diff --git a/frontend/app/features/content/pages/schemas/schemas-page.component.html b/frontend/app/features/content/pages/schemas/schemas-page.component.html
index d5343b587..e911402fd 100644
--- a/frontend/app/features/content/pages/schemas/schemas-page.component.html
+++ b/frontend/app/features/content/pages/schemas/schemas-page.component.html
@@ -20,7 +20,8 @@
     
         <ng-container>
             <sqx-schema-category *ngFor="let category of categories | async; trackBy: trackByCategory"
-                [schemaCategory]="category" [forContent]="true">
+                [schemaCategory]="category" 
+                [schemaTarget]="'Contents'">
             </sqx-schema-category>
         </ng-container>
     </ng-container>
diff --git a/frontend/app/features/schemas/pages/schema/schema-page.component.scss b/frontend/app/features/schemas/pages/schema/schema-page.component.scss
index 778f3311f..a1a84068c 100644
--- a/frontend/app/features/schemas/pages/schema/schema-page.component.scss
+++ b/frontend/app/features/schemas/pages/schema/schema-page.component.scss
@@ -6,6 +6,7 @@
 }
 
 .cards {
+    overflow-x: hidden;
     overflow-y: auto;
     padding: $panel-padding;
 }
diff --git a/frontend/app/features/schemas/pages/schemas/schemas-page.component.scss b/frontend/app/features/schemas/pages/schemas/schemas-page.component.scss
index 9679c5ee0..e69de29bb 100644
--- a/frontend/app/features/schemas/pages/schemas/schemas-page.component.scss
+++ b/frontend/app/features/schemas/pages/schemas/schemas-page.component.scss
@@ -1,4 +0,0 @@
-::ng-deep sqx-schemas-page .panel2-main-inner.padded {
-    padding: .5rem;
-    padding-left: 0;
-}
\ No newline at end of file
diff --git a/frontend/app/shared/components/schema-category.component.html b/frontend/app/shared/components/schema-category.component.html
index e69b7100e..ef8d74c14 100644
--- a/frontend/app/shared/components/schema-category.component.html
+++ b/frontend/app/shared/components/schema-category.component.html
@@ -1,6 +1,5 @@
-<ul [hidden]="forContent && visibleCount == 0" id="cat_{{schemaCategory.name}}" class="nav nav-light flex-column">
-
-    <div class="droppable category"
+<ul [hidden]="forContent && schemaCategory.countSchemasInSubtree === 0" class="nav nav-light flex-column">
+    <div class="droppable nav-category"
         cdkDropList
         cdkDropListSortingDisabled
         [cdkDropListData]="schemaCategory.name"
@@ -19,8 +18,8 @@
                     </div>
                 </div>
                 <div class="col-auto">
-                    <ng-container *ngIf="visibleCount > 0; else noSchemas">
-                        <span class="badge rounded-pill badge-secondary">{{visibleCount}}</span>
+                    <ng-container *ngIf="schemaCategory.countSchemasInSubtree > 0; else noSchemas">
+                        <span class="badge rounded-pill badge-secondary">{{schemaCategory.countSchemasInSubtreeFiltered}}</span>
                     </ng-container>
                     <ng-template #noSchemas>
                         <button type="button" class="btn btn-sm btn-text-secondary btn-remove" (click)="remove.emit(schemaCategory.name)" *ngIf="schemaCategory.name">
@@ -31,7 +30,7 @@
             </div>
         </li>
 
