diff --git a/packages/desktop-client/src/components/transactions/TransactionsTable.jsx b/packages/desktop-client/src/components/transactions/TransactionsTable.jsx
index 152bed07a8..c26fe412d0 100644
--- a/packages/desktop-client/src/components/transactions/TransactionsTable.jsx
+++ b/packages/desktop-client/src/components/transactions/TransactionsTable.jsx
@@ -1361,6 +1361,9 @@ const Transaction = memo(function Transaction({
                 margin: '0 5px',
                 padding: '3px 7px',
                 borderRadius: 4,
+                overflow: 'hidden',
+                textOverflow: 'ellipsis',
+                display: 'inline-block',
               }}
             >
               {titleFirst(categoryId)}
diff --git a/upcoming-release-notes/3906.md b/upcoming-release-notes/3906.md
new file mode 100644
index 0000000000..72f3c03008
--- /dev/null
+++ b/upcoming-release-notes/3906.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [annechoww]
+---
+
+Fix bug where category labels are not scaling correctly on small screens