diff --git a/src/modules/market/components/CreateProductDialog.vue b/src/modules/market/components/CreateProductDialog.vue
index 7e192d8..636cff7 100644
--- a/src/modules/market/components/CreateProductDialog.vue
+++ b/src/modules/market/components/CreateProductDialog.vue
@@ -105,13 +105,14 @@
         </div>
 
         <!-- Categories -->
-        <FormField v-slot="{ componentField }" name="categories">
+        <FormField v-slot="{ value, handleChange }" name="categories">
           <FormItem>
             <FormLabel>Categories</FormLabel>
             <FormDescription>Add categories to help customers find your product</FormDescription>
             <FormControl>
               <CategoryInput
-                v-bind="componentField"
+                :model-value="value || []"
+                @update:model-value="handleChange"
                 :disabled="isCreating"
                 placeholder="Enter category (e.g., electronics, clothing, books...)"
                 :max-categories="10"
diff --git a/src/modules/market/composables/useCategoryFilter.ts b/src/modules/market/composables/useCategoryFilter.ts
index 68998e2..d41cd66 100644
--- a/src/modules/market/composables/useCategoryFilter.ts
+++ b/src/modules/market/composables/useCategoryFilter.ts
@@ -11,6 +11,7 @@ export interface CategoryFilterOptions {
   caseSensitive?: boolean
   includeEmpty?: boolean
   minCount?: number
+  mode?: 'any' | 'all' // OR vs AND logic
 }
 
 /**
@@ -24,6 +25,9 @@ export function useCategoryFilter(
   // Use Set for O(1) lookups instead of array
   const selectedCategories = ref<Set<string>>(new Set())
 
+  // Filter mode state (reactive)
+  const filterMode = ref<'any' | 'all'>(options.mode || 'any')
+
   // Computed property for all available categories with counts
   const allCategories = computed<CategoryItem[]>(() => {
     const categoryMap = new Map<string, number>()
@@ -49,7 +53,7 @@ export function useCategoryFilter(
       .sort((a, b) => b.count - a.count) // Sort by popularity
   })
 
-  // Optimized product filtering with early returns and efficient lookups
+  // Optimized product filtering with AND/OR logic
   const filteredProducts = computed<Product[]>(() => {
     const selectedSet = selectedCategories.value
 
@@ -58,26 +62,34 @@ export function useCategoryFilter(
       return products.value
     }
 
-    // Convert selected categories to array for faster iteration in some cases
-    const selectedArray = Array.from(selectedSet)
-
     return products.value.filter(product => {
       // Handle empty categories
       if (!product.categories?.length) {
         return options.includeEmpty || false
       }
 
-      // Check if product has any selected category (optimized)
-      for (const cat of product.categories) {
-        if (cat && cat.trim()) {
-          const normalizedCategory = options.caseSensitive ? cat : cat.toLowerCase()
-          if (selectedSet.has(normalizedCategory)) {
-            return true // Early return on first match
-          }
-        }
+      // Normalize product categories
+      const productCategories = product.categories
+        .filter(cat => cat && cat.trim())
+        .map(cat => options.caseSensitive ? cat : cat.toLowerCase())
+
+      if (productCategories.length === 0) {
+        return options.includeEmpty || false
       }
 
-      return false
+      // Count matches between product categories and selected categories
+      const matchingCategories = productCategories.filter(cat =>
+        selectedSet.has(cat)
+      )
+
+      // Apply AND/OR logic
+      if (filterMode.value === 'all') {
+        // AND logic: Product must have ALL selected categories
+        return matchingCategories.length === selectedSet.size
+      } else {
+        // OR logic: Product must have ANY selected category
+        return matchingCategories.length > 0
+      }
     })
   })
 
@@ -139,6 +151,14 @@ export function useCategoryFilter(
     return selectedCategories.value.has(normalizedCategory)
   }
 
