diff --git a/src/main/java/org/springframework/data/r2dbc/function/DefaultDatabaseClientBuilder.java b/src/main/java/org/springframework/data/r2dbc/function/DefaultDatabaseClientBuilder.java
index 8ae87bf7f..57c64fcd8 100644
--- a/src/main/java/org/springframework/data/r2dbc/function/DefaultDatabaseClientBuilder.java
+++ b/src/main/java/org/springframework/data/r2dbc/function/DefaultDatabaseClientBuilder.java
@@ -33,9 +33,9 @@ import org.springframework.util.Assert;
  */
 class DefaultDatabaseClientBuilder implements DatabaseClient.Builder {
 
-	private @Nullable ConnectionFactory connector;
-	private @Nullable R2dbcExceptionTranslator exceptionTranslator;
-	private ReactiveDataAccessStrategy accessStrategy = new DefaultReactiveDataAccessStrategy();
+	@Nullable ConnectionFactory connector;
+	@Nullable R2dbcExceptionTranslator exceptionTranslator;
+	ReactiveDataAccessStrategy accessStrategy = new DefaultReactiveDataAccessStrategy();
 
 	DefaultDatabaseClientBuilder() {}
 
@@ -44,7 +44,7 @@ class DefaultDatabaseClientBuilder implements DatabaseClient.Builder {
 		Assert.notNull(other, "DefaultDatabaseClientBuilder must not be null!");
 
 		this.connector = other.connector;
-		this.exceptionTranslator = exceptionTranslator;
+		this.exceptionTranslator = other.exceptionTranslator;
 	}
 
 	@Override
@@ -83,8 +83,12 @@ class DefaultDatabaseClientBuilder implements DatabaseClient.Builder {
 			exceptionTranslator = new SqlErrorCodeR2dbcExceptionTranslator(connector);
 		}
 
-		return new DefaultDatabaseClient(this.connector, exceptionTranslator, accessStrategy,
-				new DefaultDatabaseClientBuilder(this));
+		return doBuild(this.connector, exceptionTranslator, this.accessStrategy, new DefaultDatabaseClientBuilder(this));
+	}
+
+	protected DatabaseClient doBuild(ConnectionFactory connector, R2dbcExceptionTranslator exceptionTranslator,
+			ReactiveDataAccessStrategy accessStrategy, DefaultDatabaseClientBuilder builder) {
+		return new DefaultDatabaseClient(connector, exceptionTranslator, accessStrategy, builder);
 	}
 
 	@Override
diff --git a/src/main/java/org/springframework/data/r2dbc/function/DefaultTransactionalDatabaseClient.java b/src/main/java/org/springframework/data/r2dbc/function/DefaultTransactionalDatabaseClient.java
new file mode 100644
index 000000000..9206c244f
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/DefaultTransactionalDatabaseClient.java
@@ -0,0 +1,167 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function;
+
+import io.r2dbc.spi.Connection;
+import io.r2dbc.spi.ConnectionFactory;
+import reactor.core.publisher.Flux;
+import reactor.core.publisher.Mono;
+import reactor.util.context.Context;
+import reactor.util.function.Tuple2;
+
+import java.util.function.Function;
+
+import org.reactivestreams.Publisher;
+import org.springframework.data.r2dbc.function.connectionfactory.ConnectionFactoryUtils;
+import org.springframework.data.r2dbc.function.connectionfactory.ReactiveTransactionSynchronization;
+import org.springframework.data.r2dbc.function.connectionfactory.TransactionResources;
+import org.springframework.data.r2dbc.support.R2dbcExceptionTranslator;
+import org.springframework.transaction.NoTransactionException;
+
+/**
+ * Default implementation of a {@link TransactionalDatabaseClient}.
+ *
+ * @author Mark Paluch
+ */
+class DefaultTransactionalDatabaseClient extends DefaultDatabaseClient implements TransactionalDatabaseClient {
+
+	DefaultTransactionalDatabaseClient(ConnectionFactory connector, R2dbcExceptionTranslator exceptionTranslator,
+			ReactiveDataAccessStrategy dataAccessStrategy, DefaultDatabaseClientBuilder builder) {
+		super(connector, exceptionTranslator, dataAccessStrategy, builder);
+	}
+
+	@Override
+	public TransactionalDatabaseClient.Builder mutate() {
+		return (TransactionalDatabaseClient.Builder) super.mutate();
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.TransactionalDatabaseClient#beginTransaction()
+	 */
+	@Override
+	public Mono<Void> beginTransaction() {
+
+		Mono<TransactionResources> transactional = ConnectionFactoryUtils.currentReactiveTransactionSynchronization() //
+				.map(synchronization -> {
+
+					TransactionResources transactionResources = TransactionResources.create();
+					// TODO: This Tx management code creating a TransactionContext. Find a better place.
+					synchronization.registerTransaction(transactionResources);
+					return transactionResources;
+				});
+
+		return transactional.flatMap(it -> {
+			return ConnectionFactoryUtils.doGetConnection(obtainConnectionFactory());
+		}).flatMap(it -> Mono.from(it.getT1().beginTransaction()));
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.TransactionalDatabaseClient#commitTransaction()
+	 */
+	@Override
+	public Mono<Void> commitTransaction() {
+		return cleanup(Connection::commitTransaction);
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.TransactionalDatabaseClient#rollbackTransaction()
+	 */
+	@Override
+	public Mono<Void> rollbackTransaction() {
+		return cleanup(Connection::rollbackTransaction);
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.TransactionalDatabaseClient#inTransaction(java.util.function.Function)
+	 */
+	@Override
+	public <T> Flux<T> inTransaction(Function<DatabaseClient, ? extends Publisher<? extends T>> callback) {
+
+		return Flux.usingWhen(beginTransaction().thenReturn(this), callback, //
+				DefaultTransactionalDatabaseClient::commitTransaction, //
+				DefaultTransactionalDatabaseClient::rollbackTransaction, //
+				DefaultTransactionalDatabaseClient::rollbackTransaction) //
+				.subscriberContext(DefaultTransactionalDatabaseClient::withTransactionSynchronization);
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClient#getConnection()
+	 */
+	@Override
+	protected Mono<Connection> getConnection() {
+		return ConnectionFactoryUtils.getConnection(obtainConnectionFactory()).map(Tuple2::getT1);
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClient#closeConnection(io.r2dbc.spi.Connection)
+	 */
+	@Override
+	protected Publisher<Void> closeConnection(Connection connection) {
+
+		return Mono.subscriberContext().flatMap(context -> {
+
+			if (context.hasKey(ReactiveTransactionSynchronization.class)) {
+
+				return ConnectionFactoryUtils.currentConnectionFactory()
+						.flatMap(it -> ConnectionFactoryUtils.releaseConnection(connection, it));
+			}
+
+			return Mono.from(connection.close());
+		});
+	}
+
+	/**
+	 * Execute a transactional cleanup. Also, deregister the current {@link TransactionResources synchronization} element.
