diff --git a/course/classes/local/entities/course_category.php b/course/classes/local/entities/course_category.php
index 6c923b0058aa9..6108a0a62287f 100644
--- a/course/classes/local/entities/course_category.php
+++ b/course/classes/local/entities/course_category.php
@@ -22,8 +22,7 @@
 use stdClass;
 use core_course_category;
 use core_reportbuilder\local\entities\base;
-use core_reportbuilder\local\filters\select;
-use core_reportbuilder\local\filters\text;
+use core_reportbuilder\local\filters\{category, text};
 use core_reportbuilder\local\report\column;
 use core_reportbuilder\local\report\filter;
 
@@ -167,18 +166,28 @@ protected function get_all_columns(): array {
     protected function get_all_filters(): array {
         $tablealias = $this->get_table_alias('course_categories');
 
-        // Name filter.
+        // Select category filter.
         $filters[] = (new filter(
-            select::class,
+            category::class,
             'name',
-            new lang_string('categoryname'),
+            new lang_string('categoryselect', 'core_reportbuilder'),
             $this->get_entity_name(),
             "{$tablealias}.id"
         ))
             ->add_joins($this->get_joins())
-            ->set_options_callback(static function(): array {
-                return core_course_category::make_categories_list('moodle/category:viewcourselist');
-            });
+            ->set_options([
+                'requiredcapabilities' => 'moodle/category:viewcourselist',
+            ]);
+
+        // Name filter.
+        $filters[] = (new filter(
+            text::class,
+            'text',
+            new lang_string('categoryname'),
+            $this->get_entity_name(),
+            "{$tablealias}.name"
+        ))
+            ->add_joins($this->get_joins());
 
