diff --git a/package.json b/package.json
index c360508..2a266d0 100644
--- a/package.json
+++ b/package.json
@@ -7,7 +7,8 @@
     "build": "next build",
     "start": "next start",
     "lint": "next lint",
-    "generate:types": "payload generate:types"
+    "generate:types": "payload generate:types",
+    "db:fresh": "payload migrate:fresh"
   },
   "dependencies": {
     "@hookform/resolvers": "^5.0.1",
diff --git a/src/app/(app)/(home)/layout.tsx b/src/app/(app)/(home)/layout.tsx
index 6fa6f14..f815a20 100644
--- a/src/app/(app)/(home)/layout.tsx
+++ b/src/app/(app)/(home)/layout.tsx
@@ -1,17 +1,45 @@
 import { ReactNode } from 'react';
+import configPromise from '@payload-config';
+import { getPayload } from 'payload';
 
 import Navbar from './navbar';
 import Footer from './footer';
+import SearchFilters from './search-filters';
+import { Category } from '@/payload-types';
 
 interface LayoutProps {
 	children: ReactNode;
 }
 
-const Layout = ({ children }: LayoutProps) => {
+const Layout = async ({ children }: LayoutProps) => {
+	const payload = await getPayload({
+		config: configPromise,
+	});
+
+	const data = await payload.find({
+		collection: 'categories',
+		depth: 1,
+		where: {
+			parent: {
+				exists: false,
+			},
+		},
+	});
+
+	const formattedData = data.docs.map((category) => ({
+		...category,
+		subcategories: (category.subcategories?.docs ?? []).map((doc) => ({
+			...(doc as Category),
+			subcategories: undefined,
+		})),
+	}));
+
 	return (
 		<div className="flex flex-col min-h-screen">
 			<Navbar />
 
+			<SearchFilters data={formattedData} />
+
 			<div className="flex-1 bg-[#F4F4F0]">{children}</div>
 
