diff --git a/app/modules/loyalty/locales/en.json b/app/modules/loyalty/locales/en.json
index cb4276eb..fee310ce 100644
--- a/app/modules/loyalty/locales/en.json
+++ b/app/modules/loyalty/locales/en.json
@@ -487,6 +487,7 @@
             "transaction_categories": "Transaction Categories",
             "select_store": "Select a store...",
             "no_categories": "No categories configured. Click Add to create one.",
+            "delete_category_message": "Are you sure you want to delete this category? Existing transactions will keep the category reference but it will no longer be available for new transactions.",
             "admin_policy_settings": "Admin Policy Settings",
             "staff_pin_policy": "Staff PIN Policy",
             "self_enrollment": "Self Enrollment",
diff --git a/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js b/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js
index 36210023..7c089220 100644
--- a/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js
+++ b/app/modules/loyalty/static/admin/js/loyalty-merchant-detail.js
@@ -41,6 +41,8 @@ function adminLoyaltyMerchantDetail() {
         newCategoryTranslations: { fr: '', de: '', lb: '' },
         viewingCategoryId: null,
         editingCategoryId: null,
+        showDeleteCategoryModal: false,
+        categoryToDelete: null,
         editCategoryData: { name: '', translations: { fr: '', de: '', lb: '' } },
 
         // State
@@ -353,14 +355,17 @@ function adminLoyaltyMerchantDetail() {
             }
         },
 
-        async deleteCategory(catId) {
-            if (!confirm('Delete this category?')) return;
+        async confirmDeleteCategory() {
+            if (!this.categoryToDelete) return;
             try {
-                await apiClient.delete(`/admin/loyalty/stores/${this.selectedCategoryStoreId}/categories/${catId}`);
+                await apiClient.delete(`/admin/loyalty/stores/${this.selectedCategoryStoreId}/categories/${this.categoryToDelete}`);
                 await this.loadCategoriesForStore();
                 Utils.showToast('Category deleted', 'success');
             } catch (error) {
                 Utils.showToast(error.message || 'Failed to delete category', 'error');
+            } finally {
+                this.showDeleteCategoryModal = false;
+                this.categoryToDelete = null;
             }
         }
     };
diff --git a/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html b/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html
index 4f7a36ab..8caa3522 100644
--- a/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html
+++ b/app/modules/loyalty/templates/loyalty/admin/merchant-detail.html
@@ -152,7 +152,7 @@
         </div>
     </div>
 
-    <!-- Delete Confirmation Modal -->
+    <!-- Delete Program Confirmation Modal -->
     {{ confirm_modal(
         'deleteProgramModal',
         _('loyalty.admin.merchant_detail.delete_title'),
@@ -164,6 +164,18 @@
         'danger'
     ) }}
 
+    <!-- Delete Category Confirmation Modal -->
+    {{ confirm_modal(
+        'deleteCategoryModal',
+        _('loyalty.common.delete'),
+        _('loyalty.admin.merchant_detail.delete_category_message'),
+        'confirmDeleteCategory()',
+        'showDeleteCategoryModal',
+        _('loyalty.common.delete'),
+        _('loyalty.common.cancel'),
+        'danger'
+    ) }}
+
     <!-- Location Breakdown -->
     <div x-show="locations.length > 0" class="px-4 py-3 mb-8 bg-white rounded-lg shadow-md dark:bg-gray-800">
         <h3 class="mb-4 text-lg font-semibold text-gray-700 dark:text-gray-200">
@@ -287,7 +299,7 @@
                                         class="text-sm" :class="cat.is_active ? 'text-orange-500 hover:text-orange-700' : 'text-green-500 hover:text-green-700'">
                                     <span x-html="$icon(cat.is_active ? 'ban' : 'play', 'w-4 h-4')"></span>
                                 </button>
-                                <button @click="deleteCategory(cat.id)" type="button"
+                                <button @click="categoryToDelete = cat.id; showDeleteCategoryModal = true" type="button"
                                         aria-label="{{ _('loyalty.common.delete') }}"
                                         class="text-red-500 hover:text-red-700">
                                     <span x-html="$icon('trash', 'w-4 h-4')"></span>