diff --git a/src/panels/config/category/dialog-category-registry-detail.ts b/src/panels/config/category/dialog-category-registry-detail.ts
index 84881e3809..74f89f0bd7 100644
--- a/src/panels/config/category/dialog-category-registry-detail.ts
+++ b/src/panels/config/category/dialog-category-registry-detail.ts
@@ -34,8 +34,13 @@ class DialogCategoryDetail extends LitElement {
   ): Promise<void> {
     this._params = params;
     this._error = undefined;
-    this._name = this._params.entry ? this._params.entry.name : "";
-    this._icon = this._params.entry?.icon || null;
+    if (this._params.entry) {
+      this._name = this._params.entry.name || "";
+      this._icon = this._params.entry.icon || null;
+    } else {
+      this._name = this._params.suggestedName || "";
+      this._icon = null;
+    }
     await this.updateComplete;
   }
 
diff --git a/src/panels/config/category/ha-category-picker.ts b/src/panels/config/category/ha-category-picker.ts
index 090b3f89b2..529db65b2c 100644
--- a/src/panels/config/category/ha-category-picker.ts
+++ b/src/panels/config/category/ha-category-picker.ts
@@ -237,6 +237,7 @@ export class HaCategoryPicker extends SubscribeMixin(LitElement) {
 
     showCategoryRegistryDetailDialog(this, {
       scope: this.scope!,
+      suggestedName: newValue === ADD_NEW_SUGGESTION_ID ? this._suggestion : "",
       createEntry: async (values) => {
         const category = await createCategoryRegistryEntry(
           this.hass,