Index: src/wp-admin/js/nav-menu.js
===================================================================
--- src/wp-admin/js/nav-menu.js	(revision 42426)
+++ src/wp-admin/js/nav-menu.js	(working copy)
@@ -1168,9 +1168,13 @@
 
 		eventOnClickCancelLink : function(clickedEl) {
 			var settings = $( clickedEl ).closest( '.menu-item-settings' ),
-				thisMenuItem = $( clickedEl ).closest( '.menu-item' );
-			thisMenuItem.removeClass('menu-item-edit-active').addClass('menu-item-edit-inactive');
-			settings.setItemData( settings.data('menu-item-data') ).hide();
+			thisMenuItem = $( clickedEl ).closest( '.menu-item' );
+			thisMenuItem.removeClass( 'menu-item-edit-active' ).addClass( 'menu-item-edit-inactive' );
+			settings.setItemData( settings.data( 'menu-item-data' ) ).hide();
+			// Get current active/expanded menu navigation label.
+			var currentLabel = thisMenuItem.find( '.menu-item-settings input.edit-menu-item-title' ).val();
+			// Assigned this navigation label to active/expanded menu label.
+			thisMenuItem.children( '.menu-item-bar' ).find( '.menu-item-title' ).text( currentLabel );
 			return false;
 		},