diff --git a/lib/kino/process.ex b/lib/kino/process.ex
index 5e97106b..e058f02f 100644
--- a/lib/kino/process.ex
+++ b/lib/kino/process.ex
@@ -8,10 +8,10 @@ defmodule Kino.Process do
   alias Kino.Process.Tracer
 
   @mermaid_classdefs """
-  classDef root fill:#c4b5fd, stroke:#374151, stroke-width:4px;
-  classDef supervisor fill:#c4b5fd, stroke:#374151, stroke-width:1px;
-  classDef worker fill:#66c2a5, stroke:#374151, stroke-width:1px;
-  classDef notstarted color:#777, fill:#d9d9d9, stroke:#777, stroke-width:1px;
+  classDef root fill:#c4b5fd, stroke:#374151, stroke-width:4px, line-height:1.5em;
+  classDef supervisor fill:#c4b5fd, stroke:#374151, stroke-width:1px, line-height:1.5em;
+  classDef worker fill:#66c2a5, stroke:#374151, stroke-width:1px, line-height:1.5em;
+  classDef notstarted color:#777, fill:#d9d9d9, stroke:#777, stroke-width:1px, line-height:1.5em;
   classDef ets fill:#a5f3fc, stroke:#374151, stroke-width:1px;
   """
 
@@ -324,7 +324,7 @@ defmodule Kino.Process do
     previous_tracer = :seq_trace.set_system_tracer(tracer_pid)
 
     # Run the user supplied function and capture the events if no errors were encountered
-    {raw_trace_events, func_result} =
+    {%{raw_trace_events: raw_trace_events, process_labels: process_labels}, func_result} =
       try do
         func_result =
           try do
@@ -336,7 +336,7 @@ defmodule Kino.Process do
             :seq_trace.reset_trace()
           end
 
-        {Tracer.get_trace_events(tracer_pid), func_result}
+        {Tracer.get_trace_info(tracer_pid), func_result}
       after
         # The Tracer GenServer is no longer needed, shut it down
         GenServer.stop(tracer_pid)
@@ -380,7 +380,8 @@ defmodule Kino.Process do
         if pid == calling_pid do
           "participant #{idx} AS self();"
         else
-          generate_participant_entry(pid, idx)
+          process_label = Map.get(process_labels, pid, :undefined)
+          generate_participant_entry(pid, idx, process_label)
         end
       end)
 
@@ -413,6 +414,7 @@ defmodule Kino.Process do
 
     sequence_diagram =
       Mermaid.new("""
+      %%{init: {'themeCSS': '.actor:last-of-type:not(:only-of-type) {dominant-baseline: hanging;}'} }%%
       sequenceDiagram
       #{participants}
       #{messages}
@@ -421,15 +423,36 @@ defmodule Kino.Process do
     {func_result, sequence_diagram}
   end
 
-  defp generate_participant_entry(pid, idx) do
+  # TODO: use :proc_lib.get_label/1 once we require OTP 27
+  if Code.ensure_loaded?(:proc_lib) and function_exported?(:proc_lib, :get_label, 1) do
+    defp get_label(pid), do: :proc_lib.get_label(pid)
+  else
+    defp get_label(_pid), do: :undefined
+  end
+
+  defp generate_participant_entry(pid, idx, process_label) do
     try do
       {:registered_name, name} = process_info(pid, :registered_name)
       "participant #{idx} AS #{module_or_atom_to_string(name)};"
     rescue
-      _ -> "participant #{idx} AS #35;PID#{:erlang.pid_to_list(pid)};"
+      _ ->
+        case process_label do
+          :undefined ->
+            "participant #{idx} AS #35;PID#{:erlang.pid_to_list(pid)};"
+
+          process_label ->
+            "participant #{idx} AS #{format_for_mermaid_participant_alias(pid, process_label)};"
+        end
     end
   end
 
+  defp format_for_mermaid_participant_alias(pid, process_label) do
+    pid_text = :erlang.pid_to_list(pid) |> List.to_string()
+
+    label = process_label |> inspect() |> String.replace(~s{"}, "")
+    "#{label}<br/>#{pid_text}"
+  end
+
   defp maybe_add_participant({participants, idx}, pid) when is_pid(pid) do
     if Map.has_key?(participants, pid) do
       {participants, idx}
@@ -740,13 +763,33 @@ defmodule Kino.Process do
 
     display =
       case process_info(pid, :registered_name) do
-        {:registered_name, []} -> inspect(pid)
-        {:registered_name, name} -> module_or_atom_to_string(name)
+        {:registered_name, []} ->
+          case get_label(pid) do
+            :undefined -> inspect(pid)
+            process_label -> format_for_mermaid_graph_node(pid, process_label)
+          end
+
+        {:registered_name, name} ->
+          module_or_atom_to_string(name)
       end
 
     "#{idx}(#{display}):::#{type}"
   end
 
+  defp format_for_mermaid_graph_node(pid, process_label) do
+    pid_text = :erlang.pid_to_list(pid) |> List.to_string()
+
+    label = process_label |> inspect() |> String.replace(~s{"}, "")
+
+    format_as_mermaid_unicode_text("#{label}<br/>#{pid_text}")
+  end
+
+  # this is needed to use unicode inside node's text
+  # (https://mermaid.js.org/syntax/flowchart.html#unicode-text)
+  defp format_as_mermaid_unicode_text(node_text) do
+    "\"#{node_text}\""
+  end
+
   defp module_or_atom_to_string(atom) do
     case Atom.to_string(atom) do
       "Elixir." <> rest -> rest
diff --git a/lib/kino/process/tracer.ex b/lib/kino/process/tracer.ex
index 77448229..eb277e69 100644
--- a/lib/kino/process/tracer.ex
+++ b/lib/kino/process/tracer.ex
@@ -7,22 +7,22 @@ defmodule Kino.Process.Tracer do
     GenServer.start_link(__MODULE__, nil)
   end
 
