diff --git a/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryForm.js b/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryForm.js
index a95c0ae29..82ef2ec21 100644
--- a/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryForm.js
+++ b/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryForm.js
@@ -24,6 +24,7 @@ export default function ItemCategoryForm({
   accountsList,
   categoriesList,
   isSubmitting,
+  onClose
 }) {
   // Filters Item Categories list.
   const filterItemCategories = useCallback(
@@ -203,7 +204,7 @@ export default function ItemCategoryForm({
 
       <div className={Classes.DIALOG_FOOTER}>
         <div className={Classes.DIALOG_FOOTER_ACTIONS}>
-          <Button>
+          <Button onClick={onClose}>
             <T id={'close'} />
           </Button>
           <Button intent={Intent.PRIMARY} type="submit" disabled={isSubmitting}>
diff --git a/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryFormDialogContent.js b/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryFormDialogContent.js
index 15d38be8e..cc5b5f0c1 100644
--- a/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryFormDialogContent.js
+++ b/client/src/containers/Dialogs/ItemCategoryDialog/ItemCategoryFormDialogContent.js
@@ -1,4 +1,4 @@
-import React, { useMemo } from 'react';
+import React, { useMemo, useCallback } from 'react';
 import { Intent } from '@blueprintjs/core';
 import * as Yup from 'yup';
 import { useQuery, queryCache } from 'react-query';
@@ -121,6 +121,11 @@ function ItemCategoryFormDialogContent({
     }
   };
 
+  // Handles dialog close.
+  const handleClose = useCallback(() => {
+    closeDialog(dialogName);
+  }, [closeDialog, dialogName]);
+
   return (
     <DialogContent
       isLoading={fetchCategoriesList.isFetching || fetchAccountsList.isFetching}
@@ -136,6 +141,7 @@ function ItemCategoryFormDialogContent({
             accountsList={accountsList}
             categoriesList={categoriesList}
             isSubmitting={isSubmitting}
+            onClose={handleClose}
           />
         )}
       </Formik>