diff --git a/administrator/components/com_newsfeeds/models/forms/newsfeed.xml b/administrator/components/com_newsfeeds/models/forms/newsfeed.xml
index 01ded7187560e..cfdb942087047 100644
--- a/administrator/components/com_newsfeeds/models/forms/newsfeed.xml
+++ b/administrator/components/com_newsfeeds/models/forms/newsfeed.xml
@@ -30,9 +30,14 @@
 				JTRASHED</option>
 		</field>
 
-		<field name="catid" type="categoryedit" extension="com_newsfeeds"
-			label="JCATEGORY" description="COM_NEWSFEEDS_FIELD_CATEGORY_DESC"
-			required="true"
+		<field	name="catid"
+				type="categoryedit"
+				extension="com_newsfeeds"
+				label="JCATEGORY"
+				description="COM_NEWSFEEDS_FIELD_CATEGORY_DESC"
+				required="true"
+				allowAdd="true"
+				default=""
 		>
 		</field>
 
diff --git a/administrator/components/com_newsfeeds/models/newsfeed.php b/administrator/components/com_newsfeeds/models/newsfeed.php
index 006adadc79c30..9b952f091b7c8 100644
--- a/administrator/components/com_newsfeeds/models/newsfeed.php
+++ b/administrator/components/com_newsfeeds/models/newsfeed.php
@@ -302,6 +302,31 @@ public function save($data)
 	{
 		$input = JFactory::getApplication()->input;
 
+		JLoader::register('CategoriesHelper', JPATH_ADMINISTRATOR . '/components/com_categories/helpers/categories.php');
+
+		// Cast catid to integer for comparison
+		$catid = (int) $data['catid'];
+
+		// Check if New Category exists
+		if ($catid > 0)
+		{
+			$catid = CategoriesHelper::validateCategoryId($data['catid'], 'com_newsfeeds');
+		}
+
+		// Save New Category
+		if ($catid == 0)
+		{
+			$table = array();
+			$table['title'] = $data['catid'];
+			$table['parent_id'] = 1;
+			$table['extension'] = 'com_newsfeeds';
+			$table['language'] = $data['language'];
+			$table['published'] = 1;
+
+			// Create new category and get catid back
+			$data['catid'] = CategoriesHelper::createCategory($table);
+		}
+
 		// Alter the name for save as copy
 		if ($input->get('task') == 'save2copy')
 		{
diff --git a/administrator/components/com_newsfeeds/views/newsfeed/tmpl/edit.php b/administrator/components/com_newsfeeds/views/newsfeed/tmpl/edit.php
index 179fe6ae80569..3b85de4d59a59 100644
--- a/administrator/components/com_newsfeeds/views/newsfeed/tmpl/edit.php
+++ b/administrator/components/com_newsfeeds/views/newsfeed/tmpl/edit.php
@@ -14,7 +14,7 @@
 
 JHtml::_('behavior.formvalidator');
 JHtml::_('behavior.keepalive');
-JHtml::_('formbehavior.chosen', 'select');
+JHtml::_('formbehavior.chosen', 'select', null, array('disable_search_threshold' => 0 ));
 
 $app = JFactory::getApplication();
 $input = $app->input;