diff --git a/frontend/src/__tests__/cypress/cypress/pages/connectionTypes.ts b/frontend/src/__tests__/cypress/cypress/pages/connectionTypes.ts
index f93829500d..4987f3fcf2 100644
--- a/frontend/src/__tests__/cypress/cypress/pages/connectionTypes.ts
+++ b/frontend/src/__tests__/cypress/cypress/pages/connectionTypes.ts
@@ -1,6 +1,7 @@
 import { appChrome } from '~/__tests__/cypress/cypress/pages/appChrome';
 import { TableRow } from './components/table';
 import { TableToolbar } from './components/TableToolbar';
+import { Contextual } from './components/Contextual';
 
 class CreateConnectionTypeTableRow extends TableRow {
   findSectionHeading() {
@@ -92,6 +93,36 @@ class CreateConnectionTypePage {
       this.getFieldsTableRow(index).findName().should('contain.text', name),
     );
   }
+
+  getCategorySection() {
+    return new CategorySection(() => cy.findByTestId('connection-type-category-toggle'));
+  }
+}
+
+class CategorySection extends Contextual<HTMLElement> {
+  findCategoryTable() {
+    return this.find().click();
+  }
+
+  private findChipGroup() {
+    return this.find().findByRole('list', { name: 'Current selections' });
+  }
+
+  findChipItem(name: string | RegExp) {
+    return this.findChipGroup().find('li').contains('span', name);
+  }
+
+  clearMultiChipItem() {
+    this.find().findByRole('button', { name: 'Clear input value' }).click();
+  }
+
+  findMultiGroupInput() {
+    return this.find().find('input');
+  }
+
+  findMultiGroupSelectButton(name: string) {
+    return cy.findByTestId(`select-multi-typeahead-${name}`).click();
+  }
 }
 
 class ConnectionTypesTableToolbar extends TableToolbar {}
diff --git a/frontend/src/__tests__/cypress/cypress/tests/mocked/connectionTypes/createConnectionType.cy.ts b/frontend/src/__tests__/cypress/cypress/tests/mocked/connectionTypes/createConnectionType.cy.ts
index 2100a83db1..315f4c66c9 100644
--- a/frontend/src/__tests__/cypress/cypress/tests/mocked/connectionTypes/createConnectionType.cy.ts
+++ b/frontend/src/__tests__/cypress/cypress/tests/mocked/connectionTypes/createConnectionType.cy.ts
@@ -29,15 +29,40 @@ describe('create', () => {
     createConnectionTypePage.findConnectionTypePreviewToggle().should('exist');
   });
 
-  it('Allows create button with valid name', () => {
+  it('Allows create button with valid name and category', () => {
+    const categorySection = createConnectionTypePage.getCategorySection();
     createConnectionTypePage.visitCreatePage();
 
     createConnectionTypePage.findConnectionTypeName().should('have.value', '');
     createConnectionTypePage.findSubmitButton().should('be.disabled');
 
     createConnectionTypePage.findConnectionTypeName().type('hello');
+    categorySection.findCategoryTable();
+    categorySection.findMultiGroupSelectButton('Object-storage');
     createConnectionTypePage.findSubmitButton().should('be.enabled');
   });
+
+  it('Selects category or creates new category', () => {
+    createConnectionTypePage.visitCreatePage();
+
+    const categorySection = createConnectionTypePage.getCategorySection();
+
+    categorySection.findCategoryTable();
+    categorySection.findMultiGroupSelectButton('Object-storage');
+
+    categorySection.findChipItem('Object storage').should('exist');
+    categorySection.clearMultiChipItem();
+
+    categorySection.findMultiGroupSelectButton('Object-storage');
+
+    categorySection.findMultiGroupInput().type('Database');
+    categorySection.findMultiGroupSelectButton('Database');
+
+    categorySection.findMultiGroupInput().type('New category');
+
+    categorySection.findMultiGroupSelectButton('Option');
+    categorySection.findChipItem('New category').should('exist');
+  });
 });
 
