diff --git a/src/BlockFieldManager.php b/src/BlockFieldManager.php
index 3c50168..5cae7d7 100644
--- a/src/BlockFieldManager.php
+++ b/src/BlockFieldManager.php
@@ -46,4 +46,11 @@ class BlockFieldManager implements BlockFieldManagerInterface {
     return $block_definitions;
   }
 
+  /**
+   * {@inheritdoc}
+   */
+  public function getBlockCategories() {
+    return $this->blockManager->getCategories();
+  }
+
 }
diff --git a/src/BlockFieldManagerInterface.php b/src/BlockFieldManagerInterface.php
index e57580f..8d20864 100644
--- a/src/BlockFieldManagerInterface.php
+++ b/src/BlockFieldManagerInterface.php
@@ -15,4 +15,12 @@ interface BlockFieldManagerInterface {
    */
   public function getBlockDefinitions();
 
+  /**
+   * Get list of all block categories.
+   *
+   * @return string[]
+   *   A numerically indexed array of block categories.
+   */
+  public function getBlockCategories();
+
 }
diff --git a/src/Plugin/Field/FieldType/BlockFieldItem.php b/src/Plugin/Field/FieldType/BlockFieldItem.php
index 4f56b52..c49de08 100644
--- a/src/Plugin/Field/FieldType/BlockFieldItem.php
+++ b/src/Plugin/Field/FieldType/BlockFieldItem.php
@@ -29,6 +29,8 @@ class BlockFieldItem extends FieldItemBase implements BlockFieldItemInterface {
   public static function defaultFieldSettings() {
     return [
       'plugin_ids' => [],
+      'categories' => [],
+      'filter' => [],
     ] + parent::defaultFieldSettings();
   }
 
@@ -84,6 +86,15 @@ class BlockFieldItem extends FieldItemBase implements BlockFieldItemInterface {
     /** @var \Drupal\block_field\BlockFieldManagerInterface $block_field_manager */
     $block_field_manager = \Drupal::service('block_field.manager');
     $definitions = $block_field_manager->getBlockDefinitions();
+    $categories = $block_field_manager->getBlockCategories();
+
+    $category_options = [];
+
+    foreach ($categories as $category) {
+      $category = (string) $category;
+      $category_options[$category] = $category;
+    }
+
     foreach ($definitions as $plugin_id => $definition) {
       $options[$plugin_id] = [
         ['category' => (string) $definition['category']],
@@ -92,14 +103,31 @@ class BlockFieldItem extends FieldItemBase implements BlockFieldItemInterface {
       ];
     }
 
-    $default_value = $field->getSetting('plugin_ids') ?: array_keys($options);
+    $filter_options = [
+      'plugin_ids' => $this->t('Blocks'),
+      'categories' => $this->t('Categories'),
+    ];
+
+    $default_value_plugin_ids = $field->getSetting('plugin_ids') ?: array_keys($options);
+    $default_value_categories = $field->getSetting('categories') ?: array_keys($category_options);
+    $default_value_filter = $field->getSetting('filter') ?: reset($filter_options);
 
     $element = [];
+
+    $element['filter'] = [
+      '#type' => 'radios',
+      '#title' => $this->t('Filter'),
+      '#description' => $this->t('Filter blocks by...'),
+      '#options' => $filter_options,
+      '#required' => TRUE,
+      '#default_value' => $default_value_filter,
+    ];
+
     $element['blocks'] = [
       '#type' => 'details',
       '#title' => $this->t('Blocks'),
       '#description' => $this->t('Please select available blocks.'),
-      '#open' => $field->getSetting('plugin_ids') ? TRUE : FALSE,
+      '#open' => $field->getSetting('filter') == 'plugin_ids',
     ];
     $element['blocks']['plugin_ids'] = [
       '#type' => 'tableselect',
@@ -110,11 +138,28 @@ class BlockFieldItem extends FieldItemBase implements BlockFieldItemInterface {
       ],
       '#options' => $options,
       '#js_select' => TRUE,
-      '#required' => TRUE,
       '#empty' => t('No blocks are available.'),
       '#parents' => ['settings', 'plugin_ids'],
       '#element_validate' => [[get_called_class(), 'validatePluginIds']],
-      '#default_value' => array_combine($default_value, $default_value),
+      '#default_value' => array_combine($default_value_plugin_ids, $default_value_plugin_ids),
+    ];
+
+    $element['categories'] = [
+      '#type' => 'details',
+      '#title' => $this->t('Categories'),
+      '#description' => $this->t('Please select available categories.'),
+      '#open' => $field->getSetting('filter') == 'categories',
+    ];
+    $element['categories']['category_list'] = [
+      '#type' => 'checkboxes',
+      '#header' => [
+        'Category',
+      ],
+      '#options' => $category_options,
+      '#js_select' => TRUE,
+      '#empty' => t('No categories are available.'),
+      '#parents' => ['settings', 'categories'],
+      '#default_value' => array_combine($default_value_categories, $default_value_categories),
     ];
     return $element;
   }
diff --git a/src/Plugin/Field/FieldWidget/BlockFieldWidget.php b/src/Plugin/Field/FieldWidget/BlockFieldWidget.php
index cc5958a..1f8d053 100644
--- a/src/Plugin/Field/FieldWidget/BlockFieldWidget.php
+++ b/src/Plugin/Field/FieldWidget/BlockFieldWidget.php
@@ -2,7 +2,11 @@
 
