diff --git a/bookstore/src/main/java/com/fjordtek/bookstore/BookstoreApplication.java b/bookstore/src/main/java/com/fjordtek/bookstore/BookstoreApplication.java
index df083d2..15c4579 100644
--- a/bookstore/src/main/java/com/fjordtek/bookstore/BookstoreApplication.java
+++ b/bookstore/src/main/java/com/fjordtek/bookstore/BookstoreApplication.java
@@ -12,6 +12,8 @@ import org.springframework.context.annotation.Bean;
 
 import com.fjordtek.bookstore.model.Book;
 import com.fjordtek.bookstore.model.BookRepository;
+import com.fjordtek.bookstore.model.Category;
+import com.fjordtek.bookstore.model.CategoryRepository;
 
 @SpringBootApplication
 public class BookstoreApplication extends SpringBootServletInitializer {
@@ -22,17 +24,29 @@ public class BookstoreApplication extends SpringBootServletInitializer {
 	}
 
 	@Bean
-	public CommandLineRunner bookDatabaseRunner(BookRepository repository) {
+	public CommandLineRunner bookDatabaseRunner(BookRepository bookRepository, CategoryRepository categoryRepository) {
 
 		return (args) -> {
+
+			commonLogger.info("Add new categories to database");
+
+			Category horror  = new Category("Horror");
+			Category fantasy = new Category("Fantasy");
+			categoryRepository.save(horror);
+			categoryRepository.save(fantasy);
+
 			commonLogger.info("Add new sample books to database");
 
-			repository.save(new Book("Book 1 title", "Book 1 author", 2020, "1231231-12", 40.00));
-			repository.save(new Book("Book 2 title", "Book 2 author", 2005, "3213221-3",  20.17));
+			bookRepository.save(new Book("Book 1 title", "Book 1 author", 2020, "1231231-12", 40.00, horror));
+			bookRepository.save(new Book("Book 2 title", "Book 2 author", 2005, "3213221-3",  20.17, fantasy));
 
 			commonLogger.info("------------------------------");
+			commonLogger.info("Sample categories in the database");
+			for (Category category : categoryRepository.findAll()) {
+				commonLogger.info(category.toString());
+			}
 			commonLogger.info("Sample books in the database");
-			for (Book book : repository.findAll()) {
+			for (Book book : bookRepository.findAll()) {
 				commonLogger.info(book.toString());
 			}
 
diff --git a/bookstore/src/main/java/com/fjordtek/bookstore/model/Book.java b/bookstore/src/main/java/com/fjordtek/bookstore/model/Book.java
index 46a083f..f29adb8 100644
--- a/bookstore/src/main/java/com/fjordtek/bookstore/model/Book.java
+++ b/bookstore/src/main/java/com/fjordtek/bookstore/model/Book.java
@@ -2,6 +2,8 @@
 
 package com.fjordtek.bookstore.model;
 
+import javax.persistence.Column;
+
 //import java.sql.Timestamp;
 //import javax.validation.constraints.PastOrPresent;
 
@@ -9,6 +11,8 @@ import javax.persistence.Entity;
 import javax.persistence.GeneratedValue;
 import javax.persistence.GenerationType;
 import javax.persistence.Id;
+import javax.persistence.JoinColumn;
+import javax.persistence.ManyToOne;
 import javax.validation.constraints.DecimalMax;
 import javax.validation.constraints.DecimalMin;
 import javax.validation.constraints.Digits;
@@ -110,6 +114,9 @@ public class Book {
 	private int year;
 
 	//////////
+	@Column(
+			unique  = true
+			)
 	@NotBlank(
 			message = "Fill the ISBN code form"
 			)
@@ -141,6 +148,16 @@ public class Book {
 	// TODO: Use BigDecimal to keep exact precision?
 	private double price;
 
+	@ManyToOne(
+			//fetch    = FetchType.LAZY,
+			optional = false
+			)
+    @JoinColumn(
+    		name     = "category_id",
+    		nullable = false
+    		)
+	private Category category;
+
 	////////////////////
 	// Attribute setters
 
@@ -171,6 +188,10 @@ public class Book {
 		this.price = price;
 	}
 
+	public void setCategory(Category category) {
+		this.category = category;
+	}
+
 	////////////////////
 	// Attribute getters
 
@@ -200,6 +221,10 @@ public class Book {
 		return price;
 	}
 
+	public Category getCategory() {
+		return category;
+	}
+
 	////////////////////
 	// Class constructors
 
@@ -207,11 +232,21 @@ public class Book {
 
 	public Book(String title, String author, int year, String isbn, double price) {
 		// super();
-	    this.title  = title;
-	    this.author = author;
-	    this.year   = year;
-	    this.isbn   = isbn;
-	    this.price  = price;
+	    this.title    = title;
+	    this.author   = author;
+	    this.year     = year;
+	    this.isbn     = isbn;
+	    this.price    = price;
+	}
+
+	public Book(String title, String author, int year, String isbn, double price, Category category) {
+		// super();
+	    this.title    = title;
+	    this.author   = author;
+	    this.year     = year;
+	    this.isbn     = isbn;
+	    this.price    = price;
+	    this.category = category;
 	}
 