-        <div [hidden]="isCollapsed" @fade [style.height]="getContainerHeight()" class="nav-collapsed">
+        <div [hidden]="isCollapsed" [style.height]="getContainerHeight()" class="nav-collapsed">
             <ng-container *ngIf="!forContent; else simpleMode">
                 <li *ngFor="let schema of schemas; trackBy: trackBySchema" class="nav-item truncate" [style.height]="getItemHeight()"
                     cdkDrag
@@ -52,8 +51,7 @@
                 <li *ngFor="let schema of schemas; trackBy: trackBySchema" class="nav-item truncate">
                     <a class="nav-link truncate drag-none" [routerLink]="schemaRoute(schema)" routerLinkActive="active" sqxStopDrag
                         title="{{schema.displayName}}"
-                        titlePosition="top-left"
-                        id="schema_{{schema.name}}">
+                        titlePosition="top-left">
                         {{schema.displayName}}
                     </a>
                 </li>
@@ -61,13 +59,12 @@
         </div>
 
         <div class="drop-indicator"></div>
-
     </div>
 
-    <div class="nav nav-panel nav-dark nav-dark-bordered flex-column" [hidden]="isCollapsed" @fade>
+    <div class="categories" [hidden]="isCollapsed">
         <sqx-schema-category *ngFor="let category of schemaCategory.categories; trackBy: trackByCategory"
             [schemaCategory]="category"
-            [forContent]="forContent"
+            [schemaTarget]="schemaTarget"
             (remove)="remove.emit($event)">
         </sqx-schema-category>
     </div>
diff --git a/frontend/app/shared/components/schema-category.component.scss b/frontend/app/shared/components/schema-category.component.scss
index 9429da6dc..fb98cb9c2 100644
--- a/frontend/app/shared/components/schema-category.component.scss
+++ b/frontend/app/shared/components/schema-category.component.scss
@@ -74,26 +74,31 @@ $drag-margin: -8px;
     }
 }
 
-:host {
-    &:first-child {
-        .nav-light {
-            margin-top: 0;
-        }
-    }
-}
-
 .item-published {
     margin-bottom: 1px;
 }
 
-ul.nav-light {
-    margin-left: 1rem;
-    margin-right: 0;
-    font-size: 100%;
-}
-
-.category,
+.nav-category,
 .nav-panel,
 sqx-schema-category {
     max-width: 100%;
+}
+
+.categories {
+    padding: 0;
+    padding-left: 1rem;
+    font-size: 1rem;
+
+    .nav-light {
+        margin-left: 0;
+        margin-right: 0;
+    }
+}
+
+:host {
+    &:first-child {
+        .nav-light {
+            margin-top: 0;
+        }
+    }
 }
\ No newline at end of file
diff --git a/frontend/app/shared/components/schema-category.component.ts b/frontend/app/shared/components/schema-category.component.ts
index 262c1586c..02cd0b852 100644
--- a/frontend/app/shared/components/schema-category.component.ts
+++ b/frontend/app/shared/components/schema-category.component.ts
@@ -28,14 +28,16 @@ export class SchemaCategoryComponent implements OnChanges {
     public schemaCategory: SchemaCategory;
 
     @Input()
-    public forContent?: boolean | null;
+    public schemaTarget?: 'Schema' | 'Contents';
 
     public isCollapsed = false;
 
-    public visibleCount = 0;
+    public get forContent() {
+        return this.schemaTarget === 'Contents';
+    }
 
     public get schemas() {
-        return this.schemaCategory.schemas;
+        return this.schemaCategory.schemasFiltered;
     }
 
     constructor(
@@ -51,19 +53,13 @@ export class SchemaCategoryComponent implements OnChanges {
     }
 
     public ngOnChanges() {
-        this.visibleCount = this.getCount(this.schemaCategory);
-        if (this.schemaCategory.schemas.length < this.schemaCategory.schemaTotalCount) {
+        if (this.schemaCategory.countSchemasInSubtreeFiltered < this.schemaCategory.countSchemasInSubtree) {
             this.isCollapsed = false;
         } else {
             this.isCollapsed = this.localStore.getBoolean(this.configKey());
         }
     }
 
