diff --git a/app/assets/javascripts/discourse/controllers/edit_category_controller.js b/app/assets/javascripts/discourse/controllers/edit_category_controller.js
index 0686254af..6be805503 100644
--- a/app/assets/javascripts/discourse/controllers/edit_category_controller.js
+++ b/app/assets/javascripts/discourse/controllers/edit_category_controller.js
@@ -13,6 +13,12 @@ Discourse.EditCategoryController = Discourse.ObjectController.extend(Discourse.M
   settingsSelected: Ember.computed.equal('selectedTab', 'settings'),
   foregroundColors: ['FFFFFF', '000000'],
 
+  parentCategories: function() {
+    return Discourse.Category.list().filter(function (c) {
+      return !c.get('parentCategory');
+    });
+  }.property(),
+
   onShow: function() {
     this.changeSize();
     this.titleChanged();
@@ -122,17 +128,27 @@ Discourse.EditCategoryController = Discourse.ObjectController.extend(Discourse.M
     },
 
     saveCategory: function() {
-      var categoryController = this;
+      var self = this,
+          model = this.get('model'),
+          parentCategory = Discourse.Category.list().findBy('id', parseInt(model.get('parent_category_id'), 10));
+
       this.set('saving', true);
+      model.set('parentCategory', parentCategory);
+      var newSlug = Discourse.Category.slugFor(this.get('model'));
+
       this.get('model').save().then(function(result) {
         // success
-        categoryController.send('closeModal');
-        Discourse.URL.redirectTo("/category/" + Discourse.Category.slugFor(result.category));
-      }, function(errors) {
-        // errors
-        if(errors.length === 0) errors.push(I18n.t("category.creation_error"));
-        categoryController.displayErrors(errors);
-        categoryController.set('saving', false);
+        self.send('closeModal');
+        Discourse.URL.redirectTo("/category/" + newSlug);
+      }, function(error) {
+
+        if (error && error.responseText) {
+          self.flash($.parseJSON(error.responseText).errors[0]);
+        } else {
+          self.flash(I18n.t('generic_error'));
+        }
+
+        self.set('saving', false);
       });
     },
 
@@ -147,8 +163,14 @@ Discourse.EditCategoryController = Discourse.ObjectController.extend(Discourse.M
             // success
             self.send('closeModal');
             Discourse.URL.redirectTo("/categories");
-          }, function(jqXHR){
-            // error
+          }, function(error){
+
+            if (error && error.responseText) {
+              self.flash($.parseJSON(error.responseText).errors[0]);
+            } else {
+              self.flash(I18n.t('generic_error'));
+            }
+
             self.send('showModal');
             self.displayErrors([I18n.t("category.delete_error")]);
             self.set('deleting', false);
diff --git a/app/assets/javascripts/discourse/models/category.js b/app/assets/javascripts/discourse/models/category.js
index cf32f9d93..3a2f3be31 100644
--- a/app/assets/javascripts/discourse/models/category.js
+++ b/app/assets/javascripts/discourse/models/category.js
@@ -58,7 +58,8 @@ Discourse.Category = Discourse.Model.extend({
         secure: this.get('secure'),
         permissions: this.get('permissionsForUpdate'),
         auto_close_days: this.get('auto_close_days'),
-        position: this.get('position')
+        position: this.get('position'),
+        parent_category_id: this.get('parent_category_id')
       },
       type: this.get('id') ? 'PUT' : 'POST'
     });
diff --git a/app/assets/javascripts/discourse/templates/modal/edit_category.js.handlebars b/app/assets/javascripts/discourse/templates/modal/edit_category.js.handlebars
index e8bb4fd15..55e43efad 100644
--- a/app/assets/javascripts/discourse/templates/modal/edit_category.js.handlebars
+++ b/app/assets/javascripts/discourse/templates/modal/edit_category.js.handlebars
@@ -21,6 +21,11 @@
           {{textField value=name placeholderKey="category.name_placeholder" maxlength="50"}}
         </section>
 
+        <section class='field'>
+          <label>{{i18n category.parent}}</label>
+          {{categoryChooser valueAttribute="id" value=parent_category_id categories=parentCategories}}
+        </section>
+
         {{#unless isUncategorized}}
           <section class='field'>
             <label>{{i18n category.description}}</label>
diff --git a/app/assets/javascripts/discourse/views/category_chooser_view.js b/app/assets/javascripts/discourse/views/category_chooser_view.js
index c74488426..005ff0c64 100644
--- a/app/assets/javascripts/discourse/views/category_chooser_view.js
+++ b/app/assets/javascripts/discourse/views/category_chooser_view.js
@@ -12,14 +12,16 @@ Discourse.CategoryChooserView = Discourse.ComboboxView.extend({
   dataAttributes: ['name', 'color', 'text_color', 'description_text', 'topic_count'],
   valueBinding: Ember.Binding.oneWay('source'),
 