 describe('duplicate', () => {
diff --git a/frontend/src/components/MultiSelection.tsx b/frontend/src/components/MultiSelection.tsx
index 0f141bf77d..1ab72eeadb 100644
--- a/frontend/src/components/MultiSelection.tsx
+++ b/frontend/src/components/MultiSelection.tsx
@@ -36,14 +36,23 @@ type MultiSelectionProps = {
   groupedValues?: GroupSelectionOptions[];
   setValue: (itemSelection: SelectionOptions[]) => void;
   toggleId?: string;
+  inputId?: string;
   ariaLabel: string;
   placeholder?: string;
   isDisabled?: boolean;
   selectionRequired?: boolean;
   noSelectedOptionsMessage?: string;
   toggleTestId?: string;
+  /** Flag to indicate if the typeahead select allows new items */
+  isCreatable?: boolean;
+  /** Flag to indicate if create option should be at top of typeahead */
+  isCreateOptionOnTop?: boolean;
+  /** Message to display to create a new option */
+  createOptionMessage?: string | ((newValue: string) => string);
 };
 
+const defaultCreateOptionMessage = (newValue: string) => `Create "${newValue}"`;
+
 export const MultiSelection: React.FC<MultiSelectionProps> = ({
   value = [],
   groupedValues = [],
@@ -53,9 +62,13 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
   ariaLabel = 'Options menu',
   id,
   toggleId,
+  inputId,
   toggleTestId,
   selectionRequired,
   noSelectedOptionsMessage = 'One or more options must be selected',
+  isCreatable = false,
+  isCreateOptionOnTop = false,
+  createOptionMessage = defaultCreateOptionMessage,
 }) => {
   const [isOpen, setIsOpen] = React.useState(false);
   const [inputValue, setInputValue] = React.useState<string>('');
@@ -97,15 +110,48 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
     [groupOptions, inputValue, value],
   );
 
-  const allOptions = React.useMemo(() => {
+  const allValues = React.useMemo(() => {
     const options = [];
     groupedValues.forEach((group) => options.push(...group.values));
     options.push(...value);
-
     return options;
   }, [groupedValues, value]);
 
-  const visibleOptions = [...groupOptions, ...selectOptions];
+  const createOption = React.useMemo(() => {
+    const inputValueTrim = inputValue.trim();
+
+    if (
+      isCreatable &&
+      inputValueTrim &&
+      !allValues.find((o) => String(o.name).toLowerCase() === inputValueTrim.toLowerCase())
+    ) {
+      return {
+        id: inputValueTrim,
+        name:
+          typeof createOptionMessage === 'string'
+            ? createOptionMessage
+            : createOptionMessage(inputValueTrim),
+        selected: false,
+      };
+    }
+    return undefined;
+  }, [inputValue, isCreatable, createOptionMessage, allValues]);
+
+  const allOptions = React.useMemo(() => {
+    const options = [...allValues];
+    if (createOption) {
+      options.push(createOption);
+    }
+    return options;
+  }, [allValues, createOption]);
+
+  const visibleOptions = React.useMemo(() => {
+    let options = [...groupOptions, ...selectOptions];
+    if (createOption) {
+      options = isCreateOptionOnTop ? [createOption, ...options] : [...options, createOption];
+    }
+    return options;
+  }, [groupOptions, selectOptions, createOption, isCreateOptionOnTop]);
 
   const selected = React.useMemo(() => allOptions.filter((v) => v.selected), [allOptions]);
 
