diff --git a/src/pgo.erl b/src/pgo.erl
index d08a259..d6fcb68 100644
--- a/src/pgo.erl
+++ b/src/pgo.erl
@@ -173,23 +173,28 @@ new_transaction(Pool, Fun, Options) ->
                        #{is_recording => if DoTrace -> true; true -> false end,
                          attributes => TraceAttributes},
                        fun(_) ->
-                               try
-                                   #{command := 'begin'} = pgo_handler:extended_query(Conn, "BEGIN", [],
-                                                                                      #{queue_time => undefined}),
-                                   put(pgo_transaction_connection, Conn),
-                                   Result = Fun(),
-                                   case pgo_handler:extended_query(Conn, "COMMIT", [],
-                                                                   #{queue_time => undefined}) of
-                                       #{command := commit} -> Result;
-                                       #{command := rollback} -> Result
-                                   end
-                               catch
-                                   Type:Reason:Stacktrace ->
-                                       pgo_handler:extended_query(Conn, "ROLLBACK", [], #{queue_time => undefined}),
-                                       erlang:raise(Type, Reason, Stacktrace)
-                               after
-                                   checkin(Ref, Conn),
-                                   erase(pgo_transaction_connection)
+                               Outcome =
+                                   try
+                                       #{command := 'begin'} = pgo_handler:extended_query(Conn, "BEGIN", [],
+                                                                                          #{queue_time => undefined}),
+                                       put(pgo_transaction_connection, Conn),
+                                       Result = Fun(),
+                                       case pgo_handler:extended_query(Conn, "COMMIT", [],
+                                                                       #{queue_time => undefined}) of
+                                           #{command := commit} -> {committed, Result};
+                                           #{command := rollback} -> rolled_back
+                                       end
+                                   catch
+                                       Type:Reason:Stacktrace ->
+                                           pgo_handler:extended_query(Conn, "ROLLBACK", [], #{queue_time => undefined}),
+                                           erlang:raise(Type, Reason, Stacktrace)
+                                   after
+                                       checkin(Ref, Conn),
+                                       erase(pgo_transaction_connection)
+                                   end,
+                               case Outcome of
+                                   {committed, R} -> R;
+                                   rolled_back -> erlang:error(transaction_rolled_back)
                                end
                        end);
         {error, _}=E ->
diff --git a/test/pgo_basic_SUITE.erl b/test/pgo_basic_SUITE.erl
index a32fba4..736c4e0 100644
--- a/test/pgo_basic_SUITE.erl
+++ b/test/pgo_basic_SUITE.erl
@@ -19,7 +19,8 @@ groups() ->
      {domain_socket, [], [int4_range]}].
 
 cases() ->
-    [exceptions, select, insert_update, text_types,
+    [transaction_returns_value, transaction_aborted_raises,
+     exceptions, select, insert_update, text_types,
      rows_as_maps, json_jsonb, types,
      int4_range, ts_range, tstz_range, numerics,
      hstore, records, circle, path, polygon, line,
@@ -469,3 +470,21 @@ netmask(_Config) ->
                  pgo:query("SELECT '192.168.0.1/24'::inet")),
 
     ok.
+
+transaction_returns_value(_Config) ->
+    ?assertEqual(42, pgo:transaction(fun() -> 42 end)),
+    ?assertEqual(ok, pgo:transaction(fun() ->
+                                         ?assertMatch(#{rows := [{1}]}, pgo:query("select 1::int")),
+                                         ok
+                                     end)),
+    ok.
+
+transaction_aborted_raises(_Config) ->
+    ?assertError(transaction_rolled_back,
+                 pgo:transaction(fun() ->
+                                     {error, _} = pgo:query("select 1/0"),
+                                     ok
+                                 end)),
+
+    ?assertMatch(#{rows := [{1}]}, pgo:query("select 1::int")),
+    ok.