diff --git a/wp-admin/import/wp-cat2tag.php b/wp-admin/import/wp-cat2tag.php
index fc54c6149b..6b3aa30f19 100644
--- a/wp-admin/import/wp-cat2tag.php
+++ b/wp-admin/import/wp-cat2tag.php
@@ -3,50 +3,75 @@
 class WP_Categories_to_Tags {
 	var $categories_to_convert = array();
 	var $all_categories = array();
+	var $tags_to_convert = array();
+	var $all_tags = array();
+	var $hybrids_ids = array();
 
 	function header() {
 		echo '<div class="wrap">';
-		echo '<h2>' . __('Convert Categories to Tags') . '</h2>';
+		if ( ! current_user_can('manage_categories') ) {
+			echo '<div class="narrow">';
+			echo '<p>' . __('Cheatin&#8217; uh?') . '</p>';
+			echo '</div>';
+		} else { ?>
+			<div class="tablenav"><p style="margin:4px"><a style="display:inline;" class="button-secondary" href="admin.php?import=wp-cat2tag">Categories to Tags</a>
+			<a style="display:inline;" class="button-secondary" href="admin.php?import=wp-cat2tag&amp;step=3">Tags to Categories</a></p></div>
+<?php	}
 	}
 
 	function footer() {
 		echo '</div>';
 	}
 
-	function populate_all_categories() {
+	function populate_cats() {
 		global $wpdb;
 
 		$categories = get_categories('get=all');
 		foreach ( $categories as $category ) {
-			if ( !tag_exists($wpdb->escape($category->name)) )
-				$this->all_categories[] = $category;
+			$this->all_categories[] = $category;
+			if ( tag_exists( $wpdb->escape($category->name) ) )
+				$this->hybrids_ids[] = $category->term_id;
 		}
 	}
 
-	function welcome() {
-		$this->populate_all_categories();
+	function populate_tags() {
+		global $wpdb;
 
-		echo '<div class="narrow">';
+		$tags = get_terms( array('post_tag'), 'get=all' );
+		foreach ( $tags as $tag ) {
+			$this->all_tags[] = $tag;
+			if ( $this->_category_exists($tag->term_id) )
+				$this->hybrids_ids[] = $tag->term_id;
+		}
+	}
 
-		if (count($this->all_categories) > 0) {
+	function categories_tab() {
+		$this->populate_cats();
+		$cat_num = count($this->all_categories);
+
+		echo '<br class="clear" />';
+
+		if ( $cat_num > 0 ) {
+			echo '<h2>Convert Categories (' . $cat_num . ') to Tags.</h2>';
+			echo '<div class="narrow">';
 			echo '<p>' . __('Hey there. Here you can selectively converts existing categories to tags. To get started, check the categories you wish to be converted, then click the Convert button.') . '</p>';
-			echo '<p>' . __('Keep in mind that if you convert a category with child categories, the children become top-level orphans.') . '</p>';
+			echo '<p>' . __('Keep in mind that if you convert a category with child categories, the children become top-level orphans.') . '</p></div>';
 
 			$this->categories_form();
+		} elseif ( $hyb_num > 0 ) {
+			 echo '<p>' . __('You have no categories that can be converted. However some of your categories are both a tag and a category.') . '</p>';
 		} else {
 			echo '<p>'.__('You have no categories to convert!').'</p>';
 		}
-
-		echo '</div>';
 	}
 
-	function categories_form() {
-?>
+	function categories_form() { ?>
+
 <script type="text/javascript">
-<!--
+/* <![CDATA[ */
 var checkflag = "false";
 function check_all_rows() {
-	field = document.formlist;
+	field = document.catlist;
 	if ( 'false' == checkflag ) {
 		for ( i = 0; i < field.length; i++ ) {
 			if ( 'cats_to_convert[]' == field[i].name )
@@ -63,54 +88,153 @@ function check_all_rows() {
 		return '<?php _e('Check All') ?>';
 	}
 }
-
-//  -->
+/* ]]> */
 </script>
-<?php
-		echo '<form name="formlist" id="formlist" action="admin.php?import=wp-cat2tag&amp;step=2" method="post">
-		<p><input type="button" class="button-secondary" value="' . __('Check All') . '"' . ' onClick="this.value=check_all_rows()"></p>';
-		wp_nonce_field('import-cat2tag');
-		echo '<ul style="list-style:none">';
 