@@ -156,6 +202,7 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
       case 'Enter':
         if (isOpen && focusedItem) {
           onSelect(focusedItem);
+          setInputValue('');
         }
         if (!isOpen) {
           setIsOpen(true);
@@ -188,6 +235,7 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
           option.id === menuItem.id ? { ...option, selected: !option.selected } : option,
         ),
       );
+      setInputValue('');
     }
     textInputRef.current?.focus();
   };
@@ -209,6 +257,7 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
     >
       <TextInputGroup isPlain>
         <TextInputGroupMain
+          inputId={inputId}
           value={inputValue}
           onClick={onToggleClick}
           onChange={onTextInputChange}
@@ -267,7 +316,14 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
         onOpenChange={() => setOpen(false)}
         toggle={toggle}
       >
-        {visibleOptions.length === 0 && inputValue ? (
+        {createOption && isCreateOptionOnTop && groupOptions.length > 0 ? (
+          <SelectList isAriaMultiselectable>
+            <SelectOption value={createOption.id} isFocused={focusedItemIndex === 0}>
+              {createOption.name}
+            </SelectOption>
+          </SelectList>
+        ) : null}
+        {!createOption && visibleOptions.length === 0 && inputValue ? (
           <SelectList isAriaMultiselectable>
             <SelectOption isDisabled>No results found</SelectOption>
           </SelectList>
@@ -279,8 +335,8 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
                 {g.values.map((option) => (
                   <SelectOption
                     key={option.name}
-                    isFocused={focusedItemIndex === option.index}
-                    id={`select-multi-typeahead-${option.name.replace(' ', '-')}`}
+                    isFocused={focusedItemIndex === option.index + (isCreateOptionOnTop ? 1 : 0)}
+                    data-testid={`select-multi-typeahead-${option.name.replace(' ', '-')}`}
                     value={option.id}
                     ref={null}
                     isSelected={option.selected}
@@ -293,13 +349,17 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
             {index < selectGroups.length - 1 || selectOptions.length ? <Divider /> : null}
           </>
         ))}
-        {selectOptions.length ? (
+        {selectOptions.length ||
+        (createOption && (!isCreateOptionOnTop || groupOptions.length === 0)) ? (
           <SelectList isAriaMultiselectable>
+            {createOption && isCreateOptionOnTop && groupOptions.length === 0 ? (
+              <SelectOption value={createOption.id}>{createOption.name}</SelectOption>
+            ) : null}
             {selectOptions.map((option) => (
               <SelectOption
                 key={option.name}
-                isFocused={focusedItemIndex === option.index}
-                id={`select-multi-typeahead-${option.name.replace(' ', '-')}`}
+                isFocused={focusedItemIndex === option.index + (isCreateOptionOnTop ? 1 : 0)}
+                data-testid={`select-multi-typeahead-${option.name.replace(' ', '-')}`}
                 value={option.id}
                 ref={null}
                 isSelected={option.selected}
@@ -307,6 +367,15 @@ export const MultiSelection: React.FC<MultiSelectionProps> = ({
                 {option.name}
               </SelectOption>
             ))}
+            {createOption && !isCreateOptionOnTop ? (
+              <SelectOption
+                data-testid={`select-multi-typeahead-${Option.name.replace(' ', '-')}`}
+                value={createOption.id}
+                isFocused={focusedItemIndex === visibleOptions.length - 1}
+              >
+                {createOption.name}
+              </SelectOption>
+            ) : null}
           </SelectList>
         ) : null}
       </Select>
diff --git a/frontend/src/pages/connectionTypes/ConnectionTypesTableRow.tsx b/frontend/src/pages/connectionTypes/ConnectionTypesTableRow.tsx
index 0e072d7a50..fd2a26cd07 100644
--- a/frontend/src/pages/connectionTypes/ConnectionTypesTableRow.tsx
+++ b/frontend/src/pages/connectionTypes/ConnectionTypesTableRow.tsx
@@ -1,7 +1,13 @@
 import * as React from 'react';
 import { useNavigate } from 'react-router';
 import { ActionsColumn, Td, Tr } from '@patternfly/react-table';
-import { Label, Switch, Timestamp, TimestampTooltipVariant } from '@patternfly/react-core';
+import {
+  Label,
+  LabelGroup,
+  Switch,
+  Timestamp,
+  TimestampTooltipVariant,
+} from '@patternfly/react-core';
 import { ConnectionTypeConfigMapObj } from '~/concepts/connectionTypes/types';
 import { relativeTime } from '~/utilities/time';
 import { updateConnectionTypeEnabled } from '~/services/connectionTypesService';
@@ -14,6 +20,7 @@ import {
   ownedByDSC,
 } from '~/concepts/k8s/utils';
 import { connectionTypeColumns } from '~/pages/connectionTypes/columns';
+import CategoryLabel from '~/concepts/connectionTypes/CategoryLabel';
 