+	 */
+	private static Mono<Void> cleanup(Function<Connection, ? extends Publisher<Void>> callback) {
+
+		return ConnectionFactoryUtils.currentActiveReactiveTransactionSynchronization() //
+				.flatMap(synchronization -> {
+
+					TransactionResources currentSynchronization = synchronization.getCurrentTransaction();
+
+					ConnectionFactory connectionFactory = currentSynchronization.getResource(ConnectionFactory.class);
+
+					if (connectionFactory == null) {
+						throw new NoTransactionException("No ConnectionFactory attached");
+					}
+
+					return Mono.from(connectionFactory.create())
+							.flatMap(connection -> Mono.from(callback.apply(connection))
+									.then(ConnectionFactoryUtils.releaseConnection(connection, connectionFactory))
+									.then(ConnectionFactoryUtils.closeConnection(connection, connectionFactory))) // TODO: Is this rather
+																																																// related to
+																																																// TransactionContext
+																																																// cleanup?
+							.doFinally(s -> synchronization.unregisterTransaction(currentSynchronization));
+				});
+	}
+
+	/**
+	 * Potentially register a {@link ReactiveTransactionSynchronization} in the {@link Context} if no synchronization
+	 * object is registered.
+	 *
+	 * @param context the subscriber context.
+	 * @return subscriber context with a registered synchronization.
+	 */
+	static Context withTransactionSynchronization(Context context) {
+
+		// associate synchronizer object to host transactional resources.
+		// TODO: Should be moved to a better place.
+		return context.put(ReactiveTransactionSynchronization.class,
+				context.getOrDefault(ReactiveTransactionSynchronization.class, new ReactiveTransactionSynchronization()));
+	}
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/DefaultTransactionalDatabaseClientBuilder.java b/src/main/java/org/springframework/data/r2dbc/function/DefaultTransactionalDatabaseClientBuilder.java
new file mode 100644
index 000000000..7e322e059
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/DefaultTransactionalDatabaseClientBuilder.java
@@ -0,0 +1,99 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function;
+
+import io.r2dbc.spi.ConnectionFactory;
+
+import java.util.function.Consumer;
+
+import org.springframework.data.r2dbc.function.DatabaseClient.Builder;
+import org.springframework.data.r2dbc.support.R2dbcExceptionTranslator;
+import org.springframework.util.Assert;
+
+/**
+ * @author Mark Paluch
+ */
+class DefaultTransactionalDatabaseClientBuilder extends DefaultDatabaseClientBuilder
+		implements TransactionalDatabaseClient.Builder {
+
+	DefaultTransactionalDatabaseClientBuilder() {}
+
+	DefaultTransactionalDatabaseClientBuilder(DefaultDatabaseClientBuilder other) {
+
+		Assert.notNull(other, "DefaultDatabaseClientBuilder must not be null!");
+
+		this.connector = other.connector;
+		this.exceptionTranslator = other.exceptionTranslator;
+	}
+
+	@Override
+	public DatabaseClient.Builder clone() {
+		return new DefaultTransactionalDatabaseClientBuilder(this);
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClientBuilder#connectionFactory(io.r2dbc.spi.ConnectionFactory)
+	 */
+	@Override
+	public TransactionalDatabaseClient.Builder connectionFactory(ConnectionFactory factory) {
+		super.connectionFactory(factory);
+		return this;
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClientBuilder#exceptionTranslator(org.springframework.data.r2dbc.support.R2dbcExceptionTranslator)
+	 */
+	@Override
+	public TransactionalDatabaseClient.Builder exceptionTranslator(R2dbcExceptionTranslator exceptionTranslator) {
+		super.exceptionTranslator(exceptionTranslator);
+		return this;
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClientBuilder#dataAccessStrategy(org.springframework.data.r2dbc.function.ReactiveDataAccessStrategy)
+	 */
+	@Override
+	public TransactionalDatabaseClient.Builder dataAccessStrategy(ReactiveDataAccessStrategy accessStrategy) {
+		super.dataAccessStrategy(accessStrategy);
+		return this;
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClientBuilder#apply(java.util.function.Consumer)
+	 */
+	@Override
+	public TransactionalDatabaseClient.Builder apply(Consumer<Builder> builderConsumer) {
+		super.apply(builderConsumer);
+		return this;
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClientBuilder#build()
+	 */
+	@Override
+	public TransactionalDatabaseClient build() {
+		return (TransactionalDatabaseClient) super.build();
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.DefaultDatabaseClientBuilder#doBuild(io.r2dbc.spi.ConnectionFactory, org.springframework.data.r2dbc.support.R2dbcExceptionTranslator, org.springframework.data.r2dbc.function.ReactiveDataAccessStrategy, org.springframework.data.r2dbc.function.DefaultDatabaseClientBuilder)
+	 */
+	@Override
+	protected DatabaseClient doBuild(ConnectionFactory connector, R2dbcExceptionTranslator exceptionTranslator,
+			ReactiveDataAccessStrategy accessStrategy, DefaultDatabaseClientBuilder builder) {
+		return new DefaultTransactionalDatabaseClient(connector, exceptionTranslator, accessStrategy, builder);
+	}
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/TransactionalDatabaseClient.java b/src/main/java/org/springframework/data/r2dbc/function/TransactionalDatabaseClient.java
new file mode 100644
index 000000000..a747032ca
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/TransactionalDatabaseClient.java
@@ -0,0 +1,202 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function;
+
+import io.r2dbc.spi.ConnectionFactory;
+import reactor.core.publisher.Flux;
+import reactor.core.publisher.Mono;
+
+import java.util.function.Consumer;
+import java.util.function.Function;
+
+import org.reactivestreams.Publisher;
+import org.springframework.data.r2dbc.function.connectionfactory.TransactionResources;
+import org.springframework.data.r2dbc.support.R2dbcExceptionTranslator;
+import org.springframework.util.Assert;
+
+/**
+ * {@link DatabaseClient} that participates in an ongoing transaction if the subscription happens within a hosted
+ * transaction. Alternatively, transactions can be started and cleaned up using {@link #beginTransaction()} and
+ * {@link #commitTransaction()}.
+ * <p>
+ * Transactional resources are bound to {@link ReactiveTransactionSynchronization} through nested
+ * {@link TransactionContext} enabling nested (parallel) transactions. The simplemost approach to use transactions is by
+ * using {@link #inTransaction(Function)} which will start a transaction and commit it on successful termination. The
+ * callback allows execution of multiple statements within the same transaction.
