diff --git a/docs/sources/sources.md b/docs/sources/sources.md
index b15662491..5f262bb40 100644
--- a/docs/sources/sources.md
+++ b/docs/sources/sources.md
@@ -2,7 +2,7 @@
 
 | Source                          | Resources                                                                     | annotation-filter | label-filter |
 |---------------------------------|-------------------------------------------------------------------------------|-------------------|--------------|
-| ambassador-host                 | Host.getambassador.io                                                         |                   |              |
+| ambassador-host                 | Host.getambassador.io                                                         | Yes               | Yes          |
 | connector                       |                                                                               |                   |              |
 | contour-httpproxy               | HttpProxy.projectcontour.io                                                   | Yes               |              |
 | cloudfoundry                    |                                                                               |                   |              |
diff --git a/pkg/apis/externaldns/types.go b/pkg/apis/externaldns/types.go
index 423229a8b..0687521b7 100644
--- a/pkg/apis/externaldns/types.go
+++ b/pkg/apis/externaldns/types.go
@@ -430,7 +430,7 @@ func (cfg *Config) ParseFlags(args []string) error {
 	app.Flag("openshift-router-name", "if source is openshift-route then you can pass the ingress controller name. Based on this name external-dns will select the respective router from the route status and map that routerCanonicalHostname to the route host while creating a CNAME record.").StringVar(&cfg.OCPRouterName)
 	app.Flag("namespace", "Limit resources queried for endpoints to a specific namespace (default: all namespaces)").Default(defaultConfig.Namespace).StringVar(&cfg.Namespace)
 	app.Flag("annotation-filter", "Filter resources queried for endpoints by annotation, using label selector semantics").Default(defaultConfig.AnnotationFilter).StringVar(&cfg.AnnotationFilter)
-	app.Flag("label-filter", "Filter resources queried for endpoints by label selector; currently supported by source types crd, gateway-httproute, gateway-grpcroute, gateway-tlsroute, gateway-tcproute, gateway-udproute, ingress, node, openshift-route, and service").Default(defaultConfig.LabelFilter).StringVar(&cfg.LabelFilter)
+	app.Flag("label-filter", "Filter resources queried for endpoints by label selector; currently supported by source types crd, gateway-httproute, gateway-grpcroute, gateway-tlsroute, gateway-tcproute, gateway-udproute, ingress, node, openshift-route, service and ambassador-host").Default(defaultConfig.LabelFilter).StringVar(&cfg.LabelFilter)
 	app.Flag("ingress-class", "Require an Ingress to have this class name (defaults to any class; specify multiple times to allow more than one class)").StringsVar(&cfg.IngressClassNames)
 	app.Flag("fqdn-template", "A templated string that's used to generate DNS names from sources that don't define a hostname themselves, or to add a hostname suffix when paired with the fake source (optional). Accepts comma separated list for multiple global FQDN.").Default(defaultConfig.FQDNTemplate).StringVar(&cfg.FQDNTemplate)
 	app.Flag("combine-fqdn-annotation", "Combine FQDN template and Annotations instead of overwriting").BoolVar(&cfg.CombineFQDNAndAnnotation)
diff --git a/source/ambassador_host.go b/source/ambassador_host.go
index 5d8b9e56e..cb0501210 100644
--- a/source/ambassador_host.go
+++ b/source/ambassador_host.go
@@ -57,8 +57,10 @@ type ambassadorHostSource struct {
 	dynamicKubeClient      dynamic.Interface
 	kubeClient             kubernetes.Interface
 	namespace              string
+	annotationFilter       string
 	ambassadorHostInformer informers.GenericInformer
 	unstructuredConverter  *unstructuredConverter
+	labelSelector          labels.Selector
 }
 
 // NewAmbassadorHostSource creates a new ambassadorHostSource with the given config.
@@ -67,6 +69,8 @@ func NewAmbassadorHostSource(
 	dynamicKubeClient dynamic.Interface,
 	kubeClient kubernetes.Interface,
 	namespace string,
+	annotationFilter string,
+	labelSelector labels.Selector,
 ) (Source, error) {
 	var err error
 
@@ -85,6 +89,7 @@ func NewAmbassadorHostSource(
 
 	informerFactory.Start(ctx.Done())
 
