This paper proposes a handover scheme supporting Multi-Protocol Label Switching (MPLS) in a Proxy Mobile IPv6 (PMIPv6) domain that improves the mobility and gives Quality of Service (QoS) and Traffic Engineering (TE) capabilities in wireless access networks. The proposed scheme takes advantages of both PMIPv6 and MPLS. PMIPv6 was designed to provide NETwork-based Localized Mobility Management (NETLMM) support to a Mobile Node (MN); therefore, the MN does not perform any mobility related signaling, while MPLS is used as an alternative tunneling technology between the Mobile Access Gateway (MAG) and the Local Mobility Anchor (LMA) replacing the IP-in-IP tunnels with Label Switched Path (LSP) tunnels. It can also be integrated with other QoS architectures such as Differentiated Services (DiffServ) and/or Integrated Services (IntServ). In this study, we used MATLAB to perform an analysis to evaluate the impact of introducing MPLS technology in PMIPv6 domain based on handover latency, operational overhead and packet loss during the handover. This was compared with PMIPv6, and a PMIPv6/MPLS integration. We proved that the proposed scheme can give better performance than other schemes.