Birds are excellent model organisms to study perceptual categorization and concept formation. The renewed focus on avian neuroscience has sparked an explosion of new data in the field. At the same time, our understanding of sensory and particularly visual structures in the avian brain has shifted fundamentally. These recent discoveries have revealed how categorization is mediated in the avian brain and has generated a theoretical framework that goes beyond the realm of birds. We review the contribution of avian categorization research—at the methodical, behavioral, and neurobiological levels. To this end, we first introduce avian categorization from a behavioral perspective and the common elements model of categorization. Second, we describe the functional and structural organization of the avian visual system, followed by an overview of recent anatomical discoveries and the new perspective on the avian ‘visual cortex’. Third, we focus on the neurocomputational basis of perceptual categorization in the bird’s visual system. Fourth, an overview of the avian prefrontal cortex and the prefrontal contribution to perceptual categorization is provided. The fifth section outlines how asymmetries of the visual system contribute to categorization. Finally, we present a mechanistic view of the neural principles of avian visual categorization and its putative extension to concept learning.