectedRayStartParams: map[string]string{
+				"num-cpus": "2",
+				"memory":   "4294967296", // 4Gi in bytes
+			},
+		},
+		"GPU and custom TPU resource set in `Resources` override rayStartParams": {
+			initialRayStartParams: map[string]string{},
+			groupResources: map[string]string{
+				"nvidia.com/gpu": "1",
+				"TPU":            "4",
+			},
+			expectedRayStartParams: map[string]string{
+				"num-gpus":  "1",
+				"resources": "'{\"TPU\":4}'",
+			},
+		},
+		"Top-level `Resources` should override existing resource params": {
+			initialRayStartParams: map[string]string{
+				"num-cpus":  "1",
+				"memory":    "1000",
+				"resources": "'{\"Custom-Resource\": 10}'",
+			},
+			groupResources: map[string]string{
+				string(corev1.ResourceCPU): "4",
+				"Custom-Resource":          "5",
+			},
+			expectedRayStartParams: map[string]string{
+				"num-cpus":  "4",
+				"memory":    "1000", // preserved
+				"resources": "'{\"Custom-Resource\":5}'",
+			},
+		},
+	}
+
+	for name, tc := range tests {
+		t.Run(name, func(t *testing.T) {
+			rayStartParams := make(map[string]string)
+			for k, v := range tc.initialRayStartParams {
+				rayStartParams[k] = v
+			}
+
+			updateRayStartParamsResources(ctx, rayStartParams, tc.groupResources)
+
+			// Verify rayStartParams are updated based on the top-level Resources values.
+			assert.Equal(t, tc.expectedRayStartParams, rayStartParams)
+		})
+	}
+}
diff --git a/ray-operator/controllers/ray/utils/validation.go b/ray-operator/controllers/ray/utils/validation.go
index 74d2b4fe0e6..f804121591d 100644
--- a/ray-operator/controllers/ray/utils/validation.go
+++ b/ray-operator/controllers/ray/utils/validation.go
@@ -3,6 +3,7 @@ package utils
 import (
 	errstd "errors"
 	"fmt"
+	"strings"
 
 	corev1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/api/meta"
@@ -33,16 +34,73 @@ func ValidateRayClusterMetadata(metadata metav1.ObjectMeta) error {
 	return nil
 }
 
+// validateRayGroupResources checks for conflicting resource definitions.
+func validateRayGroupResources(groupName string, rayStartParams, resources map[string]string) error {
+	hasRayStartResources := rayStartParams["num-cpus"] != "" ||
+		rayStartParams["num-gpus"] != "" ||
+		rayStartParams["memory"] != "" ||
+		rayStartParams["resources"] != ""
+	if hasRayStartResources && len(resources) > 0 {
+		return fmt.Errorf("resource fields should not be set in both rayStartParams and Resources for %s group; please use only one", groupName)
+	}
+	return nil
+}
+
+// validateRayGroupLabels checks for invalid label definitions and correct label syntax.
+func validateRayGroupLabels(groupName string, rayStartParams, labels map[string]string) error {
+	if _, ok := rayStartParams["labels"]; ok {
+		return fmt.Errorf("rayStartParams['labels'] is not supported for %s group; please use the top-level Labels field instead", groupName)
+	}
+
+	// Validate that labels conforms to Kubernetes label syntax.
+	var allErrs []string
+	for key, val := range labels {
+		// Validate the label key.
+		if errs := validation.IsQualifiedName(key); len(errs) > 0 {
+			for _, err := range errs {
+				allErrs = append(allErrs, fmt.Sprintf("invalid label key for %s group: '%s', error: %s", groupName, key, err))
+			}
+		}
+
+		// Validate the label value.
+		if errs := validation.IsValidLabelValue(val); len(errs) > 0 {
+			for _, err := range errs {
+				allErrs = append(allErrs, fmt.Sprintf("invalid label value for key '%s' in %s group: '%s', error: %s", key, groupName, val, err))
+			}
+		}
+	}
+
+	if len(allErrs) > 0 {
+		return fmt.Errorf("%s", strings.Join(allErrs, "; "))
+	}
+
+	return nil
+}
+
 // Validation for invalid Ray Cluster configurations.
 func ValidateRayClusterSpec(spec *rayv1.RayClusterSpec, annotations map[string]string) error {
 	if len(spec.HeadGroupSpec.Template.Spec.Containers) == 0 {
 		return fmt.Errorf("headGroupSpec should have at least one container")
 	}
 