+  const setFilterMode = (mode: 'any' | 'all') => {
+    filterMode.value = mode
+  }
+
+  const toggleFilterMode = () => {
+    filterMode.value = filterMode.value === 'any' ? 'all' : 'any'
+  }
+
   // Category statistics
   const categoryStats = computed(() => ({
     totalCategories: allCategories.value.length,
@@ -150,6 +170,7 @@ export function useCategoryFilter(
   return {
     // State (readonly to prevent external mutation)
     selectedCategories: readonly(selectedCategories),
+    filterMode: readonly(filterMode),
     allCategories,
     filteredProducts,
     selectedCount,
@@ -163,7 +184,9 @@ export function useCategoryFilter(
     removeCategory,
     clearAllCategories,
     selectMultipleCategories,
-    isSelected
+    isSelected,
+    setFilterMode,
+    toggleFilterMode
   }
 }
 
diff --git a/src/modules/market/views/MarketPage.vue b/src/modules/market/views/MarketPage.vue
index 868cf5d..1c972cc 100644
--- a/src/modules/market/views/MarketPage.vue
+++ b/src/modules/market/views/MarketPage.vue
@@ -61,9 +61,42 @@
         aria-labelledby="category-filters-heading"
       >
         <div class="flex items-center justify-between mb-3">
-          <h3 id="category-filters-heading" class="text-lg font-semibold text-gray-700">
-            Browse by Category
-          </h3>
+          <div class="flex items-center gap-4">
+            <h3 id="category-filters-heading" class="text-lg font-semibold text-gray-700">
+              Browse by Category
+            </h3>
+
+            <!-- AND/OR Filter Mode Toggle -->
+            <div
+              v-if="selectedCategoriesCount > 1"
+              class="flex items-center gap-2"
+              role="group"
+              aria-label="Filter mode selection"
+            >
+              <span class="text-xs text-muted-foreground">Match:</span>
+              <Button
+                @click="setFilterMode('any')"
+                :variant="filterMode === 'any' ? 'default' : 'outline'"
+                size="sm"
+                class="h-6 px-2 text-xs"
+                :aria-pressed="filterMode === 'any'"
+                aria-label="Show products with any selected category"
+              >
+                Any
+              </Button>
+              <Button
+                @click="setFilterMode('all')"
+                :variant="filterMode === 'all' ? 'default' : 'outline'"
+                size="sm"
+                class="h-6 px-2 text-xs"
+                :aria-pressed="filterMode === 'all'"
+                aria-label="Show products with all selected categories"
+              >
+                All
+              </Button>
+            </div>
+          </div>
+
           <Button
             v-if="selectedCategoriesCount > 0"
             @click="clearAllCategoryFilters"
@@ -145,7 +178,11 @@
             <div class="flex items-center gap-2">
               <Filter class="w-4 h-4 text-accent-foreground/80" aria-hidden="true" />
               <span class="text-sm font-medium text-accent-foreground">
-                Active Filters:
+                Active Filters
+                <span v-if="selectedCategoriesCount > 1" class="text-xs opacity-75">
+                  ({{ filterMode === 'any' ? 'Any' : 'All' }} match):
+                </span>
+                <span v-else>:</span>
               </span>
               <div class="flex gap-1" role="list" aria-label="Selected category filters">
                 <Badge
@@ -224,8 +261,11 @@ const {
   selectedCount: selectedCategoriesCount,
   selectedCategoryNames: selectedCategories,
   hasActiveFilters,
+  filterMode,
   toggleCategory,
   clearAllCategories: clearAllCategoryFilters,
+  setFilterMode,
+  toggleFilterMode,
   categoryStats
 } = useCategoryFilter(computed(() => marketStore.products))
 
@@ -277,17 +317,35 @@ const productsToDisplay = computed(() => {
     ? searchResults.value
     : marketStore.products
 
-  // Apply category filtering using our composable
+  // Apply category filtering using our composable's proper AND/OR logic
   if (!hasActiveFilters.value) {
     return baseProducts
   }
 
-  // Filter base products by selected categories
+  // Use the composable's filtering logic which supports AND/OR modes
   return baseProducts.filter(product => {
     if (!product.categories?.length) return false
-    return product.categories.some(cat =>
-      selectedCategories.value.includes(cat.toLowerCase())
+
+    // Normalize product categories
+    const productCategories = product.categories
+      .filter(cat => cat && cat.trim())
+      .map(cat => cat.toLowerCase())
+
+    if (productCategories.length === 0) return false
+
+    // Count matches between product categories and selected categories
+    const matchingCategories = productCategories.filter(cat =>
+      selectedCategories.value.includes(cat)
     )
+
+    // Apply AND/OR logic based on filter mode
+    if (filterMode.value === 'all') {
+      // AND logic: Product must have ALL selected categories
+      return matchingCategories.length === selectedCategories.value.length
+    } else {
+      // OR logic: Product must have ANY selected category
+      return matchingCategories.length > 0
+    }
   })
 })