diff --git a/app/controllers/api/v1/accounts/categories_controller.rb b/app/controllers/api/v1/accounts/categories_controller.rb
index a77f1fb2a..13917701e 100644
--- a/app/controllers/api/v1/accounts/categories_controller.rb
+++ b/app/controllers/api/v1/accounts/categories_controller.rb
@@ -8,10 +8,20 @@ class Api::V1::Accounts::CategoriesController < Api::V1::Accounts::BaseControlle
 
   def create
     @category = @portal.categories.create!(category_params)
+    @category.related_categories << related_categories_records
+    render json: { error: @category.errors.messages }, status: :unprocessable_entity and return unless @category.valid?
+
+    @category.save!
   end
 
+  def show; end
+
   def update
     @category.update!(category_params)
+    @category.related_categories = related_categories_records if related_categories_records.any?
+    render json: { error: @category.errors.messages }, status: :unprocessable_entity and return unless @category.valid?
+
+    @category.save!
   end
 
   def destroy
@@ -29,9 +39,13 @@ class Api::V1::Accounts::CategoriesController < Api::V1::Accounts::BaseControlle
     @portal ||= Current.account.portals.find_by(slug: params[:portal_id])
   end
 
+  def related_categories_records
+    @portal.categories.where(id: params[:category][:related_category_ids])
+  end
+
   def category_params
     params.require(:category).permit(
-      :name, :description, :position, :slug, :locale
+      :name, :description, :position, :slug, :locale, :parent_category_id, :linked_category_id
     )
   end
 end
diff --git a/app/models/category.rb b/app/models/category.rb
index 8c5989c0f..6e9b30ae0 100644
--- a/app/models/category.rb
+++ b/app/models/category.rb
@@ -2,28 +2,56 @@
 #
 # Table name: categories
 #
-#  id                        :bigint           not null, primary key
-#  description               :text
-#  locale                    :string           default("en")
-#  name                      :string
-#  position                  :integer
-#  slug                      :string           not null
-#  created_at                :datetime         not null
-#  updated_at                :datetime         not null
-#  account_id                :integer          not null
-#  portal_id                 :integer          not null
+#  id                 :bigint           not null, primary key
+#  description        :text
+#  locale             :string           default("en")
+#  name               :string
+#  position           :integer
+#  slug               :string           not null
+#  created_at         :datetime         not null
+#  updated_at         :datetime         not null
+#  account_id         :integer          not null
+#  linked_category_id :bigint
+#  parent_category_id :bigint
+#  portal_id          :integer          not null
 #
 # Indexes
 #
+#  index_categories_on_linked_category_id             (linked_category_id)
 #  index_categories_on_locale                         (locale)
 #  index_categories_on_locale_and_account_id          (locale,account_id)
+#  index_categories_on_parent_category_id             (parent_category_id)
 #  index_categories_on_slug_and_locale_and_portal_id  (slug,locale,portal_id) UNIQUE
 #
+# Foreign Keys
+#
+#  fk_rails_...  (linked_category_id => categories.id)
+#  fk_rails_...  (parent_category_id => categories.id)
+#
 class Category < ApplicationRecord
   belongs_to :account
   belongs_to :portal
   has_many :folders, dependent: :destroy_async
   has_many :articles, dependent: :nullify
+  has_many :category_related_categories,
+           class_name: :RelatedCategory,
+           dependent: :destroy_async
+  has_many :related_categories,
+           through: :category_related_categories,
+           class_name: :Category,
+           dependent: :nullify
+  has_many :sub_categories,
+           class_name: :Category,
+           foreign_key: :parent_category_id,
+           dependent: :nullify,
+           inverse_of: 'parent_category'
+  has_many :linked_categories,
+           class_name: :Category,
+           foreign_key: :linked_category_id,
+           dependent: :nullify,
+           inverse_of: 'linked_category'
+  belongs_to :parent_category, class_name: :Category, optional: true
+  belongs_to :linked_category, class_name: :Category, optional: true
 
   before_validation :ensure_account_id
   validates :account_id, presence: true
@@ -31,6 +59,7 @@ class Category < ApplicationRecord
   validates :name, presence: true
   validates :locale, uniqueness: { scope: %i[slug portal_id],
                                    message: 'should be unique in the category and portal' }
+  accepts_nested_attributes_for :related_categories
 