-    private getCount(category: SchemaCategory): number {
-        const childCount = category.categories.reduce((total, child) => total + this.getCount(child), 0);
-        return childCount + category.schemas.length;
-    }
-
     public schemaRoute(schema: SchemaDto) {
         if (schema.type === 'Singleton' && this.forContent) {
             return [schema.name, schema.id, 'history'];
diff --git a/frontend/app/shared/services/schemas.service.spec.ts b/frontend/app/shared/services/schemas.service.spec.ts
index 0277c1bc3..585765878 100644
--- a/frontend/app/shared/services/schemas.service.spec.ts
+++ b/frontend/app/shared/services/schemas.service.spec.ts
@@ -818,15 +818,12 @@ function createSchemaProperties(id: number, suffix = '') {
     );
 }
 
-export function createSchema(id: number, suffix = '', category = '') {
+export function createSchema(id: number, suffix = '') {
     const links: ResourceLinks = {
         update: { method: 'PUT', href: `/schemas/${id}` },
     };
 
     const key = `${id}${suffix}`;
-    if (category === '') {
-        category = `schema-category${key}`;
-    }
 
     return new SchemaDto(links,
         `id${id}`,
@@ -834,7 +831,7 @@ export function createSchema(id: number, suffix = '', category = '') {
         DateTime.parseISO(`${id % 1000 + 2000}-11-11T10:10:00Z`), `modifier${id}`,
         new Version(key),
         `schema-name${key}`,
-        category,
+        `schema-category${key}`,
         id % 2 === 0 ? 'Default' : 'Singleton',
         id % 3 === 0,
         createSchemaProperties(id, suffix),
diff --git a/frontend/app/shared/state/schemas.state.spec.ts b/frontend/app/shared/state/schemas.state.spec.ts
index 2fc8a8144..48d5bfc36 100644
--- a/frontend/app/shared/state/schemas.state.spec.ts
+++ b/frontend/app/shared/state/schemas.state.spec.ts
@@ -494,14 +494,74 @@ describe('SchemasState', () => {
     });
 
     describe('Categories', () => {
-        it('should be build from schemas', () => {
+        it('should be build from schemas with undefined categories', () => {
+            const schemaDefault = createSchema(6);
+            const schemaComponent = createSchema(7);
+
+            (schemaDefault as any)['category'] = '';
+            (schemaComponent as any)['category'] = '';
+            (schemaComponent as any)['type'] = 'Component';
+
+            const result = getCategoryTree([schemaDefault, schemaComponent], new Set<string>());
+
+            expect(result).toEqual([
+                {
+                    displayName: 'i18n:common.components',
+                    schemas: [schemaComponent],
+                    schemasFiltered: [schemaComponent],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
+                {
+                    displayName: 'i18n:common.schemas',
+                    schemas: [schemaDefault],
+                    schemasFiltered: [schemaDefault],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
+            ]);
+        });
+
+        it('should be build from schemas with defined categories', () => {
             const result = getCategoryTree([schema1, schema2], new Set<string>());
 
             expect(result).toEqual([
-                { displayName: 'i18n:common.components', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'i18n:common.schemas', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'schema-category1', name: 'schema-category1', schemas: [schema1], schemaTotalCount: 1, categories: [] },
-                { displayName: 'schema-category2', name: 'schema-category2', schemas: [schema2], schemaTotalCount: 1, categories: [] },
+                {
+                    displayName: 'i18n:common.components',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
+                {
+                    displayName: 'i18n:common.schemas',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
+                {
+                    displayName: 'schema-category1',
+                    name: 'schema-category1',
+                    schemas: [schema1],
+                    schemasFiltered: [schema1],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
+                {
+                    displayName: 'schema-category2',
+                    name: 'schema-category2',
+                    schemas: [schema2],
+                    schemasFiltered: [schema2],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
             ]);
         });
 
