diff --git a/packages/patterns/src/components/category-selector.js b/packages/patterns/src/components/category-selector.js
index c9305806c7e13..397d851d3886b 100644
--- a/packages/patterns/src/components/category-selector.js
+++ b/packages/patterns/src/components/category-selector.js
@@ -4,7 +4,7 @@
 import { __ } from '@wordpress/i18n';
 import { useMemo, useState } from '@wordpress/element';
 import { FormTokenField } from '@wordpress/components';
-import { useSelect, useDispatch } from '@wordpress/data';
+import { useSelect } from '@wordpress/data';
 import { store as coreStore } from '@wordpress/core-data';
 import { useDebounce } from '@wordpress/compose';
 import { decodeEntities } from '@wordpress/html-entities';
@@ -13,13 +13,6 @@ const unescapeString = ( arg ) => {
 	return decodeEntities( arg );
 };
 
-const unescapeTerm = ( term ) => {
-	return {
-		...term,
-		name: unescapeString( term.name ),
-	};
-};
-
 const EMPTY_ARRAY = [];
 const MAX_TERMS_SUGGESTIONS = 20;
 const DEFAULT_QUERY = {
@@ -27,13 +20,11 @@ const DEFAULT_QUERY = {
 	_fields: 'id,name',
 	context: 'view',
 };
-const slug = 'wp_pattern_category';
+export const CATEGORY_SLUG = 'wp_pattern_category';
 
-export default function CategorySelector( { onCategorySelection } ) {
-	const [ values, setValues ] = useState( [] );
+export default function CategorySelector( { values, onChange } ) {
 	const [ search, setSearch ] = useState( '' );
 	const debouncedSearch = useDebounce( setSearch, 500 );
-	const { invalidateResolution } = useDispatch( coreStore );
 
 	const { searchResults } = useSelect(
 		( select ) => {
@@ -41,7 +32,7 @@ export default function CategorySelector( { onCategorySelection } ) {
 
 			return {
 				searchResults: !! search
-					? getEntityRecords( 'taxonomy', slug, {
+					? getEntityRecords( 'taxonomy', CATEGORY_SLUG, {
 							...DEFAULT_QUERY,
 							search,
 					  } )
@@ -57,28 +48,7 @@ export default function CategorySelector( { onCategorySelection } ) {
 		);
 	}, [ searchResults ] );
 
-	const { saveEntityRecord } = useDispatch( coreStore );
-
-	async function findOrCreateTerm( term ) {
-		try {
-			const newTerm = await saveEntityRecord( 'taxonomy', slug, term, {
-				throwOnError: true,
-			} );
-			invalidateResolution( 'getUserPatternCategories' );
-			return unescapeTerm( newTerm );
-		} catch ( error ) {
-			if ( error.code !== 'term_exists' ) {
-				throw error;
-			}
-
-			return {
-				id: error.data.term_id,
-				name: term.name,
-			};
-		}
-	}
-
-	function onChange( termNames ) {
+	function handleChange( termNames ) {
 		const uniqueTerms = termNames.reduce( ( terms, newTerm ) => {
 			if (
 				! terms.some(
@@ -90,15 +60,7 @@ export default function CategorySelector( { onCategorySelection } ) {
 			return terms;
 		}, [] );
 
-		setValues( uniqueTerms );
-
-		Promise.all(
-			uniqueTerms.map( ( termName ) =>
-				findOrCreateTerm( { name: termName } )
-			)
-		).then( ( newTerms ) => {
-			onCategorySelection( newTerms );
-		} );
+		onChange( uniqueTerms );
 	}
 
 	return (
@@ -107,7 +69,7 @@ export default function CategorySelector( { onCategorySelection } ) {
 				className="patterns-menu-items__convert-modal-categories"
 				value={ values }
 				suggestions={ suggestions }
-				onChange={ onChange }
+				onChange={ handleChange }
 				onInputChange={ debouncedSearch }
 				maxSuggestions={ MAX_TERMS_SUGGESTIONS }
 				label={ __( 'Categories' ) }
diff --git a/packages/patterns/src/components/create-pattern-modal.js b/packages/patterns/src/components/create-pattern-modal.js
index 189004b6a046b..8dad206f3f1e6 100644
--- a/packages/patterns/src/components/create-pattern-modal.js
+++ b/packages/patterns/src/components/create-pattern-modal.js
@@ -13,6 +13,7 @@ import { __ } from '@wordpress/i18n';
 import { useState } from '@wordpress/element';
 import { useDispatch } from '@wordpress/data';
 import { store as noticesStore } from '@wordpress/notices';
+import { store as coreStore } from '@wordpress/core-data';
 