   scope :search_by_locale, ->(locale) { where(locale: locale) if locale.present? }
 
diff --git a/app/models/related_category.rb b/app/models/related_category.rb
new file mode 100644
index 000000000..018a13418
--- /dev/null
+++ b/app/models/related_category.rb
@@ -0,0 +1,19 @@
+# == Schema Information
+#
+# Table name: related_categories
+#
+#  id                 :bigint           not null, primary key
+#  created_at         :datetime         not null
+#  updated_at         :datetime         not null
+#  category_id        :bigint
+#  related_category_id :bigint
+#
+# Indexes
+#
+#  index_related_categories_on_category_id_and_related_category_id  (category_id,related_category_id) UNIQUE
+#  index_related_categories_on_related_category_id_and_category_id  (related_category_id,category_id) UNIQUE
+#
+class RelatedCategory < ApplicationRecord
+  belongs_to :related_category, class_name: 'Category'
+  belongs_to :category, class_name: 'Category'
+end
diff --git a/app/views/api/v1/accounts/categories/_associated_category.json.jbuilder b/app/views/api/v1/accounts/categories/_associated_category.json.jbuilder
new file mode 100644
index 000000000..4b4915da9
--- /dev/null
+++ b/app/views/api/v1/accounts/categories/_associated_category.json.jbuilder
@@ -0,0 +1,7 @@
+json.id category.id
+json.name category.name
+json.slug category.slug
+json.locale category.locale
+json.description category.description
+json.position category.position
+json.account_id category.account_id
diff --git a/app/views/api/v1/accounts/categories/_category.json.jbuilder b/app/views/api/v1/accounts/categories/_category.json.jbuilder
index 4b4915da9..d299a50d0 100644
--- a/app/views/api/v1/accounts/categories/_category.json.jbuilder
+++ b/app/views/api/v1/accounts/categories/_category.json.jbuilder
@@ -5,3 +5,23 @@ json.locale category.locale
 json.description category.description
 json.position category.position
 json.account_id category.account_id
+
+json.related_categories do
+  if category.related_categories.any?
+    json.array! category.related_categories.each do |related_category|
+      json.partial! 'api/v1/accounts/categories/associated_category.json.jbuilder', category: related_category
+    end
+  end
+end
+
+if category.parent_category.present?
+  json.parent_category do
+    json.partial! 'api/v1/accounts/categories/associated_category.json.jbuilder', category: category.parent_category
+  end
+end
+
+if category.linked_category.present?
+  json.linked_category do
+    json.partial! 'api/v1/accounts/categories/associated_category.json.jbuilder', category: category.linked_category
+  end
+end
diff --git a/app/views/api/v1/accounts/categories/show.json.jbuilder b/app/views/api/v1/accounts/categories/show.json.jbuilder
new file mode 100644
index 000000000..932cd6a18
--- /dev/null
+++ b/app/views/api/v1/accounts/categories/show.json.jbuilder
@@ -0,0 +1,3 @@
+json.payload do
+  json.partial! 'category', category: @category
+end
diff --git a/config/routes.rb b/config/routes.rb
index 81538c007..809f6a76b 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -159,9 +159,7 @@ Rails.application.routes.draw do
             member do
               post :archive
             end
-            resources :categories do
-              resources :folders
-            end
+            resources :categories
             resources :articles
           end
         end
diff --git a/db/migrate/20220623113405_add_parent_id_to_category.rb b/db/migrate/20220623113405_add_parent_id_to_category.rb
new file mode 100644
index 000000000..57a694bac
--- /dev/null
+++ b/db/migrate/20220623113405_add_parent_id_to_category.rb
@@ -0,0 +1,5 @@
+class AddParentIdToCategory < ActiveRecord::Migration[6.1]
+  def change
+    add_reference :categories, :parent_category, foreign_key: { to_table: :categories }
+  end
+end
diff --git a/db/migrate/20220623113604_create_related_categories.rb b/db/migrate/20220623113604_create_related_categories.rb
new file mode 100644
index 000000000..c9633c61e
--- /dev/null
+++ b/db/migrate/20220623113604_create_related_categories.rb
@@ -0,0 +1,12 @@
+class CreateRelatedCategories < ActiveRecord::Migration[6.1]
+  def change
+    create_table :related_categories do |t|
+      t.bigint :category_id
+      t.bigint :related_category_id
+      t.timestamps
+    end
+
+    add_index :related_categories, [:category_id, :related_category_id], unique: true
+    add_index :related_categories, [:related_category_id, :category_id], unique: true
+  end
+end
diff --git a/db/migrate/20220627135753_add_linked_category_id_to_categories.rb b/db/migrate/20220627135753_add_linked_category_id_to_categories.rb
new file mode 100644
index 000000000..662a55879
--- /dev/null
+++ b/db/migrate/20220627135753_add_linked_category_id_to_categories.rb
@@ -0,0 +1,5 @@
+class AddLinkedCategoryIdToCategories < ActiveRecord::Migration[6.1]
+  def change
+    add_reference :categories, :linked_category, foreign_key: { to_table: :categories }
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index f9557e535..fefbe449a 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 2022_06_22_090344) do
+ActiveRecord::Schema.define(version: 2022_06_27_135753) do
 