 type ConnectionTypesTableRowProps = {
   obj: ConnectionTypeConfigMapObj;
@@ -72,13 +79,24 @@ const ConnectionTypesTableRow: React.FC<ConnectionTypesTableRowProps> = ({
 
   return (
     <Tr>
-      <Td dataLabel={connectionTypeColumns[0].label} width={50}>
+      <Td dataLabel={connectionTypeColumns[0].label} width={30}>
         <TableRowTitleDescription
           title={getDisplayNameFromK8sResource(obj)}
           description={getDescriptionFromK8sResource(obj)}
         />
       </Td>
-      <Td dataLabel={connectionTypeColumns[1].label} data-testid="connection-type-creator">
+      <Td dataLabel={connectionTypeColumns[1].label}>
+        {obj.data?.category?.length ? (
+          <LabelGroup>
+            {obj.data.category.map((category) => (
+              <CategoryLabel key={category} category={category} />
+            ))}
+          </LabelGroup>
+        ) : (
+          '-'
+        )}
+      </Td>
+      <Td dataLabel={connectionTypeColumns[2].label} data-testid="connection-type-creator">
         {ownedByDSC(obj) ? (
           <Label data-testid="connection-type-user-label">{creator}</Label>
         ) : (
@@ -86,7 +104,7 @@ const ConnectionTypesTableRow: React.FC<ConnectionTypesTableRowProps> = ({
         )}
       </Td>
       <Td
-        dataLabel={connectionTypeColumns[2].label}
+        dataLabel={connectionTypeColumns[3].label}
         data-testid="connection-type-created"
         modifier="nowrap"
       >
@@ -94,7 +112,7 @@ const ConnectionTypesTableRow: React.FC<ConnectionTypesTableRowProps> = ({
           {createdDate ? relativeTime(Date.now(), createdDate.getTime()) : 'Unknown'}
         </Timestamp>
       </Td>
-      <Td dataLabel={connectionTypeColumns[3].label}>
+      <Td dataLabel={connectionTypeColumns[4].label}>
         <Switch
           isChecked={isEnabled}
           aria-label="toggle enabled"
diff --git a/frontend/src/pages/connectionTypes/columns.ts b/frontend/src/pages/connectionTypes/columns.ts
index 1cabc14af6..051a384ee1 100644
--- a/frontend/src/pages/connectionTypes/columns.ts
+++ b/frontend/src/pages/connectionTypes/columns.ts
@@ -48,6 +48,11 @@ export const connectionTypeColumns: SortableData<ConnectionTypeConfigMapObj>[] =
     field: 'name',
     sortable: sorter,
   },
+  {
+    label: 'Category',
+    field: 'category',
+    sortable: false,
+  },
   {
     label: 'Creator',
     field: 'creator',
diff --git a/frontend/src/pages/connectionTypes/const.ts b/frontend/src/pages/connectionTypes/const.ts
index 80853c89eb..8eeeccc784 100644
--- a/frontend/src/pages/connectionTypes/const.ts
+++ b/frontend/src/pages/connectionTypes/const.ts
@@ -14,3 +14,5 @@ export const initialFilterData: Record<ConnectionTypesOptions, string | undefine
   [ConnectionTypesOptions.keyword]: '',
   [ConnectionTypesOptions.createdBy]: '',
 };
+
+export const categoryOptions = ['Object storage', 'Database', 'Model registry', 'URI'];
diff --git a/frontend/src/pages/connectionTypes/manage/ManageConnectionTypePage.tsx b/frontend/src/pages/connectionTypes/manage/ManageConnectionTypePage.tsx
index 41d02d3bb4..706d4e4941 100644
--- a/frontend/src/pages/connectionTypes/manage/ManageConnectionTypePage.tsx
+++ b/frontend/src/pages/connectionTypes/manage/ManageConnectionTypePage.tsx
@@ -26,6 +26,8 @@ import {
 import { translateDisplayNameForK8s } from '~/concepts/k8s/utils';
 import ApplicationsPage from '~/pages/ApplicationsPage';
 import { NameDescType } from '~/pages/projects/types';
+import { MultiSelection, SelectionOptions } from '~/components/MultiSelection';
+import { categoryOptions } from '~/pages/connectionTypes/const';
 import CreateConnectionTypeFooter from './ManageConnectionTypeFooter';
 import ManageConnectionTypeFieldsTable from './ManageConnectionTypeFieldsTable';
 import ManageConnectionTypeBreadcrumbs from './ManageConnectionTypeBreadcrumbs';
@@ -62,7 +64,16 @@ const ManageConnectionTypePage: React.FC<Props> = ({ prefill, isEdit, onSave })
   const [connectionEnabled, setConnectionEnabled] = React.useState<boolean>(prefillEnabled);
   const [connectionFields, setConnectionFields] =
     React.useState<ConnectionTypeField[]>(prefillFields);
-  const [category] = React.useState<string[]>(prefillCategory);
+  const [category, setCategory] = React.useState<string[]>(prefillCategory);
+
+  const categoryItems = React.useMemo<SelectionOptions[]>(
+    () =>
+      category
+        .filter((c) => !categoryOptions.includes(c))
+        .concat(categoryOptions)
+        .map((c) => ({ id: c, name: c, selected: category.includes(c) })),
+    [category],
+  );
 