 	////////////////////
@@ -224,7 +259,8 @@ public class Book {
 			   "author: " + this.author + ", " +
 			   "year: "   + this.year   + ", " +
 			   "isbn: "   + this.isbn   + ", " +
-			   "price: "  + this.price + "]";
+			   "price: "  + this.price  + ", " +
+			   "category: " + this.category + "]";
 	}
 
 }
diff --git a/bookstore/src/main/java/com/fjordtek/bookstore/model/Category.java b/bookstore/src/main/java/com/fjordtek/bookstore/model/Category.java
new file mode 100644
index 0000000..5817051
--- /dev/null
+++ b/bookstore/src/main/java/com/fjordtek/bookstore/model/Category.java
@@ -0,0 +1,84 @@
+//Pekka Helenius <fincer89@hotmail.com>, Fjordtek 2020
+
+package com.fjordtek.bookstore.model;
+
+import java.util.List;
+
+import javax.persistence.Entity;
+import javax.persistence.GeneratedValue;
+import javax.persistence.GenerationType;
+import javax.persistence.Id;
+import javax.persistence.OneToMany;
+
+@Entity
+public class Category {
+
+	////////////////////
+	// Primary key value in database
+	@Id
+	@GeneratedValue(
+			strategy = GenerationType.AUTO
+			)
+    private long id;
+
+	////////////////////
+	// Attributes with hard-coded constraints
+	private String name;
+
+	@OneToMany(
+			mappedBy = "category"
+			//fetch    = FetchType.LAZY,
+			//cascade  = CascadeType.ALL
+			)
+	private List<Book> books;
+
+	////////////////////
+	// Attribute setters
+
+	public void setId(long id) {
+		this.id = id;
+	}
+
+	public void setName(String name) {
+		this.name = name;
+	}
+
+	public void setBooks(List<Book> books) {
+		this.books = books;
+	}
+
+	////////////////////
+	// Attribute getters
+
+	public long getId() {
+		return id;
+	}
+
+	public String getName() {
+		return name;
+	}
+
+	public List<Book> getBooks() {
+		return books;
+	}
+
+	////////////////////
+	// Class constructors
+
+	public Category() {
+	}
+
+	public Category(String name) {
+		this.name = name;
+	}
+
+	////////////////////
+	// Class overrides
+
+	@Override
+	public String toString() {
+		return "[" + "id: " + this.id +
+				"name: " + this.name + "]";
+	}
+
+}
\ No newline at end of file
diff --git a/bookstore/src/main/java/com/fjordtek/bookstore/model/CategoryRepository.java b/bookstore/src/main/java/com/fjordtek/bookstore/model/CategoryRepository.java
new file mode 100644
index 0000000..fbf2364
--- /dev/null
+++ b/bookstore/src/main/java/com/fjordtek/bookstore/model/CategoryRepository.java
@@ -0,0 +1,14 @@
+//Pekka Helenius <fincer89@hotmail.com>, Fjordtek 2020
+
+package com.fjordtek.bookstore.model;
+
+import java.util.List;
+
+import org.springframework.data.repository.CrudRepository;
+
+public interface CategoryRepository extends CrudRepository<Category, Long> {
+
+	// Handles both INSERT and UPDATE queries
+	List<Category> findById(String name);
+
+}
\ No newline at end of file
diff --git a/bookstore/src/main/java/com/fjordtek/bookstore/web/BookController.java b/bookstore/src/main/java/com/fjordtek/bookstore/web/BookController.java
index 22a7982..7afdc0b 100644
--- a/bookstore/src/main/java/com/fjordtek/bookstore/web/BookController.java
+++ b/bookstore/src/main/java/com/fjordtek/bookstore/web/BookController.java
@@ -21,6 +21,7 @@ import org.springframework.web.bind.annotation.ResponseStatus;
 
 import com.fjordtek.bookstore.model.Book;
 import com.fjordtek.bookstore.model.BookRepository;
+import com.fjordtek.bookstore.model.CategoryRepository;
 
 @Controller
 public class BookController {
@@ -37,6 +38,9 @@ public class BookController {
 	@Autowired
 	private BookRepository       bookRepository;
 
+	@Autowired
+	private CategoryRepository   categoryRepository;
+
 	//////////////////////////////
 	// LIST PAGE
 	@RequestMapping(
@@ -74,7 +78,9 @@ public class BookController {
 				);
 
 		Book newBook = new Book();
+
 		dataModel.addAttribute("book", newBook);
+		dataModel.addAttribute("categories", categoryRepository.findAll());
 
 		if (newBook.getYear() == 0) {
 			newBook.setYear(Year.now().getValue());
@@ -150,6 +156,7 @@ public class BookController {
 
 		Book book = bookRepository.findById(bookId).get();
 		dataModel.addAttribute("book", book);
+		dataModel.addAttribute("categories", categoryRepository.findAll());
 
 		return bookEditPageURL;
 	}
diff --git a/bookstore/src/main/resources/templates/bookadd.html b/bookstore/src/main/resources/templates/bookadd.html
index a0209e4..d373b04 100644
--- a/bookstore/src/main/resources/templates/bookadd.html
+++ b/bookstore/src/main/resources/templates/bookadd.html
@@ -12,31 +12,31 @@
     	<form th:object="${book}" action="#" th:action="@{bookadd}" method="post">
 
