diff --git a/libsql-replication/src/injector/mod.rs b/libsql-replication/src/injector/mod.rs
index e619175d67..bb6258886d 100644
--- a/libsql-replication/src/injector/mod.rs
+++ b/libsql-replication/src/injector/mod.rs
@@ -24,7 +24,7 @@ pub type FrameBuffer = Arc<Mutex<VecDeque<Frame>>>;
 
 pub struct Injector {
     /// The injector is in a transaction state
-    is_txn: bool,
+    pub(crate) is_txn: bool,
     /// Buffer for holding current transaction frames
     buffer: FrameBuffer,
     /// Maximum capacity of the frame buffer
@@ -80,6 +80,13 @@ impl Injector {
         Ok(None)
     }
 
+    pub fn rollback(&mut self) {
+        let conn = self.connection.lock();
+        let mut rollback = conn.prepare_cached("ROLLBACK").unwrap();
+        let _ = rollback.execute(());
+        self.is_txn = false;
+    }
+
     /// Flush the buffer to libsql WAL.
     /// Trigger a dummy write, and flush the cache to trigger a call to xFrame. The buffer's frame
     /// are then injected into the wal.
@@ -89,9 +96,7 @@ impl Injector {
                 // something went wrong, rollback the connection to make sure we can retry in a
                 // clean state
                 self.biggest_uncommitted_seen = 0;
-                let connection = self.connection.lock();
-                let mut rollback = connection.prepare_cached("ROLLBACK")?;
-                let _ = rollback.execute(());
+                self.rollback();
                 Err(e)
             }
             Ok(ret) => Ok(ret),
diff --git a/libsql-replication/src/replicator.rs b/libsql-replication/src/replicator.rs
index 46051f8177..7310f0a5dd 100644
--- a/libsql-replication/src/replicator.rs
+++ b/libsql-replication/src/replicator.rs
@@ -214,6 +214,11 @@ impl<C: ReplicatorClient> Replicator<C> {
             ReplicatorState::Exit => unreachable!("trying to step replicator on exit"),
         };
 
+        // in case of error we rollback the current injector transaction, and start over.
+        if ret.is_err() {
+            self.injector.lock().rollback();
+        }
+
         self.state = match ret {
             // perform normal operation state transition
             Ok(()) => match state {
@@ -232,7 +237,12 @@ impl<C: ReplicatorClient> Replicator<C> {
                 ReplicatorState::NeedHandshake
             }
             Err(Error::NeedSnapshot) => ReplicatorState::NeedSnapshot,
-            Err(e) => return Err(e),
+            Err(e) => {
+                // an error here could be due to a disconnection, it's safe to rollback to a
+                // NeedHandshake state again, to avoid entering a busy loop.
+                self.state = ReplicatorState::NeedHandshake;
+                return Err(e);
+            }
         };
 
         Ok(())
@@ -294,10 +304,12 @@ pub fn map_frame_err(f: Result<RpcFrame, Status>) -> Result<Frame, Error> {
 
 #[cfg(test)]
 mod test {
-    use std::pin::Pin;
+    use std::{mem::size_of, pin::Pin};
 
     use async_stream::stream;
 
+    use crate::frame::{FrameBorrowed, FrameMut};
+
     use super::*;
 
     #[tokio::test]
@@ -635,4 +647,107 @@ mod test {
             Error::Fatal(_)
         ));
     }
+
+    #[tokio::test]
+    async fn transaction_interupted_by_error_and_resumed() {
+        /// this this is generated by creating a table test, inserting 5 rows into it, and then
+        /// truncating the wal file of it's header.
+        const WAL: &[u8] = include_bytes!("../assets/test/test_wallog");
+
+        fn make_wal_log() -> Vec<Frame> {
+            let mut frames = WAL
+                .chunks(size_of::<FrameBorrowed>())
+                .map(|b| FrameMut::try_from(b).unwrap())
+                .map(|mut f| {
+                    f.header_mut().size_after = 0;
+                    f
+                })
+                .collect::<Vec<_>>();
+
+            let size_after = frames.len();
+            frames.last_mut().unwrap().header_mut().size_after = size_after as _;
+
+            frames.into_iter().map(Into::into).collect()
+        }
+
+        let tmp = tempfile::NamedTempFile::new().unwrap();
+
+        struct Client {
+            frames: Vec<Frame>,
+            should_error: bool,
+            committed_frame_no: Option<FrameNo>,
+        }
+
+        #[async_trait::async_trait]
+        impl ReplicatorClient for Client {
+            type FrameStream = Pin<Box<dyn Stream<Item = Result<Frame, Error>> + Send + 'static>>;
+
+            /// Perform handshake with remote
+            async fn handshake(&mut self) -> Result<(), Error> {
+                Ok(())
+            }
+            /// Return a stream of frames to apply to the database
+            async fn next_frames(&mut self) -> Result<Self::FrameStream, Error> {
+                if self.should_error {
+                    let frames = self
+                        .frames
+                        .iter()
+                        .take(2)
+                        .cloned()
+                        .map(Ok)
+                        .chain(Some(Err(Error::Client("some client error".into()))))
+                        .collect::<Vec<_>>();
+                    Ok(Box::pin(tokio_stream::iter(frames)))
+                } else {
+                    let stream = tokio_stream::iter(self.frames.clone().into_iter().map(Ok));
+                    Ok(Box::pin(stream))
+                }
+            }
+            /// Return a snapshot for the current replication index. Called after next_frame has returned a
+            /// NeedSnapshot error
+            async fn snapshot(&mut self) -> Result<Self::FrameStream, Error> {
+                unimplemented!()
+            }
+            /// set the new commit frame_no
+            async fn commit_frame_no(&mut self, frame_no: FrameNo) -> Result<(), Error> {
+                self.committed_frame_no = Some(frame_no);
+                Ok(())
+            }
+            /// Returns the currently committed replication index
+            fn committed_frame_no(&self) -> Option<FrameNo> {
+                unimplemented!()
+            }
+        }
+
+        let client = Client {
+            frames: make_wal_log(),
+            should_error: true,
+            committed_frame_no: None,
+        };
+
+        let mut replicator = Replicator::new(client, tmp.path().to_path_buf(), 10000)
+            .await
+            .unwrap();
+
+        replicator.try_replicate_step().await.unwrap();
+        assert_eq!(replicator.state, ReplicatorState::NeedFrames);
+
+        assert!(matches!(
+            replicator.try_replicate_step().await.unwrap_err(),
+            Error::Client(_)
+        ));
+        assert!(!replicator.injector.lock().is_txn);
+        assert!(replicator.client_mut().committed_frame_no.is_none());
+        assert_eq!(replicator.state, ReplicatorState::NeedHandshake);
+
+        replicator.try_replicate_step().await.unwrap();
+        assert_eq!(replicator.state, ReplicatorState::NeedFrames);
+
+        replicator.client_mut().should_error = false;
+
+        replicator.try_replicate_step().await.unwrap();
+        assert!(!replicator.injector.lock().is_txn);
+        assert_eq!(replicator.state, ReplicatorState::Exit);
+        assert_eq!(replicator.client_mut().committed_frame_no, Some(6));
+    }
 }