diff --git a/api/server/services/Config/loadCustomConfig.js b/api/server/services/Config/loadCustomConfig.js
index db25049957..053380ded2 100644
--- a/api/server/services/Config/loadCustomConfig.js
+++ b/api/server/services/Config/loadCustomConfig.js
@@ -11,6 +11,7 @@ const {
   agentParamSettings,
   validateSettingDefinitions,
 } = require('librechat-data-provider');
+const { syncCategories } = require('~/server/utils/agentCategory');
 
 const projectRoot = path.resolve(__dirname, '..', '..', '..', '..');
 const defaultConfigPath = path.resolve(projectRoot, 'librechat.yaml');
@@ -119,6 +120,24 @@ https://www.librechat.ai/docs/configuration/stt_tts`);
     }
   }
 
+  // Injecting custom marketplace categories
+  logger.info('Checking for custom marketplace categories to sync.');
+  if (customConfig.interface?.marketplace?.use) {
+    logger.info('Marketplace is enabled in config.');
+    const marketplaceConfig = customConfig.interface.marketplace;
+    if (marketplaceConfig.categories) {
+      logger.info('Marketplace categories configuration found.');
+      // enableDefaultCategories should be set as a boolean, defaulting to true if not specified
+      const enableDefaultCategories =
+        typeof marketplaceConfig.categories.enableDefaultCategories === 'boolean'
+          ? marketplaceConfig.categories.enableDefaultCategories
+          : true;
+      const customCategoriesList = marketplaceConfig.categories.list || [];
+      logger.info(`Found ${customCategoriesList.length} custom categories to sync.`);
+      await syncCategories(customCategoriesList, enableDefaultCategories);
+    }
+  }
+
   (customConfig.endpoints?.custom ?? [])
     .filter((endpoint) => endpoint.customParams)
     .forEach((endpoint) => parseCustomParams(endpoint.name, endpoint.customParams));
diff --git a/api/server/utils/agentCategory.js b/api/server/utils/agentCategory.js
new file mode 100644
index 0000000000..1d40193a57
--- /dev/null
+++ b/api/server/utils/agentCategory.js
@@ -0,0 +1,82 @@
+const { logger } = require('@librechat/data-schemas');
+
+/**
+ * Synchronizes custom agent categories with the database.
+ * @param {Array} customCategoriesList - List of custom categories to be synchronized.
+ * @param {boolean} enableDefaultCategories - Flag indicating whether to enable default categories.
+ */
+async function syncCategories(customCategoriesList, enableDefaultCategories) {
+  const { getAllCategories, createCategory, updateCategory, deleteCategory } = require('~/models');
+  logger.info('Syncing custom agent categories...');
+
+  // Get all categories from DB
+  const dbCategories = await getAllCategories();
+  logger.info(`Found ${dbCategories.length} categories in the database.`);
+
+  logger.info(
+    `${enableDefaultCategories ? 'Enabling' : 'Disabling'} default agent categories as per configuration.`,
+  );
+  for (const cat of dbCategories.filter((c) => !c.custom)) {
+    logger.info(`${enableDefaultCategories ? 'Enabling' : 'Disabling'} category: ${cat.value}`);
+    await updateCategory(cat.value, { isActive: enableDefaultCategories });
+  }
+
+  // Initial order takes the max value of existing default categories + 1
+  const defaultCategoriesInDb = dbCategories.filter((cat) => !cat.custom);
+  const initialOrder =
+    defaultCategoriesInDb.reduce((max, cat) => Math.max(max, cat.order || 0), 0) + 1;
+  logger.info(`Current order for new custom categories starts at ${initialOrder}.`);
+
+  // Inject order to custom categories
+  logger.info('Assigning order to custom categories.');
+  customCategoriesList = customCategoriesList.map((cat, index) => ({
+    ...cat,
+    order: initialOrder + index,
+  }));
+
+  // Delete custom categories not in the config file
+  const customCategoryValues = new Set(customCategoriesList.map((cat) => cat.value.toLowerCase()));
+  const categoriesToDelete = dbCategories.filter(
+    (cat) => cat.custom && !customCategoryValues.has(cat.value.toLowerCase()),
+  );
+  for (const cat of categoriesToDelete) {
+    logger.info(`Deleting custom category not in config: ${cat.value}`);
+    await deleteCategory(cat.value);
+  }
+
+  // Sync custom categories
+  for (const category of customCategoriesList) {
+    let formattedCategory;
+    try {
+      formattedCategory = {
+        value: category.value.toLowerCase() || 'unnamed',
+        label: category.value || 'Unnamed',
+        description: category.description || '',
+        isActive: true,
+        custom: true,
+        order: category.order,
+      };
+    } catch (error) {
+      logger.error('Error formatting category: ', category, error);
+      continue;
+    }
+
+    // Check if category exists by value
+    const existing = dbCategories.find(
+      (cat) => cat.value.toLowerCase() === formattedCategory.value,
+    );
+    if (existing) {
+      logger.info(`Updating category: ${formattedCategory.value}`);
+      await updateCategory(existing.value, formattedCategory);
+    } else {
+      logger.info(`Creating category: ${formattedCategory.value}`);
+      await createCategory(formattedCategory);
+    }
+  }
+
+  logger.info('Custom categories synchronized successfully.');
+}
+
+module.exports = {
+  syncCategories,
+};
diff --git a/librechat.example.yaml b/librechat.example.yaml
index 92206c4b6e..96dd42b998 100644
--- a/librechat.example.yaml
+++ b/librechat.example.yaml
@@ -100,7 +100,15 @@ interface:
     groups: true
     roles: true
   marketplace:
-    use: false
+    use: false 
+    categories:
+      enableDefaultCategories: true 
+        # list:
+        #     - value: "Education"
+        #       description: "Educational agents."
+        #     - value: "Productivity"
+        #       description: "Productivity agents."
+
   fileCitations: true
   # Remote Agents configuration
   # Controls user permissions for remote agents with external API support