+	if err := validateRayGroupResources("Head", spec.HeadGroupSpec.RayStartParams, spec.HeadGroupSpec.Resources); err != nil {
+		return err
+	}
+	if err := validateRayGroupLabels("Head", spec.HeadGroupSpec.RayStartParams, spec.HeadGroupSpec.Labels); err != nil {
+		return err
+	}
+
 	for _, workerGroup := range spec.WorkerGroupSpecs {
 		if len(workerGroup.Template.Spec.Containers) == 0 {
 			return fmt.Errorf("workerGroupSpec should have at least one container")
 		}
+
+		if err := validateRayGroupResources(workerGroup.GroupName, workerGroup.RayStartParams, workerGroup.Resources); err != nil {
+			return err
+		}
+		if err := validateRayGroupLabels(workerGroup.GroupName, workerGroup.RayStartParams, workerGroup.Labels); err != nil {
+			return err
+		}
 	}
 
 	if annotations[RayFTEnabledAnnotationKey] != "" && spec.GcsFaultToleranceOptions != nil {
diff --git a/ray-operator/controllers/ray/utils/validation_test.go b/ray-operator/controllers/ray/utils/validation_test.go
index dc464424f40..ec9bfb30a7b 100644
--- a/ray-operator/controllers/ray/utils/validation_test.go
+++ b/ray-operator/controllers/ray/utils/validation_test.go
@@ -683,6 +683,174 @@ func TestValidateRayClusterSpecAutoscaler(t *testing.T) {
 	}
 }
 
