diff --git a/webapp/src/components/createCategory/createCategory.tsx b/webapp/src/components/createCategory/createCategory.tsx
index f33feab3435..7d1301056cf 100644
--- a/webapp/src/components/createCategory/createCategory.tsx
+++ b/webapp/src/components/createCategory/createCategory.tsx
@@ -28,6 +28,7 @@ type Props = {
     initialValue?: string
     onClose: () => void
     title: JSX.Element
+    onCreate?: () => Promise<void>
 }
 
 const CreateCategory = (props: Props): JSX.Element => {
@@ -71,6 +72,7 @@ const CreateCategory = (props: Props): JSX.Element => {
             } as Category
 
             await mutator.createCategory(category)
+            await props.onCreate?.()
         }
 
         props.onClose()
diff --git a/webapp/src/components/sidebar/sidebarBoardItem.tsx b/webapp/src/components/sidebar/sidebarBoardItem.tsx
index 27dc31344f8..07c9153eb41 100644
--- a/webapp/src/components/sidebar/sidebarBoardItem.tsx
+++ b/webapp/src/components/sidebar/sidebarBoardItem.tsx
@@ -197,6 +197,18 @@ const SidebarBoardItem = (props: Props) => {
         }
     }
 
+    const handleOnCreate = async () => {
+        const nextCategoriesList = await octoClient.getSidebarCategories(teamID)
+        const toCategory = nextCategoriesList.
+            find((category) => props.allCategories.every((prevCategory) => prevCategory.id !== category.id))
+
+        if (!toCategory) {
+            return
+        }
+
+        await mutator.moveBoardToCategory(teamID, currentBoardID, toCategory.id, props.categoryBoards.id)
+    }
+
     const boardItemRef = useRef<HTMLDivElement>(null)
 
     const title = board.title || intl.formatMessage({id: 'Sidebar.untitled-board', defaultMessage: '(Untitled Board)'})
@@ -315,13 +327,16 @@ const SidebarBoardItem = (props: Props) => {
             ))}
             {showCreateCategoryModal &&
                 <CreateCategory
-                    onClose={() => setShowCreateCategoryModal(false)}
+                    onClose={() => {
+                        setShowCreateCategoryModal(false)
+                    }}
                     title={(
                         <FormattedMessage
                             id='SidebarCategories.CategoryMenu.CreateNew'
                             defaultMessage='Create New Category'
                         />
                     )}
+                    onCreate={handleOnCreate}
                 />}
         </>
     )