diff --git a/vendor/magento/module-catalog-widget/Block/Product/ProductsList.php b/vendor/magento/module-catalog-widget/Block/Product/ProductsList.php
index 6dc6d498c8220..d99bca798eec8 100644
--- a/vendor/magento/module-catalog-widget/Block/Product/ProductsList.php
+++ b/vendor/magento/module-catalog-widget/Block/Product/ProductsList.php
@@ -17,6 +17,7 @@
 use Magento\Catalog\Pricing\Price\FinalPrice;
 use Magento\Catalog\ViewModel\Product\OptionsData;
 use Magento\CatalogWidget\Model\Rule;
+use Magento\CatalogWidget\Model\Rule\Condition\Product\CategoryConditionProcessor;
 use Magento\Framework\App\ActionInterface;
 use Magento\Framework\App\Http\Context as HttpContext;
 use Magento\Framework\App\ObjectManager;
@@ -136,6 +137,11 @@ class ProductsList extends AbstractProduct implements BlockInterface, IdentityIn
      */
     private OptionsData $optionsData;
 
+    /**
+     * @var CategoryConditionProcessor
+     */
+    private CategoryConditionProcessor $categoryConditionProcessor;
+
     /**
      * @param Context $context
      * @param CollectionFactory $productCollectionFactory
@@ -150,6 +156,7 @@ class ProductsList extends AbstractProduct implements BlockInterface, IdentityIn
      * @param EncoderInterface|null $urlEncoder
      * @param CategoryRepositoryInterface|null $categoryRepository
      * @param OptionsData|null $optionsData
+     * @param CategoryConditionProcessor|null $categoryConditionProcessor
      *
      * @SuppressWarnings(PHPMD.ExcessiveParameterList)
      */
@@ -166,7 +173,8 @@ public function __construct(
         ?LayoutFactory $layoutFactory = null,
         ?EncoderInterface $urlEncoder = null,
         ?CategoryRepositoryInterface $categoryRepository = null,
-        ?OptionsData $optionsData = null
+        ?OptionsData $optionsData = null,
+        ?CategoryConditionProcessor $categoryConditionProcessor = null
     ) {
         $this->productCollectionFactory = $productCollectionFactory;
         $this->catalogProductVisibility = $catalogProductVisibility;
@@ -180,6 +188,8 @@ public function __construct(
         $this->categoryRepository = $categoryRepository ?? ObjectManager::getInstance()
                 ->get(CategoryRepositoryInterface::class);
         $this->optionsData = $optionsData ?: ObjectManager::getInstance()->get(OptionsData::class);
+        $this->categoryConditionProcessor = $categoryConditionProcessor ?: ObjectManager::getInstance()
+                ->get(CategoryConditionProcessor::class);
         parent::__construct(
             $context,
             $data
@@ -388,34 +398,6 @@ public function getBaseCollection(): Collection
         return $collection;
     }
 
-    /**
-     * Update conditions if the category is an anchor category
-     *
-     * @param array $condition
-     * @return array
-     */
-    private function updateAnchorCategoryConditions(array $condition): array
-    {
-        if (array_key_exists('value', $condition)) {
-            $categoryId = $condition['value'];
-
-            try {
-                $category = $this->categoryRepository->get($categoryId, $this->_storeManager->getStore()->getId());
-            } catch (NoSuchEntityException $e) {
-                return $condition;
-            }
-
-            $children = $category->getIsAnchor() ? $category->getChildren(true) : [];
-            if ($children) {
-                $children = explode(',', $children);
-                $condition['operator'] = "()";
-                $condition['value'] = array_merge([$categoryId], $children);
-            }
-        }
-
-        return $condition;
-    }
-
     /**
      * Get conditions
      *
@@ -438,7 +420,10 @@ protected function getConditions()
                 }
 
                 if ($condition['attribute'] == 'category_ids') {
-                    $conditions[$key] = $this->updateAnchorCategoryConditions($condition);
+                    $conditions[$key] = $this->categoryConditionProcessor->process(
+                        $condition,
+                        $this->_storeManager->getStore()->getId()
+                    );
                 }
             }
         }
diff --git a/vendor/magento/module-catalog-widget/Model/Rule/Condition/Product/CategoryConditionProcessor.php b/vendor/magento/module-catalog-widget/Model/Rule/Condition/Product/CategoryConditionProcessor.php
new file mode 100644
index 0000000000000..ab47a672f99c8
--- /dev/null
+++ b/vendor/magento/module-catalog-widget/Model/Rule/Condition/Product/CategoryConditionProcessor.php
@@ -0,0 +1,82 @@
+<?php
+/**
+ * Copyright 2025 Adobe
+ * All Rights Reserved.
+ */
+
+declare(strict_types=1);
+
+namespace Magento\CatalogWidget\Model\Rule\Condition\Product;
+
+use Magento\Catalog\Api\CategoryRepositoryInterface;
+use Magento\Framework\Exception\NoSuchEntityException;
+
+/**
+ * Process category condition to include child categories if the category is anchor
+ */
+class CategoryConditionProcessor
+{
+    /**
+     * @param CategoryRepositoryInterface $categoryRepository
+     */
+    public function __construct(
+        private readonly CategoryRepositoryInterface $categoryRepository
+    ) {
+    }
+
+    /**
+     * Process category condition to include child categories if the category is anchor
+     *
+     * @param array $condition
+     * @param int|null $storeId
+     * @return array
+     */
+    public function process(array $condition, ?int $storeId = null): array
+    {
+        if (!empty($condition['value'])) {
+            $condition['value'] = $this->getCategoriesWithChildren(
+                !is_array($condition['value']) ? $this->toArray((string) $condition['value']) : $condition['value'],
+                $storeId
+            );
+        }
+        return $condition;
+    }
+
+    /**
+     * Get category IDs including children of anchor categories
+     *
+     * @param array $categoryIds
+     * @param int|null $storeId
+     * @return array
+     */
+    private function getCategoriesWithChildren(array $categoryIds, ?int $storeId = null): array
+    {
+        $allCategoryIds = [];
+        foreach ($categoryIds as $categoryId) {
+            try {
+                $category = $this->categoryRepository->get($categoryId, $storeId);
+            } catch (NoSuchEntityException $e) {
+                continue;
+            }
+
+            $allCategoryIds[] = $categoryId;
+            $children = $category->getIsAnchor() ? $category->getChildren(true) : '';
+            if ($children) {
+                array_push($allCategoryIds, ...$this->toArray((string) $children));
+            }
+        }
+
+        return $allCategoryIds;
+    }
+
+    /**
+     * Convert comma or semicolon separated string to array
+     *
+     * @param string $value
+     * @return array
+     */
+    private function toArray(string $value): array
+    {
+        return $value ? preg_split('#\s*[,;]\s*#', $value, -1, PREG_SPLIT_NO_EMPTY) : [];
+    }
+}