diff --git a/.github/ISSUE_TEMPLATE/bug_report.md b/.github/ISSUE_TEMPLATE/bug_report.md
deleted file mode 100644
index 8e715fdb92a79..0000000000000
--- a/.github/ISSUE_TEMPLATE/bug_report.md
+++ /dev/null
@@ -1,28 +0,0 @@
----
-name: Bug Report (except security vulnerabilities)
-about: Create a report to help us improve
----
-
-<!-- Please provide a detailed description of the bug. -->
-<!-- Note: This template is not meant for security vulnerabilities disclosure -->
-<!-- Any such issue, created in this repo, will be deleted on sight -->
-<!-- Instead please report vulnerabilities to the Eclipse Foundation's security team -->
-<!-- For more details, please read SECURITY.md in the repository root -->
-### Bug Description:
-
-<!-- Please provide clear steps to reproduce the bug. -->
-### Steps to Reproduce:
-
-1.
-2.
-3.
-
-<!-- Please provide any additional information available. -->
-<!-- Additional information can be in the form of logs, screenshots, screencasts. -->
-
-### Additional Information
-
-- Operating System:
-- Theia Version:
-
-<!-- 💙 Eclipse Theia is community-supported. If you find it valuable, consider sponsoring the project: https://theia-ide.org/support/ -->
diff --git a/.github/ISSUE_TEMPLATE/feature_request.md b/.github/ISSUE_TEMPLATE/feature_request.md
deleted file mode 100644
index 001677217aa3b..0000000000000
--- a/.github/ISSUE_TEMPLATE/feature_request.md
+++ /dev/null
@@ -1,14 +0,0 @@
----
-name: Feature Request
-about: Propose an idea for the project
----
-
-<!-- Please fill out the following content for a feature request. -->
-
-<!-- Please provide a clear description of the feature and any relevant information. -->
-### Feature Description:
-
-
-
-<!-- 💙 Eclipse Theia is community-supported. If you find it valuable, consider sponsoring the project: https://theia-ide.org/support/ -->
-
diff --git a/.github/ISSUE_TEMPLATE/report.yml b/.github/ISSUE_TEMPLATE/report.yml
new file mode 100644
index 0000000000000..a3632bc497178
--- /dev/null
+++ b/.github/ISSUE_TEMPLATE/report.yml
@@ -0,0 +1,81 @@
+name: Issue Report
+description: Report a bug, request a feature, or suggest an enhancement.
+title: "[<type>] <short summary>"
+labels: []
+body:
+  - type: markdown
+    attributes:
+      value: |
+        Thanks for taking the time to file this issue. Please fill out the fields below —
+        the **Type** field determines which label gets applied automatically.
+
+        **Note:** This template is not meant for security vulnerability disclosures.
+        Any such issue created here will be removed on sight. Please report vulnerabilities
+        to the Eclipse Foundation's security team instead — see SECURITY.md in the repository root.
+
+        Have a question instead of a bug/feature? Please use
+        [GitHub Discussions](https://github.com/eclipse-theia/theia/discussions) rather than filing an issue.
+
+  - type: dropdown
+    id: type
+    attributes:
+      label: Type
+      description: What kind of issue is this?
+      options:
+        - Bug
+        - Feature
+        - Enhancement
+    validations:
+      required: true
+
+  - type: textarea
+    id: description
+    attributes:
+      label: Description
+      description: A clear and concise description of the issue.
+    validations:
+      required: true
+
+  - type: textarea
+    id: repro
+    attributes:
+      label: Steps to Reproduce (bugs only)
+      description: If this is a bug, list the steps to reproduce the behavior. Leave blank otherwise.
+      placeholder: |
+        1. Go to '...'
+        2. Click on '...'
+        3. See error
+    validations:
+      required: false
+
+  - type: textarea
+    id: expected
+    attributes:
+      label: Expected Behavior
+      description: What did you expect to happen? (For bugs) or what should the feature/enhancement do?
+    validations:
+      required: false
+
+  - type: input
+    id: os
+    attributes:
+      label: Operating System
+      description: Which OS are you running, if applicable?
+    validations:
+      required: false
+
+  - type: input
+    id: version
+    attributes:
+      label: Theia Version
+      description: Which version of Theia are you using, if applicable?
+    validations:
+      required: false
+
+  - type: textarea
+    id: context
+    attributes:
+      label: Additional Context
+      description: Anything else that would help — logs, screenshots, environment details.
+    validations:
+      required: false
diff --git a/.github/workflows/auto-label-on-intake.yml b/.github/workflows/auto-label-on-intake.yml
new file mode 100644
index 0000000000000..ed89e1eee0e62
--- /dev/null
+++ b/.github/workflows/auto-label-on-intake.yml
@@ -0,0 +1,71 @@
+name: Auto-label on intake
+
+# Fires the moment a new issue is opened via the structured issue form.
+# Reads the "Type" dropdown answer and applies the matching label —
+# removes the "bug" vs "type: bug" vs title-prefix ambiguity from Section 2.3.
+
+on:
+  issues:
+    types: [opened]
+
+permissions:
+  issues: write
+
+jobs:
+  apply-type-label:
+    runs-on: ubuntu-latest
+    steps:
+      - name: Parse Type field and apply label
+        uses: actions/github-script@v7
+        with:
+          script: |
+            const body = context.payload.issue.body || "";
+
+            // Matches Theia's existing label set (no separate "feature" label exists,
+            // so Feature and Enhancement both map to "enhancement").
+            // Keys must exactly match the dropdown options in report.yml.
+            const typeToLabel = {
+              "Bug": "bug",
+              "Feature": "enhancement",
+              "Enhancement": "enhancement",
+              "Question": "question",
+            };
+
+            // Issue forms render each field as "### <Label>\n\n<answer>".
+            // This pulls out whatever follows the "### Type" heading, up to the next heading or end of body.
+            const match = body.match(/### Type\s*\n+([^\n#]+)/i);
+
+            if (!match) {
+              console.log("Could not find a 'Type' field in the issue body — skipping auto-label. " +
+                          "This issue was likely opened without the structured form.");
+              return;
+            }
+
+            const selected = match[1].trim();
+            const label = typeToLabel[selected];
+
+            if (!label) {
+              console.log(`Type value "${selected}" did not match any known option — skipping auto-label.`);
+              return;
+            }
+
+            try {
+              await github.rest.issues.getLabel({
+                owner: context.repo.owner,
+                repo: context.repo.repo,
+                name: label,
+              });
+            } catch (error) {
+              console.log(`Label "${label}" does not exist in this repo yet — create it or update the ` +
+                          `typeToLabel map in this workflow to match an existing label. Skipping.`);
+              return;
+            }
+
+            await github.rest.issues.addLabels({
+              owner: context.repo.owner,
+              repo: context.repo.repo,
+              issue_number: context.issue.number,
+              labels: [label],
+            });
+
+            console.log(`Applied label "${label}" based on Type: "${selected}".`);