diff --git a/src/core/pal/feature.cpp b/src/core/pal/feature.cpp
index ae00e1e88e5..66ce080184f 100644
--- a/src/core/pal/feature.cpp
+++ b/src/core/pal/feature.cpp
@@ -772,27 +772,29 @@ int FeaturePart::createCandidatesAlongLineNearStraightSegments( QList<LabelPosit
         bool aboveLine = ( !reversed && ( flags & FLAG_ABOVE_LINE ) ) || ( reversed && ( flags & FLAG_BELOW_LINE ) );
         bool belowLine = ( !reversed && ( flags & FLAG_BELOW_LINE ) ) || ( reversed && ( flags & FLAG_ABOVE_LINE ) );
 
-        double placementCost = 0.0;
         if ( belowLine )
         {
           if ( !mLF->permissibleZonePrepared() || GeomFunction::containsCandidate( mLF->permissibleZonePrepared(), candidateStartX - std::cos( beta ) * ( distanceLineToLabel + labelHeight ), candidateStartY - std::sin( beta ) * ( distanceLineToLabel + labelHeight ), labelWidth, labelHeight, angle ) )
           {
-            lPos.append( new LabelPosition( i, candidateStartX - std::cos( beta ) * ( distanceLineToLabel + labelHeight ), candidateStartY - std::sin( beta ) * ( distanceLineToLabel + labelHeight ), labelWidth, labelHeight, angle, cost + placementCost, this, isRightToLeft ) ); // Line
-            placementCost += 0.001;
+            const double candidateCost = cost + ( reversed ? 0 : 0.001 );
+            lPos.append( new LabelPosition( i, candidateStartX - std::cos( beta ) * ( distanceLineToLabel + labelHeight ), candidateStartY - std::sin( beta ) * ( distanceLineToLabel + labelHeight ), labelWidth, labelHeight, angle, candidateCost, this, isRightToLeft ) ); // Line
           }
         }
         if ( aboveLine )
         {
           if ( !mLF->permissibleZonePrepared() || GeomFunction::containsCandidate( mLF->permissibleZonePrepared(), candidateStartX + std::cos( beta ) *distanceLineToLabel, candidateStartY + std::sin( beta ) *distanceLineToLabel, labelWidth, labelHeight, angle ) )
           {
-            lPos.append( new LabelPosition( i, candidateStartX + std::cos( beta ) *distanceLineToLabel, candidateStartY + std::sin( beta ) *distanceLineToLabel, labelWidth, labelHeight, angle, cost + placementCost, this, isRightToLeft ) ); // Line
-            placementCost += 0.001;
+            const double candidateCost = cost + ( !reversed ? 0 : 0.001 ); // no extra cost for above line placements
+            lPos.append( new LabelPosition( i, candidateStartX + std::cos( beta ) *distanceLineToLabel, candidateStartY + std::sin( beta ) *distanceLineToLabel, labelWidth, labelHeight, angle, candidateCost, this, isRightToLeft ) ); // Line
           }
         }
         if ( flags & FLAG_ON_LINE )
         {
           if ( !mLF->permissibleZonePrepared() || GeomFunction::containsCandidate( mLF->permissibleZonePrepared(), candidateStartX - labelHeight * std::cos( beta ) / 2, candidateStartY - labelHeight * std::sin( beta ) / 2, labelWidth, labelHeight, angle ) )
-            lPos.append( new LabelPosition( i, candidateStartX - labelHeight * std::cos( beta ) / 2, candidateStartY - labelHeight * std::sin( beta ) / 2, labelWidth, labelHeight, angle, cost + placementCost, this, isRightToLeft ) ); // Line
+          {
+            const double candidateCost = cost + 0.002;
+            lPos.append( new LabelPosition( i, candidateStartX - labelHeight * std::cos( beta ) / 2, candidateStartY - labelHeight * std::sin( beta ) / 2, labelWidth, labelHeight, angle, candidateCost, this, isRightToLeft ) ); // Line