@@ -509,11 +569,49 @@ describe('SchemasState', () => {
             const result = getCategoryTree([schema1, schema2], new Set<string>(['schema-category3']));
 
             expect(result).toEqual([
-                { displayName: 'i18n:common.components', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'i18n:common.schemas', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'schema-category1', name: 'schema-category1', schemas: [schema1], schemaTotalCount: 1, categories: [] },
-                { displayName: 'schema-category2', name: 'schema-category2', schemas: [schema2], schemaTotalCount: 1, categories: [] },
-                { displayName: 'schema-category3', name: 'schema-category3', schemas: [], schemaTotalCount: 0, categories: [] },
+                {
+                    displayName: 'i18n:common.components',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
+                {
+                    displayName: 'i18n:common.schemas',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
+                {
+                    displayName: 'schema-category1',
+                    name: 'schema-category1',
+                    schemas: [schema1],
+                    schemasFiltered: [schema1],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
+                {
+                    displayName: 'schema-category2',
+                    name: 'schema-category2',
+                    schemas: [schema2],
+                    schemasFiltered: [schema2],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
+                {
+                    displayName: 'schema-category3',
+                    name: 'schema-category3',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
             ]);
         });
 
@@ -521,24 +619,100 @@ describe('SchemasState', () => {
             const result = getCategoryTree([schema1, schema2], new Set<string>(), '1');
 
             expect(result).toEqual([
-                { displayName: 'i18n:common.components', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'i18n:common.schemas', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'schema-category1', name: 'schema-category1', schemas: [schema1], schemaTotalCount: 1, categories: [] },
-                { displayName: 'schema-category2', name: 'schema-category2', schemas: [], schemaTotalCount: 1, categories: [] }, // Filtered out
+                {
+                    displayName: 'i18n:common.components',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
+                {
+                    displayName: 'i18n:common.schemas',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
+                {
+                    displayName: 'schema-category1',
+                    name: 'schema-category1',
+                    schemas: [schema1],
+                    schemasFiltered: [schema1],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
+                {
+                    displayName: 'schema-category2',
+                    name: 'schema-category2',
+                    schemas: [schema2],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                },
             ]);
         });
 
         it('should be build from schemas with nested categories', () => {
-            const schema3 = createSchema(3, '', 'A');
-            const schema4 = createSchema(4, '', 'A/B');
-            const result = getCategoryTree([schema1, schema2, schema3, schema4], new Set<string>());
+            const schemaA = createSchema(3);
+            const schemaAB = createSchema(4);
+
+            (schemaA as any)['category'] = 'A';
+            (schemaAB as any)['category'] = 'A/B';
+
+            const result = getCategoryTree([schema1, schema2, schemaA, schemaAB], new Set<string>());
 
             expect(result).toEqual([
-                { displayName: 'i18n:common.components', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'i18n:common.schemas', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'A', name: 'A', schemas: [schema3], schemaTotalCount: 2, categories: [{ displayName: 'B', name: 'A/B', schemas: [schema4], schemaTotalCount: 1, categories: [] }] },
-                { displayName: 'schema-category1', name: 'schema-category1', schemas: [schema1], schemaTotalCount: 1, categories: [] },
-                { displayName: 'schema-category2', name: 'schema-category2', schemas: [schema2], schemaTotalCount: 1, categories: [] },
+                {
+                    displayName: 'i18n:common.components',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                }, {
+                    displayName: 'i18n:common.schemas',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                }, {
+                    displayName: 'A',
+                    name: 'A',
+                    schemas: [schemaA],
+                    schemasFiltered: [schemaA],
+                    countSchemasInSubtree: 2,
+                    countSchemasInSubtreeFiltered: 2,
+                    categories: [{
+                        displayName: 'B',
+                        name: 'A/B',
+                        schemas: [schemaAB],
+                        schemasFiltered: [schemaAB],
+                        countSchemasInSubtree: 1,
+                        countSchemasInSubtreeFiltered: 1,
+                        categories: [],
+                    }],
+                }, {
+                    displayName: 'schema-category1',
+                    name: 'schema-category1',
+                    schemas: [schema1],
+                    schemasFiltered: [schema1],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                }, {
+                    displayName: 'schema-category2',
+                    name: 'schema-category2',
+                    schemas: [schema2],
+                    schemasFiltered: [schema2],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
             ]);
         });
 
