diff --git a/docs/reference-guides/core-blocks.md b/docs/reference-guides/core-blocks.md
index 0e0de9d4f8a50..66f713b3aa40f 100644
--- a/docs/reference-guides/core-blocks.md
+++ b/docs/reference-guides/core-blocks.md
@@ -72,14 +72,14 @@ A calendar of your site’s posts. ([Source](https://github.com/WordPress/gutenb
 -	**Supports:** align, color (background, link, text), interactivity (clientNavigation), typography (fontSize, lineHeight)
 -	**Attributes:** month, year
 
-## Categories List
+## Terms List
 
-Display a list of all categories. ([Source](https://github.com/WordPress/gutenberg/tree/trunk/packages/block-library/src/categories))
+Display a list of all terms of a given taxonomy. ([Source](https://github.com/WordPress/gutenberg/tree/trunk/packages/block-library/src/categories))
 
 -	**Name:** core/categories
 -	**Category:** widgets
 -	**Supports:** align, interactivity (clientNavigation), spacing (margin, padding), typography (fontSize, lineHeight), ~~html~~
--	**Attributes:** displayAsDropdown, label, showEmpty, showHierarchy, showLabel, showOnlyTopLevel, showPostCounts
+-	**Attributes:** displayAsDropdown, label, showEmpty, showHierarchy, showLabel, showOnlyTopLevel, showPostCounts, taxonomy
 
 ## Code
 
diff --git a/packages/block-library/src/categories/block.json b/packages/block-library/src/categories/block.json
index 460fbef92fdab..bfd8461f8eda4 100644
--- a/packages/block-library/src/categories/block.json
+++ b/packages/block-library/src/categories/block.json
@@ -2,11 +2,16 @@
 	"$schema": "https://schemas.wp.org/trunk/block.json",
 	"apiVersion": 3,
 	"name": "core/categories",
-	"title": "Categories List",
+	"title": "Terms List",
 	"category": "widgets",
-	"description": "Display a list of all categories.",
+	"description": "Display a list of all terms of a given taxonomy.",
+	"keywords": [ "categories" ],
 	"textdomain": "default",
 	"attributes": {
+		"taxonomy": {
+			"type": "string",
+			"default": "category"
+		},
 		"displayAsDropdown": {
 			"type": "boolean",
 			"default": false
diff --git a/packages/block-library/src/categories/edit.js b/packages/block-library/src/categories/edit.js
index 48d505eeb75ae..ccbf919433940 100644
--- a/packages/block-library/src/categories/edit.js
+++ b/packages/block-library/src/categories/edit.js
@@ -9,6 +9,7 @@ import clsx from 'clsx';
 import {
 	PanelBody,
 	Placeholder,
+	SelectControl,
 	Spinner,
 	ToggleControl,
 	VisuallyHidden,
@@ -20,7 +21,7 @@ import {
 	RichText,
 } from '@wordpress/block-editor';
 import { decodeEntities } from '@wordpress/html-entities';
-import { __ } from '@wordpress/i18n';
+import { __, sprintf } from '@wordpress/i18n';
 import { pin } from '@wordpress/icons';
 import { useEntityRecords } from '@wordpress/core-data';
 
@@ -33,19 +34,33 @@ export default function CategoriesEdit( {
 		showEmpty,
 		label,
 		showLabel,
+		taxonomy: taxonomySlug,
 	},
 	setAttributes,
 	className,
 } ) {
 	const selectId = useInstanceId( CategoriesEdit, 'blocks-category-select' );
+
+	const { records: allTaxonomies, isResolvingTaxonomies } = useEntityRecords(
+		'root',
+		'taxonomy'
+	);
+
+	const taxonomies = allTaxonomies?.filter( ( t ) => t.visibility.public );
+
+	const taxonomy = taxonomies?.find( ( t ) => t.slug === taxonomySlug );
+
+	const isHierarchicalTaxonomy =
+		! isResolvingTaxonomies && taxonomy?.hierarchical;
+
 	const query = { per_page: -1, hide_empty: ! showEmpty, context: 'view' };
-	if ( showOnlyTopLevel ) {
+	if ( isHierarchicalTaxonomy && showOnlyTopLevel ) {
 		query.parent = 0;
 	}
 
 	const { records: categories, isResolving } = useEntityRecords(
 		'taxonomy',
-		'category',
+		taxonomySlug,
 		query
 	);
 