   # These are extensions that must be enabled in order to support this database
   enable_extension "pg_stat_statements"
@@ -197,8 +197,12 @@ ActiveRecord::Schema.define(version: 2022_06_22_090344) do
     t.datetime "updated_at", precision: 6, null: false
     t.string "locale", default: "en"
     t.string "slug", null: false
+    t.bigint "parent_category_id"
+    t.bigint "linked_category_id"
+    t.index ["linked_category_id"], name: "index_categories_on_linked_category_id"
     t.index ["locale", "account_id"], name: "index_categories_on_locale_and_account_id"
     t.index ["locale"], name: "index_categories_on_locale"
+    t.index ["parent_category_id"], name: "index_categories_on_parent_category_id"
     t.index ["slug", "locale", "portal_id"], name: "index_categories_on_slug_and_locale_and_portal_id", unique: true
   end
 
@@ -683,6 +687,15 @@ ActiveRecord::Schema.define(version: 2022_06_22_090344) do
     t.index ["user_id"], name: "index_portals_members_on_user_id"
   end
 
+  create_table "related_categories", force: :cascade do |t|
+    t.bigint "category_id"
+    t.bigint "related_category_id"
+    t.datetime "created_at", precision: 6, null: false
+    t.datetime "updated_at", precision: 6, null: false
+    t.index ["category_id", "related_category_id"], name: "index_related_categories_on_category_id_and_related_category_id", unique: true
+    t.index ["related_category_id", "category_id"], name: "index_related_categories_on_related_category_id_and_category_id", unique: true
+  end
+
   create_table "reporting_events", force: :cascade do |t|
     t.string "name"
     t.float "value"
@@ -826,6 +839,8 @@ ActiveRecord::Schema.define(version: 2022_06_22_090344) do
   add_foreign_key "articles", "users", column: "author_id"
   add_foreign_key "campaigns", "accounts", on_delete: :cascade
   add_foreign_key "campaigns", "inboxes", on_delete: :cascade
+  add_foreign_key "categories", "categories", column: "linked_category_id"
+  add_foreign_key "categories", "categories", column: "parent_category_id"
   add_foreign_key "contact_inboxes", "contacts", on_delete: :cascade
   add_foreign_key "contact_inboxes", "inboxes", on_delete: :cascade
   add_foreign_key "conversations", "campaigns", on_delete: :cascade
diff --git a/spec/controllers/api/v1/accounts/categories_controller_spec.rb b/spec/controllers/api/v1/accounts/categories_controller_spec.rb
index 053fe9d5e..4ebdb54d5 100644
--- a/spec/controllers/api/v1/accounts/categories_controller_spec.rb
+++ b/spec/controllers/api/v1/accounts/categories_controller_spec.rb
@@ -5,6 +5,9 @@ RSpec.describe 'Api::V1::Accounts::Categories', type: :request do
   let(:agent) { create(:user, account: account, role: :agent) }
   let!(:portal) { create(:portal, name: 'test_portal', account_id: account.id) }
   let!(:category) { create(:category, name: 'category', portal: portal, account_id: account.id, slug: 'category_slug') }
+  let!(:category_to_link) { create(:category, name: 'linked category', portal: portal, account_id: account.id, slug: 'linked_category_slug') }
+  let!(:related_category_1) { create(:category, name: 'related category 1', portal: portal, account_id: account.id, slug: 'category_slug_1') }
+  let!(:related_category_2) { create(:category, name: 'related category 2', portal: portal, account_id: account.id, slug: 'category_slug_2') }
 
