diff --git a/components/Blocks/CarouselCards/Filters/filters.module.css b/components/Blocks/CarouselCards/Filters/filters.module.css
new file mode 100644
index 000000000..1a6c3fac4
--- /dev/null
+++ b/components/Blocks/CarouselCards/Filters/filters.module.css
@@ -0,0 +1,32 @@
+.container {
+  display: flex;
+  gap: var(--Spacing-x1);
+  overflow-x: auto;
+  scroll-snap-type: x mandatory;
+  scrollbar-width: none;
+}
+
+.filter,
+.filterSelected {
+  border-radius: var(--Corner-radius-Rounded);
+  padding: var(--Spacing-x1) var(--Spacing-x2);
+  transition: all 0.2s ease-in-out;
+  scroll-snap-align: start;
+  flex-shrink: 0;
+  font-size: var(--typography-Caption-Bold-Mobile-fontSize);
+  font-family: var(--typography-Body-Regular-fontFamily);
+  font-weight: 400;
+  cursor: pointer;
+}
+
+.filter {
+  color: var(--UI-Text-High-contrast);
+  background: transparent;
+  border: 1px solid var(--UI-Input-Controls-Border-Hover);
+}
+
+.filterSelected {
+  color: var(--Base-Text-Inverted);
+  background: var(--Base-Button-Tertiary-Fill-Normal);
+  border: 1px solid transparent;
+}
diff --git a/components/Blocks/CarouselCards/Filters/index.tsx b/components/Blocks/CarouselCards/Filters/index.tsx
new file mode 100644
index 000000000..42b8e0cc1
--- /dev/null
+++ b/components/Blocks/CarouselCards/Filters/index.tsx
@@ -0,0 +1,36 @@
+"use client"
+
+import styles from "./filters.module.css"
+
+import type { CarouselCardFilter } from "@/types/enums/carouselCards"
+
+interface FiltersProps {
+  categories: Array<{ identifier: CarouselCardFilter; label: string }>
+  selectedFilter: CarouselCardFilter
+  onFilterSelect: (filter: CarouselCardFilter) => void
+}
+
+export default function Filters({
+  categories,
+  selectedFilter,
+  onFilterSelect,
+}: FiltersProps) {
+  return (
+    <div className={styles.container}>
+      {categories.map((category) => (
+        <button
+          key={category.identifier}
+          onClick={() => onFilterSelect(category.identifier)}
+          className={
+            selectedFilter === category.identifier
+              ? styles.filterSelected
+              : styles.filter
+          }
+          type="button"
+        >
+          {category.label}
+        </button>
+      ))}
+    </div>
+  )
+}
diff --git a/components/Blocks/carouselCards.module.css b/components/Blocks/CarouselCards/carouselCards.module.css
similarity index 87%
rename from components/Blocks/carouselCards.module.css
rename to components/Blocks/CarouselCards/carouselCards.module.css
index 38fcc7653..4ea1a4c2a 100644
--- a/components/Blocks/carouselCards.module.css
+++ b/components/Blocks/CarouselCards/carouselCards.module.css
@@ -1,8 +1,3 @@
-.code {
-  padding: var(--Spacing-x2);
-  background: var(--Base-Surface-Secondary-light-Normal);
-}
-
 /*
   Mock styles for the carousel cards. Will be removed/replaced
   when the carousel functionality is implemented (SW-1542). 
diff --git a/components/Blocks/CarouselCards.tsx b/components/Blocks/CarouselCards/index.tsx
similarity index 63%
rename from components/Blocks/CarouselCards.tsx
rename to components/Blocks/CarouselCards/index.tsx
index a02a9c555..36323107e 100644
--- a/components/Blocks/CarouselCards.tsx
+++ b/components/Blocks/CarouselCards/index.tsx
@@ -1,7 +1,13 @@
+"use client"
+
+import { useState } from "react"
+
 import ContentCard from "@/components/ContentCard"
 import SectionContainer from "@/components/Section/Container"
 import SectionHeader from "@/components/Section/Header"
 
+import Filters from "./Filters"
+
 import styles from "./carouselCards.module.css"
 
 import type { CarouselCardsProps } from "@/types/components/blocks/carouselCards"
@@ -16,30 +22,36 @@ export default function CarouselCards({ carousel_cards }: CarouselCardsProps) {
     link,
   } = carousel_cards
 
