diff --git a/ballerina/client.bal b/ballerina/client.bal
index 5689e162..9d5d9912 100644
--- a/ballerina/client.bal
+++ b/ballerina/client.bal
@@ -131,12 +131,14 @@ public type SecureSocket record {|
 # + connectTimeout - Timeout (in seconds) to be used when connecting to the Oracle server
 # + socketTimeout - Socket timeout (in seconds) to be used during the read/write operations with the Oracle database server
 #                   (0 means no socket timeout)
+# + useXADatasource - If true, uses XADatasource for transactions
 public type Options record {|
     SecureSocket ssl?;
     decimal loginTimeout = 0;
     boolean autoCommit = true;
     decimal connectTimeout = 30;
     decimal socketTimeout?;
+    boolean useXADatasource = false;
 |};
 
 # Client configuration record for connection initialization.
diff --git a/changelog.md b/changelog.md
index ad968c97..d7bc7d65 100644
--- a/changelog.md
+++ b/changelog.md
@@ -8,6 +8,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ## [Unreleased]
 
 ### Added
+- [Support for XA transaction](https://github.com/ballerina-platform/ballerina-standard-library/issues/3599)
 
 ### Changed
 - [Fix NullPointerException when retrieving record with default value](https://github.com/ballerina-platform/ballerina-standard-library/issues/2985)
diff --git a/native/src/main/java/io/ballerina/stdlib/oracledb/Constants.java b/native/src/main/java/io/ballerina/stdlib/oracledb/Constants.java
index 1f189313..4556a1d3 100644
--- a/native/src/main/java/io/ballerina/stdlib/oracledb/Constants.java
+++ b/native/src/main/java/io/ballerina/stdlib/oracledb/Constants.java
@@ -57,6 +57,7 @@ private Options () {}
         public static final BString LOGIN_TIMEOUT_SECONDS = StringUtils.fromString("loginTimeout");
         public static final BString CONNECT_TIMEOUT_SECONDS = StringUtils.fromString("connectTimeout");
         public static final BString SOCKET_TIMEOUT_SECONDS = StringUtils.fromString("socketTimeout");
+        public static final BString USE_XA_DATASOURCE = StringUtils.fromString("useXADatasource");
     }
 
     /**
@@ -266,5 +267,6 @@ private BallerinaArrayTypes() {}
     public static final String PROTOCOL_TCP = "TCP";
     public static final String PROTOCOL_TCPS = "TCPS";
     public static final String ORACLE_DATASOURCE_NAME = "oracle.jdbc.pool.OracleDataSource";
+    public static final String ORACLE_XA_DATASOURCE_NAME = "oracle.jdbc.xa.client.OracleXADataSource";
     public static final String CUSTOM_RESULT_ITERATOR_OBJECT = "CustomResultIterator";
 }
diff --git a/native/src/main/java/io/ballerina/stdlib/oracledb/nativeimpl/ClientProcessor.java b/native/src/main/java/io/ballerina/stdlib/oracledb/nativeimpl/ClientProcessor.java
index 9fc043cf..961ab134 100644
--- a/native/src/main/java/io/ballerina/stdlib/oracledb/nativeimpl/ClientProcessor.java
+++ b/native/src/main/java/io/ballerina/stdlib/oracledb/nativeimpl/ClientProcessor.java
@@ -58,6 +58,7 @@ public static Object createClient(
         BMap<BString, Object> datasourceOptions = null;
         Properties poolProperties = null;
         String protocol = Constants.PROTOCOL_TCP;
+        String dataSourceName = Constants.ORACLE_DATASOURCE_NAME;
 
         if (options != null) {
             datasourceOptions = Utils.generateOptionsMap(options);
@@ -65,6 +66,9 @@ public static Object createClient(
             if (options.getMapValue(Constants.Options.SSL) != null) {
                 protocol = Constants.PROTOCOL_TCPS;
             }
+            if (options.getBooleanValue(Constants.Options.USE_XA_DATASOURCE)) {
+                dataSourceName = Constants.ORACLE_XA_DATASOURCE_NAME;
+            }
         }
         StringBuilder url = new StringBuilder(Constants.DRIVER);
         url.append("(DESCRIPTION=(ADDRESS=");
@@ -75,7 +79,6 @@ public static Object createClient(
         url.append("(CONNECT_DATA=(SERVICE_NAME=").append(database).append("))");
         url.append(")");
         BMap connectionPool = clientConfig.getMapValue(Constants.ClientConfiguration.CONNECTION_POOL_OPTIONS);
-        String dataSourceName = Constants.ORACLE_DATASOURCE_NAME;
         SQLDatasource.SQLDatasourceParams sqlDatasourceParams = new SQLDatasource.SQLDatasourceParams()
                 .setUrl(url.toString())
                 .setUser(user)