   describe 'POST /api/v1/accounts/{account.id}/portals/{portal.slug}/categories' do
     context 'when it is an unauthenticated user' do
@@ -15,23 +18,76 @@ RSpec.describe 'Api::V1::Accounts::Categories', type: :request do
     end
 
     context 'when it is an authenticated user' do
-      category_params = {
-        category: {
-          name: 'test_category',
-          description: 'test_description',
-          position: 1,
-          locale: 'es',
-          slug: 'test_category_1'
+      let!(:category_params) do
+        {
+          category: {
+            name: 'test_category',
+            description: 'test_description',
+            position: 1,
+            locale: 'es',
+            slug: 'test_category_1',
+            parent_category_id: category.id,
+            linked_category_id: category_to_link.id,
+            related_category_ids: [related_category_1.id, related_category_2.id]
+          }
         }
-      }
+      end
+
+      let!(:category_params_2) do
+        {
+          category: {
+            name: 'test_category_2',
+            description: 'test_description_2',
+            position: 1,
+            locale: 'es',
+            slug: 'test_category_2',
+            parent_category_id: category.id,
+            linked_category_id: category_to_link.id,
+            related_category_ids: [related_category_1.id, related_category_2.id]
+          }
+        }
+      end
 
       it 'creates category' do
         post "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories",
              params: category_params,
              headers: agent.create_new_auth_token
         expect(response).to have_http_status(:success)
+
         json_response = JSON.parse(response.body)
-        expect(json_response['payload']['name']).to eql('test_category')
+
+        expect(json_response['payload']['related_categories'][0]['id']).to eql(related_category_1.id)
+        expect(json_response['payload']['related_categories'][1]['id']).to eql(related_category_2.id)
+        expect(json_response['payload']['parent_category']['id']).to eql(category.id)
+        expect(json_response['payload']['linked_category']['id']).to eql(category_to_link.id)
+        expect(category.reload.sub_category_ids).to eql([Category.last.id])
+        expect(category_to_link.reload.linked_category_ids).to eql([Category.last.id])
+      end
+
+      it 'creates multiple sub_categories under one parent_category' do
+        post "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories",
+             params: category_params,
+             headers: agent.create_new_auth_token
+
+        post "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories",
+             params: category_params_2,
+             headers: agent.create_new_auth_token
+
+        expect(response).to have_http_status(:success)
+        expect(category.reload.sub_category_ids).to eql(Category.last(2).pluck(:id))
+      end
+
+      it 'creates multiple linked_categories with one category' do
+        post "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories",
+             params: category_params,
+             headers: agent.create_new_auth_token
+
+        post "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories",
+             params: category_params_2,
+             headers: agent.create_new_auth_token
+
+        expect(response).to have_http_status(:success)
+        expect(category_to_link.reload.linked_category_ids).to eql(Category.last(2).pluck(:id))
       end
 
       it 'will throw an error on locale, category_id uniqueness' do
@@ -81,18 +137,74 @@ RSpec.describe 'Api::V1::Accounts::Categories', type: :request do
           category: {
             name: 'test_category_2',
             description: 'test_description',
-            position: 1
+            position: 1,
+            related_category_ids: [related_category_1.id],
+            parent_category_id: related_category_2.id
           }
         }
 
         expect(category.name).not_to eql(category_params[:category][:name])
+        expect(category.related_categories).to be_empty
+        expect(category.parent_category).to be_nil
 