+  const [activeFilter, setActiveFilter] = useState(
+    enableFilters ? defaultFilter : null
+  )
+
+  const filteredCards = !activeFilter
+    ? cards
+    : cards.filter(
+        (card) => "filterId" in card && card.filterId === activeFilter
+      )
+
   return (
     <SectionContainer>
       <SectionHeader title={heading} link={link} />
-      {enableFilters && (
-        <details>
-          <summary>Filter data</summary>
-          <div>
-            {/* Filter component will go here */}
-            <pre className={styles.code}>
-              {JSON.stringify({ filterCategories, defaultFilter }, null, 2)}
-            </pre>
-          </div>
-        </details>
+      {filterCategories.length > 0 && activeFilter && (
+        <Filters
+          categories={filterCategories}
+          selectedFilter={activeFilter}
+          onFilterSelect={setActiveFilter}
+        />
       )}
       {/* Carousel functionality will go here */}
       <div className={styles.cardsContainer}>
-        {cards.map((card) => (
+        {filteredCards.map((card) => (
           <ContentCard
-            link={card.link}
             key={card.heading}
             heading={card.heading}
-            bodyText={card.bodyText}
             image={card.image}
+            bodyText={card.bodyText}
             promoText={card.promoText}
+            link={card.link}
           />
         ))}
       </div>
diff --git a/components/ContentCard/index.tsx b/components/ContentCard/index.tsx
index 727b1afc4..b67842a58 100644
--- a/components/ContentCard/index.tsx
+++ b/components/ContentCard/index.tsx
@@ -6,7 +6,7 @@ import Subtitle from "@/components/TempDesignSystem/Text/Subtitle"
 
 import styles from "./contentCard.module.css"
 
-import type { ContentCardLinkProps,ContentCardProps } from "./contentCard"
+import type { ContentCardLinkProps, ContentCardProps } from "./contentCard"
 
 export default function ContentCard({
   heading,
diff --git a/lib/graphql/Fragments/Blocks/CarouselCards.graphql b/lib/graphql/Fragments/Blocks/CarouselCards.graphql
index 1b2cbaa99..24fd31a6e 100644
--- a/lib/graphql/Fragments/Blocks/CarouselCards.graphql
+++ b/lib/graphql/Fragments/Blocks/CarouselCards.graphql
@@ -23,7 +23,6 @@ fragment CarouselCards_StartPage on StartPageBlocksCarouselCards {
   carousel_cards {
     heading
     enable_filters
-    default_filter
     card_groups {
       filter_category {
         filter_identifier
diff --git a/server/routers/contentstack/schemas/blocks/carouselCards.ts b/server/routers/contentstack/schemas/blocks/carouselCards.ts
index 4f4205441..56c7f6a40 100644
--- a/server/routers/contentstack/schemas/blocks/carouselCards.ts
+++ b/server/routers/contentstack/schemas/blocks/carouselCards.ts
@@ -33,7 +33,6 @@ const carouselCardsWithFilters = z.object({
       }),
     })
   ),
-  default_filter: z.nativeEnum(CarouselCardFilterEnum),
 })
 
 const carouselCardsWithoutFilters = z.object({
@@ -50,7 +49,6 @@ const carouselCardsWithoutFilters = z.object({
       }),
     })
   ),
-  default_filter: z.null(),
 })
 
 export const carouselCardsSchema = z.object({
@@ -112,7 +110,9 @@ export const carouselCardsSchema = z.object({
               filterId: group.filter_category.filter_identifier,
             }))
         ),
-        defaultFilter: data.default_filter,
+        defaultFilter:
+          data.card_groups[0]?.filter_category.filter_identifier ??
+          filterCategories[0]?.identifier,
         link: data.link
           ? { href: data.link.href, text: data.link.title }
           : undefined,
diff --git a/types/enums/carouselCards.ts b/types/enums/carouselCards.ts
index 23b123c87..cc36eae86 100644
--- a/types/enums/carouselCards.ts
+++ b/types/enums/carouselCards.ts
@@ -1,5 +1,6 @@
 export const CarouselCardFilterEnum = {
   offers: "offers",
+  popular_destinations: "popular_destinations",
   popular_hotels: "popular_hotels",
   popular_cities: "popular_cities",
   spa_wellness: "spa_wellness",