@@ -66,7 +81,7 @@ export default function CategoriesEdit( {
 		! name ? __( '(Untitled)' ) : decodeEntities( name ).trim();
 
 	const renderCategoryList = () => {
-		const parentId = showHierarchy ? 0 : null;
+		const parentId = isHierarchicalTaxonomy && showHierarchy ? 0 : null;
 		const categoriesList = getCategoriesList( parentId );
 		return categoriesList.map( ( category ) =>
 			renderCategoryListItem( category )
@@ -82,19 +97,21 @@ export default function CategoriesEdit( {
 					{ renderCategoryName( name ) }
 				</a>
 				{ showPostCounts && ` (${ count })` }
-				{ showHierarchy && !! childCategories.length && (
-					<ul className="children">
-						{ childCategories.map( ( childCategory ) =>
-							renderCategoryListItem( childCategory )
-						) }
-					</ul>
-				) }
+				{ isHierarchicalTaxonomy &&
+					showHierarchy &&
+					!! childCategories.length && (
+						<ul className="children">
+							{ childCategories.map( ( childCategory ) =>
+								renderCategoryListItem( childCategory )
+							) }
+						</ul>
+					) }
 			</li>
 		);
 	};
 
 	const renderCategoryDropdown = () => {
-		const parentId = showHierarchy ? 0 : null;
+		const parentId = isHierarchicalTaxonomy && showHierarchy ? 0 : null;
 		const categoriesList = getCategoriesList( parentId );
 		return (
 			<>
@@ -102,7 +119,7 @@ export default function CategoriesEdit( {
 					<RichText
 						className="wp-block-categories__label"
 						aria-label={ __( 'Label text' ) }
-						placeholder={ __( 'Categories' ) }
+						placeholder={ taxonomy.name }
 						withoutInteractiveFormatting
 						value={ label }
 						onChange={ ( html ) =>
@@ -111,11 +128,17 @@ export default function CategoriesEdit( {
 					/>
 				) : (
 					<VisuallyHidden as="label" htmlFor={ selectId }>
-						{ label ? label : __( 'Categories' ) }
+						{ label ? label : taxonomy.name }
 					</VisuallyHidden>
 				) }
 				<select id={ selectId }>
-					<option>{ __( 'Select Category' ) }</option>
+					<option>
+						{ sprintf(
+							/* translators: %s: taxonomy's singular name */
+							__( 'Select %s' ),
+							taxonomy.labels.singular_name
+						) }
+					</option>
 					{ categoriesList.map( ( category ) =>
 						renderCategoryDropdownItem( category, 0 )
 					) }
@@ -133,7 +156,8 @@ export default function CategoriesEdit( {
 				{ renderCategoryName( name ) }
 				{ showPostCounts && ` (${ count })` }
 			</option>,
-			showHierarchy &&
+			isHierarchicalTaxonomy &&
+				showHierarchy &&
 				!! childCategories.length &&
 				childCategories.map( ( childCategory ) =>
 					renderCategoryDropdownItem( childCategory, level + 1 )
@@ -161,6 +185,21 @@ export default function CategoriesEdit( {
 		<TagName { ...blockProps }>
 			<InspectorControls>
 				<PanelBody title={ __( 'Settings' ) }>
+					{ Array.isArray( taxonomies ) && (
+						<SelectControl
+							__nextHasNoMarginBottom
+							__next40pxDefaultSize
+							label={ __( 'Taxonomy' ) }
+							options={ taxonomies.map( ( t ) => ( {
+								label: t.name,
+								value: t.slug,
+							} ) ) }
+							value={ taxonomySlug }
+							onChange={ ( selectedTaxonomy ) =>
+								setAttributes( { taxonomy: selectedTaxonomy } )
+							}
+						/>
+					) }
 					<ToggleControl
 						__nextHasNoMarginBottom
 						label={ __( 'Display as dropdown' ) }
@@ -182,19 +221,21 @@ export default function CategoriesEdit( {
 						checked={ showPostCounts }
 						onChange={ toggleAttribute( 'showPostCounts' ) }
 					/>
+					{ isHierarchicalTaxonomy && (
+						<ToggleControl
+							__nextHasNoMarginBottom
+							label={ __( 'Show only top level terms' ) }
+							checked={ showOnlyTopLevel }
+							onChange={ toggleAttribute( 'showOnlyTopLevel' ) }
+						/>
+					) }
 					<ToggleControl
 						__nextHasNoMarginBottom
-						label={ __( 'Show only top level categories' ) }
-						checked={ showOnlyTopLevel }
-						onChange={ toggleAttribute( 'showOnlyTopLevel' ) }
-					/>
-					<ToggleControl
-						__nextHasNoMarginBottom
-						label={ __( 'Show empty categories' ) }
+						label={ __( 'Show empty terms' ) }
 						checked={ showEmpty }
 						onChange={ toggleAttribute( 'showEmpty' ) }
 					/>
-					{ ! showOnlyTopLevel && (
+					{ isHierarchicalTaxonomy && ! showOnlyTopLevel && (
 						<ToggleControl
 							__nextHasNoMarginBottom
 							label={ __( 'Show hierarchy' ) }
@@ -205,16 +246,12 @@ export default function CategoriesEdit( {
 				</PanelBody>
 			</InspectorControls>
 			{ isResolving && (
-				<Placeholder icon={ pin } label={ __( 'Categories' ) }>
+				<Placeholder icon={ pin } label={ __( 'Terms' ) }>
 					<Spinner />
 				</Placeholder>
 			) }
 			{ ! isResolving && categories?.length === 0 && (
-				<p>
-					{ __(
-						'Your site does not have any posts, so there is nothing to display here at the moment.'
-					) }
-				</p>
+				<p>{ taxonomy.labels.no_terms }</p>
 			) }
 			{ ! isResolving &&
 				categories?.length > 0 &&
diff --git a/packages/block-library/src/categories/index.php b/packages/block-library/src/categories/index.php
index 5c0cc63415cb7..e15f662bdfbb9 100644
--- a/packages/block-library/src/categories/index.php
+++ b/packages/block-library/src/categories/index.php
@@ -21,11 +21,14 @@ function render_block_core_categories( $attributes, $content, $block ) {
 	static $block_id = 0;
 	++$block_id;
 