@@ -546,26 +720,115 @@ describe('SchemasState', () => {
             const result = getCategoryTree([schema1, schema2], new Set<string>(['A/B']));
 
             expect(result).toEqual([
-                { displayName: 'i18n:common.components', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'i18n:common.schemas', schemas: [], schemaTotalCount: 0, categories: [] },
-                { displayName: 'A', name: 'A', schemas: [], schemaTotalCount: 0, categories: [{ displayName: 'B', name: 'A/B', schemas: [], schemaTotalCount: 0, categories: [] }] },
-                { displayName: 'schema-category1', name: 'schema-category1', schemas: [schema1], schemaTotalCount: 1, categories: [] },
-                { displayName: 'schema-category2', name: 'schema-category2', schemas: [schema2], schemaTotalCount: 1, categories: [] },
+                {
+                    displayName: 'i18n:common.components',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                }, {
+                    displayName: 'i18n:common.schemas',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [],
+                }, {
+                    displayName: 'A',
+                    name: 'A',
+                    schemas: [],
+                    schemasFiltered: [],
+                    countSchemasInSubtree: 0,
+                    countSchemasInSubtreeFiltered: 0,
+                    categories: [{
+                        displayName: 'B',
+                        name: 'A/B',
+                        schemas: [],
+                        schemasFiltered: [],
+                        countSchemasInSubtree: 0,
+                        countSchemasInSubtreeFiltered: 0,
+                        categories: [],
+                    }],
+                }, {
+                    displayName: 'schema-category1',
+                    name: 'schema-category1',
+                    schemas: [schema1],
+                    schemasFiltered: [schema1],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                }, {
+                    displayName: 'schema-category2',
+                    name: 'schema-category2',
+                    schemas: [schema2],
+                    schemasFiltered: [schema2],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                },
             ]);
         });
     });
 
     it('should be build from schemas with nested categories and filter', () => {
-        const schema3 = createSchema(3, '', 'A');
-        const schema4 = createSchema(4, '', 'A/B');
-        const result = getCategoryTree([schema1, schema2, schema3, schema4], new Set<string>(), '4');
+        const schemaA = createSchema(3);
+        const schemaAB = createSchema(4);
+
+        (schemaA as any)['category'] = 'A';
+        (schemaAB as any)['category'] = 'A/B';
+
+        const result = getCategoryTree([schema1, schema2, schemaA, schemaAB], new Set<string>(), '4');
 
