diff --git a/dev/src/transaction.ts b/dev/src/transaction.ts
index 482ba71cb..925ec73e5 100644
--- a/dev/src/transaction.ts
+++ b/dev/src/transaction.ts
@@ -14,6 +14,8 @@
  * limitations under the License.
  */
 
+import {GoogleError, Status} from 'google-gax';
+
 import * as proto from '../protos/firestore_v1_proto_api';
 
 import {DocumentSnapshot, Precondition} from './document';
@@ -434,8 +436,15 @@ export class Transaction {
           'Rolling back transaction after callback error:',
           err
         );
+
         await this.rollback();
-        return Promise.reject(err); // User callback failed
+
+        if (isRetryableTransactionError(err)) {
+          lastError = err;
+          continue; // Retry full transaction
+        } else {
+          return Promise.reject(err); // Callback failed w/ non-retryable error
+        }
       }
 
       try {
@@ -450,7 +459,7 @@ export class Transaction {
     logger(
       'Firestore.runTransaction',
       this._requestTag,
-      'Exhausted transaction retries, returning error: %s',
+      'Transaction not eligible for retry, returning error: %s',
       lastError
     );
     return Promise.reject(lastError);
@@ -552,3 +561,14 @@ function validateReadOptions(
     }
   }
 }
+
+function isRetryableTransactionError(error: Error): boolean {
+  if (error instanceof GoogleError || 'code' in error) {
+    // In transactions, the backend returns code ABORTED for reads that fail
+    // with contention. These errors should be retried for both GoogleError
+    // and GoogleError-alike errors (in case the prototype hierarchy gets
+    // stripped somewhere).
+    return error.code === Status.ABORTED;
+  }
+  return false;
+}
diff --git a/dev/test/transaction.ts b/dev/test/transaction.ts
index 453440595..e25f400f9 100644
--- a/dev/test/transaction.ts
+++ b/dev/test/transaction.ts
@@ -70,7 +70,7 @@ interface TransactionStep {
 function commit(
   transaction?: Uint8Array | string,
   writes?: api.IWrite[],
-  err?: Error
+  error?: Error
 ): TransactionStep {
   const proto: api.ICommitRequest = {
     database: DATABASE_ROOT,
@@ -99,14 +99,14 @@ function commit(
   return {
     type: 'commit',
     request: proto,
-    error: err,
+    error,
     response,
   };
 }
 
 function rollback(
   transaction?: Uint8Array | string,
-  err?: Error
+  error?: Error
 ): TransactionStep {
   const proto = {
     database: DATABASE_ROOT,
@@ -116,7 +116,7 @@ function rollback(
   return {
     type: 'rollback',
     request: proto,
-    error: err,
+    error,
     response: {},
   };
 }
@@ -124,7 +124,7 @@ function rollback(
 function begin(
   transaction?: Uint8Array | string,
   prevTransaction?: Uint8Array | string,
-  err?: Error
+  error?: Error
 ): TransactionStep {
   const proto: api.IBeginTransactionRequest = {database: DATABASE_ROOT};
 
@@ -143,12 +143,15 @@ function begin(
   return {
     type: 'begin',
     request: proto,
-    error: err,
+    error,
     response,
   };
 }
 
-function getDocument(transaction?: Uint8Array | string): TransactionStep {
+function getDocument(
+  transaction?: Uint8Array | string,
+  error?: Error
+): TransactionStep {
   const request = {
     database: DATABASE_ROOT,
     documents: [DOCUMENT_NAME],
@@ -172,6 +175,7 @@ function getDocument(transaction?: Uint8Array | string): TransactionStep {
   return {
     type: 'getDocument',
     request,
+    error,
     stream,
   };
 }
@@ -307,7 +311,11 @@ function runTransaction<T>(
       const request = expectedRequests.shift()!;
       expect(request.type).to.equal('getDocument');
       expect(actual).to.deep.eq(request.request);
-      return request.stream!;
+      if (request.error) {
+        throw request.error;
+      } else {
+        return request.stream!;
+      }
     },
     runQuery: actual => {
       const request = expectedRequests.shift()!;
@@ -396,7 +404,7 @@ describe('failed transactions', () => {
 
   it('requires a promise', () => {
     return expect(
-      runTransaction((() => {}) as InvalidApiUsage, begin(), rollback('foo'))
+      runTransaction((() => {}) as InvalidApiUsage, begin(), rollback())
     ).to.eventually.be.rejectedWith(
       'You must return a Promise in your transaction()-callback.'
     );
@@ -416,14 +424,51 @@ describe('failed transactions', () => {
     });
   });
 
-  it("doesn't retry on callback failure", () => {
+  it('retries GRPC exceptions with code ABORTED in callback', () => {
+    const retryableError = new GoogleError('Aborted');
+    retryableError.code = Status.ABORTED;
+
+    return runTransaction(
+      async (transaction, docRef) => {
+        await transaction.get(docRef);
+        return 'success';
+      },
+      begin('foo1'),
+      getDocument('foo1', retryableError),
+      rollback('foo1'),
+      begin('foo2', 'foo1'),
+      getDocument('foo2'),
+      commit('foo2')
+    ).then(res => {
+      expect(res).to.equal('success');
+    });
+  });
+
+  it("doesn't retry GRPC exceptions with code FAILED_PRECONDITION in callback", () => {
+    const nonRetryableError = new GoogleError('Failed Precondition');
+    nonRetryableError.code = Status.FAILED_PRECONDITION;
+
+    return expect(
+      runTransaction(
+        async (transaction, docRef) => {
+          await transaction.get(docRef);
+          return 'failure';
+        },
+        begin('foo'),
+        getDocument('foo', nonRetryableError),
+        rollback('foo')
+      )
+    ).to.eventually.be.rejectedWith('Failed Precondition');
+  });
+
+  it("doesn't retry custom user exceptions in callback", () => {
     return expect(
       runTransaction(
         () => {
           return Promise.reject('request exception');
         },
         begin(),
-        rollback('foo')
+        rollback()
       )
     ).to.eventually.be.rejectedWith('request exception');
   });
@@ -442,8 +487,8 @@ describe('failed transactions', () => {
       commit('foo2', [], serverError),
       begin('foo3', 'foo2'),
       commit('foo3')
-    ).then(red => {
-      expect(red).to.equal('success');
+    ).then(res => {
+      expect(res).to.equal('success');
     });
   });