diff --git a/src/components/entityPageClientComponents.tsx b/src/components/entityPageClientComponents.tsx
index 22b55db..f3f3085 100644
--- a/src/components/entityPageClientComponents.tsx
+++ b/src/components/entityPageClientComponents.tsx
@@ -147,6 +147,7 @@ export default function EntityPageClientContent({entities, categories, onSubmit,
                                 </DialogHeader>
                                 <EntityForm
                                     value={selectedEntity}
+                                    categories={categories}
                                     onSubmit={handleSubmit}
                                     className="grid grid-cols-1 md:grid-cols-2 gap-4 py-4"/>
                             </DialogContent>
@@ -168,6 +169,7 @@ export default function EntityPageClientContent({entities, categories, onSubmit,
                                 </DrawerHeader>
                                 <EntityForm
                                     value={selectedEntity}
+                                    categories={categories}
                                     onSubmit={handleSubmit}
                                     className="grid grid-cols-1 md:grid-cols-2 gap-4 py-4"/>
                             </DrawerContent>
diff --git a/src/components/form/entityForm.tsx b/src/components/form/entityForm.tsx
index 274c290..953aca8 100644
--- a/src/components/form/entityForm.tsx
+++ b/src/components/form/entityForm.tsx
@@ -12,11 +12,13 @@ import { useRouter } from 'next/navigation';
 import { toast } from 'sonner';
 import { sonnerContent } from '@/components/ui/sonner';
 import { entityFormSchema } from '@/lib/form-schemas/entityFormSchema';
-import { Entity, EntityType } from '@prisma/client';
+import { Category, Entity, EntityType } from '@prisma/client';
 import { Select, SelectContent, SelectGroup, SelectItem, SelectTrigger, SelectValue } from '@/components/ui/select';
+import { AutoCompleteInput } from '@/components/ui/auto-complete-input';
 
-export default function EntityForm({value, onSubmit, className}: {
+export default function EntityForm({value, categories, onSubmit, className}: {
     value: Entity | undefined,
+    categories: Category[],
     onSubmit: (data: z.infer<typeof entityFormSchema>) => Promise<ActionResponse>
     className?: string
 }) {
@@ -29,6 +31,7 @@ export default function EntityForm({value, onSubmit, className}: {
             id: value?.id ?? undefined,
             name: value?.name ?? '',
             type: value?.type ?? EntityType.Entity,
+            defaultCategoryId: value?.defaultCategoryId ?? undefined,
         },
     });
 
@@ -40,6 +43,13 @@ export default function EntityForm({value, onSubmit, className}: {
         }
     };
 
+    const categoriesMapped = categories?.map((category) => {
+        return {
+            label: category.name,
+            value: category.id,
+        };
+    }) ?? [];
+
     return (
         <Form {...form}>
             <form autoComplete="off" onSubmit={form.handleSubmit(handleSubmit)}>
@@ -94,6 +104,22 @@ export default function EntityForm({value, onSubmit, className}: {
                             </FormItem>
                         )}
                     />
+                    <FormField
+                        control={form.control}
+                        name="defaultCategoryId"
+                        render={({field}) => (
+                            <FormItem>
+                                <FormLabel>Category</FormLabel>
+                                <FormControl>
+                                    <AutoCompleteInput
+                                        placeholder="Select category"
+                                        items={categoriesMapped}
+                                        {...field} />
+                                </FormControl>
+                                <FormMessage/>
+                            </FormItem>
+                        )}
+                    />
                 </div>
                 <Button type="submit" className="w-full">{value?.id ? 'Update Entity' : 'Create Entity'}</Button>
             </form>
diff --git a/src/lib/actions/entityCreateUpdate.ts b/src/lib/actions/entityCreateUpdate.ts
index 3d3ca38..01eda35 100644
--- a/src/lib/actions/entityCreateUpdate.ts
+++ b/src/lib/actions/entityCreateUpdate.ts
@@ -9,6 +9,7 @@ export default async function entityCreateUpdate({
     id,
     name,
     type,
+    defaultCategoryId,
 }: z.infer<typeof entityFormSchema>): Promise<ActionResponse> {
     'use server';
 
@@ -32,6 +33,7 @@ export default async function entityCreateUpdate({
                     data: {
                         name: name,
                         type: type,
+                        defaultCategoryId: defaultCategoryId,
                     },
                 },
             );
@@ -47,6 +49,7 @@ export default async function entityCreateUpdate({
                     userId: user.id,
                     name: name,
                     type: type,
+                    defaultCategoryId: defaultCategoryId,
                 },
             });
 
diff --git a/src/lib/form-schemas/entityFormSchema.ts b/src/lib/form-schemas/entityFormSchema.ts
index f3e4412..d7b80b6 100644
--- a/src/lib/form-schemas/entityFormSchema.ts
+++ b/src/lib/form-schemas/entityFormSchema.ts
@@ -5,4 +5,5 @@ export const entityFormSchema = z.object({
     id: z.number().positive().optional(),
     name: z.string().min(1).max(32),
     type: z.nativeEnum(EntityType),
+    defaultCategoryId: z.number().positive().optional(),
 });