+ *
+ * <pre class="code">
+ * Flux<Integer> transactionalFlux = databaseClient.inTransaction(db -> {
+ *
+ * 	return db.execute().sql("INSERT INTO person (id, firstname, lastname) VALUES($1, $2, $3)") //
+ * 			.bind(0, 1) //
+ * 			.bind(1, "Walter") //
+ * 			.bind(2, "White") //
+ * 			.fetch().rowsUpdated();
+ * });
+ * </pre>
+ *
+ * Alternatively, transactions can be controlled by using {@link #beginTransaction()} and {@link #commitTransaction()}
+ * methods. This approach requires {@link #enableTransactionSynchronization(Publisher) enabling of transaction
+ * synchronization} for the transactional operation.
+ *
+ * <pre class="code">
+ * Mono<Void> mono = databaseClient.beginTransaction()
+ * 		.then(databaseClient.execute().sql("INSERT INTO person (id, firstname, lastname) VALUES($1, $2, $3)") //
+ * 				.bind(0, 1) //
+ * 				.bind(1, "Walter") //
+ * 				.bind(2, "White") //
+ * 				.fetch().rowsUpdated())
+ * 		.then(databaseClient.commitTransaction());
+ *
+ * Mono<Void> transactionalMono = databaseClient.enableTransactionSynchronization(mono);
+ * </pre>
+ * <p>
+ * This {@link DatabaseClient} can be safely used without transaction synchronization to invoke database functionality
+ * in auto-commit transactions.
+ *
+ * @author Mark Paluch
+ * @see #inTransaction(Function)
+ * @see #enableTransactionSynchronization(Publisher)
+ * @see #beginTransaction()
+ * @see #commitTransaction()
+ * @see #rollbackTransaction()
+ * @see org.springframework.data.r2dbc.function.connectionfactory.ReactiveTransactionSynchronization
+ * @see TransactionResources
+ * @see org.springframework.data.r2dbc.function.connectionfactory.ConnectionFactoryUtils
+ */
+public interface TransactionalDatabaseClient extends DatabaseClient {
+
+	/**
+	 * Start a transaction and bind connection resources to the subscriber context.
+	 *
+	 * @return
+	 */
+	Mono<Void> beginTransaction();
+
+	/**
+	 * Commit a transaction and unbind connection resources from the subscriber context.
+	 *
+	 * @return
+	 * @throws org.springframework.transaction.NoTransactionException if no transaction is ongoing.
+	 */
+	Mono<Void> commitTransaction();
+
+	/**
+	 * Rollback a transaction and unbind connection resources from the subscriber context.
+	 *
+	 * @return
+	 * @throws org.springframework.transaction.NoTransactionException if no transaction is ongoing.
+	 */
+	Mono<Void> rollbackTransaction();
+
+	/**
+	 * Execute a {@link Function} accepting a {@link DatabaseClient} within a managed transaction. {@link Exception Error
+	 * signals} cause the transaction to be rolled back.
+	 *
+	 * @param callback
+	 * @return the callback result.
+	 */
+	<T> Flux<T> inTransaction(Function<DatabaseClient, ? extends Publisher<? extends T>> callback);
+
+	/**
+	 * Enable transaction management so that connections can be bound to the subscription.
+	 *
+	 * @param publisher must not be {@literal null}.
+	 * @return the Transaction-enabled {@link Mono}.
+	 */
+	default <T> Mono<T> enableTransactionSynchronization(Mono<T> publisher) {
+
+		Assert.notNull(publisher, "Publisher must not be null!");
+
+		return publisher.subscriberContext(DefaultTransactionalDatabaseClient::withTransactionSynchronization);
+	}
+
+	/**
+	 * Enable transaction management so that connections can be bound to the subscription.
+	 *
+	 * @param publisher must not be {@literal null}.
+	 * @return the Transaction-enabled {@link Flux}.
+	 */
+	default <T> Flux<T> enableTransactionSynchronization(Publisher<T> publisher) {
+
+		Assert.notNull(publisher, "Publisher must not be null!");
+
+		return Flux.from(publisher).subscriberContext(DefaultTransactionalDatabaseClient::withTransactionSynchronization);
+	}
+
+	/**
+	 * Return a builder to mutate properties of this database client.
+	 */
+	TransactionalDatabaseClient.Builder mutate();
+
+	// Static, factory methods
+
+	/**
+	 * A variant of {@link #create(ConnectionFactory)} that accepts a {@link io.r2dbc.spi.ConnectionFactory}.
+	 */
+	static TransactionalDatabaseClient create(ConnectionFactory factory) {
+		return (TransactionalDatabaseClient) new DefaultTransactionalDatabaseClientBuilder().connectionFactory(factory)
+				.build();
+	}
+
+	/**
+	 * Obtain a {@code DatabaseClient} builder.
+	 */
+	static TransactionalDatabaseClient.Builder builder() {
+		return new DefaultTransactionalDatabaseClientBuilder();
+	}
+
+	/**
+	 * A mutable builder for creating a {@link TransactionalDatabaseClient}.
+	 */
+	interface Builder extends DatabaseClient.Builder {
+
+		/**
+		 * Configures the {@link ConnectionFactory R2DBC connector}.
+		 *
+		 * @param factory must not be {@literal null}.
+		 * @return {@code this} {@link DatabaseClient.Builder}.
+		 */
+		Builder connectionFactory(ConnectionFactory factory);
+
+		/**
+		 * Configures a {@link R2dbcExceptionTranslator}.
+		 *
+		 * @param exceptionTranslator must not be {@literal null}.
+		 * @return {@code this} {@link DatabaseClient.Builder}.
+		 */
+		Builder exceptionTranslator(R2dbcExceptionTranslator exceptionTranslator);
+
+		/**
+		 * Configures a {@link ReactiveDataAccessStrategy}.
+		 *
+		 * @param accessStrategy must not be {@literal null}.
+		 * @return {@code this} {@link DatabaseClient.Builder}.
+		 */
+		Builder dataAccessStrategy(ReactiveDataAccessStrategy accessStrategy);
+
+		/**
+		 * Configures a {@link Consumer} to configure this builder.
+		 *
+		 * @param builderConsumer must not be {@literal null}.
+		 * @return {@code this} {@link DatabaseClient.Builder}.
+		 */
+		Builder apply(Consumer<DatabaseClient.Builder> builderConsumer);
+
+		@Override
+		TransactionalDatabaseClient build();
+	}
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/ConnectionFactoryUtils.java b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/ConnectionFactoryUtils.java
new file mode 100644
index 000000000..d2e60f962
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/ConnectionFactoryUtils.java
@@ -0,0 +1,249 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function.connectionfactory;
+
+import io.r2dbc.spi.Connection;
+import io.r2dbc.spi.ConnectionFactory;
+import reactor.core.publisher.Mono;
+import reactor.util.function.Tuple2;
+import reactor.util.function.Tuples;
+
+import org.apache.commons.logging.Log;
+import org.apache.commons.logging.LogFactory;
+import org.springframework.dao.DataAccessResourceFailureException;
+import org.springframework.lang.Nullable;
+import org.springframework.transaction.NoTransactionException;
+import org.springframework.util.Assert;
+
+/**
+ * Helper class that provides static methods for obtaining R2DBC Connections from a
+ * {@link io.r2dbc.spi.ConnectionFactory}.
