diff --git a/frontend/src/components/dashboard/RecentTransactionsCard.tsx b/frontend/src/components/dashboard/RecentTransactionsCard.tsx
index f2ffc43..76fc26e 100644
--- a/frontend/src/components/dashboard/RecentTransactionsCard.tsx
+++ b/frontend/src/components/dashboard/RecentTransactionsCard.tsx
@@ -3,7 +3,9 @@ import { Card, CardContent, CardHeader, CardTitle } from "@/components/ui/Card";
 import { getCategoryIcon } from "@/lib/icons";
 import { formatCurrency, formatTransactionDate } from "@/lib/format";
 import { useTranslation } from "@/lib/i18n";
+import { categoryPath, translateCategoryName } from "@/lib/categoryLabels";
 import { useTransactions } from "@/hooks/useTransactions";
+import { useCategories } from "@/hooks/useCategories";
 
 interface RecentTransactionsCardProps {
   year: number;
@@ -13,6 +15,7 @@ interface RecentTransactionsCardProps {
 export function RecentTransactionsCard({ year, month }: RecentTransactionsCardProps) {
   const { t } = useTranslation();
   const { data, isLoading } = useTransactions({ year, month, page: 1, page_size: 6 });
+  const { data: categories } = useCategories();
 
   return (
     <Card>
@@ -33,10 +36,16 @@ export function RecentTransactionsCard({ year, month }: RecentTransactionsCardPr
         ) : (
           <ul className="divide-y divide-gridline">
             {data.items.map((tx) => {
+              const isSplit = tx.splits.length > 0;
               const Icon = getCategoryIcon(tx.category?.icon);
               const isTransfer = tx.type === "transfer";
               const isExpense = tx.type === "expense";
               const color = tx.category?.color ?? "var(--text-muted)";
+              const categoryLabel = isSplit
+                ? tx.splits.map((split) => (split.category ? translateCategoryName(split.category.name) : "?")).join(" + ")
+                : tx.category
+                  ? categoryPath(tx.category, categories)
+                  : null;
               return (
                 <li key={tx.id} className="flex items-center gap-3 py-2.5 first:pt-0 last:pb-0">
                   <span
@@ -47,8 +56,9 @@ export function RecentTransactionsCard({ year, month }: RecentTransactionsCardPr
                   </span>
                   <span className="min-w-0 flex-1">
                     <span className="block truncate text-sm text-text-primary">{tx.description}</span>
-                    <span className="block text-xs text-text-muted">
+                    <span className="block truncate text-xs text-text-muted">
                       {formatTransactionDate(tx.date)} · {tx.account.name}
+                      {categoryLabel ? ` · ${categoryLabel}` : ""}
                     </span>
                   </span>
                   <span
diff --git a/frontend/src/components/transactions/TransactionFormModal.tsx b/frontend/src/components/transactions/TransactionFormModal.tsx
index bd847c8..c5a0e9a 100644
--- a/frontend/src/components/transactions/TransactionFormModal.tsx
+++ b/frontend/src/components/transactions/TransactionFormModal.tsx
@@ -8,9 +8,9 @@ import { useAccounts } from "@/hooks/useAccounts";
 import { useCategories } from "@/hooks/useCategories";
 import { useCreateTransaction, useUpdateTransaction } from "@/hooks/useTransactions";
 import { useTranslation } from "@/lib/i18n";
-import { translateCategoryName } from "@/lib/categoryLabels";
+import { buildHierarchicalCategories, translateCategoryName } from "@/lib/categoryLabels";
 import { formatCurrency } from "@/lib/format";
-import type { Category, Tag, Transaction, TransactionInput, TransactionSplitInput, TransactionType } from "@/types";
+import type { Tag, Transaction, TransactionInput, TransactionSplitInput, TransactionType } from "@/types";
 
 interface TransactionFormModalProps {
   open: boolean;
@@ -114,19 +114,13 @@ export function TransactionFormModal({ open, onClose, transaction }: Transaction
     setError(null);
   }, [open, transaction, accounts]);
 
+  const kindCategories = (categories ?? []).filter((category) =>
+    form.type === "income" ? category.kind === "income" : category.kind === "expense"
+  );
   // Subcategories are listed right under their parent (not scattered by
-  // sort_order) so the hierarchy set up on the Categories page reads the
-  // same way here.
-  const kindCategories = (categories ?? [])
-    .filter((category) => (form.type === "income" ? category.kind === "income" : category.kind === "expense"))
-    .sort((a, b) => translateCategoryName(a.name).localeCompare(translateCategoryName(b.name), language));
-  const relevantCategories: (Category & { indented?: boolean })[] = [];
-  for (const parent of kindCategories.filter((category) => category.parent_id === null)) {
-    relevantCategories.push(parent);
-    for (const child of kindCategories.filter((category) => category.parent_id === parent.id)) {
-      relevantCategories.push({ ...child, indented: true });
-    }
-  }
+  // name) so the hierarchy set up on the Categories page reads the same way
+  // here.
+  const relevantCategories = buildHierarchicalCategories(kindCategories, language);
 