+<form name="catlist" id="catlist" action="admin.php?import=wp-cat2tag&amp;step=2" method="post">
+<p><input type="button" class="button-secondary" value="<?php _e('Check All'); ?>" onclick="this.value=check_all_rows()">
+<?php wp_nonce_field('import-cat2tag'); ?></p>
+<ul style="list-style:none">
+<?php
 		$hier = _get_term_hierarchy('category');
 
 		foreach ($this->all_categories as $category) {
 			$category = sanitize_term( $category, 'category', 'display' );
 
-			if ((int) $category->parent == 0) {
-				echo '<li><label><input type="checkbox" name="cats_to_convert[]" value="' . intval($category->term_id) . '" /> ' . $category->name . ' (' . $category->count . ')</label>';
+			if ( (int) $category->parent == 0 ) {
+				if ( in_array( intval($category->term_id),  $this->hybrids_ids ) ) {
+?>
+	<li style="color:#777;padding-left:1.3em;"><?php echo $category->name . ' (' . $category->count . ') *'; ?></li>
+<?php
+				} else {
+?>
+	<li><label><input type="checkbox" name="cats_to_convert[]" value="<?php echo intval($category->term_id); ?>" /> <?php echo $category->name . ' (' . $category->count . ')'; ?></label><?php
 
-				if (isset($hier[$category->term_id])) {
-					$this->_category_children($category, $hier);
+					if ( isset($hier[$category->term_id]) )
+						$this->_category_children($category, $hier);
+?></li>
+<?php
 				}
-
-				echo '</li>';
 			}
 		}
+?>
+</ul>
 
-		echo '</ul>';
+<?php
+		if ( ! empty($this->hybrids_ids) ) {
+			echo '<p>' . __('* This category is also a tag. It cannot be convert again.') . '</p>';
+		}
+?>
+<p class="submit"><input type="submit" name="submit" class="button" value="<?php _e('Convert Categories to Tags'); ?>" /></p>
+</form>
 
-		echo '<p class="submit"><input type="submit" name="submit" class="button" value="' . __('Convert Tags') . '" /></p>';
+<?php
+	}
 
-		echo '</form>';
+	function tags_tab() {
+		$this->populate_tags();
+		$tags_num = count($this->all_tags);
+
+		echo '<br class="clear" />';
+
+		if ( $tags_num > 0 ) {
+			echo '<h2>Convert Tags (' . $tags_num . ') to Categories.</h2>';
+			echo '<div class="narrow">';
+			echo '<p>' . __('Here you can selectively converts existing tags to categories. To get started, check the tags you wish to be converted, then click the Convert button.') . '</p>';
+			echo '<p>' . __('The newly created categories will still be associated with the same posts.') . '</p></div>';
+			
+			
+			$this->tags_form();
+		} elseif ( $hyb_num > 0 ) {
+			 echo '<p>' . __('You have no tags that can be converted. However some of your tags are both a tag and a category.') . '</p>';
+		} else {
+			echo '<p>'.__('You have no tags to convert!').'</p>';
+		}
+	}
+
+	function tags_form() { ?>
+
+<script type="text/javascript">
+/* <![CDATA[ */
+var checktags = "false";
+function check_all_tagrows() {
+	field = document.taglist;
+	if ( 'false' == checktags ) {
+		for ( i = 0; i < field.length; i++ ) {
+			if ( 'tags_to_convert[]' == field[i].name )
+				field[i].checked = true;
+		}
+		checktags = 'true';
+		return '<?php _e('Uncheck All') ?>';
+	} else {
+		for ( i = 0; i < field.length; i++ ) {
+			if ( 'tags_to_convert[]' == field[i].name )
+				field[i].checked = false;
+		}
+		checktags = 'false';
+		return '<?php _e('Check All') ?>';
+	}
+}
+/* ]]> */
+</script>
+
+<form name="taglist" id="taglist" action="admin.php?import=wp-cat2tag&amp;step=4" method="post">
+<p><input type="button" class="button-secondary" value="<?php _e('Check All'); ?>" onclick="this.value=check_all_tagrows()">
+<?php wp_nonce_field('import-cat2tag'); ?></p>
+<ul style="list-style:none">
+<?php
+		foreach ( $this->all_tags as $tag ) {
+			if ( in_array( intval($tag->term_id),  $this->hybrids_ids ) ) {
+?>
+	<li style="color:#777;padding-left:1.3em;"><?php echo attribute_escape($tag->name) . ' (' . $tag->count . ') *'; ?></li>
+<?php
+			} else {
+?>
+	<li><label><input type="checkbox" name="tags_to_convert[]" value="<?php echo intval($tag->term_id); ?>" /> <?php echo attribute_escape($tag->name) . ' (' . $tag->count . ')'; ?></label></li>
+
+<?php
+			}
+		}
+?>
+</ul>
+
+<?php 	
+		if ( ! empty($this->hybrids_ids) )
+			echo '<p>' . __('* This tag is also a category. It cannot be converted again.') . '</p>';
+?>
+
+<p class="submit"><input type="submit" name="submit_tags" class="button" value="<?php _e('Convert Tags to Categories'); ?>" /></p>
+</form>
+
+<?php
 	}
 