+ * <p>
+ * Used internally by Spring's {@link org.springframework.data.r2dbc.function.DatabaseClient}, Spring's R2DBC operation
+ * objects. Can also be used directly in application code.
+ *
+ * @author Mark Paluch
+ */
+public class ConnectionFactoryUtils {
+
+	private static final Log logger = LogFactory.getLog(ConnectionFactoryUtils.class);
+
+	/**
+	 * Obtain a {@link io.r2dbc.spi.Connection} from the given {@link io.r2dbc.spi.ConnectionFactory}. Translates
+	 * exceptions into the Spring hierarchy of unchecked generic data access exceptions, simplifying calling code and
+	 * making any exception that is thrown more meaningful.
+	 * <p>
+	 * Is aware of a corresponding Connection bound to the current {@link reactor.util.context.Context}. Will bind a
+	 * Connection to the {@link reactor.util.context.Context} if transaction synchronization is active.
+	 *
+	 * @param connectionFactory the {@link io.r2dbc.spi.ConnectionFactory} to obtain Connections from
+	 * @return a R2DBC Connection from the given {@link io.r2dbc.spi.ConnectionFactory}.
+	 * @throws DataAccessResourceFailureException if the attempt to get a {@link io.r2dbc.spi.Connection} failed
+	 * @see #releaseConnection
+	 */
+	public static Mono<Tuple2<Connection, ConnectionFactory>> getConnection(ConnectionFactory connectionFactory) {
+		return doGetConnection(connectionFactory)
+				.onErrorMap(e -> new DataAccessResourceFailureException("Failed to obtain R2DBC Connection", e));
+	}
+
+	/**
+	 * Actually obtain a R2DBC Connection from the given {@link ConnectionFactory}. Same as {@link #getConnection}, but
+	 * preserving the original exceptions.
+	 * <p>
+	 * Is aware of a corresponding Connection bound to the current {@link reactor.util.context.Context}. Will bind a
+	 * Connection to the {@link reactor.util.context.Context} if transaction synchronization is active.
+	 *
+	 * @param connectionFactory the {@link ConnectionFactory} to obtain Connections from.
+	 * @return a R2DBC {@link io.r2dbc.spi.Connection} from the given {@link ConnectionFactory}.
+	 */
+	public static Mono<Tuple2<Connection, ConnectionFactory>> doGetConnection(ConnectionFactory connectionFactory) {
+
+		Assert.notNull(connectionFactory, "ConnectionFactory must not be null!");
+
+		return Mono.subscriberContext().flatMap(it -> {
+
+			if (it.hasKey(ReactiveTransactionSynchronization.class)) {
+
+				ReactiveTransactionSynchronization synchronization = it.get(ReactiveTransactionSynchronization.class);
+
+				return obtainConnection(synchronization, connectionFactory);
+			}
+			return Mono.empty();
+		}).switchIfEmpty(Mono.defer(() -> {
+			return Mono.from(connectionFactory.create()).map(it -> Tuples.of(it, connectionFactory));
+		}));
+	}
+
+	private static Mono<Tuple2<Connection, ConnectionFactory>> obtainConnection(
+			ReactiveTransactionSynchronization synchronization, ConnectionFactory connectionFactory) {
+
+		if (synchronization.isSynchronizationActive()) {
+
+			logger.debug("Registering transaction synchronization for R2DBC Connection");
+
+			TransactionResources txContext = synchronization.getCurrentTransaction();
+			ConnectionFactory resource = txContext.getResource(ConnectionFactory.class);
+
+			Mono<Tuple2<Connection, ConnectionFactory>> attachNewConnection = Mono
+					.defer(() -> Mono.from(connectionFactory.create()).map(it -> {
+
+						logger.debug("Fetching new R2DBC Connection from ConnectionFactory");
+
+						SingletonConnectionFactory s = new SingletonConnectionFactory(connectionFactory.getMetadata(), it);
+						txContext.registerResource(ConnectionFactory.class, s);
+
+						return Tuples.of(it, connectionFactory);
+					}));
+
+			return Mono.justOrEmpty(resource).flatMap(factory -> {
+
+				logger.debug("Fetching resumed R2DBC Connection from ConnectionFactory");
+
+				return Mono.from(factory.create())
+						.map(connection -> Tuples.<Connection, ConnectionFactory> of(connection, factory));
+
+			}).switchIfEmpty(attachNewConnection);
+		}
+
+		return Mono.empty();
+	}
+
+	/**
+	 * Close the given {@link io.r2dbc.spi.Connection}, obtained from the given {@link ConnectionFactory}, if it is not
+	 * managed externally (that is, not bound to the thread).
+	 *
+	 * @param con the {@link io.r2dbc.spi.Connection} to close if necessary.
+	 * @param connectionFactory the {@link ConnectionFactory} that the Connection was obtained from (may be
+	 *          {@literal null}).
+	 * @see #getConnection
+	 */
+	public static Mono<Void> releaseConnection(@Nullable io.r2dbc.spi.Connection con,
+			@Nullable ConnectionFactory connectionFactory) {
+
+		return doReleaseConnection(con, connectionFactory)
+				.onErrorMap(e -> new DataAccessResourceFailureException("Failed to close R2DBC Connection", e));
+	}
+
+	/**
+	 * Actually close the given {@link io.r2dbc.spi.Connection}, obtained from the given {@link ConnectionFactory}. Same
+	 * as {@link #releaseConnection}, but preserving the original exception.
+	 *
+	 * @param con the {@link io.r2dbc.spi.Connection} to close if necessary.
+	 * @param connectionFactory the {@link ConnectionFactory} that the Connection was obtained from (may be
+	 *          {@literal null}).
+	 * @see #doGetConnection
+	 */
+	public static Mono<Void> doReleaseConnection(@Nullable io.r2dbc.spi.Connection con,
+			@Nullable ConnectionFactory connectionFactory) {
+
+		if (connectionFactory instanceof SingletonConnectionFactory) {
+
+			SingletonConnectionFactory factory = (SingletonConnectionFactory) connectionFactory;
+
+			logger.debug("Releasing R2DBC Connection");
+
+			return factory.close(con);
+		}
+
+		logger.debug("Closing R2DBC Connection");
+
+		return Mono.from(con.close());
+	}
+
+	/**
+	 * Close the {@link io.r2dbc.spi.Connection}. Translates exceptions into the Spring hierarchy of unchecked generic
+	 * data access exceptions, simplifying calling code and making any exception that is thrown more meaningful.
