diff --git a/src/Illuminate/Database/Connection.php b/src/Illuminate/Database/Connection.php
index 6ad94ef93595..48550563bfd3 100755
--- a/src/Illuminate/Database/Connection.php
+++ b/src/Illuminate/Database/Connection.php
@@ -576,6 +576,14 @@ public function transaction(Closure $callback, $attempts = 1)
             // up in the database. Then we'll re-throw the exception so it can
             // be handled how the developer sees fit for their applications.
             catch (Exception $e) {
+                // On deadlock, if this is a nested transaction, we cannot retry.
+                // the outer most transaction is rolled back by the server
+                // so we shouldn't rollback to save points.
+                if ($this->causedByDeadlock($e) && $this->transactions > 1) {
+                    --$this->transactions;
+                    throw $e;
+                }
+
                 $this->rollBack();
 
                 if ($this->causedByDeadlock($e) && $a < $attempts) {