+	// wait for the local cache to be populated.
 	if err := waitForDynamicCacheSync(context.Background(), informerFactory); err != nil {
 		return nil, err
 	}
@@ -98,20 +103,23 @@ func NewAmbassadorHostSource(
 		dynamicKubeClient:      dynamicKubeClient,
 		kubeClient:             kubeClient,
 		namespace:              namespace,
+		annotationFilter:       annotationFilter,
 		ambassadorHostInformer: ambassadorHostInformer,
 		unstructuredConverter:  uc,
+		labelSelector:          labelSelector,
 	}, nil
 }
 
 // Endpoints returns endpoint objects for each host-target combination that should be processed.
 // Retrieves all Hosts in the source's namespace(s).
 func (sc *ambassadorHostSource) Endpoints(ctx context.Context) ([]*endpoint.Endpoint, error) {
-	hosts, err := sc.ambassadorHostInformer.Lister().ByNamespace(sc.namespace).List(labels.Everything())
+	hosts, err := sc.ambassadorHostInformer.Lister().ByNamespace(sc.namespace).List(sc.labelSelector)
 	if err != nil {
 		return nil, err
 	}
 
-	endpoints := []*endpoint.Endpoint{}
+	// Get a list of Ambassador Host resources
+	ambassadorHosts := []*ambassador.Host{}
 	for _, hostObj := range hosts {
 		unstructuredHost, ok := hostObj.(*unstructured.Unstructured)
 		if !ok {
@@ -123,7 +131,18 @@ func (sc *ambassadorHostSource) Endpoints(ctx context.Context) ([]*endpoint.Endp
 		if err != nil {
 			return nil, err
 		}
+		ambassadorHosts = append(ambassadorHosts, host)
+	}
 
+	// Filter Ambassador Hosts
+	ambassadorHosts, err = sc.filterByAnnotations(ambassadorHosts)
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to filter Ambassador Hosts by annotation")
+	}
+
+	endpoints := []*endpoint.Endpoint{}
+
+	for _, host := range ambassadorHosts {
 		fullname := fmt.Sprintf("%s/%s", host.Namespace, host.Name)
 
 		// look for the "exernal-dns.ambassador-service" annotation. If it is not there then just ignore this `Host`
@@ -269,3 +288,35 @@ func newUnstructuredConverter() (*unstructuredConverter, error) {
 
 	return uc, nil
 }
+
+// Filter a list of Ambassador Host Resources to only return the ones that
+// contain the required External-DNS annotation filter
+func (sc *ambassadorHostSource) filterByAnnotations(ambassadorHosts []*ambassador.Host) ([]*ambassador.Host, error) {
+	// External-DNS Annotation Filter
+	labelSelector, err := metav1.ParseToLabelSelector(sc.annotationFilter)
+	if err != nil {
+		return nil, err
+	}
+
+	selector, err := metav1.LabelSelectorAsSelector(labelSelector)
+	if err != nil {
+		return nil, err
+	}
+
+	// empty filter returns original list of Ambassador Hosts
+	if selector.Empty() {
+		return ambassadorHosts, nil
+	}
+
+	// Return a filtered list of Ambassador Hosts
+	filteredList := []*ambassador.Host{}
+	for _, host := range ambassadorHosts {
+		annotations := labels.Set(host.Annotations)
+		// include Ambassador Host if its annotations match the annotation filter
+		if selector.Matches(annotations) {
+			filteredList = append(filteredList, host)
+		}
+	}
+
+	return filteredList, nil
+}
diff --git a/source/ambassador_host_test.go b/source/ambassador_host_test.go
index 1f0091146..970bb2a19 100644
--- a/source/ambassador_host_test.go
+++ b/source/ambassador_host_test.go
@@ -17,6 +17,7 @@ limitations under the License.
 package source
 
 import (
+	"context"
 	"fmt"
 	"testing"
 
@@ -24,10 +25,10 @@ import (
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 	"github.com/stretchr/testify/suite"
-	"golang.org/x/net/context"
 	v1 "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+	"k8s.io/apimachinery/pkg/labels"
 	"k8s.io/apimachinery/pkg/runtime"
 	fakeDynamic "k8s.io/client-go/dynamic/fake"
 	fakeKube "k8s.io/client-go/kubernetes/fake"
@@ -37,6 +38,9 @@ import (
 const defaultAmbassadorNamespace = "ambassador"
 const defaultAmbassadorServiceName = "ambassador"
 
