diff --git a/eslint.config.mjs b/eslint.config.mjs
index 157371a075..96509d58c4 100644
--- a/eslint.config.mjs
+++ b/eslint.config.mjs
@@ -791,7 +791,6 @@ export default [
       'packages/desktop-client/src/components/sort.tsx',
       'packages/desktop-client/src/components/spreadsheet/useSheetValue.ts',
       'packages/desktop-client/src/components/transactions/TransactionList.jsx',
-      'packages/desktop-client/src/hooks/useCategories.ts',
     ],
 
     rules: {
diff --git a/packages/desktop-client/src/hooks/useCategories.ts b/packages/desktop-client/src/hooks/useCategories.ts
index a6936b3586..b233d77852 100644
--- a/packages/desktop-client/src/hooks/useCategories.ts
+++ b/packages/desktop-client/src/hooks/useCategories.ts
@@ -4,15 +4,18 @@ import { getCategories } from 'loot-core/client/queries/queriesSlice';
 
 import { useSelector, useDispatch } from '../redux';
 
+import { useInitialMount } from './useInitialMount';
+
 export function useCategories() {
   const dispatch = useDispatch();
   const categoriesLoaded = useSelector(state => state.queries.categoriesLoaded);
+  const isInitialMount = useInitialMount();
 
   useEffect(() => {
-    if (!categoriesLoaded) {
+    if (isInitialMount && !categoriesLoaded) {
       dispatch(getCategories());
     }
-  }, []);
+  }, [categoriesLoaded, dispatch, isInitialMount]);
 
   return useSelector(state => state.queries.categories);
 }
diff --git a/upcoming-release-notes/4261.md b/upcoming-release-notes/4261.md
new file mode 100644
index 0000000000..945197c874
--- /dev/null
+++ b/upcoming-release-notes/4261.md
@@ -0,0 +1,6 @@
+---
+category: Maintenance
+authors: [joel-jeremy]
+---
+
+Fix react-hooks/exhaustive-deps error on useCategories.ts