-  def get_trace_events(tracer) do
-    GenServer.call(tracer, :get_trace_events)
+  def get_trace_info(tracer) do
+    GenServer.call(tracer, :get_trace_info)
   end
 
   @impl true
   def init(_) do
-    {:ok, []}
+    {:ok, %{raw_trace_events: [], process_labels: %{}}}
   end
 
   @impl true
-  def handle_call(:get_trace_events, _from, trace_events) do
-    {:reply, trace_events, trace_events}
+  def handle_call(:get_trace_info, _from, trace_info) do
+    {:reply, trace_info, trace_info}
   end
 
   @impl true
-  def handle_info({:seq_trace, _, {:send, _, from, to, message}, timestamp}, trace_events) do
+  def handle_info({:seq_trace, _, {:send, _, from, to, message}, timestamp}, trace_info) do
     new_event = %{
       type: :send,
       timestamp: timestamp,
@@ -31,10 +31,28 @@ defmodule Kino.Process.Tracer do
       message: message
     }
 
-    {:noreply, [new_event | trace_events]}
+    trace_events = [new_event | trace_info.raw_trace_events]
+
+    process_labels =
+      trace_info.process_labels
+      |> put_new_label(from)
+      |> put_new_label(to)
+
+    {:noreply, %{trace_info | raw_trace_events: trace_events, process_labels: process_labels}}
   end
 
   def handle_info(_ignored_event, trace_events) do
     {:noreply, trace_events}
   end
+
+  defp put_new_label(process_labels, pid) do
+    Map.put_new_lazy(process_labels, pid, fn -> get_label(pid) end)
+  end
+
+  # :proc_lib.get_label/1 was added in OTP 27
+  if Code.ensure_loaded?(:proc_lib) and function_exported?(:proc_lib, :get_label, 1) do
+    defp get_label(pid), do: :proc_lib.get_label(pid)
+  else
+    defp get_label(_pid), do: :undefined
+  end
 end
diff --git a/test/kino/process_test.exs b/test/kino/process_test.exs
index 2e660659..e6b32e68 100644
--- a/test/kino/process_test.exs
+++ b/test/kino/process_test.exs
@@ -114,6 +114,39 @@ defmodule Kino.ProcessTest do
       assert content =~ "0(supervisor_parent):::root ---> 2(#{inspect(agent)}):::worker"
     end
 
+    # TODO: remove once we require Elixir v1.17.0
+    if function_exported?(Process, :set_label, 1) do
+      test "uses process label in the diagram to identify a process" do
+        process_label = "my task"
+
+        supervisor =
+          start_supervised!(%{
+            id: Supervisor,
+            start:
+              {Supervisor, :start_link,
+               [
+                 [
+                   {Task,
+                    fn ->
+                      Process.set_label(process_label)
+                      Process.sleep(:infinity)
+                    end}
+                 ],
+                 [name: :supervisor_parent, strategy: :one_for_one]
+               ]}
+          })
+
+        [{_, task, _, _}] = Supervisor.which_children(supervisor)
+
+        diagram = Kino.Process.sup_tree(supervisor) |> mermaid()
+
+        %{"pid" => pid_text} = Regex.named_captures(~r/#PID(?<pid>.*)/, inspect(task))
+
+        assert diagram =~
+                 "0(supervisor_parent):::root ---> 1(\"#{process_label}<br/>#{pid_text}\"):::worker"
+      end
+    end
+
     test "raises if supervisor does not exist" do
       assert_raise ArgumentError,
                    ~r/the provided identifier :not_a_valid_supervisor does not reference a running process/,
@@ -121,6 +154,54 @@ defmodule Kino.ProcessTest do
     end
   end
 
+  describe "seq_trace/2" do
+    # Process.set_label/1 was addeed in Elixir 1.17.0
+    if function_exported?(Process, :set_label, 1) do
+      test "uses process label to identify a process" do
+        process_label = "ponger"
+        ponger = start_supervised!({Kino.ProcessTest.Ponger, [label: process_label]})
+
+        traced_function = fn ->
+          send(ponger, {:ping, self()})
+
+          receive do
+            :pong -> :ponged!
+          end
+        end
+
+        {_func_result, diagram} = Kino.Process.seq_trace(traced_function)
+        diagram = mermaid(diagram)
+
+        ponger_pid = :erlang.pid_to_list(ponger) |> List.to_string()
+        assert diagram =~ ~r/participant 1 AS #{process_label}<br\/>#{ponger_pid};/
+      end
+    end
+  end
+
+  defmodule Ponger do
+    use GenServer
+
+    def start_link(opts) do
+      GenServer.start_link(__MODULE__, opts)
+    end
+
+    # Process.set_label/1 was addeed in Elixir 1.17.0
+    @compile {:no_warn_undefined, {Process, :set_label, 1}}
+    @impl true
+    def init(opts) do
+      Process.set_label(opts[:label])
+
+      {:ok, nil}
+    end
+
+    @impl true
+    def handle_info({:ping, from}, state) do
+      send(from, :pong)
+
+      {:noreply, state}
+    end
+  end
+
   defp mermaid(%Kino.JS{ref: ref}) do
     send(Kino.JS.DataStore, {:connect, self(), %{origin: "client:#{inspect(self())}", ref: ref}})
     assert_receive {:connect_reply, data, %{ref: ^ref}}