 	function _category_children($parent, $hier) {
-		echo '<ul style="list-style:none">';
+?>
 
+		<ul style="list-style:none">
+<?php
 		foreach ($hier[$parent->term_id] as $child_id) {
 			$child =& get_category($child_id);
+			
+			if ( in_array( intval($child->term_id), $this->hybrids_ids ) ) {
+?>
+		<li style="color:#777;padding-left:1.3em;"><?php echo $child->name . ' (' . $child->count . ') *'; ?></li>
+<?php
+			} else {
+?>
+		<li><label><input type="checkbox" name="cats_to_convert[]" value="<?php echo intval($child->term_id); ?>" /> <?php echo $child->name . ' (' . $child->count . ')'; ?></label>
+<?php
 
-			echo '<li><label><input type="checkbox" name="cats_to_convert[]" value="' . intval($child->term_id) . '" /> ' . $child->name . ' (' . $child->count . ')</label>';
-
-			if (isset($hier[$child->term_id])) {
+			if ( isset($hier[$child->term_id]) )
 				$this->_category_children($child, $hier);
+?>		</li>
+<?php
 			}
-
-			echo '</li>';
 		}
-
-		echo '</ul>';
+?>
+		</ul>
+<?php
 	}
 
 	function _category_exists($cat_id) {
@@ -125,7 +249,7 @@ function check_all_rows() {
 		}
 	}
 
-	function convert_them() {
+	function convert_categories() {
 		global $wpdb;
 
 		if ( (!isset($_POST['cats_to_convert']) || !is_array($_POST['cats_to_convert'])) && empty($this->categories_to_convert)) {
@@ -135,7 +259,6 @@ function check_all_rows() {
 			return;
 		}
 
-
 		if ( empty($this->categories_to_convert) )
 			$this->categories_to_convert = $_POST['cats_to_convert'];
 		$hier = _get_term_hierarchy('category');
@@ -199,27 +322,93 @@ function check_all_rows() {
 		echo '<p>' . sprintf( __('We&#8217;re all done here, but you can always <a href="%s">convert more</a>.'), 'admin.php?import=wp-cat2tag' ) . '</p>';
 	}
 