   const isSaving = createTransaction.isPending || updateTransaction.isPending;
 
diff --git a/frontend/src/components/transactions/TransactionsTable.tsx b/frontend/src/components/transactions/TransactionsTable.tsx
index c43ab6a..59f0af8 100644
--- a/frontend/src/components/transactions/TransactionsTable.tsx
+++ b/frontend/src/components/transactions/TransactionsTable.tsx
@@ -4,7 +4,8 @@ import { Dialog } from "@/components/ui/Dialog";
 import { getCategoryIcon } from "@/lib/icons";
 import { formatCurrency, formatTransactionDate } from "@/lib/format";
 import { useTranslation } from "@/lib/i18n";
-import { translateCategoryName } from "@/lib/categoryLabels";
+import { categoryPath, translateCategoryName } from "@/lib/categoryLabels";
+import { useCategories } from "@/hooks/useCategories";
 import type { Transaction } from "@/types";
 
 interface TransactionsTableProps {
@@ -19,6 +20,7 @@ interface TransactionsTableProps {
 
 export function TransactionsTable({ items, onEdit, onDelete, onJumpToMonth }: TransactionsTableProps) {
   const { t } = useTranslation();
+  const { data: categories } = useCategories();
   const [noteTransaction, setNoteTransaction] = useState<Transaction | null>(null);
 
   if (items.length === 0) {
@@ -41,7 +43,7 @@ export function TransactionsTable({ items, onEdit, onDelete, onJumpToMonth }: Tr
           const categoryLabel = isSplit
             ? tx.splits.map((split) => (split.category ? translateCategoryName(split.category.name) : "?")).join(" + ")
             : tx.category
-              ? translateCategoryName(tx.category.name)
+              ? categoryPath(tx.category, categories)
               : null;
 
           return (
diff --git a/frontend/src/lib/categoryLabels.ts b/frontend/src/lib/categoryLabels.ts
index 828163b..fd68434 100644
--- a/frontend/src/lib/categoryLabels.ts
+++ b/frontend/src/lib/categoryLabels.ts
@@ -29,3 +29,43 @@ export function translateCategoryName(name: string): string {
   const key = DEFAULT_CATEGORY_KEYS[name];
   return key ? t(key) : name;
 }
+
+/** A category's full path for display — "Groceries" alone reads as if it
+ * were a top-level category even when it's actually a subcategory; showing
+ * "Groceries · Sweets" makes the parent unambiguous everywhere a bare
+ * category name used to be shown (transaction rows, filters). `categories`
+ * is the full list (any kind, any order) to resolve the parent's own name
+ * from `category.parent_id` — subcategories are one level deep only, so a
+ * single lookup is enough. */
+export function categoryPath(
+  category: { name: string; parent_id: number | null },
+  categories: { id: number; name: string }[] | undefined
+): string {
+  if (category.parent_id == null) return translateCategoryName(category.name);
+  const parent = categories?.find((c) => c.id === category.parent_id);
+  if (!parent) return translateCategoryName(category.name);
+  return `${translateCategoryName(parent.name)} · ${translateCategoryName(category.name)}`;
+}
+
+/** Orders a category list for display in a dropdown: alphabetical by
+ * translated name, with each subcategory placed directly under its own
+ * parent (not scattered by name) and flagged `indented` so callers can
+ * prefix it visually (e.g. "  ↳ "). Shared by every category picker
+ * (TransactionFormModal, the Transactions/Reports filters) so they all
+ * read the same way. */
+export function buildHierarchicalCategories<C extends { id: number; parent_id: number | null; name: string }>(
+  categories: C[],
+  language: string
+): (C & { indented: boolean })[] {
+  const sorted = [...categories].sort((a, b) =>
+    translateCategoryName(a.name).localeCompare(translateCategoryName(b.name), language)
+  );
+  const result: (C & { indented: boolean })[] = [];
+  for (const parent of sorted.filter((category) => category.parent_id === null)) {
+    result.push({ ...parent, indented: false });
+    for (const child of sorted.filter((category) => category.parent_id === parent.id)) {
+      result.push({ ...child, indented: true });
+    }
+  }
+  return result;
+}
diff --git a/frontend/src/pages/ReportsPage.tsx b/frontend/src/pages/ReportsPage.tsx
index 90b1914..d10a0a7 100644
--- a/frontend/src/pages/ReportsPage.tsx
+++ b/frontend/src/pages/ReportsPage.tsx
@@ -14,13 +14,13 @@ import { useDeleteTransaction, useTransactions, useTransactionYears } from "@/ho
 import type { TransactionSort } from "@/api/transactions";
 import { computeRange, type CustomYearRange, type RangePreset } from "@/lib/dateRange";
 import { useTranslation } from "@/lib/i18n";
-import { translateCategoryName } from "@/lib/categoryLabels";
+import { buildHierarchicalCategories, translateCategoryName } from "@/lib/categoryLabels";
 import type { Transaction } from "@/types";
 
 const PAGE_SIZE = 20;
 
 export function ReportsPage() {
-  const { t } = useTranslation();
+  const { t, language } = useTranslation();
   const now = new Date();
   const RANGE_OPTIONS: Array<{ value: RangePreset; label: string }> = [
     { value: "all", label: t("reports.rangeAll") },
@@ -61,8 +61,17 @@ export function ReportsPage() {
   });
   const deleteTransaction = useDeleteTransaction();
 