         put "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories/#{category.id}",
             params: category_params,
             headers: agent.create_new_auth_token
-        expect(response).to have_http_status(:success)
+
         json_response = JSON.parse(response.body)
+
         expect(json_response['payload']['name']).to eql(category_params[:category][:name])
+        expect(json_response['payload']['related_categories'][0]['id']).to eql(related_category_1.id)
+        expect(json_response['payload']['parent_category']['id']).to eql(related_category_2.id)
+        expect(related_category_2.reload.sub_category_ids).to eql([category.id])
+      end
+
+      it 'updates related categories' do
+        category_params = {
+          category: {
+            related_category_ids: [related_category_1.id]
+          }
+        }
+        category.related_categories << related_category_2
+        category.save!
+
+        expect(category.related_category_ids).to eq([related_category_2.id])
+
+        put "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories/#{category.id}",
+            params: category_params,
+            headers: agent.create_new_auth_token
+
+        expect(response).to have_http_status(:success)
+
+        json_response = JSON.parse(response.body)
+
+        expect(json_response['payload']['name']).to eql(category.name)
+        expect(json_response['payload']['related_categories'][0]['id']).to eql(related_category_1.id)
+        expect(category.reload.related_category_ids).to eq([related_category_1.id])
+        expect(related_category_1.reload.related_category_ids).to be_empty
+      end
+
+      # [category_1, category_2] !== [category_2, category_1]
+      it 'update reverse associations for related categories' do
+        category.related_categories << related_category_2
+        category.save!
+
+        expect(category.related_category_ids).to eq([related_category_2.id])
+
+        category_params = {
+          category: {
+            related_category_ids: [category.id]
+          }
+        }
+
+        put "/api/v1/accounts/#{account.id}/portals/#{portal.slug}/categories/#{related_category_2.id}",
+            params: category_params,
+            headers: agent.create_new_auth_token
+
+        expect(response).to have_http_status(:success)
+
+        expect(category.reload.related_category_ids).to eq([related_category_2.id])
+        expect(related_category_2.reload.related_category_ids).to eq([category.id])
       end
     end
   end
@@ -125,7 +237,9 @@ RSpec.describe 'Api::V1::Accounts::Categories', type: :request do
     end
 
     context 'when it is an authenticated user' do
-      it 'get all portals' do
+      it 'get all categories in portal' do
+        category_count = Category.all.count
+
         category2 = create(:category, name: 'test_category_2', portal: portal, locale: 'es', slug: 'category_slug_2')
         expect(category2.id).not_to be nil
 
@@ -133,7 +247,7 @@ RSpec.describe 'Api::V1::Accounts::Categories', type: :request do
             headers: agent.create_new_auth_token
         expect(response).to have_http_status(:success)
         json_response = JSON.parse(response.body)
-        expect(json_response['payload'].count).to be 2
+        expect(json_response['payload'].count).to be(category_count + 1)
       end
     end
   end
diff --git a/spec/factories/related_categories.rb b/spec/factories/related_categories.rb
new file mode 100644
index 000000000..492cfa0b7
--- /dev/null
+++ b/spec/factories/related_categories.rb
@@ -0,0 +1,6 @@
+FactoryBot.define do
+  factory :related_category do
+    category
+    related_category
+  end
+end
diff --git a/spec/models/category_spec.rb b/spec/models/category_spec.rb
index 37b17284a..565abba8c 100644
--- a/spec/models/category_spec.rb
+++ b/spec/models/category_spec.rb
@@ -9,8 +9,10 @@ RSpec.describe Category, type: :model do
   describe 'associations' do
     it { is_expected.to belong_to(:account) }
     it { is_expected.to belong_to(:portal) }
-    it { is_expected.to have_many(:folders) }
     it { is_expected.to have_many(:articles) }
+    it { is_expected.to have_many(:sub_categories) }
+    it { is_expected.to have_many(:linked_categories) }
+    it { is_expected.to have_many(:related_categories) }
   end
 
   describe 'search' do
diff --git a/spec/models/related_category_spec.rb b/spec/models/related_category_spec.rb
new file mode 100644
index 000000000..5a500d53b
--- /dev/null
+++ b/spec/models/related_category_spec.rb
@@ -0,0 +1,8 @@
+require 'rails_helper'
+
+RSpec.describe RelatedCategory, type: :model do
+  describe 'associations' do
+    it { is_expected.to belong_to(:category) }
+    it { is_expected.to belong_to(:related_category) }
+  end
+end