+// This is a compile-time validation that ambassadorHostSource is a Source.
+var _ Source = &ambassadorHostSource{}
+
 type AmbassadorSuite struct {
 	suite.Suite
 }
@@ -57,13 +61,16 @@ func TestAmbassadorHostSource(t *testing.T) {
 	hostAnnotation := fmt.Sprintf("%s/%s", defaultAmbassadorNamespace, defaultAmbassadorServiceName)
 
 	for _, ti := range []struct {
-		title    string
-		host     ambassador.Host
-		service  v1.Service
-		expected []*endpoint.Endpoint
+		title            string
+		annotationFilter string
+		labelSelector    labels.Selector
+		host             ambassador.Host
+		service          v1.Service
+		expected         []*endpoint.Endpoint
 	}{
 		{
-			title: "Simple host",
+			title:         "Simple host",
+			labelSelector: labels.Everything(),
 			host: ambassador.Host{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "basic-host",
@@ -95,7 +102,8 @@ func TestAmbassadorHostSource(t *testing.T) {
 				},
 			},
 		}, {
-			title: "Service with load balancer hostname",
+			title:         "Service with load balancer hostname",
+			labelSelector: labels.Everything(),
 			host: ambassador.Host{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "basic-host",
@@ -127,7 +135,8 @@ func TestAmbassadorHostSource(t *testing.T) {
 				},
 			},
 		}, {
-			title: "Service with external IP",
+			title:         "Service with external IP",
+			labelSelector: labels.Everything(),
 			host: ambassador.Host{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "service-external-ip",
@@ -162,7 +171,8 @@ func TestAmbassadorHostSource(t *testing.T) {
 				},
 			},
 		}, {
-			title: "Host with target annotation",
+			title:         "Host with target annotation",
+			labelSelector: labels.Everything(),
 			host: ambassador.Host{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "basic-host",
@@ -195,7 +205,8 @@ func TestAmbassadorHostSource(t *testing.T) {
 				},
 			},
 		}, {
-			title: "Host with TTL annotation",
+			title:         "Host with TTL annotation",
+			labelSelector: labels.Everything(),
 			host: ambassador.Host{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "basic-host",
@@ -229,7 +240,8 @@ func TestAmbassadorHostSource(t *testing.T) {
 				},
 			},
 		}, {
-			title: "Host with provider specific annotation",
+			title:         "Host with provider specific annotation",
+			labelSelector: labels.Everything(),
 			host: ambassador.Host{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "basic-host",
@@ -266,7 +278,8 @@ func TestAmbassadorHostSource(t *testing.T) {
 				},
 			},
 		}, {
-			title: "Host with missing Ambassador annotation",
+			title:         "Host with missing Ambassador annotation",
+			labelSelector: labels.Everything(),
 			host: ambassador.Host{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "basic-host",
@@ -288,6 +301,316 @@ func TestAmbassadorHostSource(t *testing.T) {
 				},
 			},
 			expected: []*endpoint.Endpoint{},
+		}, {
+			title:            "valid matching annotation filter expression",
+			annotationFilter: "kubernetes.io/ingress.class in (external-ingress)",
+			labelSelector:    labels.Everything(),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "external-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP: "1.1.1.1",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{
+				{
+					DNSName:    "www.example.org",
+					RecordType: endpoint.RecordTypeA,
+					Targets:    endpoint.Targets{"1.1.1.1"},
+				},
+			},
+		}, {
+			title:            "valid non-matching annotation filter expression",
+			annotationFilter: "kubernetes.io/ingress.class in (external-ingress)",
+			labelSelector:    labels.Everything(),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "internal-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP: "1.1.1.1",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{},
+		}, {
+			title:            "invalid annotation filter expression",
+			annotationFilter: "kubernetes.io/ingress.class in (invalid-ingress)",
+			labelSelector:    labels.Everything(),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "external-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP: "1.1.1.1",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{},
+		}, {
+			title:            "valid non-matching annotation filter label",
+			annotationFilter: "kubernetes.io/ingress.class=external-ingress",
+			labelSelector:    labels.Everything(),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "internal-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP: "1.1.1.1",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{},
+		},
+		{
+			title:         "valid non-matching label filter expression",
+			labelSelector: labels.SelectorFromSet(labels.Set{"kubernetes.io/ingress.class": "external-ingress"}),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "internal-ingress",