         expect(result).toEqual([
-            { displayName: 'i18n:common.components', schemas: [], schemaTotalCount: 0, categories: [] },
-            { displayName: 'i18n:common.schemas', schemas: [], schemaTotalCount: 0, categories: [] },
-            { displayName: 'A', name: 'A', schemas: [], schemaTotalCount: 2, categories: [{ displayName: 'B', name: 'A/B', schemas: [schema4], schemaTotalCount: 1, categories: [] }] },
-            { displayName: 'schema-category1', name: 'schema-category1', schemas: [], schemaTotalCount: 1, categories: [] },
-            { displayName: 'schema-category2', name: 'schema-category2', schemas: [], schemaTotalCount: 1, categories: [] },
+            {
+                displayName: 'i18n:common.components',
+                schemas: [],
+                schemasFiltered: [],
+                countSchemasInSubtree: 0,
+                countSchemasInSubtreeFiltered: 0,
+                categories: [],
+            }, {
+                displayName: 'i18n:common.schemas',
+                schemas: [],
+                schemasFiltered: [],
+                countSchemasInSubtree: 0,
+                countSchemasInSubtreeFiltered: 0,
+                categories: [],
+            },
+            {
+                displayName: 'A',
+                name: 'A',
+                schemas: [schemaA],
+                schemasFiltered: [],
+                countSchemasInSubtree: 2,
+                countSchemasInSubtreeFiltered: 1,
+                categories: [{
+                    displayName: 'B',
+                    name: 'A/B',
+                    schemas: [schemaAB],
+                    schemasFiltered: [schemaAB],
+                    countSchemasInSubtree: 1,
+                    countSchemasInSubtreeFiltered: 1,
+                    categories: [],
+                }],
+            }, {
+                displayName: 'schema-category1',
+                name: 'schema-category1',
+                schemas: [schema1],
+                schemasFiltered: [],
+                countSchemasInSubtree: 1,
+                countSchemasInSubtreeFiltered: 0,
+                categories: [],
+            }, {
+                displayName: 'schema-category2',
+                name: 'schema-category2',
+                schemas: [schema2],
+                schemasFiltered: [],
+                countSchemasInSubtree: 1,
+                countSchemasInSubtreeFiltered: 0,
+                categories: [],
+            },
         ]);
     });
 });
diff --git a/frontend/app/shared/state/schemas.state.ts b/frontend/app/shared/state/schemas.state.ts
index ba4ef3c3a..c1f1a839d 100644
--- a/frontend/app/shared/state/schemas.state.ts
+++ b/frontend/app/shared/state/schemas.state.ts
@@ -367,7 +367,9 @@ export type SchemaCategory = {
     displayName: string;
     name?: string;
     schemas: SchemaDto[];
-    schemaTotalCount: number;
+    schemasFiltered: SchemaDto[];
+    countSchemasInSubtree: number;
+    countSchemasInSubtreeFiltered: number;
     categories: SchemaCategory[];
 };
 
@@ -394,52 +396,72 @@ export function getCategoryTree(allSchemas: ReadonlyArray<SchemaDto>, categories
     const schemas: SchemaCategory = {
         displayName: SPECIAL_SCHEMAS,
         schemas: [],
-        schemaTotalCount: 0,
+        schemasFiltered: [],
+        countSchemasInSubtree: 0,
+        countSchemasInSubtreeFiltered: 0,
         categories: [],
     };
 
     const components: SchemaCategory = {
         displayName: SPECIAL_COMPONENTS,
         schemas: [],
-        schemaTotalCount: 0,
+        schemasFiltered: [],
+        countSchemasInSubtree: 0,
+        countSchemasInSubtreeFiltered: 0,
         categories: [],
     };
 
-    const flatCategoryList: SchemaCategory[] = [schemas, components];
+    const categoryCache: { [name: string]: SchemaCategory } = {};
+    const categoryRoots: SchemaCategory[] = [];
 
+    // Sort the categories so that components and schemas stay top.
     for (const name of categories) {
         getOrCreateCategory(name);
     }
 
     function addSchemaToCategory(schema: SchemaDto, category: SchemaCategory) {
-        category.schemaTotalCount++;
+        category.schemas.push(schema);
 
         if (match(schema)) {
-            category.schemas.push(schema);
+            category.schemasFiltered.push(schema);
         }
     }
 
     function getOrCreateCategory(name: string): SchemaCategory {
-        let category = flatCategoryList.find(x => x.name === name);
+        let category = categoryCache[name];
 
-        const displayName = (name.indexOf(NESTED_CATEGORY_SEPARATOR) === -1) ? name : name.substr(name.lastIndexOf(NESTED_CATEGORY_SEPARATOR) + 1);
+        if (category) {
+            return category;
+        }
 
-        if (!category) {
-            category = {
-                displayName,
-                name,
-                schemas: [],
-                schemaTotalCount: 0,
-                categories: [],
-            };
+        let displayName = name;
 
-            flatCategoryList.push(category);
+        const lastSeparatorIndex = name.lastIndexOf(NESTED_CATEGORY_SEPARATOR);
 
