1. Log in to Moodle as a site administrator.
2. From the Dashboard, click on Site administration in the left navigation menu.
3. In the Site administration menu, click on Courses.
4. Select Manage courses and categories from the options under Courses.
5. Click on the Create new category button.
6. Choose a Parent category from the dropdown list.
7. Enter the Category name.
8. Optionally, provide additional details in the Category description and adjust settings as needed.
9. Click on the Create category button to save your new category.
10. Verify the category creation by checking for it in the Manage courses and categories section.