+	 *
+	 * @param connectionFactory the {@link io.r2dbc.spi.ConnectionFactory} to obtain Connections from
+	 * @return a R2DBC Connection from the given {@link io.r2dbc.spi.ConnectionFactory}.
+	 * @throws DataAccessResourceFailureException if the attempt to get a {@link io.r2dbc.spi.Connection} failed
+	 */
+	public static Mono<Void> closeConnection(Connection connection, ConnectionFactory connectionFactory) {
+		return doCloseConnection(connection, connectionFactory)
+				.onErrorMap(e -> new DataAccessResourceFailureException("Failed to obtain R2DBC Connection", e));
+	}
+
+	/**
+	 * Close the {@link io.r2dbc.spi.Connection}, unless a {@link SmartConnectionFactory} doesn't want us to.
+	 *
+	 * @param connection the {@link io.r2dbc.spi.Connection} to close if necessary.
+	 * @param connectionFactory the {@link ConnectionFactory} that the Connection was obtained from.
+	 * @see Connection#close()
+	 * @see SmartConnectionFactory#shouldClose(Connection)
+	 */
+	public static Mono<Void> doCloseConnection(Connection connection, @Nullable ConnectionFactory connectionFactory) {
+
+		if (!(connectionFactory instanceof SingletonConnectionFactory)
+				|| ((SingletonConnectionFactory) connectionFactory).shouldClose(connection)) {
+
+			SingletonConnectionFactory factory = (SingletonConnectionFactory) connectionFactory;
+			return factory.close(connection).then(Mono.from(connection.close()));
+		}
+
+		return Mono.empty();
+	}
+
+	/**
+	 * Obtain the currently {@link ReactiveTransactionSynchronization} from the current subscriber
+	 * {@link reactor.util.context.Context}.
+	 *
+	 * @see Mono#subscriberContext()
+	 * @see ReactiveTransactionSynchronization
+	 * @throws NoTransactionException if no active {@link ReactiveTransactionSynchronization} is associated with the
+	 *           current subscription.
+	 */
+	public static Mono<ReactiveTransactionSynchronization> currentReactiveTransactionSynchronization() {
+
+		return Mono.subscriberContext().filter(it -> it.hasKey(ReactiveTransactionSynchronization.class)) //
+				.switchIfEmpty(Mono.error(new NoTransactionException(
+						"Transaction management is not enabled. Make sure to register ReactiveTransactionSynchronization in the subscriber Context!"))) //
+				.map(it -> it.get(ReactiveTransactionSynchronization.class));
+	}
+
+	/**
+	 * Obtain the currently active {@link ReactiveTransactionSynchronization} from the current subscriber
+	 * {@link reactor.util.context.Context}.
+	 *
+	 * @see Mono#subscriberContext()
+	 * @see ReactiveTransactionSynchronization
+	 * @throws NoTransactionException if no active {@link ReactiveTransactionSynchronization} is associated with the
+	 *           current subscription.
+	 */
+	public static Mono<ReactiveTransactionSynchronization> currentActiveReactiveTransactionSynchronization() {
+
+		return currentReactiveTransactionSynchronization()
+				.filter(ReactiveTransactionSynchronization::isSynchronizationActive) //
+				.switchIfEmpty(Mono.error(new NoTransactionException("ReactiveTransactionSynchronization not active!")));
+	}
+
+	/**
+	 * Obtain the {@link io.r2dbc.spi.ConnectionFactory} from the current subscriber {@link reactor.util.context.Context}.
+	 *
+	 * @see Mono#subscriberContext()
+	 * @see ReactiveTransactionSynchronization
+	 * @see TransactionResources
+	 */
+	public static Mono<ConnectionFactory> currentConnectionFactory() {
+
+		return currentActiveReactiveTransactionSynchronization() //
+				.map(synchronization -> {
+
+					TransactionResources currentSynchronization = synchronization.getCurrentTransaction();
+					return currentSynchronization.getResource(ConnectionFactory.class);
+				}).switchIfEmpty(Mono.error(new DataAccessResourceFailureException(
+						"Cannot extract ConnectionFactory from current TransactionContext!")));
+	}
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/DefaultTransactionResources.java b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/DefaultTransactionResources.java
new file mode 100644
index 000000000..853448dc1
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/DefaultTransactionResources.java
@@ -0,0 +1,51 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function.connectionfactory;
+
+import java.util.Map;
+import java.util.concurrent.ConcurrentHashMap;
+
+import org.springframework.util.Assert;
+
+/**
+ * Default implementation of {@link TransactionResources}.
+ *
+ * @author Mark Paluch
+ */
+class DefaultTransactionResources implements TransactionResources {
+
+	private Map<Class<?>, Object> items = new ConcurrentHashMap<>();
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.connectionfactory.TransactionResources#registerResource(java.lang.Class, java.lang.Object)
+	 */
+	@Override
+	public <T> void registerResource(Class<T> key, T value) {
+
+		Assert.state(!items.containsKey(key), () -> String.format("Resource for %s is already bound", key));
+
+		items.put(key, value);
+	}
+
+	/* (non-Javadoc)
+	 * @see org.springframework.data.r2dbc.function.connectionfactory.TransactionResources#getResource(java.lang.Class)
+	 */
+	@SuppressWarnings("unchecked")
+	@Override
+	public <T> T getResource(Class<T> key) {
+		return (T) items.get(key);
+	}
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/ReactiveTransactionSynchronization.java b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/ReactiveTransactionSynchronization.java
new file mode 100644
index 000000000..af2ab9344
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/ReactiveTransactionSynchronization.java
@@ -0,0 +1,87 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function.connectionfactory;
+
+import java.util.Stack;
+
+import org.springframework.lang.Nullable;
+import org.springframework.util.Assert;
+
+/**
+ * Central delegate that manages transactional resources. To be used by resource management code but not by typical
+ * application code.
+ * <p>
+ * Supports a list of transactional resources if synchronization is active.
+ * <p>
+ * Resource management code should check for subscriber {@link reactor.util.context.Context}-bound resources, e.g. R2DBC
+ * Connections using {@link TransactionResources#getResource(Class)}. Such code is normally not supposed to bind
+ * resources, as this is the responsibility of transaction managers. A further option is to lazily bind on first use if
+ * transaction synchronization is active, for performing transactions that span an arbitrary number of resources.
+ * <p>
+ * Transaction synchronization must be activated and deactivated by a transaction manager by registering
+ * {@link ReactiveTransactionSynchronization} in the {@link reactor.util.context.Context subscriber context}.
+ *
+ * @author Mark Paluch
+ */
+public class ReactiveTransactionSynchronization {
+
+	private Stack<TransactionResources> resources = new Stack<>();
+
+	/**
+	 * Return if transaction synchronization is active for the current {@link reactor.util.context.Context}. Can be called
+	 * before register to avoid unnecessary instance creation.