 			<Footer />
diff --git a/src/app/(app)/(home)/page.tsx b/src/app/(app)/(home)/page.tsx
index 23977fd..d2fdc12 100644
--- a/src/app/(app)/(home)/page.tsx
+++ b/src/app/(app)/(home)/page.tsx
@@ -1,12 +1,3 @@
-import configPromise from '@payload-config';
-import { getPayload } from 'payload';
-
-export default async function Home() {
-	const payload = await getPayload({
-		config: configPromise,
-	});
-
-	const data = await payload.find({ collection: 'categories' });
-
-	return <div>{JSON.stringify(data, null, 2)}</div>;
+export default function Home() {
+	return <div>Home page</div>;
 }
diff --git a/src/app/(app)/(home)/search-filters/categories.tsx b/src/app/(app)/(home)/search-filters/categories.tsx
new file mode 100644
index 0000000..041f9c3
--- /dev/null
+++ b/src/app/(app)/(home)/search-filters/categories.tsx
@@ -0,0 +1,26 @@
+import { Category } from '@/payload-types';
+import CategoryDropdown from './category-dropdown';
+
+interface CategoriesProps {
+	data: any;
+}
+
+const Categories = ({ data }: CategoriesProps) => {
+	return (
+		<div className="relative w-full">
+			<div className="flex flex-nowrap items-center">
+				{data.map((category: Category) => (
+					<div key={category.id}>
+						<CategoryDropdown
+							category={category}
+							isActive={false}
+							isNavigationHovered={false}
+						/>
+					</div>
+				))}
+			</div>
+		</div>
+	);
+};
+
+export default Categories;
diff --git a/src/app/(app)/(home)/search-filters/category-dropdown.tsx b/src/app/(app)/(home)/search-filters/category-dropdown.tsx
new file mode 100644
index 0000000..a1cd9d4
--- /dev/null
+++ b/src/app/(app)/(home)/search-filters/category-dropdown.tsx
@@ -0,0 +1,71 @@
+'use client';
+
+import { Button } from '@/components/ui/button';
+import { cn } from '@/lib/utils';
+import { Category } from '@/payload-types';
+import { useRef, useState } from 'react';
+import useDropdownPosition from './use-dropdown-position';
+import SubCategoryMenu from './subcategory-menu';
+
+interface CategoryDropdownProps {
+	category: Category;
+	isActive?: boolean;
+	isNavigationHovered?: boolean;
+}
+
+const CategoryDropdown = ({
+	category,
+	isActive,
+	isNavigationHovered,
+}: CategoryDropdownProps) => {
+	const [isOpen, setIsOpen] = useState(false);
+	const dropdownRef = useRef<HTMLDivElement>(null);
+	const { getDropdownPosition } = useDropdownPosition(dropdownRef);
+  const dropdownPosition = getDropdownPosition();
+
+	const handleMouseEnter = () => {
+		if (category.subcategories) {
+			setIsOpen(true);
+		}
+	};
+
+	const handleMouseLeave = () => setIsOpen(false);
+
+	return (
+		<div
+			className="relative"
+			ref={dropdownRef}
+			onMouseEnter={handleMouseEnter}
+			onMouseLeave={handleMouseLeave}
+		>
+			<div className="relative">
+				<Button
+					variant="elevated"
+					className={cn(
+						'h-11 px-4 bg-transparent border-transparent rounded-full hover:bg-white hover:border-primary text-black',
+						isActive && !isNavigationHovered && 'bg-white border-primary'
+					)}
+				>
+					{category.name}
+				</Button>
+
+				{category.subcategories && category.subcategories.length > 0 && (
+					<div
+						className={cn(
+							'opacity-0 absolute -bottom-3 w-0 h-0 border-l-[10px] border-r-[10px] border-b-[10px] border-l-transparent border-r-transparent border-b-black left-1/2 -translate-x-1/2',
+							isOpen && 'opacity-100'
+						)}
+					></div>
+				)}
+			</div>
+
+      <SubCategoryMenu
+        category={category}
+        isOpen={isOpen}
+        position={dropdownPosition}
+      />
+		</div>
+	);
+};
+
+export default CategoryDropdown;
diff --git a/src/app/(app)/(home)/search-filters/index.tsx b/src/app/(app)/(home)/search-filters/index.tsx
new file mode 100644
index 0000000..d01bd88
--- /dev/null
+++ b/src/app/(app)/(home)/search-filters/index.tsx
@@ -0,0 +1,18 @@
+import Categories from './categories';
+import SearchInput from './search-input';
+
+interface SearchFiltersProps {
+	data: any;
+}
+
+const SearchFilters = ({ data }: SearchFiltersProps) => {
+	return (
+		<div className="px-4 lg:px-12 py-8 border-b flex flex-col gap-4 w-full">
+			<SearchInput />
+
+			<Categories data={data} />
+		</div>
+	);
+};
+
+export default SearchFilters;
diff --git a/src/app/(app)/(home)/search-filters/search-input.tsx b/src/app/(app)/(home)/search-filters/search-input.tsx
new file mode 100644
index 0000000..66f8c77
--- /dev/null
+++ b/src/app/(app)/(home)/search-filters/search-input.tsx
@@ -0,0 +1,22 @@
+import { Input } from '@/components/ui/input';
+import { SearchIcon } from 'lucide-react';
+
+interface SearchInputProps {
+	disabled?: boolean;
+}
+
+const SearchInput = ({ disabled }: SearchInputProps) => {
+	return (
+		<div>
+			<div className="flex items-center gap-2 w-full">
+				<div className='relative w-full'> 
+					<SearchIcon className='absolute left-3 top-1/2 -translate-y-1/2 size-4 text-neutral-500' />
+