         // ID number filter.
         $filters[] = (new filter(
diff --git a/lang/en/reportbuilder.php b/lang/en/reportbuilder.php
index cfbef1e7fd26b..1d7b376f4f657 100644
--- a/lang/en/reportbuilder.php
+++ b/lang/en/reportbuilder.php
@@ -56,6 +56,7 @@
 $string['cardviewfirstcolumntitle'] = 'First column title';
 $string['cardviewsettingssaved'] = 'Card view settings saved';
 $string['cardviewvisiblecolumns'] = 'Columns visible';
+$string['categoryselect'] = 'Select category';
 $string['close'] = 'Close';
 $string['closeeditor'] = 'Close \'{$a}\' editor';
 $string['columnadded'] = 'Added column \'{$a}\'';
diff --git a/reportbuilder/classes/local/filters/category.php b/reportbuilder/classes/local/filters/category.php
new file mode 100644
index 0000000000000..223634f74715f
--- /dev/null
+++ b/reportbuilder/classes/local/filters/category.php
@@ -0,0 +1,93 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+declare(strict_types=1);
+
+namespace core_reportbuilder\local\filters;
+
+use core_course_category;
+use MoodleQuickForm;
+use core_reportbuilder\local\helpers\database;
+
+/**
+ * Course category report filter
+ *
+ * The following optional array property can be passed to the {@see \core_reportbuilder\local\report\filter::set_options} method
+ * when defining this filter, to define the capabilities passed to {@see \core_course_category::make_categories_list}
+ *
+ * ['requiredcapabilities' => '...']
+ *
+ * @package     core_reportbuilder
+ * @copyright   2022 Paul Holden <paulh@moodle.com>
+ * @license     http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+class category extends base {
+
+    /**
+     * Setup form
+     *
+     * @param MoodleQuickForm $mform
+     */
+    public function setup_form(MoodleQuickForm $mform): void {
+        $label = get_string('filterfieldvalue', 'core_reportbuilder', $this->get_header());
+
+        // See MDL-74627: in order to set the default value to "No selection" we need to prepend an empty value.
+        $requiredcapabilities = $this->filter->get_options()['requiredcapabilities'] ?? '';
+        $categories = [0 => ''] + core_course_category::make_categories_list($requiredcapabilities);
+
+        $mform->addElement('autocomplete', "{$this->name}_value", $label, $categories)->setHiddenLabel(true);
+        $mform->addElement('advcheckbox', "{$this->name}_subcategories", get_string('viewallsubcategories'));
+    }
+
+    /**
+     * Return filter SQL
+     *
+     * @param array $values
+     * @return array
+     */
+    public function get_sql_filter(array $values): array {
+        global $DB;
+
+        $fieldsql = $this->filter->get_field_sql();
+        $params = $this->filter->get_field_params();
+
+        $category = (int) ($values["{$this->name}_value"] ?? 0);
+        $subcategories = !empty($values["{$this->name}_subcategories"]);
+
+        // Invalid or inactive filter.
+        if (empty($category)) {
+            return ['', []];
+        }
+
+        // Initial matching on selected category.
+        $paramcategory = database::generate_param_name();
+        $params[$paramcategory] = $category;
+        $sql = "{$fieldsql} = :{$paramcategory}";
+
+        // Sub-category matching on path of selected category.
+        if ($subcategories) {
+            $paramcategorypath = database::generate_param_name();
+            $params[$paramcategorypath] = "%/{$category}/%";
+            $sql .= " OR {$fieldsql} IN (
+                SELECT id
+                  FROM {course_categories}
+                 WHERE " . $DB->sql_like('path', ":{$paramcategorypath}") . "
+            )";
+        }
+
+        return [$sql, $params];
+    }
+}
diff --git a/reportbuilder/tests/external/custom_report_conditions_exporter_test.php b/reportbuilder/tests/external/custom_report_conditions_exporter_test.php
index c11f3f4cfd328..5a55f01d5266b 100644
--- a/reportbuilder/tests/external/custom_report_conditions_exporter_test.php
+++ b/reportbuilder/tests/external/custom_report_conditions_exporter_test.php
@@ -62,7 +62,7 @@ public function test_export(): void {
         $this->assertGreaterThanOrEqual(1, $conditionscategory['optiongroup']['values']);
         $this->assertEquals([
             'value' => 'course_category:name',
-            'visiblename' => 'Category name',
+            'visiblename' => 'Select category',
         ], $conditionscategory['optiongroup']['values'][0]);
 
         // Course conditions, assert structure of first item.
@@ -76,6 +76,7 @@ public function test_export(): void {
         // Make sure the active condition we added, isn't present in available conditions.
         $this->assertNotContains('course:shortname', array_column($conditionscourse['optiongroup']['values'], 'value'));
 
+        // The active conditions are contained inside form HTML, just assert there's something present.
         $this->assertTrue($export->hasactiveconditions);
         $this->assertNotEmpty($export->activeconditionsform);
         $this->assertNotEmpty($export->helpicon);
diff --git a/reportbuilder/tests/external/custom_report_filters_exporter_test.php b/reportbuilder/tests/external/custom_report_filters_exporter_test.php
index d3f3150212ef0..8f76cd408eb6f 100644
--- a/reportbuilder/tests/external/custom_report_filters_exporter_test.php
+++ b/reportbuilder/tests/external/custom_report_filters_exporter_test.php
@@ -74,8 +74,8 @@ public function test_export(): void {
         $this->assertEquals('Course category', $filterscategory['optiongroup']['text']);
         $this->assertGreaterThanOrEqual(1, $filterscategory['optiongroup']['values']);
         $this->assertEquals([
-            'value' => 'course_category:idnumber',
-            'visiblename' => 'Category ID number',
+            'value' => 'course_category:text',
+            'visiblename' => 'Category name',
         ], $filterscategory['optiongroup']['values'][0]);
 