+	 */
+	public boolean isSynchronizationActive() {
+		return !resources.isEmpty();
+	}
+
+	/**
+	 * Create a new transaction span and register a {@link TransactionResources} instance.
+	 *
+	 * @param transactionResources must not be {@literal null}.
+	 */
+	public void registerTransaction(TransactionResources transactionResources) {
+
+		Assert.notNull(transactionResources, "TransactionContext must not be null!");
+
+		resources.push(transactionResources);
+	}
+
+	/**
+	 * Unregister a transaction span and by removing {@link TransactionResources} instance.
+	 *
+	 * @param transactionResources must not be {@literal null}.
+	 */
+	public void unregisterTransaction(TransactionResources transactionResources) {
+
+		Assert.notNull(transactionResources, "TransactionContext must not be null!");
+
+		resources.remove(transactionResources);
+	}
+
+	/**
+	 * @return obtain the current {@link TransactionResources} or {@literal null} if none is present.
+	 */
+	@Nullable
+	public TransactionResources getCurrentTransaction() {
+
+		if (!resources.isEmpty()) {
+			return resources.peek();
+		}
+
+		return null;
+	}
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/SingletonConnectionFactory.java b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/SingletonConnectionFactory.java
new file mode 100644
index 000000000..5610bf791
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/SingletonConnectionFactory.java
@@ -0,0 +1,85 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function.connectionfactory;
+
+import io.r2dbc.spi.Connection;
+import io.r2dbc.spi.ConnectionFactoryMetadata;
+import reactor.core.publisher.Mono;
+
+import java.util.concurrent.atomic.AtomicInteger;
+
+import org.reactivestreams.Publisher;
+
+/**
+ * Connection holder, wrapping a R2DBC Connection.
+ * {@link org.springframework.data.r2dbc.function.TransactionalDatabaseClient} binds instances of this class to the
+ * {@link TransactionResources} for a specific subscription.
+ *
+ * @author Mark Paluch
+ */
+class SingletonConnectionFactory implements SmartConnectionFactory {
+
+	private final ConnectionFactoryMetadata metadata;
+	private final Connection connection;
+	private final Mono<Connection> connectionMono;
+	private final AtomicInteger refCount = new AtomicInteger();
+
+	SingletonConnectionFactory(ConnectionFactoryMetadata metadata, Connection connection) {
+
+		this.metadata = metadata;
+		this.connection = connection;
+		this.connectionMono = Mono.just(connection);
+	}
+
+	/* (non-Javadoc)
+	 * @see io.r2dbc.spi.ConnectionFactory#create()
+	 */
+	@Override
+	public Publisher<? extends Connection> create() {
+
+		if (refCount.get() == -1) {
+			throw new IllegalStateException("Connection is closed!");
+		}
+
+		return connectionMono.doOnSubscribe(s -> refCount.incrementAndGet());
+	}
+
+	/* (non-Javadoc)
+	 * @see io.r2dbc.spi.ConnectionFactory#getMetadata()
+	 */
+	@Override
+	public ConnectionFactoryMetadata getMetadata() {
+		return metadata;
+	}
+
+	private boolean connectionEquals(Connection connection) {
+		return this.connection == connection;
+	}
+
+	@Override
+	public boolean shouldClose(Connection connection) {
+		return refCount.get() == 1;
+	}
+
+	Mono<Void> close(Connection connection) {
+
+		if (connectionEquals(connection)) {
+			return Mono.<Void> empty().doOnSubscribe(s -> refCount.decrementAndGet());
+		}
+
+		throw new IllegalArgumentException("Connection is not associated with this connection factory");
+	}
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/SmartConnectionFactory.java b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/SmartConnectionFactory.java
new file mode 100644
index 000000000..221cdc54f
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/SmartConnectionFactory.java
@@ -0,0 +1,44 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function.connectionfactory;
+
+import io.r2dbc.spi.Connection;
+import io.r2dbc.spi.ConnectionFactory;
+
+/**
+ * Extension of the {@code io.r2dbc.spi.ConnectionFactory} interface, to be implemented by special connection factories
+ * that return R2DBC Connections in an unwrapped fashion.
+ * <p>
+ * Classes using this interface can query whether or not the {@link Connection} should be closed after an operation.
+ * Spring's {@link ConnectionFactoryUtils} automatically perform such a check.
+ *
+ * @author Mark Paluch
+ * @see ConnectionFactoryUtils#closeConnection
+ */
+public interface SmartConnectionFactory extends ConnectionFactory {
+
+	/**
+	 * Should we close this {@link io.r2dbc.spi.Connection}, obtained from this {@code io.r2dbc.spi.ConnectionFactory}?
+	 * <p>
+	 * Code that uses Connections from a SmartConnectionFactory should always perform a check via this method before
+	 * invoking {@code close()}.
+	 *
+	 * @param connection the {@link io.r2dbc.spi.Connection} to check.
+	 * @return whether the given {@link Connection} should be closed.
+	 * @see io.r2dbc.spi.Connection#close()
+	 */
+	boolean shouldClose(Connection connection);
+}
diff --git a/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/TransactionResources.java b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/TransactionResources.java
new file mode 100644
index 000000000..119c6ca87
--- /dev/null
+++ b/src/main/java/org/springframework/data/r2dbc/function/connectionfactory/TransactionResources.java
@@ -0,0 +1,58 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function.connectionfactory;
+
+import reactor.core.publisher.Mono;
+
+/**
+ * Transaction context for an ongoing transaction synchronization allowing to register transactional resources.
+ * <p>
+ * Supports one resource per key without overwriting, that is, a resource needs to be removed before a new one can be
+ * set for the same key.
+ * <p>
+ * Primarily used by {@link ConnectionFactoryUtils} but can be also used by application code to register resources that
+ * should be bound to a transaction.
+ *
+ * @author Mark Paluch
+ */
+public interface TransactionResources {
+
+	/**
+	 * Creates a new empty {@link TransactionResources}.
+	 *
+	 * @return the empty {@link TransactionResources}.
+	 */
+	static TransactionResources create() {
+		return new DefaultTransactionResources();
+	}
+
+	/**
+	 * Retrieve a resource from this context identified by {@code key}.
+	 *
+	 * @param key the resource key.
+	 * @return the resource emitted through {@link Mono} or {@link Mono#empty()} if the resource was not found.
+	 */
+	<T> T getResource(Class<T> key);
+
+	/**
+	 * Register a resource in this context.
+	 *
+	 * @param key the resource key.
+	 * @param value can be a subclass of the {@code key} type.
+	 * @throws IllegalStateException if a resource is already bound under {@code key}.
