diff --git a/src/modules/market/components/CategoryInput.vue b/src/modules/market/components/CategoryInput.vue
new file mode 100644
index 0000000..e836320
--- /dev/null
+++ b/src/modules/market/components/CategoryInput.vue
@@ -0,0 +1,286 @@
+<template>
+  <div class="space-y-3">
+    <!-- Category Input with Suggestions -->
+    <div class="relative">
+      <div class="flex gap-2">
+        <Input
+          v-model="currentInput"
+          :placeholder="placeholder"
+          :disabled="disabled"
+          @keydown.enter.prevent="addCategory"
+          @keydown.comma.prevent="addCategory"
+          @input="handleInput"
+          @focus="showSuggestions = true"
+          class="flex-1"
+        />
+        <Button
+          type="button"
+          @click="addCategory"
+          :disabled="disabled || !canAdd"
+          size="sm"
+        >
+          Add
+        </Button>
+      </div>
+
+      <!-- Category Suggestions Dropdown -->
+      <div
+        v-if="showSuggestions && filteredSuggestions.length > 0"
+        class="absolute top-full left-0 right-0 z-50 mt-1 max-h-48 overflow-y-auto bg-popover border border-border rounded-md shadow-lg"
+        role="listbox"
+        aria-label="Category suggestions"
+      >
+        <button
+          v-for="(suggestion, index) in filteredSuggestions"
+          :key="suggestion.category"
+          type="button"
+          @click="selectSuggestion(suggestion)"
+          @keydown.enter="selectSuggestion(suggestion)"
+          class="w-full px-3 py-2 text-left hover:bg-accent hover:text-accent-foreground focus:bg-accent focus:text-accent-foreground text-sm flex items-center justify-between"
+          role="option"
+          :aria-selected="index === selectedSuggestionIndex"
+        >
+          <span>{{ suggestion.category }}</span>
+          <Badge variant="secondary" class="text-xs">
+            {{ suggestion.count }}
+          </Badge>
+        </button>
+      </div>
+    </div>
+
+    <!-- Selected Categories -->
+    <div v-if="modelValue.length > 0" class="space-y-2">
+      <div class="text-sm font-medium text-foreground">Selected Categories:</div>
+      <div class="flex flex-wrap gap-2">
+        <Badge
+          v-for="(category, index) in modelValue"
+          :key="category"
+          variant="secondary"
+          class="flex items-center gap-1 pl-2 pr-1 py-1"
+        >
+          <span>{{ category }}</span>
+          <Button
+            type="button"
+            @click="removeCategory(index)"
+            :disabled="disabled"
+            variant="ghost"
+            size="sm"
+            class="h-4 w-4 p-0 hover:bg-destructive hover:text-destructive-foreground"
+            :aria-label="`Remove ${category} category`"
+          >
+            <X class="h-3 w-3" />
+          </Button>
+        </Badge>
+      </div>
+    </div>
+
+    <!-- Popular Categories Section -->
+    <div v-if="showPopularCategories && popularCategories.length > 0" class="space-y-2">
+      <div class="text-sm font-medium text-foreground">Popular Categories:</div>
+      <div class="flex flex-wrap gap-2">
+        <Button
+          v-for="category in popularCategories"
+          :key="category.category"
+          type="button"
+          @click="selectSuggestion(category)"
+          :disabled="disabled || modelValue.includes(category.category)"
+          variant="outline"
+          size="sm"
+          class="h-6 px-2 text-xs"
+        >
+          {{ category.category }} ({{ category.count }})
+        </Button>
+      </div>
+    </div>
+
+    <!-- Helper Text -->
+    <div class="text-xs text-muted-foreground">
+      Press Enter or comma to add a category. Maximum {{ maxCategories }} categories.
+    </div>
+  </div>
+</template>
+
+<script setup lang="ts">
+import { ref, computed, watch, nextTick } from 'vue'
+import { Input } from '@/components/ui/input'
+import { Button } from '@/components/ui/button'
+import { Badge } from '@/components/ui/badge'
+import { X } from 'lucide-vue-next'
+import { useMarketStore } from '@/modules/market/stores/market'
+
+interface CategorySuggestion {
+  category: string
+  count: number
+}
+
+interface Props {
+  modelValue: string[]
+  disabled?: boolean
+  placeholder?: string
+  maxCategories?: number
+  showPopularCategories?: boolean
+}
+
+interface Emits {
+  (e: 'update:modelValue', value: string[]): void
+}
+
+const props = withDefaults(defineProps<Props>(), {
+  disabled: false,
+  placeholder: 'Enter category name...',
+  maxCategories: 10,
+  showPopularCategories: true
+})
+
+const emit = defineEmits<Emits>()
+
+const marketStore = useMarketStore()
+
+// Local state
+const currentInput = ref('')
+const showSuggestions = ref(false)
+const selectedSuggestionIndex = ref(-1)
+
+// Get existing categories from the market store
+const existingCategories = computed<CategorySuggestion[]>(() => {
+  const categoryMap = new Map<string, number>()
+
+  marketStore.products.forEach(product => {
+    product.categories?.forEach(cat => {
+      if (cat && cat.trim()) {
+        const normalizedCat = cat.toLowerCase().trim()
+        categoryMap.set(normalizedCat, (categoryMap.get(normalizedCat) || 0) + 1)
+      }
+    })
+  })
+
+  return Array.from(categoryMap.entries())