         // Course filters, assert structure of first item.
@@ -104,7 +104,7 @@ public function test_export(): void {
         // Course category filter.
         $this->assertEquals($filtercategoryname->get('id'), $activefiltercategoryname['id']);
         $this->assertEquals('Course category', $activefiltercategoryname['entityname']);
-        $this->assertEquals('Category name', $activefiltercategoryname['heading']);
+        $this->assertEquals('Select category', $activefiltercategoryname['heading']);
         $this->assertEquals(2, $activefiltercategoryname['sortorder']);
 
         $this->assertNotEmpty($export->helpicon);
diff --git a/reportbuilder/tests/local/filters/category_test.php b/reportbuilder/tests/local/filters/category_test.php
new file mode 100644
index 0000000000000..819d158a03f83
--- /dev/null
+++ b/reportbuilder/tests/local/filters/category_test.php
@@ -0,0 +1,91 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+declare(strict_types=1);
+
+namespace core_reportbuilder\local\filters;
+
+use advanced_testcase;
+use lang_string;
+use core_reportbuilder\local\report\filter;
+
+/**
+ * Unit tests for course category report filter
+ *
+ * @package     core_reportbuilder
+ * @covers      \core_reportbuilder\local\filters\category
+ * @copyright   2022 Paul Holden <paulh@moodle.com>
+ * @license     http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+class category_test extends advanced_testcase {
+
+    /**
+     * Data provider for {@see test_get_sql_filter}
+     *
+     * @return array
+     */
+    public function get_sql_filter_provider(): array {
+        return [
+            ['One', false, ['One']],
+            ['One', true, ['One', 'Two', 'Three']],
+            ['Two', true, ['Two', 'Three']],
+            ['Three', true, ['Three']],
+            [null, false, ['Category 1', 'One', 'Two', 'Three']],
+        ];
+    }
+
+    /**
+     * Test getting filter SQL
+     *
+     * @param string|null $categoryname
+     * @param bool $subcategories
+     * @param string[] $expectedcategories
+     *
+     * @dataProvider get_sql_filter_provider
+     */
+    public function test_get_sql_filter(?string $categoryname, bool $subcategories, array $expectedcategories): void {
+        global $DB;
+
+        $this->resetAfterTest();
+
+        $category1 = $this->getDataGenerator()->create_category(['name' => 'One']);
+        $category2 = $this->getDataGenerator()->create_category(['name' => 'Two', 'parent' => $category1->id]);
+        $category3 = $this->getDataGenerator()->create_category(['name' => 'Three', 'parent' => $category2->id]);
+
+        if ($categoryname !== null) {
+            $categoryid = $DB->get_field('course_categories', 'id', ['name' => $categoryname], MUST_EXIST);
+        } else {
+            $categoryid = null;
+        }
+
+        $filter = new filter(
+            category::class,
+            'test',
+            new lang_string('yes'),
+            'testentity',
+            'id'
+        );
+
+        // Create instance of our filter, passing given operator.
+        [$select, $params] = category::create($filter)->get_sql_filter([
+            $filter->get_unique_identifier() . '_value' => $categoryid,
+            $filter->get_unique_identifier() . '_subcategories' => $subcategories,
+        ]);
+
+        $categories = $DB->get_fieldset_select('course_categories', 'name', $select, $params);
+        $this->assertEqualsCanonicalizing($expectedcategories, $categories);
+    }
+}
diff --git a/reportbuilder/upgrade.txt b/reportbuilder/upgrade.txt
index 3c769a2da3380..bde3cd2c67a0d 100644
--- a/reportbuilder/upgrade.txt
+++ b/reportbuilder/upgrade.txt
@@ -19,4 +19,6 @@ Information provided here is intended especially for developers.
   - `[require_]can_create_report`
 * New method `get_default_condition_values()` in base datasource class, to be overridden by sources that wish to
   define default values for conditions upon report creation.
-* New `tags` filter type for reports that contain entities with support for core_tag API
+* New report filter types:
+  - `category` for reports containing course categories
+  - `tags` for reports containing entities with support for core_tag API