+	 */
+	<T> void registerResource(Class<T> key, T value);
+}
diff --git a/src/test/java/org/springframework/data/r2dbc/function/TransactionalDatabaseClientIntegrationTests.java b/src/test/java/org/springframework/data/r2dbc/function/TransactionalDatabaseClientIntegrationTests.java
new file mode 100644
index 000000000..ade4922cc
--- /dev/null
+++ b/src/test/java/org/springframework/data/r2dbc/function/TransactionalDatabaseClientIntegrationTests.java
@@ -0,0 +1,181 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function;
+
+import static org.assertj.core.api.Assertions.*;
+
+import io.r2dbc.spi.ConnectionFactory;
+import reactor.core.publisher.Flux;
+import reactor.core.publisher.Hooks;
+import reactor.core.publisher.Mono;
+import reactor.test.StepVerifier;
+
+import java.util.ArrayList;
+import java.util.List;
+import java.util.Queue;
+import java.util.concurrent.ArrayBlockingQueue;
+
+import org.junit.Before;
+import org.junit.Test;
+import org.springframework.data.jdbc.testing.R2dbcIntegrationTestSupport;
+import org.springframework.jdbc.core.JdbcTemplate;
+import org.springframework.transaction.NoTransactionException;
+
+/**
+ * Integration tests for {@link TransactionalDatabaseClient}.
+ *
+ * @author Mark Paluch
+ */
+public class TransactionalDatabaseClientIntegrationTests extends R2dbcIntegrationTestSupport {
+
+	private ConnectionFactory connectionFactory;
+
+	private JdbcTemplate jdbc;
+
+	@Before
+	public void before() {
+
+		Hooks.onOperatorDebug();
+
+		connectionFactory = createConnectionFactory();
+
+		String tableToCreate = "CREATE TABLE IF NOT EXISTS legoset (\n"
+				+ "    id          integer CONSTRAINT id PRIMARY KEY,\n" + "    name        varchar(255) NOT NULL,\n"
+				+ "    manual      integer NULL\n" + ");";
+
+		jdbc = createJdbcTemplate(createDataSource());
+		jdbc.execute(tableToCreate);
+		jdbc.execute("DELETE FROM legoset");
+	}
+
+	@Test
+	public void executeInsertInManagedTransaction() {
+
+		TransactionalDatabaseClient databaseClient = TransactionalDatabaseClient.create(connectionFactory);
+
+		Flux<Integer> integerFlux = databaseClient.inTransaction(db -> {
+
+			return db.execute().sql("INSERT INTO legoset (id, name, manual) VALUES($1, $2, $3)") //
+					.bind(0, 42055) //
+					.bind(1, "SCHAUFELRADBAGGER") //
+					.bindNull("$3") //
+					.fetch().rowsUpdated();
+		});
+
+		integerFlux.as(StepVerifier::create) //
+				.expectNext(1) //
+				.verifyComplete();
+
+		assertThat(jdbc.queryForMap("SELECT id, name, manual FROM legoset")).containsEntry("id", 42055);
+	}
+
+	@Test
+	public void executeInsertInAutoCommitTransaction() {
+
+		TransactionalDatabaseClient databaseClient = TransactionalDatabaseClient.create(connectionFactory);
+
+		Mono<Integer> integerFlux = databaseClient.execute()
+				.sql("INSERT INTO legoset (id, name, manual) VALUES($1, $2, $3)") //
+				.bind(0, 42055) //
+				.bind(1, "SCHAUFELRADBAGGER") //
+				.bindNull("$3") //
+				.fetch().rowsUpdated();
+
+		integerFlux.as(StepVerifier::create) //
+				.expectNext(1) //
+				.verifyComplete();
+
+		assertThat(jdbc.queryForMap("SELECT id, name, manual FROM legoset")).containsEntry("id", 42055);
+	}
+
+	@Test
+	public void shouldManageUserTransaction() {
+
+		Queue<Long> transactionIds = new ArrayBlockingQueue<>(5);
+		TransactionalDatabaseClient databaseClient = TransactionalDatabaseClient.create(connectionFactory);
+
+		Flux<Long> txId = databaseClient.execute().sql("SELECT txid_current();").exchange()
+				.flatMapMany(it -> it.extract((r, md) -> r.get(0, Long.class)).all());
+
+		Mono<Void> then = databaseClient.enableTransactionSynchronization(databaseClient.beginTransaction() //
+				.thenMany(txId.concatWith(txId).doOnNext(transactionIds::add)) //
+				.then(databaseClient.rollbackTransaction()));
+
+		then.as(StepVerifier::create) //
+				.verifyComplete();
+
+		List<Long> listOfTxIds = new ArrayList<>(transactionIds);
+		assertThat(listOfTxIds).hasSize(2);
+		assertThat(listOfTxIds).containsExactly(listOfTxIds.get(1), listOfTxIds.get(0));
+	}
+
+	@Test
+	public void userTransactionManagementShouldFailWithoutSynchronizer() {
+
+		TransactionalDatabaseClient databaseClient = TransactionalDatabaseClient.create(connectionFactory);
+
+		Mono<Void> then = databaseClient.beginTransaction().then(databaseClient.rollbackTransaction());
+
+		then.as(StepVerifier::create) //
+				.consumeErrorWith(exception -> {
+
+					assertThat(exception).isInstanceOf(NoTransactionException.class)
+							.hasMessageContaining("Transaction management is not enabled");
+				}).verify();
+	}
+
+	@Test
+	public void shouldRollbackTransaction() {
+
+		TransactionalDatabaseClient databaseClient = TransactionalDatabaseClient.create(connectionFactory);
+
+		Flux<Integer> integerFlux = databaseClient.inTransaction(db -> {
+
+			return db.execute().sql("INSERT INTO legoset (id, name, manual) VALUES($1, $2, $3)") //
+					.bind(0, 42055) //
+					.bind(1, "SCHAUFELRADBAGGER") //
+					.bindNull("$3") //
+					.fetch().rowsUpdated().then(Mono.error(new IllegalStateException("failed")));
+		});
+
+		integerFlux.as(StepVerifier::create) //
+				.expectError(IllegalStateException.class) //
+				.verify();
+
+		assertThat(jdbc.queryForMap("SELECT count(*) FROM legoset")).containsEntry("count", 0L);
+	}
+
+	@Test
+	public void emitTransactionIds() {
+
+		TransactionalDatabaseClient databaseClient = TransactionalDatabaseClient.create(connectionFactory);
+
+		Flux<Long> transactionIds = databaseClient.inTransaction(db -> {
+
+			Flux<Long> txId = db.execute().sql("SELECT txid_current();").exchange()
+					.flatMapMany(it -> it.extract((r, md) -> r.get(0, Long.class)).all());
+			return txId.concatWith(txId);
+		});
+
+		transactionIds.collectList().as(StepVerifier::create) //
+				.consumeNextWith(actual -> {
+
+					assertThat(actual).hasSize(2);
+					assertThat(actual).containsExactly(actual.get(1), actual.get(0));
+				}) //
+				.verifyComplete();
+	}
+}
diff --git a/src/test/java/org/springframework/data/r2dbc/function/connectionfactory/ConnectionFactoryUtilsUnitTests.java b/src/test/java/org/springframework/data/r2dbc/function/connectionfactory/ConnectionFactoryUtilsUnitTests.java
new file mode 100644
index 000000000..756340587
--- /dev/null
+++ b/src/test/java/org/springframework/data/r2dbc/function/connectionfactory/ConnectionFactoryUtilsUnitTests.java
@@ -0,0 +1,93 @@
+/*
+ * Copyright 2018 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.data.r2dbc.function.connectionfactory;
+
+import static org.mockito.Mockito.*;
+
+import io.r2dbc.spi.ConnectionFactory;
+import reactor.test.StepVerifier;
+
+import org.junit.Test;
+import org.springframework.transaction.NoTransactionException;
+
+/**
+ * Unit tests for {@link ConnectionFactoryUtils}.