+					},
+					Labels: map[string]string{
+						"kubernetes.io/ingress.class": "internal-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP: "1.1.1.1",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{},
+		},
+		{
+			title:         "valid matching label filter expression for single host",
+			labelSelector: labels.SelectorFromSet(labels.Set{"kubernetes.io/ingress.class": "external-ingress"}),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation: hostAnnotation,
+					},
+					Labels: map[string]string{
+						"kubernetes.io/ingress.class": "external-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP:       "1.1.1.1",
+							Hostname: "dns.google",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{
+				{
+					DNSName:    "www.example.org",
+					RecordType: endpoint.RecordTypeA,
+					Targets:    endpoint.Targets{"1.1.1.1"},
+				},
+				{
+					DNSName:    "www.example.org",
+					RecordType: endpoint.RecordTypeCNAME,
+					Targets:    endpoint.Targets{"dns.google"},
+				},
+			},
+		},
+		{
+			title:            "valid matching label filter expression and matching annotation filter",
+			annotationFilter: "kubernetes.io/ingress.class in (external-ingress)",
+			labelSelector:    labels.SelectorFromSet(labels.Set{"kubernetes.io/ingress.class": "external-ingress"}),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "external-ingress",
+					},
+					Labels: map[string]string{
+						"kubernetes.io/ingress.class": "external-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP:       "1.1.1.1",
+							Hostname: "dns.google",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{
+				{
+					DNSName:    "www.example.org",
+					RecordType: endpoint.RecordTypeA,
+					Targets:    endpoint.Targets{"1.1.1.1"},
+				},
+				{
+					DNSName:    "www.example.org",
+					RecordType: endpoint.RecordTypeCNAME,
+					Targets:    endpoint.Targets{"dns.google"},
+				},
+			},
+		},
+		{
+			title:            "valid non matching label filter expression and valid matching annotation filter",
+			annotationFilter: "kubernetes.io/ingress.class in (external-ingress)",
+			labelSelector:    labels.SelectorFromSet(labels.Set{"kubernetes.io/ingress.class": "external-ingress"}),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "external-ingress",
+					},
+					Labels: map[string]string{
+						"kubernetes.io/ingress.class": "internal-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP:       "1.1.1.1",
+							Hostname: "dns.google",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{},
+		},
+		{
+			title:            "valid matching label filter expression and non matching annotation filter",
+			annotationFilter: "kubernetes.io/ingress.class in (external-ingress)",
+			labelSelector:    labels.SelectorFromSet(labels.Set{"kubernetes.io/ingress.class": "external-ingress"}),
+			host: ambassador.Host{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "basic-host",
+					Annotations: map[string]string{
+						ambHostAnnotation:             hostAnnotation,
+						"kubernetes.io/ingress.class": "internal-ingress",
+					},
+					Labels: map[string]string{
+						"kubernetes.io/ingress.class": "external-ingress",
+					},
+				},
+				Spec: &ambassador.HostSpec{
+					Hostname: "www.example.org",
+				},
+			},
+			service: v1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: defaultAmbassadorServiceName,
+				},
+				Status: v1.ServiceStatus{
+					LoadBalancer: v1.LoadBalancerStatus{
+						Ingress: []v1.LoadBalancerIngress{{
+							IP:       "1.1.1.1",
+							Hostname: "dns.google",
+						}},
+					},
+				},
+			},
+			expected: []*endpoint.Endpoint{},
 		},
 	} {
 		ti := ti
@@ -312,7 +635,7 @@ func TestAmbassadorHostSource(t *testing.T) {
 			_, err = fakeDynamicClient.Resource(ambHostGVR).Namespace(namespace).Create(context.Background(), host, metav1.CreateOptions{})
 			assert.NoError(t, err)
 
-			source, err := NewAmbassadorHostSource(context.TODO(), fakeDynamicClient, fakeKubernetesClient, namespace)
+			source, err := NewAmbassadorHostSource(context.TODO(), fakeDynamicClient, fakeKubernetesClient, namespace, ti.annotationFilter, ti.labelSelector)
 			assert.NoError(t, err)
 			assert.NotNil(t, source)
 
diff --git a/source/store.go b/source/store.go
index cdb993b6b..f67091d31 100644
--- a/source/store.go
+++ b/source/store.go
@@ -276,7 +276,7 @@ func BuildWithConfig(ctx context.Context, source string, p ClientGenerator, cfg
 		if err != nil {
 			return nil, err
 		}
-		return NewAmbassadorHostSource(ctx, dynamicClient, kubernetesClient, cfg.Namespace)
+		return NewAmbassadorHostSource(ctx, dynamicClient, kubernetesClient, cfg.Namespace, cfg.AnnotationFilter, cfg.LabelFilter)
 	case "contour-httpproxy":
 		dynamicClient, err := p.DynamicKubernetesClient()
 		if err != nil {