+          }
         }
       }
       else if ( mLF->layer()->arrangement() == QgsPalLayerSettings::Horizontal )
@@ -925,17 +927,26 @@ int FeaturePart::createCandidatesAlongLineNearMidpoint( QList<LabelPosition *> &
       if ( aboveLine )
       {
         if ( !mLF->permissibleZonePrepared() || GeomFunction::containsCandidate( mLF->permissibleZonePrepared(), candidateStartX + std::cos( beta ) *distanceLineToLabel, candidateStartY + std::sin( beta ) *distanceLineToLabel, labelWidth, labelHeight, angle ) )
-          positions.append( new LabelPosition( i, candidateStartX + std::cos( beta ) *distanceLineToLabel, candidateStartY + std::sin( beta ) *distanceLineToLabel, labelWidth, labelHeight, angle, cost, this, isRightToLeft ) ); // Line
+        {
+          const double candidateCost = cost + ( !reversed ? 0 : 0.001 ); // no extra cost for above line placements
+          positions.append( new LabelPosition( i, candidateStartX + std::cos( beta ) *distanceLineToLabel, candidateStartY + std::sin( beta ) *distanceLineToLabel, labelWidth, labelHeight, angle, candidateCost, this, isRightToLeft ) ); // Line
+        }
       }
       if ( belowLine )
       {
         if ( !mLF->permissibleZonePrepared() || GeomFunction::containsCandidate( mLF->permissibleZonePrepared(), candidateStartX - std::cos( beta ) * ( distanceLineToLabel + labelHeight ), candidateStartY - std::sin( beta ) * ( distanceLineToLabel + labelHeight ), labelWidth, labelHeight, angle ) )
-          positions.append( new LabelPosition( i, candidateStartX - std::cos( beta ) * ( distanceLineToLabel + labelHeight ), candidateStartY - std::sin( beta ) * ( distanceLineToLabel + labelHeight ), labelWidth, labelHeight, angle, cost, this, isRightToLeft ) ); // Line
+        {
+          const double candidateCost = cost + ( !reversed ? 0.001 : 0 );
+          positions.append( new LabelPosition( i, candidateStartX - std::cos( beta ) * ( distanceLineToLabel + labelHeight ), candidateStartY - std::sin( beta ) * ( distanceLineToLabel + labelHeight ), labelWidth, labelHeight, angle, candidateCost, this, isRightToLeft ) ); // Line
+        }
       }
       if ( flags & FLAG_ON_LINE )
       {
         if ( !mLF->permissibleZonePrepared() || GeomFunction::containsCandidate( mLF->permissibleZonePrepared(), candidateStartX - labelHeight * std::cos( beta ) / 2, candidateStartY - labelHeight * std::sin( beta ) / 2, labelWidth, labelHeight, angle ) )
-          positions.append( new LabelPosition( i, candidateStartX - labelHeight * std::cos( beta ) / 2, candidateStartY - labelHeight * std::sin( beta ) / 2, labelWidth, labelHeight, angle, cost, this, isRightToLeft ) ); // Line
+        {
+          const double candidateCost = cost + 0.002;
+          positions.append( new LabelPosition( i, candidateStartX - labelHeight * std::cos( beta ) / 2, candidateStartY - labelHeight * std::sin( beta ) / 2, labelWidth, labelHeight, angle, candidateCost, this, isRightToLeft ) ); // Line
+        }
       }
     }
     else if ( mLF->layer()->arrangement() == QgsPalLayerSettings::Horizontal )
diff --git a/tests/src/core/testqgslabelingengine.cpp b/tests/src/core/testqgslabelingengine.cpp
index 6ebb40019b4..8d7f0fa962c 100644
--- a/tests/src/core/testqgslabelingengine.cpp