   const connectionTypeObj = React.useMemo(
     () =>
@@ -85,8 +96,8 @@ const ManageConnectionTypePage: React.FC<Props> = ({ prefill, isEdit, onSave })
 
   const isValid = React.useMemo(() => {
     const trimmedName = connectionNameDesc.name.trim();
-    return Boolean(trimmedName) && !isEnvVarConflict;
-  }, [connectionNameDesc.name, isEnvVarConflict]);
+    return Boolean(trimmedName) && !isEnvVarConflict && category.length > 0;
+  }, [connectionNameDesc.name, isEnvVarConflict, category]);
 
   const onCancel = () => {
     navigate('/connectionTypes');
@@ -102,7 +113,7 @@ const ManageConnectionTypePage: React.FC<Props> = ({ prefill, isEdit, onSave })
         title={isEdit ? 'Edit connection type' : 'Create connection type'}
         loaded
         empty={false}
-        errorMessage="Unable load to connection types"
+        errorMessage="Unable to load connection types"
         breadcrumb={<ManageConnectionTypeBreadcrumbs />}
         headerAction={
           isDrawerExpanded ? undefined : (
@@ -139,7 +150,21 @@ const ManageConnectionTypePage: React.FC<Props> = ({ prefill, isEdit, onSave })
                 setData={setConnectionNameDesc}
                 autoFocusName
               />
-              <FormGroup label="Enable">
+              <FormGroup label="Category" fieldId="connection-type-category" isRequired>
+                <MultiSelection
+                  inputId="connection-type-category"
+                  data-testid="connection-type-category"
+                  toggleTestId="connection-type-category-toggle"
+                  ariaLabel="Category"
+                  placeholder="Select a category"
+                  isCreatable
+                  value={categoryItems}
+                  setValue={(value) => {
+                    setCategory(value.filter((v) => v.selected).map((v) => String(v.id)));
+                  }}
+                />
+              </FormGroup>
+              <FormGroup label="Enable" fieldId="connection-type-enable">
                 <Checkbox
                   label="Enable users in your organization to use this connection type when adding connections."
                   id="connection-type-enable"