+func TestValidateRayClusterSpec_Resources(t *testing.T) {
+	// Util function to create a RayCluster spec.
+	createSpec := func() rayv1.RayClusterSpec {
+		return rayv1.RayClusterSpec{
+			HeadGroupSpec: rayv1.HeadGroupSpec{
+				Template: podTemplateSpec(nil, nil),
+			},
+			WorkerGroupSpecs: []rayv1.WorkerGroupSpec{
+				{
+					GroupName: "worker-group",
+					Template:  podTemplateSpec(nil, nil),
+				},
+			},
+		}
+	}
+
+	tests := []struct {
+		name         string
+		errorMessage string
+		spec         rayv1.RayClusterSpec
+		expectError  bool
+	}{
+		{
+			name: "Invalid: Head group has resources in both rayStartParams and top-level Resources",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.HeadGroupSpec.RayStartParams = map[string]string{"num-cpus": "1"}
+				s.HeadGroupSpec.Resources = map[string]string{"CPU": "1"}
+				return s
+			}(),
+			expectError:  true,
+			errorMessage: "resource fields should not be set in both rayStartParams and Resources for Head group; please use only one",
+		},
+		{
+			name: "Invalid: Worker group has resources in both rayStartParams and .Resources",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.WorkerGroupSpecs[0].RayStartParams = map[string]string{"num-gpus": "1"}
+				s.WorkerGroupSpecs[0].Resources = map[string]string{"GPU": "1"}
+				return s
+			}(),
+			expectError:  true,
+			errorMessage: "resource fields should not be set in both rayStartParams and Resources for worker-group group; please use only one",
+		},
+		{
+			name: "Valid: Only rayStartParams resources are set for head",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.HeadGroupSpec.RayStartParams = map[string]string{
+					"num-cpus":  "2",
+					"memory":    "4G",
+					"resources": "{\"TPU\": \"8\"}",
+				}
+				return s
+			}(),
+			expectError: false,
+		},
+		{
+			name: "Valid: Only .Resources field is set for worker",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.WorkerGroupSpecs[0].Resources = map[string]string{"CPU": "2", "memory": "4G", "TPU": "8"}
+				return s
+			}(),
+			expectError: false,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			err := ValidateRayClusterSpec(&tt.spec, nil)
+			if tt.expectError {
+				require.Error(t, err)
+				assert.EqualError(t, err, tt.errorMessage)
+			} else {
+				require.NoError(t, err)
+			}
+		})
+	}
+}
+
+func TestValidateRayClusterSpec_Labels(t *testing.T) {
+	// Util function to create a RayCluster spec.
+	createSpec := func() rayv1.RayClusterSpec {
+		return rayv1.RayClusterSpec{
+			HeadGroupSpec: rayv1.HeadGroupSpec{
+				Template: podTemplateSpec(nil, nil),
+			},
+			WorkerGroupSpecs: []rayv1.WorkerGroupSpec{
+				{
+					GroupName: "worker-group",
+					Template:  podTemplateSpec(nil, nil),
+				},
+			},
+		}
+	}
+
+	tests := []struct {
+		name         string
+		errorMessage string
+		spec         rayv1.RayClusterSpec
+		expectError  bool
+	}{
+		{
+			name: "Invalid: Head group has 'labels' in rayStartParams",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.HeadGroupSpec.RayStartParams = map[string]string{"labels": "ray.io/node-group=worker-group-1"}
+				return s
+			}(),
+			expectError:  true,
+			errorMessage: "rayStartParams['labels'] is not supported for Head group; please use the top-level Labels field instead",
+		},
+		{
+			name: "Invalid: Worker group has 'labels' in rayStartParams",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.WorkerGroupSpecs[0].RayStartParams = map[string]string{"labels": "ray.io/node-group=worker-group-1"}
+				return s
+			}(),
+			expectError:  true,
+			errorMessage: "rayStartParams['labels'] is not supported for worker-group group; please use the top-level Labels field instead",
+		},
+		{
+			name: "Valid: Only .Labels field is set",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.HeadGroupSpec.Labels = map[string]string{"ray.io/market-type": "on-demand"}
+				s.WorkerGroupSpecs[0].Labels = map[string]string{"ray.io/accelerator-type": "TPU-V6E"}
+				return s
+			}(),
+			expectError: false,
+		},
+		{
+			name: "Invalid: Label key does not follow Kubernetes syntax",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.WorkerGroupSpecs[0].Labels = map[string]string{"invalid_key!": "value"}
+				return s
+			}(),
+			expectError:  true,
+			errorMessage: "invalid label key for worker-group group: 'invalid_key!', error: name part must consist of alphanumeric characters, '-', '_' or '.', and must start and end with an alphanumeric character",
+		},
+		{
+			name: "Invalid: Label value does not follow Kubernetes syntax",
+			spec: func() rayv1.RayClusterSpec {
+				s := createSpec()
+				s.HeadGroupSpec.Labels = map[string]string{"valid-key": "invalid/value"}
+				return s
+			}(),
+			expectError:  true,
+			errorMessage: "invalid label value for key 'valid-key' in Head group: 'invalid/value', error: a valid label must be an empty string or consist of alphanumeric characters, '-', '_' or '.', and must start and end with an alphanumeric character",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			err := ValidateRayClusterSpec(&tt.spec, nil)
+			if tt.expectError {
+				require.Error(t, err)
+				assert.Contains(t, err.Error(), tt.errorMessage)
+			} else {
+				require.NoError(t, err)
+			}
+		})
+	}
+}
+
 func TestValidateRayJobStatus(t *testing.T) {
 	tests := []struct {
 		name        string
diff --git a/ray-operator/pkg/client/applyconfiguration/ray/v1/headgroupspec.go b/ray-operator/pkg/client/applyconfiguration/ray/v1/headgroupspec.go
index 6970ff2634a..c5233d65732 100644
--- a/ray-operator/pkg/client/applyconfiguration/ray/v1/headgroupspec.go
+++ b/ray-operator/pkg/client/applyconfiguration/ray/v1/headgroupspec.go
@@ -13,6 +13,8 @@ type HeadGroupSpecApplyConfiguration struct {
 	Template       *corev1.PodTemplateSpecApplyConfiguration `json:"template,omitempty"`
 	HeadService    *apicorev1.Service                        `json:"headService,omitempty"`
 	EnableIngress  *bool                                     `json:"enableIngress,omitempty"`
+	Resources      map[string]string                         `json:"resources,omitempty"`
+	Labels         map[string]string                         `json:"labels,omitempty"`
 	RayStartParams map[string]string                         `json:"rayStartParams,omitempty"`
 	ServiceType    *apicorev1.ServiceType                    `json:"serviceType,omitempty"`
 }
@@ -47,6 +49,34 @@ func (b *HeadGroupSpecApplyConfiguration) WithEnableIngress(value bool) *HeadGro
 	return b
 }
 