     		<div class="form-group">
-    			<label for="fname">Author</label>
+    			<label for="BookAuthor">Author</label>
     			<input class="form-control" type="text" th:field="*{author}"  placeholder="Book author"/>
     			<small class="form-text text-muted">Set book author name</small>
     			<div class="alert alert-danger mt-2" th:if="${#fields.hasErrors('author')}" th:errors="*{author}">Invalid author name</div>
     		</div>
     		<div class="form-group">
-    			<label for="fname">Title</label>
+    			<label for="BookTitle">Title</label>
     			<input class="form-control" type="text" th:field="*{title}" placeholder="Book title"/>
     			<small class="form-text text-muted">Set book primary title</small>
     			<div class="alert alert-danger mt-2" th:if="${#fields.hasErrors('title')}" th:errors="*{title}">Invalid title</div>
     		</div>
     		<div class="form-group">
-    			<label for="fname">ISBN</label>
+    			<label for="BookISBN">ISBN</label>
     			<input class="form-control" type="text" th:field="*{isbn}" placeholder="Book ISBN code"/>
     			<small class="form-text text-muted">Set book ISBN code</small>
     			<div class="alert alert-danger mt-2" th:if="${#fields.hasErrors('isbn')}" th:errors="*{isbn}">Invalid ISBN code</div>
     		</div>
     		<div class="form-group">
-    			<label for="fname">Year</label>
+    			<label for="BookYear">Year</label>
     			<input class="form-control" type="text" th:field="*{year}" placeholder="Book publication year (YYYY)"/>
     			<small class="form-text text-muted">Set book publication year</small>
     			<div class="alert alert-danger mt-2" th:if="${#fields.hasErrors('year')}" th:errors="*{year}">Invalid year</div>
     		</div>
     		<div class="form-group">
-    			<label for="fname">Price</label>
+    			<label for="BookPrice">Price</label>
     			<div class="input-group mb-2">
     				 <div class="input-group-prepend">
     				 	<div class="input-group-text">€</div>
@@ -46,6 +46,17 @@
     			<small class="form-text text-muted">Set book price</small>
     			<div class="alert alert-danger mt-2" th:if="${#fields.hasErrors('price')}" th:errors="*{price}">Invalid price</div>
     		</div>
+    		<div class="form-group">
+    			<label for="BookCategory">Category</label>
+    			<select class="form-control" th:field="*{category}">
+    				<option
+    				th:each="category : ${categories}"
+    				th:value="${category.getId()}"
+    				th:text="${category.getName()}"
+    				></option>
+    			</select>
+    			<small class="form-text text-muted">Select appropriate category</small>
+    		</div>
 
     		<button class="btn btn-primary" type="submit">Add book</button>
     	</form>
diff --git a/bookstore/src/main/resources/templates/bookedit.html b/bookstore/src/main/resources/templates/bookedit.html
index 67f7174..757b595 100644
--- a/bookstore/src/main/resources/templates/bookedit.html
+++ b/bookstore/src/main/resources/templates/bookedit.html
@@ -46,6 +46,18 @@
     			<small class="form-text text-muted">Set book price</small>
     			<div class="alert alert-danger mt-2" th:if="${#fields.hasErrors('price')}" th:errors="*{price}">Invalid price</div>
     		</div>
+    		
+    		<div class="form-group">
+    			<label for="BookCategory">Category</label>
+    			<select class="form-control" th:field="*{category}" th:selected="${book.category}">
+    				<option
+    				th:each="category : ${categories}"
+    				th:value="${category.getId()}"
+    				th:text="${category.getName()}"
+    				></option>
+    			</select>
+    			<small class="form-text text-muted">Select appropriate category</small>
+    		</div>
 
     		<button class="btn btn-primary" type="submit">Update book</button>
     	</form>
diff --git a/bookstore/src/main/resources/templates/booklist.html b/bookstore/src/main/resources/templates/booklist.html
index 9bcad0d..1f66154 100644
--- a/bookstore/src/main/resources/templates/booklist.html
+++ b/bookstore/src/main/resources/templates/booklist.html
@@ -15,6 +15,7 @@
 				<th>Title</th>
 				<th>ISBN</th>
 				<th>Year</th>
+				<th>Category</th>
 				<th>Price</th>
 				<th>Actions</th>
 				<th></th>
@@ -24,6 +25,7 @@
 				<td th:text="${book.title}"></td>
 				<td th:text="${book.isbn}"></td>
 				<td th:text="${book.year}"></td>
+				<td th:text="${book.category.getName()}"></td>
 				<td th:text="${#numbers.formatDecimal(book.price, 1, 2)}"></td>
 				<td><a class="btn btn-danger"
 				th:attr="onclick='javascript:return confirm(\'' + 'Delete book: ' + ${book.title} + '?' + '\');'"