+	function convert_tags() {
+		global $wpdb;
+
+		if ( (!isset($_POST['tags_to_convert']) || !is_array($_POST['tags_to_convert'])) && empty($this->tags_to_convert)) {
+			echo '<div class="narrow">';
+			echo '<p>' . sprintf(__('Uh, oh. Something didn&#8217;t work. Please <a href="%s">try again</a>.'), 'admin.php?import=wp-cat2tag&amp;step=3') . '</p>';
+			echo '</div>';
+			return;
+		}
+
+		if ( empty($this->categories_to_convert) )
+			$this->tags_to_convert = $_POST['tags_to_convert'];
+
+		$clean_cache = array();
+		echo '<ul>';
+
+		foreach ( (array) $this->tags_to_convert as $tag_id) {
+			$tag_id = (int) $tag_id;
+
+			echo '<li>' . sprintf(__('Converting tag #%s ... '),  $tag_id);
+
+			if ( ! is_term($tag_id, 'post_tag') ) {
+				_e('Tag doesn\'t exist!');
+			} else {
+
+				if ( is_term($tag_id, 'category') ) {
+					_e('This Tag is already a Category.');
+					echo '</li>';
+					continue;
+				}
+
+				$tt_ids = $wpdb->get_col( $wpdb->prepare("SELECT term_taxonomy_id FROM $wpdb->term_taxonomy WHERE term_id = %d AND taxonomy = 'post_tag'", $tag_id) );
+				if ( $tt_ids ) {
+						$posts = $wpdb->get_col("SELECT object_id FROM $wpdb->term_relationships WHERE term_taxonomy_id IN (" . join(',', $tt_ids) . ") GROUP BY object_id");
+					foreach ( (array) $posts as $post )
+						clean_post_cache($post);
+				}
+
+				// Change the tag to a category.
+				$parent = $wpdb->get_var( $wpdb->prepare("SELECT parent FROM $wpdb->term_taxonomy WHERE term_id = %d AND taxonomy = 'post_tag'", $tag_id) );
+				if ( 0 == $parent || (0 < (int) $parent && $this->_category_exists($parent)) )
+					$reset_parent = '';
+				else $reset_parent = ", parent = '0'";
+
+				$wpdb->query( $wpdb->prepare("UPDATE $wpdb->term_taxonomy SET taxonomy = 'category' $reset_parent WHERE term_id = %d AND taxonomy = 'post_tag'", $tag_id) );
+
+				// Clean the cache
+				$clean_cache[] = $tag_id;
+
+				_e('Converted successfully.');
+			}
+
+			echo '</li>';
+		}
+
+		clean_term_cache( $clean_cache, 'post_tag' );
+		delete_option('category_children');
+		
+		echo '</ul>';
+		echo '<p>' . sprintf( __('We&#8217;re all done here, but you can always <a href="%s">convert more</a>.'), 'admin.php?import=wp-cat2tag&amp;step=3' ) . '</p>';
+	}
+
 	function init() {
 
 		$step = (isset($_GET['step'])) ? (int) $_GET['step'] : 1;
 
 		$this->header();
 
-		if (!current_user_can('manage_categories')) {
-			echo '<div class="narrow">';
-			echo '<p>' . __('Cheatin&#8217; uh?') . '</p>';
-			echo '</div>';
-		} else {
-			if ( $step > 1 )
-				check_admin_referer('import-cat2tag');
+		if ( current_user_can('manage_categories') ) {
 
 			switch ($step) {
 				case 1 :
-					$this->welcome();
+					$this->categories_tab();
 				break;
 
 				case 2 :
-					$this->convert_them();
+					check_admin_referer('import-cat2tag');
+					$this->convert_categories();
+				break;
+				
+				case 3 :
+					$this->tags_tab();
+				break;
+				
+				case 4 :
+					check_admin_referer('import-cat2tag');
+					$this->convert_tags();
 				break;
 			}
 		}
@@ -234,6 +423,6 @@ function check_all_rows() {
 
 $wp_cat2tag_importer = new WP_Categories_to_Tags();
 
-register_importer('wp-cat2tag', __('Categories to Tags Converter'), __('Convert existing categories to tags, selectively.'), array(&$wp_cat2tag_importer, 'init'));
+register_importer('wp-cat2tag', __('Categories and Tags Converter'), __('Convert existing categories to tags or tags to categories, selectively.'), array(&$wp_cat2tag_importer, 'init'));
 
 ?>
\ No newline at end of file