+// WithResources puts the entries into the Resources field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, the entries provided by each call will be put on the Resources field,
+// overwriting an existing map entries in Resources field with the same key.
+func (b *HeadGroupSpecApplyConfiguration) WithResources(entries map[string]string) *HeadGroupSpecApplyConfiguration {
+	if b.Resources == nil && len(entries) > 0 {
+		b.Resources = make(map[string]string, len(entries))
+	}
+	for k, v := range entries {
+		b.Resources[k] = v
+	}
+	return b
+}
+
+// WithLabels puts the entries into the Labels field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, the entries provided by each call will be put on the Labels field,
+// overwriting an existing map entries in Labels field with the same key.
+func (b *HeadGroupSpecApplyConfiguration) WithLabels(entries map[string]string) *HeadGroupSpecApplyConfiguration {
+	if b.Labels == nil && len(entries) > 0 {
+		b.Labels = make(map[string]string, len(entries))
+	}
+	for k, v := range entries {
+		b.Labels[k] = v
+	}
+	return b
+}
+
 // WithRayStartParams puts the entries into the RayStartParams field in the declarative configuration
 // and returns the receiver, so that objects can be build by chaining "With" function invocations.
 // If called multiple times, the entries provided by each call will be put on the RayStartParams field,
diff --git a/ray-operator/pkg/client/applyconfiguration/ray/v1/workergroupspec.go b/ray-operator/pkg/client/applyconfiguration/ray/v1/workergroupspec.go
index 85199596806..7aa692895f1 100644
--- a/ray-operator/pkg/client/applyconfiguration/ray/v1/workergroupspec.go
+++ b/ray-operator/pkg/client/applyconfiguration/ray/v1/workergroupspec.go
@@ -15,6 +15,8 @@ type WorkerGroupSpecApplyConfiguration struct {
 	MinReplicas        *int32                                    `json:"minReplicas,omitempty"`
 	MaxReplicas        *int32                                    `json:"maxReplicas,omitempty"`
 	IdleTimeoutSeconds *int32                                    `json:"idleTimeoutSeconds,omitempty"`
+	Resources          map[string]string                         `json:"resources,omitempty"`
+	Labels             map[string]string                         `json:"labels,omitempty"`
 	RayStartParams     map[string]string                         `json:"rayStartParams,omitempty"`
 	Template           *corev1.PodTemplateSpecApplyConfiguration `json:"template,omitempty"`
 	ScaleStrategy      *ScaleStrategyApplyConfiguration          `json:"scaleStrategy,omitempty"`
@@ -75,6 +77,34 @@ func (b *WorkerGroupSpecApplyConfiguration) WithIdleTimeoutSeconds(value int32)
 	return b
 }
 
+// WithResources puts the entries into the Resources field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, the entries provided by each call will be put on the Resources field,
+// overwriting an existing map entries in Resources field with the same key.
+func (b *WorkerGroupSpecApplyConfiguration) WithResources(entries map[string]string) *WorkerGroupSpecApplyConfiguration {
+	if b.Resources == nil && len(entries) > 0 {
+		b.Resources = make(map[string]string, len(entries))
+	}
+	for k, v := range entries {
+		b.Resources[k] = v
+	}
+	return b
+}
+
+// WithLabels puts the entries into the Labels field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, the entries provided by each call will be put on the Labels field,
+// overwriting an existing map entries in Labels field with the same key.
+func (b *WorkerGroupSpecApplyConfiguration) WithLabels(entries map[string]string) *WorkerGroupSpecApplyConfiguration {
+	if b.Labels == nil && len(entries) > 0 {
+		b.Labels = make(map[string]string, len(entries))
+	}
+	for k, v := range entries {
+		b.Labels[k] = v
+	}
+	return b
+}
+
 // WithRayStartParams puts the entries into the RayStartParams field in the declarative configuration
 // and returns the receiver, so that objects can be build by chaining "With" function invocations.
 // If called multiple times, the entries provided by each call will be put on the RayStartParams field,