+	$taxonomy = get_taxonomy( $attributes['taxonomy'] );
+
 	$args = array(
 		'echo'         => false,
 		'hierarchical' => ! empty( $attributes['showHierarchy'] ),
 		'orderby'      => 'name',
 		'show_count'   => ! empty( $attributes['showPostCounts'] ),
+		'taxonomy'     => $attributes['taxonomy'],
 		'title_li'     => '',
 		'hide_empty'   => empty( $attributes['showEmpty'] ),
 	);
@@ -36,13 +39,20 @@ function render_block_core_categories( $attributes, $content, $block ) {
 	if ( ! empty( $attributes['displayAsDropdown'] ) ) {
 		$id                       = 'wp-block-categories-' . $block_id;
 		$args['id']               = $id;
-		$args['show_option_none'] = __( 'Select Category' );
-		$show_label               = empty( $attributes['showLabel'] ) ? ' screen-reader-text' : '';
-		$default_label            = __( 'Categories' );
-		$label_text               = ! empty( $attributes['label'] ) ? $attributes['label'] : $default_label;
-		$wrapper_markup           = '<div %1$s><label class="wp-block-categories__label' . $show_label . '" for="' . esc_attr( $id ) . '">' . $label_text . '</label>%2$s</div>';
-		$items_markup             = wp_dropdown_categories( $args );
-		$type                     = 'dropdown';
+		$args['name']             = $taxonomy->query_var;
+		$args['value_field']      = 'slug';
+		$args['show_option_none'] = sprintf(
+			/* translators: %s: taxonomy's singular name */
+			__( 'Select %s' ),
+			$taxonomy->labels->singular_name
+		);
+
+		$show_label     = empty( $attributes['showLabel'] ) ? ' screen-reader-text' : '';
+		$default_label  = $taxonomy->label;
+		$label_text     = ! empty( $attributes['label'] ) ? $attributes['label'] : $default_label;
+		$wrapper_markup = '<div %1$s><label class="wp-block-categories__label' . $show_label . '" for="' . esc_attr( $id ) . '">' . $label_text . '</label>%2$s</div>';
+		$items_markup   = wp_dropdown_categories( $args );
+		$type           = 'dropdown';
 
 		if ( ! is_admin() ) {
 			// Inject the dropdown script immediately after the select dropdown.
@@ -54,6 +64,8 @@ function render_block_core_categories( $attributes, $content, $block ) {
 			);
 		}
 	} else {
+		$args['show_option_none'] = $taxonomy->labels->no_terms;
+
 		$wrapper_markup = '<ul %1$s>%2$s</ul>';
 		$items_markup   = wp_list_categories( $args );
 		$type           = 'list';
@@ -92,8 +104,8 @@ function build_dropdown_script_block_core_categories( $dropdown_id ) {
 	( function() {
 		var dropdown = document.getElementById( '<?php echo esc_js( $dropdown_id ); ?>' );
 		function onCatChange() {
-			if ( dropdown.options[ dropdown.selectedIndex ].value > 0 ) {
-				location.href = "<?php echo esc_url( home_url() ); ?>/?cat=" + dropdown.options[ dropdown.selectedIndex ].value;
+			if ( dropdown.options[ dropdown.selectedIndex ].value !== -1 ) {
+				location.href = "<?php echo esc_url( home_url() ); ?>/?" + dropdown.name + '=' + dropdown.options[ dropdown.selectedIndex ].value;
 			}
 		}
 		dropdown.onchange = onCatChange;
diff --git a/test/integration/fixtures/blocks/core__categories.json b/test/integration/fixtures/blocks/core__categories.json
index 5d271aa5c8499..698105d892134 100644
--- a/test/integration/fixtures/blocks/core__categories.json
+++ b/test/integration/fixtures/blocks/core__categories.json
@@ -3,6 +3,7 @@
 		"name": "core/categories",
 		"isValid": true,
 		"attributes": {
+			"taxonomy": "category",
 			"displayAsDropdown": false,
 			"showHierarchy": false,
 			"showPostCounts": false,