+  content: Em.computed.filter('categories', function(c) {
+    var uncategorized_id = Discourse.Site.currentProp("uncategorized_category_id");
+    return c.get('permission') === Discourse.PermissionType.FULL && c.get('id') !== uncategorized_id;
+  }),
+
   init: function() {
     this._super();
-    // TODO perhaps allow passing a param in to select if we need full or not
-
-    var uncategorized_id = Discourse.Site.currentProp("uncategorized_category_id");
-    this.set('content', _.filter(Discourse.Category.list(), function(c){
-      return c.permission === Discourse.PermissionType.FULL && c.id !== uncategorized_id;
-    }));
+    if (!this.get('categories')) {
+      this.set('categories', Discourse.Category.list());
+    }
   },
 
   none: function() {
diff --git a/app/assets/javascripts/discourse/views/modal/modal_body_view.js b/app/assets/javascripts/discourse/views/modal/modal_body_view.js
index 77b8b6dfa..bfaceb5c5 100644
--- a/app/assets/javascripts/discourse/views/modal/modal_body_view.js
+++ b/app/assets/javascripts/discourse/views/modal/modal_body_view.js
@@ -27,12 +27,6 @@ Discourse.ModalBodyView = Discourse.View.extend({
     }
   },
 
-  // Pass the errors to our errors view
-  displayErrors: function(errors, callback) {
-    this.set('parentView.parentView.modalErrorsView.errors', errors);
-    if (typeof callback === "function") callback();
-  },
-
   flashMessageChanged: function() {
     var flashMessage = this.get('controller.flashMessage');
     if (flashMessage) {
diff --git a/app/assets/stylesheets/desktop/modal.scss b/app/assets/stylesheets/desktop/modal.scss
index a4999ad60..03faf9ca6 100644
--- a/app/assets/stylesheets/desktop/modal.scss
+++ b/app/assets/stylesheets/desktop/modal.scss
@@ -164,6 +164,19 @@
     border-bottom: 1px solid #bbb;
 
   }
+
+  .category-combobox {
+    width: 430px;
+
+    .chzn-drop {
+      left: -9000px;
+      width: 428px;
+    }
+    .chzn-search input {
+      width: 378px;
+    }
+  }
+
   &.hidden {
     display: none;
   }
diff --git a/app/controllers/categories_controller.rb b/app/controllers/categories_controller.rb
index 5110dc6d5..6b0853a09 100644
--- a/app/controllers/categories_controller.rb
+++ b/app/controllers/categories_controller.rb
@@ -90,7 +90,7 @@ class CategoriesController < ApplicationController
           end
         end
 
-        params.permit(*required_param_keys, :position, :hotness, :auto_close_days, :permissions => [*p.try(:keys)])
+        params.permit(*required_param_keys, :position, :hotness, :parent_category_id, :auto_close_days, :permissions => [*p.try(:keys)])
       end
     end
 
diff --git a/app/models/category.rb b/app/models/category.rb
index 77d56f9fc..4669168f5 100644
--- a/app/models/category.rb
+++ b/app/models/category.rb
@@ -187,10 +187,10 @@ SQL
 
   def parent_category_validator
     if parent_category_id
-      errors.add(:parent_category_id, "You can't link a category to itself") if parent_category_id == id
+      errors.add(:parent_category_id, I18n.t("category.errors.self_parent")) if parent_category_id == id
 
       grandfather_id = Category.where(id: parent_category_id).pluck(:parent_category_id).first
-      errors.add(:parent_category_id, "You can't have more than one level of subcategory") if grandfather_id
+      errors.add(:base, I18n.t("category.errors.depth")) if grandfather_id
     end
   end
 
diff --git a/config/locales/client.en.yml b/config/locales/client.en.yml
index 74c9266bc..8cb26e229 100644
--- a/config/locales/client.en.yml
+++ b/config/locales/client.en.yml
@@ -975,6 +975,7 @@ en:
       add_permission: "Add Permission"
       this_year: "this year"
       position: "position"
+      parent: "Parent Category"
 
     flagging:
       title: 'Why are you flagging this post?'
diff --git a/config/locales/server.en.yml b/config/locales/server.en.yml
index e928e5daf..6a6d57655 100644
--- a/config/locales/server.en.yml
+++ b/config/locales/server.en.yml
@@ -159,7 +159,9 @@ en:
     topic_prefix: "Category definition for %{category}"
     replace_paragraph: "[Replace this first paragraph with a short description of your new category. This guidance will appear in the category selection area, so try to keep it below 200 characters.]"
     post_template: "%{replace_paragraph}\n\nUse the following paragraphs for a longer description, as well as to establish any category guidelines or rules.\n\nSome things to consider in any discussion replies below:\n\n- What is this category for? Why should people select this category for their topic?\n\n- How is this different than the other categories we already have?\n\n- Do we need this category?\n\n- Should we merge this with another category, or split it into more categories?\n"
-
+    errors:
+      self_parent: "A subcategory's parent cannot be itself."
+      depth: "You can't nest a subcategory under another."
   trust_levels:
     newuser:
       title: "new user"