-            if (name.indexOf(NESTED_CATEGORY_SEPARATOR) !== -1) {
-                // Recurse back creating all the parents of this category
-                const parentName = name.substr(0, name.lastIndexOf(NESTED_CATEGORY_SEPARATOR));
-                getOrCreateCategory(parentName);
-            }
+        if (lastSeparatorIndex >= 0) {
+            displayName = displayName.substr(lastSeparatorIndex + 1);
+        }
+
+        category = {
+            displayName,
+            name,
+            schemas: [],
+            schemasFiltered: [],
+            countSchemasInSubtree: 0,
+            countSchemasInSubtreeFiltered: 0,
+            categories: [],
+        };
+
+        categoryCache[name] = category;
+
+        if (lastSeparatorIndex >= 0) {
+            // Recurse back creating all the parents of this category
+            const parentName = name.substr(0, lastSeparatorIndex);
+            const parentCategory = getOrCreateCategory(parentName);
+
+            parentCategory.categories.push(category);
+        } else {
+            categoryRoots.push(category);
         }
 
         return category;
@@ -449,8 +471,7 @@ export function getCategoryTree(allSchemas: ReadonlyArray<SchemaDto>, categories
         const name = schema.category;
 
         if (name) {
-            const category = getOrCreateCategory(name);
-            addSchemaToCategory(schema, category);
+            addSchemaToCategory(schema, getOrCreateCategory(name));
         } else if (schema.type === 'Component') {
             addSchemaToCategory(schema, components);
         } else {
@@ -458,28 +479,29 @@ export function getCategoryTree(allSchemas: ReadonlyArray<SchemaDto>, categories
         }
     }
 
-    // Sort by name and than DisplayName so that children get correctly sorted under their parents but component and schema still sort correctly
-    flatCategoryList.sortByString(x => `${x.name ?? ''} - ${x.displayName}`);
-
-    const result: SchemaCategory[] = [];
-    // Child categories by necessity come after their parents alphabetically so processing in reverse lets us roll up all categories into their parents nicely.
-    // Because we're processing in reverse we unshift rather than push to the results array to get everything in the right order at the end.
-    for (const category of flatCategoryList.reverse()) {
-        if (category.name) {
-            if (category.name?.indexOf(NESTED_CATEGORY_SEPARATOR) !== -1) {
-                const parentName = category.name?.substr(0, category.name.lastIndexOf(NESTED_CATEGORY_SEPARATOR));
-                const parentCategory = flatCategoryList.find(x => x.name === parentName);
-                if (parentCategory) {
-                    parentCategory.categories.unshift(category);
-                    parentCategory.schemaTotalCount += category.schemaTotalCount;
-                }
-            } else {
-                result.unshift(category);
-            }
-        } else {
-            result.unshift(category);
+    function update(category: SchemaCategory) {
+        category.countSchemasInSubtree = category.schemas.length;
+        category.countSchemasInSubtreeFiltered = category.schemasFiltered.length;
+
+        // Add up the total count of the whole tree.
+        for (const child of category.categories) {
+            update(child);
+
+            category.countSchemasInSubtree += child.countSchemasInSubtree;
+            category.countSchemasInSubtreeFiltered += child.countSchemasInSubtreeFiltered;
         }
+
+        // Sort each category category individually because sorting is O(log N).
+        category.categories.sortByString(x => x.displayName);
+    }
+
+    // Sort by name and then add components and schemas, so that both categories are on top.
+    categoryRoots.sortByString(x => x.displayName);
+    categoryRoots.unshift(components, schemas);
+
+    for (const child of categoryRoots) {
+        update(child);
     }
 
-    return result;
+    return categoryRoots;
 }
diff --git a/frontend/app/theme/_panels2.scss b/frontend/app/theme/_panels2.scss
index 6d7ece1e6..bff9a1516 100644
--- a/frontend/app/theme/_panels2.scss
+++ b/frontend/app/theme/_panels2.scss
@@ -304,7 +304,7 @@
 
     .nav-heading {
         color: $color-text-decent;
-        margin-bottom: .5rem;
+        margin-bottom: 0;
         margin-top: 1rem;
     }
 }
\ No newline at end of file