+ *
+ * @author Mark Paluch
+ */
+public class ConnectionFactoryUtilsUnitTests {
+
+	@Test
+	public void currentReactiveTransactionSynchronizationShouldReportSynchronization() {
+
+		ConnectionFactoryUtils.currentReactiveTransactionSynchronization() //
+				.subscriberContext(
+						it -> it.put(ReactiveTransactionSynchronization.class, new ReactiveTransactionSynchronization()))
+				.as(StepVerifier::create) //
+				.expectNextCount(1) //
+				.verifyComplete();
+	}
+
+	@Test
+	public void currentReactiveTransactionSynchronizationShouldFailWithoutTxMgmt() {
+
+		ConnectionFactoryUtils.currentReactiveTransactionSynchronization() //
+				.as(StepVerifier::create) //
+				.expectError(NoTransactionException.class) //
+				.verify();
+	}
+
+	@Test
+	public void currentActiveReactiveTransactionSynchronizationShouldReportSynchronization() {
+
+		ConnectionFactoryUtils.currentActiveReactiveTransactionSynchronization() //
+				.subscriberContext(it -> {
+					ReactiveTransactionSynchronization sync = new ReactiveTransactionSynchronization();
+					sync.registerTransaction(TransactionResources.create());
+					return it.put(ReactiveTransactionSynchronization.class, sync);
+				}).as(StepVerifier::create) //
+				.expectNextCount(1) //
+				.verifyComplete();
+	}
+
+	@Test
+	public void currentActiveReactiveTransactionSynchronization() {
+
+		ConnectionFactoryUtils.currentActiveReactiveTransactionSynchronization() //
+				.subscriberContext(
+						it -> it.put(ReactiveTransactionSynchronization.class, new ReactiveTransactionSynchronization()))
+				.as(StepVerifier::create) //
+				.expectError(NoTransactionException.class) //
+				.verify();
+	}
+
+	@Test
+	public void currentConnectionFactoryShouldReportConnectionFactory() {
+
+		ConnectionFactory factoryMock = mock(ConnectionFactory.class);
+
+		ConnectionFactoryUtils.currentConnectionFactory() //
+				.subscriberContext(it -> {
+					ReactiveTransactionSynchronization sync = new ReactiveTransactionSynchronization();
+					TransactionResources resources = TransactionResources.create();
+					resources.registerResource(ConnectionFactory.class, factoryMock);
+					sync.registerTransaction(resources);
+					return it.put(ReactiveTransactionSynchronization.class, sync);
+				}).as(StepVerifier::create) //
+				.expectNext(factoryMock) //
+				.verifyComplete();
+	}
+}
diff --git a/src/test/java/org/springframework/data/r2dbc/repository/R2dbcRepositoryIntegrationTests.java b/src/test/java/org/springframework/data/r2dbc/repository/R2dbcRepositoryIntegrationTests.java
index 5a6679cdc..cc22129bb 100644
--- a/src/test/java/org/springframework/data/r2dbc/repository/R2dbcRepositoryIntegrationTests.java
+++ b/src/test/java/org/springframework/data/r2dbc/repository/R2dbcRepositoryIntegrationTests.java
@@ -27,6 +27,8 @@ import reactor.core.publisher.Mono;
 import reactor.test.StepVerifier;
 
 import java.util.Arrays;
+import java.util.Collections;
+import java.util.Map;
 
 import org.junit.Before;
 import org.junit.Test;
@@ -36,6 +38,7 @@ import org.springframework.data.jdbc.repository.query.Query;
 import org.springframework.data.jdbc.testing.R2dbcIntegrationTestSupport;
 import org.springframework.data.r2dbc.function.DatabaseClient;
 import org.springframework.data.r2dbc.function.DefaultReactiveDataAccessStrategy;
+import org.springframework.data.r2dbc.function.TransactionalDatabaseClient;
 import org.springframework.data.r2dbc.repository.support.R2dbcRepositoryFactory;
 import org.springframework.data.relational.core.mapping.RelationalMappingContext;
 import org.springframework.data.relational.core.mapping.Table;
@@ -129,6 +132,34 @@ public class R2dbcRepositoryIntegrationTests extends R2dbcIntegrationTestSupport
 				}).verifyComplete();
 	}
 
+	@Test
+	public void shouldInsertItemsTransactional() {
+
+		TransactionalDatabaseClient client = TransactionalDatabaseClient.builder().connectionFactory(connectionFactory)
+				.dataAccessStrategy(new DefaultReactiveDataAccessStrategy(mappingContext, new EntityInstantiators())).build();
+
+		LegoSetRepository transactionalRepository = new R2dbcRepositoryFactory(client, mappingContext)
+				.getRepository(LegoSetRepository.class);
+
+		LegoSet legoSet1 = new LegoSet(null, "SCHAUFELRADBAGGER", 12);
+		LegoSet legoSet2 = new LegoSet(null, "FORSCHUNGSSCHIFF", 13);
+
+		Flux<Map<String, Object>> transactional = client.inTransaction(db -> {
+
+			return transactionalRepository.save(legoSet1) //
+					.map(it -> jdbc.queryForMap("SELECT count(*) FROM repo_legoset"));
+		});
+
+		Mono<Map<String, Object>> nonTransactional = transactionalRepository.save(legoSet2) //
+				.map(it -> jdbc.queryForMap("SELECT count(*) FROM repo_legoset"));
+
+		transactional.as(StepVerifier::create).expectNext(Collections.singletonMap("count", 0L)).verifyComplete();
+		nonTransactional.as(StepVerifier::create).expectNext(Collections.singletonMap("count", 2L)).verifyComplete();
+
+		Map<String, Object> count = jdbc.queryForMap("SELECT count(*) FROM repo_legoset");
+		assertThat(count).containsEntry("count", 2L);
+	}
+
 	interface LegoSetRepository extends ReactiveCrudRepository<LegoSet, Integer> {
 
 		@Query("SELECT * FROM repo_legoset WHERE name like $1")