diff --git a/packages/desktop-client/src/components/autocomplete/CategoryAutocomplete.tsx b/packages/desktop-client/src/components/autocomplete/CategoryAutocomplete.tsx
index 99041a45872..9d23862b8e9 100644
--- a/packages/desktop-client/src/components/autocomplete/CategoryAutocomplete.tsx
+++ b/packages/desktop-client/src/components/autocomplete/CategoryAutocomplete.tsx
@@ -202,8 +202,7 @@ export default function CategoryAutocomplete({
         return suggestions.filter(suggestion => {
           return (
             suggestion.id === 'split' ||
-            defaultFilterSuggestion(suggestion, value) ||
-            suggestion.groupName.toLowerCase().includes(value.toLowerCase())
+            defaultFilterSuggestion(suggestion, value)
           );
         });
       }}
diff --git a/packages/desktop-client/src/components/transactions/TransactionsTable.test.js b/packages/desktop-client/src/components/transactions/TransactionsTable.test.js
index b859327ccc4..27849cc6463 100644
--- a/packages/desktop-client/src/components/transactions/TransactionsTable.test.js
+++ b/packages/desktop-client/src/components/transactions/TransactionsTable.test.js
@@ -448,17 +448,12 @@ describe('Transactions', () => {
     expect(items[1].textContent).toBe('General');
     expect(items[1].dataset['testid']).toBe('category-item-highlighted');
 
-    // It should also allow filtering on group names
+    // It should not allow filtering on group names
     await userEvent.clear(input);
-    await userEvent.type(input, 'Usual');
+    await userEvent.type(input, 'Usual Expenses');
 
     items = tooltip.querySelectorAll('[data-testid*="category-item"]');
-    expect(items.length).toBe(4);
-    expect(items[0].textContent).toBe('Usual Expenses');
-    expect(items[1].textContent).toBe('Food');
-    expect(items[2].textContent).toBe('General');
-    expect(items[3].textContent).toBe('Home');
-    expect(items[1].dataset['testid']).toBe('category-item-highlighted');
+    expect(items.length).toBe(0);
   });
 
   test('dropdown selects an item with keyboard', async () => {
diff --git a/upcoming-release-notes/1681.md b/upcoming-release-notes/1681.md
new file mode 100644
index 00000000000..d04fc9a8ccd
--- /dev/null
+++ b/upcoming-release-notes/1681.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [shaankhosla]
+---
+
+Category autocomplete doesn't include unselectable category groups now
\ No newline at end of file