-  const expenseCategories = categories?.filter((category) => category.kind === "expense") ?? [];
-  const incomeCategories = categories?.filter((category) => category.kind === "income") ?? [];
+  // Hierarchical within each group (a subcategory right under its own
+  // parent, indented) — a bare "Sweets" option next to top-level categories
+  // reads as if it were one itself.
+  const expenseCategories = buildHierarchicalCategories(
+    categories?.filter((category) => category.kind === "expense") ?? [],
+    language
+  );
+  const incomeCategories = buildHierarchicalCategories(
+    categories?.filter((category) => category.kind === "income") ?? [],
+    language
+  );
   const totalPages = transactions ? Math.max(1, Math.ceil(transactions.total / PAGE_SIZE)) : 1;
 
   function handleEdit(transaction: Transaction) {
@@ -93,6 +102,7 @@ export function ReportsPage() {
               <optgroup label={t("reports.expenseGroup")}>
                 {expenseCategories.map((category) => (
                   <option key={category.id} value={category.id}>
+                    {category.indented ? `    ↳ ` : ""}
                     {translateCategoryName(category.name)}
                   </option>
                 ))}
@@ -102,6 +112,7 @@ export function ReportsPage() {
               <optgroup label={t("reports.incomeGroup")}>
                 {incomeCategories.map((category) => (
                   <option key={category.id} value={category.id}>
+                    {category.indented ? `    ↳ ` : ""}
                     {translateCategoryName(category.name)}
                   </option>
                 ))}
diff --git a/frontend/src/pages/TransactionsPage.tsx b/frontend/src/pages/TransactionsPage.tsx
index 1c2d4ae..87cde14 100644
--- a/frontend/src/pages/TransactionsPage.tsx
+++ b/frontend/src/pages/TransactionsPage.tsx
@@ -13,7 +13,7 @@ import { useCategories } from "@/hooks/useCategories";
 import { useTags } from "@/hooks/useTags";
 import type { TransactionSort } from "@/api/transactions";
 import { useTranslation } from "@/lib/i18n";
-import { translateCategoryName } from "@/lib/categoryLabels";
+import { buildHierarchicalCategories, translateCategoryName } from "@/lib/categoryLabels";
 import type { Transaction, TransactionType } from "@/types";
 
 const PAGE_SIZE = 20;
@@ -35,7 +35,7 @@ function parseYearParam(value: string | null, fallback: number): number {
 }
 
 export function TransactionsPage() {
-  const { t } = useTranslation();
+  const { t, language } = useTranslation();
   const now = new Date();
   // Deep-linked from the Dashboard's "All transactions" link, which carries
   // the month/year the user was already looking at (?year=&month=) so this
@@ -84,6 +84,17 @@ export function TransactionsPage() {
   const deleteTransaction = useDeleteTransaction();
 
   const totalPages = data ? Math.max(1, Math.ceil(data.total / PAGE_SIZE)) : 1;
+  // Grouped by kind and hierarchical within each group (a subcategory right
+  // under its own parent, indented) — a bare "Sweets" option next to
+  // top-level categories reads as if it were one itself.
+  const expenseCategoryOptions = buildHierarchicalCategories(
+    (categories ?? []).filter((category) => category.kind === "expense"),
+    language
+  );
+  const incomeCategoryOptions = buildHierarchicalCategories(
+    (categories ?? []).filter((category) => category.kind === "income"),
+    language
+  );
 
   function openCreateModal() {
     setEditingTransaction(null);
@@ -199,11 +210,26 @@ export function TransactionsPage() {
           className="sm:w-56"
         >
           <option value="">{t("transactions.allCategories")}</option>
-          {categories?.map((category) => (
-            <option key={category.id} value={category.id}>
-              {translateCategoryName(category.name)}
-            </option>
-          ))}
+          {expenseCategoryOptions.length > 0 && (
+            <optgroup label={t("reports.expenseGroup")}>
+              {expenseCategoryOptions.map((category) => (
+                <option key={category.id} value={category.id}>
+                  {category.indented ? `    ↳ ` : ""}
+                  {translateCategoryName(category.name)}
+                </option>
+              ))}
+            </optgroup>
+          )}
+          {incomeCategoryOptions.length > 0 && (
+            <optgroup label={t("reports.incomeGroup")}>
+              {incomeCategoryOptions.map((category) => (
+                <option key={category.id} value={category.id}>
+                  {category.indented ? `    ↳ ` : ""}
+                  {translateCategoryName(category.name)}
+                </option>
+              ))}
+            </optgroup>
+          )}
         </Select>
         {tags && tags.length > 0 && (
           <Select