The brain regions contributing to rule-based category learning were examined using fMRI. Participants categorized single lines that varied in length and orientation into one of two categories. Category membership was based on the length of the line. Results indicated that left frontal and parietal regions were differentially activated in those participants who learned the task as compared to those who did not. Further, the head of the caudate displayed relative decreases in activation on incorrect trials relative to correct trials. The involvement of this latter structure is likely related to (1) processing an error signal, or (2) volitional switching between potential category rules. Results are consistent with theories suggesting that a frontal-striatal circuit is involved in rule-based category learning.