 /**
  * Internal dependencies
@@ -23,7 +24,7 @@ import { PATTERN_DEFAULT_CATEGORY, PATTERN_SYNC_TYPES } from '../constants';
  * Internal dependencies
  */
 import { store as patternsStore } from '../store';
-import CategorySelector from './category-selector';
+import CategorySelector, { CATEGORY_SLUG } from './category-selector';
 import { unlock } from '../lock-unlock';
 
 export default function CreatePatternModal( {
@@ -34,13 +35,24 @@ export default function CreatePatternModal( {
 	className = 'patterns-menu-items__convert-modal',
 } ) {
 	const [ syncType, setSyncType ] = useState( PATTERN_SYNC_TYPES.full );
-	const [ categories, setCategories ] = useState( [] );
+	const [ categoryTerms, setCategoryTerms ] = useState( [] );
 	const [ title, setTitle ] = useState( '' );
+	const [ isSaving, setIsSaving ] = useState( false );
 	const { createPattern } = unlock( useDispatch( patternsStore ) );
-
+	const { saveEntityRecord, invalidateResolution } = useDispatch( coreStore );
 	const { createErrorNotice } = useDispatch( noticesStore );
+
 	async function onCreate( patternTitle, sync ) {
+		if ( isSaving ) return;
+
 		try {
+			setIsSaving( true );
+			const categories = await Promise.all(
+				categoryTerms.map( ( termName ) =>
+					findOrCreateTerm( termName )
+				)
+			);
+
 			const newPattern = await createPattern(
 				patternTitle,
 				sync,
@@ -57,12 +69,35 @@ export default function CreatePatternModal( {
 				id: 'convert-to-pattern-error',
 			} );
 			onError();
+		} finally {
+			setIsSaving( false );
+			setCategoryTerms( [] );
+			setTitle( '' );
 		}
 	}
 
-	const handleCategorySelection = ( selectedCategories ) => {
-		setCategories( selectedCategories.map( ( cat ) => cat.id ) );
-	};
+	/**
+	 * @param {string} term
+	 * @return {Promise<number>} The pattern category id.
+	 */
+	async function findOrCreateTerm( term ) {
+		try {
+			const newTerm = await saveEntityRecord(
+				'taxonomy',
+				CATEGORY_SLUG,
+				{ name: term },
+				{ throwOnError: true }
+			);
+			invalidateResolution( 'getUserPatternCategories' );
+			return newTerm.id;
+		} catch ( error ) {
+			if ( error.code !== 'term_exists' ) {
+				throw error;
+			}
+
+			return error.data.term_id;
+		}
+	}
 
 	return (
 		<Modal
@@ -77,7 +112,6 @@ export default function CreatePatternModal( {
 				onSubmit={ ( event ) => {
 					event.preventDefault();
 					onCreate( title, syncType );
-					setTitle( '' );
 				} }
 			>
 				<VStack spacing="5">
@@ -90,7 +124,8 @@ export default function CreatePatternModal( {
 						className="patterns-create-modal__name-input"
 					/>
 					<CategorySelector
-						onCategorySelection={ handleCategorySelection }
+						values={ categoryTerms }
+						onChange={ setCategoryTerms }
 					/>
 					<ToggleControl
 						label={ __( 'Synced' ) }
@@ -117,7 +152,12 @@ export default function CreatePatternModal( {
 							{ __( 'Cancel' ) }
 						</Button>
 
-						<Button variant="primary" type="submit">
+						<Button
+							variant="primary"
+							type="submit"
+							aria-disabled={ isSaving }
+							isBusy={ isSaving }
+						>
 							{ __( 'Create' ) }
 						</Button>
 					</HStack>