+					<Input className='pl-8' placeholder='Search products' disabled={disabled} />
+				</div> 
+			</div>
+		</div>
+	);
+};
+
+export default SearchInput;
diff --git a/src/app/(app)/(home)/search-filters/subcategory-menu.tsx b/src/app/(app)/(home)/search-filters/subcategory-menu.tsx
new file mode 100644
index 0000000..c6bccb8
--- /dev/null
+++ b/src/app/(app)/(home)/search-filters/subcategory-menu.tsx
@@ -0,0 +1,58 @@
+import { Category } from '@/payload-types';
+import Link from 'next/link';
+
+interface SubCategoryMenuProps {
+	category: Category;
+	isOpen: boolean;
+	position: {
+		top: number;
+		left: number;
+	};
+}
+
+const SubCategoryMenu = ({
+	category,
+	isOpen,
+	position,
+}: SubCategoryMenuProps) => {
+	if (
+		!isOpen ||
+		!category.subcategories ||
+		category.subcategories.length === 0
+	) {
+		return null;
+	}
+
+	const backgroundColor = category.color || '#F5F5F5';
+
+	return (
+		<div
+			className="fixed z-100"
+			style={{
+				top: position?.top,
+				left: position?.left,
+			}}
+		>
+			{/* Invisible bridge to maintain hover */}
+			<div className="h-3 w-60" />
+			<div
+				className="w-60 text-black rounded-md overflow-hidden border shadow-[4px_4px_0px_0px_rgba(0,0,0,1)] -translate-x-[2px] -translate-y-[2px]"
+				style={{ backgroundColor }}
+			>
+				<div>
+					{category.subcategories.map((subcategory: Category) => (
+						<Link
+							key={subcategory.id}
+							href="/"
+							className="w-full text-left p-4 hover:bg-black hover:text-white flex justify-between items-center underline font-medium"
+						>
+							{subcategory.name}
+						</Link>
+					))}
+				</div>
+			</div>
+		</div>
+	);
+};
+
+export default SubCategoryMenu;
diff --git a/src/app/(app)/(home)/search-filters/use-dropdown-position.ts b/src/app/(app)/(home)/search-filters/use-dropdown-position.ts
new file mode 100644
index 0000000..9746ae7
--- /dev/null
+++ b/src/app/(app)/(home)/search-filters/use-dropdown-position.ts
@@ -0,0 +1,34 @@
+import { RefObject } from "react";
+
+const useDropdownPosition = (ref: RefObject<HTMLDivElement | null> | RefObject<HTMLDivElement>) => {
+  const getDropdownPosition = () => {
+    if (!ref.current) return;
+
+    const rect = ref.current.getBoundingClientRect();
+    const dropdownWidth = 240; // Width of dropdown (w-60 = 15rem = 240px)
+
+    // Calculate the initial position
+    let left = rect.left + window.scrollX;
+    const top = rect.bottom + window.scrollY;
+
+    // Check if dropdown would go off the right edge of the viewport
+    if (left + dropdownWidth > window.innerWidth) {
+      left = rect.right + window.scrollX - dropdownWidth;
+
+      // If still off-screen, align to the left edge of the viewport with some padding
+      if (left < 0) {
+        left = window.innerWidth - dropdownWidth - 16; // 16px padding
+      }
+
+      if (left < 0) {
+        left = 16
+      }
+
+      return { top, left };
+    }
+  }
+
+  return { getDropdownPosition }
+}
+
+export default useDropdownPosition;
\ No newline at end of file
diff --git a/src/collections/Categories.ts b/src/collections/Categories.ts
index 1d89284..92a8839 100644
--- a/src/collections/Categories.ts
+++ b/src/collections/Categories.ts
@@ -7,6 +7,30 @@ export const Categories: CollectionConfig = {
       name: 'name',
       type: 'text',
       required: true,
+    },
+    {
+      name: 'slug',
+      type: 'text',
+      required: true,
+      unique: true,
+      index: true,
+    },
+    {
+      name: 'color',
+      type: 'text',
+    },
+    {
+      name: 'parent',
+      type: 'relationship',
+      relationTo: 'categories',
+      hasMany: false,
+    },
+    {
+      name: 'subcategories',
+      type: 'join',
+      collection: 'categories',
+      on: 'parent',
+      hasMany: true,
     }
   ]
 }
\ No newline at end of file
diff --git a/src/payload-types.ts b/src/payload-types.ts
index 362dd71..2af02a9 100644
--- a/src/payload-types.ts
+++ b/src/payload-types.ts
@@ -74,7 +74,11 @@ export interface Config {
     'payload-preferences': PayloadPreference;
     'payload-migrations': PayloadMigration;
   };
-  collectionsJoins: {};
+  collectionsJoins: {
+    categories: {
+      subcategories: 'categories';
+    };
+  };
   collectionsSelect: {
     users: UsersSelect<false> | UsersSelect<true>;
     media: MediaSelect<false> | MediaSelect<true>;
@@ -158,6 +162,14 @@ export interface Media {
 export interface Category {
   id: string;
   name: string;
+  slug: string;
+  color?: string | null;
+  parent?: (string | null) | Category;
+  subcategories?: {
+    docs?: (string | Category)[];
+    hasNextPage?: boolean;
+    totalDocs?: number;
+  };
   updatedAt: string;
   createdAt: string;
 }
@@ -261,6 +273,10 @@ export interface MediaSelect<T extends boolean = true> {
  */
 export interface CategoriesSelect<T extends boolean = true> {
   name?: T;
+  slug?: T;
+  color?: T;
+  parent?: T;
+  subcategories?: T;
   updatedAt?: T;
   createdAt?: T;
 }