diff --git a/node/src/main/kotlin/net/corda/node/services/statemachine/FlowStateMachineImpl.kt b/node/src/main/kotlin/net/corda/node/services/statemachine/FlowStateMachineImpl.kt
index 7fc71e37c7..b1d6c8b6be 100644
--- a/node/src/main/kotlin/net/corda/node/services/statemachine/FlowStateMachineImpl.kt
+++ b/node/src/main/kotlin/net/corda/node/services/statemachine/FlowStateMachineImpl.kt
@@ -147,6 +147,19 @@ class FlowStateMachineImpl<R>(override val id: StateMachineRunId,
         }
     }
 
+    internal fun rollbackTransaction() {
+        val transaction = contextTransaction
+        try {
+            logger.trace { "Rolling back transaction $transaction on ${Strand.currentStrand()}." }
+            transaction.rollback()
+        } catch (e: SQLException) {
+            logger.error("Transaction rollback failed: ${e.message}", e)
+            System.exit(1)
+        } finally {
+            transaction.close()
+        }
+    }
+
     @Suspendable
     override fun initiateFlow(otherParty: Party, sessionFlow: FlowLogic<*>): FlowSession {
         val sessionKey = Pair(sessionFlow, otherParty)
diff --git a/node/src/main/kotlin/net/corda/node/services/statemachine/StateMachineManagerImpl.kt b/node/src/main/kotlin/net/corda/node/services/statemachine/StateMachineManagerImpl.kt
index fd116454a8..8a258b7baf 100644
--- a/node/src/main/kotlin/net/corda/node/services/statemachine/StateMachineManagerImpl.kt
+++ b/node/src/main/kotlin/net/corda/node/services/statemachine/StateMachineManagerImpl.kt
@@ -452,10 +452,14 @@ class StateMachineManagerImpl(
                 }
                 endAllFiberSessions(fiber, result, propagated)
             } finally {
-                fiber.commitTransaction()
+                if (result.isSuccess) {
+                    fiber.commitTransaction()
+                    totalFinishedFlows.inc()
+                    unfinishedFibers.countDown()
+                } else {
+                    fiber.rollbackTransaction()
+                }
                 decrementLiveFibers()
-                totalFinishedFlows.inc()
-                unfinishedFibers.countDown()
             }
         }
         mutex.locked {
diff --git a/node/src/test/kotlin/net/corda/node/services/statemachine/FlowFrameworkTests.kt b/node/src/test/kotlin/net/corda/node/services/statemachine/FlowFrameworkTests.kt
index 55d7073e5b..7a0c0e4fe2 100644
--- a/node/src/test/kotlin/net/corda/node/services/statemachine/FlowFrameworkTests.kt
+++ b/node/src/test/kotlin/net/corda/node/services/statemachine/FlowFrameworkTests.kt
@@ -375,7 +375,7 @@ class FlowFrameworkTests {
                 .withMessage("Nothing useful")
                 .withStackTraceContaining(ReceiveFlow::class.java.name)  // Make sure the stack trace is that of the receiving flow
         bobNode.database.transaction {
-            assertThat(bobNode.checkpointStorage.checkpoints()).isEmpty()
+            assertThat(bobNode.checkpointStorage.checkpoints()).isNotEmpty()
         }
 
         assertThat(receivingFiber.isTerminated).isTrue()