diff --git a/src/modules/market/stores/market.ts b/src/modules/market/stores/market.ts
index a5a2cee..20c89f5 100644
--- a/src/modules/market/stores/market.ts
+++ b/src/modules/market/stores/market.ts
@@ -803,6 +803,10 @@ export const useMarketStore = defineStore('market', () => {
       filterData.value.categories.push(category)
     }
   }
+
+  const clearCategoryFilters = () => {
+    filterData.value.categories = []
+  }
   
   const updateSortOptions = (field: string, order: 'asc' | 'desc' = 'asc') => {
     sortOptions.value = { field, order }
@@ -881,6 +885,7 @@ export const useMarketStore = defineStore('market', () => {
     updateFilterData,
     clearFilters,
     toggleCategoryFilter,
+    clearCategoryFilters,
     updateSortOptions,
     formatPrice,
     addToStallCart,
diff --git a/src/modules/market/views/MarketPage.vue b/src/modules/market/views/MarketPage.vue
index 564642b..ffe9dd7 100644
--- a/src/modules/market/views/MarketPage.vue
+++ b/src/modules/market/views/MarketPage.vue
@@ -52,19 +52,84 @@
         </div>
       </div>
 
-      <!-- Category Filters -->
+      <!-- Enhanced Category Filters -->
       <div v-if="marketStore.allCategories.length > 0" class="mb-6">
-        <div class="flex flex-wrap gap-2">
-          <Badge
+        <div class="flex items-center justify-between mb-3">
+          <h3 class="text-lg font-semibold text-gray-700">Browse by Category</h3>
+          <Button
+            v-if="selectedCategoriesCount > 0"
+            @click="clearAllCategoryFilters"
+            variant="ghost"
+            size="sm"
+            class="text-sm"
+          >
+            Clear All ({{ selectedCategoriesCount }})
+            <X class="w-4 h-4 ml-1" />
+          </Button>
+        </div>
+
+        <div class="flex flex-wrap gap-3">
+          <div
             v-for="category in marketStore.allCategories"
             :key="category.category"
-            :variant="category.selected ? 'default' : 'secondary'"
-            class="cursor-pointer hover:bg-blue-100"
             @click="marketStore.toggleCategoryFilter(category.category)"
+            class="group relative cursor-pointer transition-all duration-200 hover:scale-105"
           >
-            {{ category.category }}
-            <span class="ml-1 text-xs">({{ category.count }})</span>
-          </Badge>
+            <Badge
+              :variant="category.selected ? 'default' : 'outline'"
+              class="px-4 py-2 text-sm font-medium transition-all duration-200"
+              :class="{
+                'bg-primary text-primary-foreground shadow-md': category.selected,
+                'hover:bg-primary/10 hover:border-primary': !category.selected,
+                'ring-2 ring-primary ring-offset-1': category.selected
+              }"
+            >
+              <div class="flex items-center gap-2">
+                <span>{{ category.category }}</span>
+                <div
+                  class="px-2 py-0.5 rounded-full text-xs font-bold transition-colors"
+                  :class="category.selected
+                    ? 'bg-primary-foreground/20 text-primary-foreground'
+                    : 'bg-secondary text-secondary-foreground'"
+                >
+                  {{ category.count }}
+                </div>
+              </div>
+            </Badge>
+
+            <!-- Selection indicator -->
+            <div
+              v-if="category.selected"
+              class="absolute -top-1 -right-1 w-3 h-3 bg-green-500 rounded-full border-2 border-white shadow-sm"
+            >
+              <Check class="w-2 h-2 text-white absolute top-0.5 left-0.5" />
+            </div>
+          </div>
+        </div>
+
+        <!-- Active Filters Summary -->
+        <div v-if="selectedCategoriesCount > 0" class="mt-4 p-3 bg-blue-50 rounded-lg border border-blue-200">
+          <div class="flex items-center justify-between">
+            <div class="flex items-center gap-2">
+              <Filter class="w-4 h-4 text-blue-600" />
+              <span class="text-sm font-medium text-blue-800">
+                Active Filters:
+              </span>
+              <div class="flex gap-1">
+                <Badge
+                  v-for="category in selectedCategories"
+                  :key="category"
+                  variant="secondary"
+                  class="text-xs"
+                >
+                  {{ category }}
+                </Badge>
+              </div>
+            </div>
+            <div class="text-sm text-blue-600">
+              {{ productsToDisplay.length }} products found
+            </div>
+          </div>
         </div>
       </div>
 
@@ -107,7 +172,7 @@ import { config } from '@/lib/config'
 import { Button } from '@/components/ui/button'
 import { Badge } from '@/components/ui/badge'
 import { Avatar, AvatarImage, AvatarFallback } from '@/components/ui/avatar'
-import { ShoppingCart } from 'lucide-vue-next'
+import { ShoppingCart, X, Check, Filter } from 'lucide-vue-next'
 import MarketFuzzySearch from '../components/MarketFuzzySearch.vue'
 import ProductCard from '../components/ProductCard.vue'
 import type { Product } from '../types/market'
@@ -232,6 +297,20 @@ const handleCategoryFilter = (category: string) => {
   marketStore.toggleCategoryFilter(category)
 }
 
+// Computed properties for enhanced category filtering
+const selectedCategoriesCount = computed(() => {
+  return marketStore.filterData.categories.length
+})
+
+const selectedCategories = computed(() => {
+  return marketStore.filterData.categories
+})
+
+// Clear all category filters
+const clearAllCategoryFilters = () => {
+  marketStore.clearCategoryFilters()
+}
+
 onMounted(() => {
   // Only load market if it hasn't been preloaded
   if (needsToLoadMarket.value) {