+    .map(([category, count]) => ({ category, count }))
+    .sort((a, b) => b.count - a.count) // Sort by popularity
+})
+
+// Filter suggestions based on current input
+const filteredSuggestions = computed(() => {
+  if (!currentInput.value.trim()) return []
+
+  const inputLower = currentInput.value.toLowerCase().trim()
+
+  return existingCategories.value
+    .filter(suggestion =>
+      suggestion.category.toLowerCase().includes(inputLower) &&
+      !props.modelValue.includes(suggestion.category)
+    )
+    .slice(0, 8) // Limit to 8 suggestions
+})
+
+// Popular categories (top 6 most used)
+const popularCategories = computed(() => {
+  return existingCategories.value
+    .filter(cat => !props.modelValue.includes(cat.category))
+    .slice(0, 6)
+})
+
+// Check if we can add the current input
+const canAdd = computed(() => {
+  const trimmed = currentInput.value.trim().toLowerCase()
+  return trimmed.length > 0 &&
+         !props.modelValue.some(cat => cat.toLowerCase() === trimmed) &&
+         props.modelValue.length < props.maxCategories
+})
+
+// Methods
+const addCategory = () => {
+  if (!canAdd.value) return
+
+  const category = currentInput.value.trim()
+  const newCategories = [...props.modelValue, category]
+  emit('update:modelValue', newCategories)
+
+  currentInput.value = ''
+  showSuggestions.value = false
+}
+
+const selectSuggestion = (suggestion: CategorySuggestion) => {
+  if (props.modelValue.includes(suggestion.category)) return
+  if (props.modelValue.length >= props.maxCategories) return
+
+  const newCategories = [...props.modelValue, suggestion.category]
+  emit('update:modelValue', newCategories)
+
+  currentInput.value = ''
+  showSuggestions.value = false
+}
+
+const removeCategory = (index: number) => {
+  const newCategories = props.modelValue.filter((_, i) => i !== index)
+  emit('update:modelValue', newCategories)
+}
+
+const handleInput = () => {
+  showSuggestions.value = true
+  selectedSuggestionIndex.value = -1
+}
+
+// Hide suggestions when clicking outside
+const hideSuggestions = () => {
+  // Delay to allow click events on suggestions to fire
+  setTimeout(() => {
+    showSuggestions.value = false
+  }, 200)
+}
+
+// Handle keyboard navigation in suggestions
+const handleKeydown = (event: KeyboardEvent) => {
+  if (!showSuggestions.value || filteredSuggestions.value.length === 0) return
+
+  switch (event.key) {
+    case 'ArrowDown':
+      event.preventDefault()
+      selectedSuggestionIndex.value = Math.min(
+        selectedSuggestionIndex.value + 1,
+        filteredSuggestions.value.length - 1
+      )
+      break
+    case 'ArrowUp':
+      event.preventDefault()
+      selectedSuggestionIndex.value = Math.max(selectedSuggestionIndex.value - 1, 0)
+      break
+    case 'Enter':
+      event.preventDefault()
+      if (selectedSuggestionIndex.value >= 0) {
+        selectSuggestion(filteredSuggestions.value[selectedSuggestionIndex.value])
+      } else {
+        addCategory()
+      }
+      break
+    case 'Escape':
+      showSuggestions.value = false
+      break
+  }
+}
+
+// Watch for keyboard navigation
+watch(currentInput, () => {
+  selectedSuggestionIndex.value = -1
+})
+
+// Setup global event listeners
+nextTick(() => {
+  document.addEventListener('click', hideSuggestions)
+  document.addEventListener('keydown', handleKeydown)
+})
+</script>
+
+<style scoped>
+/* Add smooth transitions */
+.category-suggestions-enter-active,
+.category-suggestions-leave-active {
+  transition: all 0.2s ease;
+}
+
+.category-suggestions-enter-from,
+.category-suggestions-leave-to {
+  opacity: 0;
+  transform: translateY(-8px);
+}
+</style>
\ No newline at end of file
diff --git a/src/modules/market/components/CreateProductDialog.vue b/src/modules/market/components/CreateProductDialog.vue
index de94285..b1f07c5 100644
--- a/src/modules/market/components/CreateProductDialog.vue
+++ b/src/modules/market/components/CreateProductDialog.vue
@@ -104,14 +104,19 @@
         </div>
 
         <!-- Categories -->
-        <FormField name="categories">
+        <FormField v-slot="{ componentField }" name="categories">
           <FormItem>
             <FormLabel>Categories</FormLabel>
             <FormDescription>Add categories to help customers find your product</FormDescription>
-            <div class="text-center py-8 border-2 border-dashed rounded-lg">
-              <Package class="w-8 h-8 mx-auto mb-2 text-muted-foreground" />
-              <p class="text-sm text-muted-foreground">Category management coming soon</p>
-            </div>
+            <FormControl>
+              <CategoryInput
+                v-bind="componentField"
+                :disabled="isCreating"
+                placeholder="Enter category (e.g., electronics, clothing, books...)"
+                :max-categories="10"
+                :show-popular-categories="true"
+              />
+            </FormControl>
             <FormMessage />
           </FormItem>
         </FormField>
@@ -202,6 +207,7 @@ import { Input } from '@/components/ui/input'
 import { Label } from '@/components/ui/label'
 import { Textarea } from '@/components/ui/textarea'
 import { Checkbox } from '@/components/ui/checkbox'
+import CategoryInput from './CategoryInput.vue'
 import {
   FormControl,
   FormDescription,