 namespace Drupal\block_field\Plugin\Field\FieldWidget;
 
+use Drupal\block\Entity\Block;
+use Drupal\block_content\Entity\BlockContent;
+use Drupal\Component\Annotation\Plugin;
 use Drupal\Component\Utility\NestedArray;
+use Drupal\Core\Entity\Entity;
 use Drupal\Core\Block\BlockManagerInterface;
 use Drupal\Core\Field\FieldItemListInterface;
 use Drupal\Core\Field\WidgetBase;
@@ -69,6 +73,27 @@ class BlockFieldWidget extends WidgetBase implements ContainerFactoryPluginInter
   }
 
   /**
+   * Checks whether given plugin is allowed in field.
+   *
+   * @param string $plugin_id, array $definition
+   *
+   * @return bool
+   */
+  public function pluginIsAllowed($plugin_id, $definition) {
+    $filter = $this->fieldDefinition->getSetting('filter');
+
+    if ($filter == 'plugin_ids') {
+      $plugin_ids = $this->fieldDefinition->getSetting('plugin_ids');
+      return $plugin_ids && !isset($plugin_ids[$plugin_id]);
+    }
+    elseif ($filter == 'categories') {
+      $allowed_categories = $this->fieldDefinition->getSetting('categories');
+      $category = (string) $definition['category'];
+      return $allowed_categories && isset($allowed_categories[$category]) && !$allowed_categories[$category];
+    }
+  }
+
+  /**
    * {@inheritdoc}
    */
   public function formElement(FieldItemListInterface $items, $delta, array $element, array &$form, FormStateInterface $form_state) {
@@ -81,8 +106,6 @@ class BlockFieldWidget extends WidgetBase implements ContainerFactoryPluginInter
       [$field_name, $delta, 'settings']
     ));
 
-    $plugin_ids = $this->fieldDefinition->getSetting('plugin_ids');
-
     $values = $form_state->getValues();
     $item->plugin_id = (isset($values[$field_name][$delta]['plugin_id'])) ? $values[$field_name][$delta]['plugin_id'] : $item->plugin_id;
     if (!empty($values[$field_name][$delta]['settings'])) {
@@ -99,7 +122,7 @@ class BlockFieldWidget extends WidgetBase implements ContainerFactoryPluginInter
     foreach ($definitions as $id => $definition) {
       // If allowed plugin ids are set then check that this block should be
       // included.
-      if ($plugin_ids && !isset($plugin_ids[$id])) {
+      if ($this->pluginIsAllowed($id, $definition)) {
         // Remove the definition, so that we have an accurate list of allowed
         // blocks definitions.
         unset($definitions[$id]);
@@ -110,7 +133,7 @@ class BlockFieldWidget extends WidgetBase implements ContainerFactoryPluginInter
     }
 
     // Make sure the plugin id is allowed, if not clear all settings.
-    if ($item->plugin_id && !isset($definitions[$item->plugin_id])) {
+    if (isset($definitions[$item->plugin_id]) && $this->pluginIsAllowed($item->plugin_id, $definitions[$item->plugin_id])) {
       $item->plugin_id = '';
       $item->setting = [];
     }