+++ b/tests/src/core/testqgslabelingengine.cpp
@@ -58,6 +58,7 @@ class TestQgsLabelingEngine : public QObject
     void testCurvedLabelsWithTinySegments();
     void testCurvedLabelCorrectLinePlacement();
     void testCurvedLabelNegativeDistance();
+    void testParallelPlacementPreferAbove();
     void testLabelBoundary();
     void testLabelBlockingRegion();
     void testLabelRotationWithReprojection();
@@ -1158,6 +1159,58 @@ void TestQgsLabelingEngine::testCurvedLabelNegativeDistance()
   QVERIFY( imageCheck( QStringLiteral( "label_curved_negative_distance" ), img, 20 ) );
 }
 
+void TestQgsLabelingEngine::testParallelPlacementPreferAbove()
+{
+  // given the choice of above or below placement, labels should always be placed above
+  QgsPalLayerSettings settings;
+  setDefaultLabelParams( settings );
+
+  QgsTextFormat format = settings.format();
+  format.setSize( 20 );
+  format.setColor( QColor( 0, 0, 0 ) );
+  settings.setFormat( format );
+
+  settings.fieldName = QStringLiteral( "'XXXXXXXX'" );
+  settings.isExpression = true;
+  settings.placement = QgsPalLayerSettings::Line;
+  settings.placementFlags = QgsPalLayerSettings::AboveLine | QgsPalLayerSettings::BelowLine | QgsPalLayerSettings::MapOrientation;
+  settings.labelPerPart = false;
+
+  std::unique_ptr< QgsVectorLayer> vl2( new QgsVectorLayer( QStringLiteral( "LineString?crs=epsg:3946&field=id:integer" ), QStringLiteral( "vl" ), QStringLiteral( "memory" ) ) );
+  vl2->setRenderer( new QgsNullSymbolRenderer() );
+
+  QgsFeature f;
+  f.setAttributes( QgsAttributes() << 1 );
+  f.setGeometry( QgsGeometry::fromWkt( QStringLiteral( "LineString (190000 5000010, 190200 5000000)" ) ) );
+  QVERIFY( vl2->dataProvider()->addFeature( f ) );
+
+  vl2->setLabeling( new QgsVectorLayerSimpleLabeling( settings ) );  // TODO: this should not be necessary!
+  vl2->setLabelsEnabled( true );
+
+  // make a fake render context
+  QSize size( 640, 480 );
+  QgsMapSettings mapSettings;
+  mapSettings.setDestinationCrs( vl2->crs() );
+
+  mapSettings.setOutputSize( size );
+  mapSettings.setExtent( f.geometry().boundingBox() );
+  mapSettings.setLayers( QList<QgsMapLayer *>() << vl2.get() );
+  mapSettings.setOutputDpi( 96 );
+
+  QgsLabelingEngineSettings engineSettings = mapSettings.labelingEngineSettings();
+  engineSettings.setFlag( QgsLabelingEngineSettings::UsePartialCandidates, false );
+  engineSettings.setFlag( QgsLabelingEngineSettings::DrawLabelRectOnly, true );
+  //engineSettings.setFlag( QgsLabelingEngineSettings::DrawCandidates, true );
+  mapSettings.setLabelingEngineSettings( engineSettings );
+
+  QgsMapRendererSequentialJob job( mapSettings );
+  job.start();
+  job.waitForFinished();
+
+  QImage img = job.renderedImage();
+  QVERIFY( imageCheck( QStringLiteral( "parallel_prefer_above" ), img, 20 ) );
+}
+
 void TestQgsLabelingEngine::testLabelBoundary()
 {
   // test that no labels are drawn outside of the specified label boundary
diff --git a/tests/testdata/control_images/labelingengine/expected_parallel_prefer_above/expected_parallel_prefer_above.png b/tests/testdata/control_images/labelingengine/expected_parallel_prefer_above/expected_parallel_prefer_above.png
new file mode 100644
index 00000000000..0e6a7d19209
Binary files /dev/null and b/tests/testdata/control_images/labelingengine/expected_parallel_prefer_above/expected_parallel_prefer_above.png differ