diff --git a/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/CDIDelegatingTransactionManager.java b/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/CDIDelegatingTransactionManager.java
index db0f965516b85..d8caf9dc87487 100644
--- a/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/CDIDelegatingTransactionManager.java
+++ b/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/CDIDelegatingTransactionManager.java
@@ -20,12 +20,15 @@
 
 import org.jboss.logging.Logger;
 
+import io.quarkus.arc.Unremovable;
+
 /**
  * A delegating transaction manager which receives an instance of Narayana transaction manager
  * and delegates all calls to it.
  * On top of it the implementation adds the CDI events processing for {@link TransactionScoped}.
  */
 @Singleton
+@Unremovable // used by Arc for transactional observers
 public class CDIDelegatingTransactionManager implements TransactionManager, Serializable {
 
     private static final Logger log = Logger.getLogger(CDIDelegatingTransactionManager.class);
diff --git a/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/NarayanaJtaProducers.java b/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/NarayanaJtaProducers.java
index a6c13e63d8df2..1a2fcc03bd25f 100644
--- a/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/NarayanaJtaProducers.java
+++ b/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/NarayanaJtaProducers.java
@@ -14,8 +14,6 @@
 import com.arjuna.ats.jbossatx.jta.RecoveryManagerService;
 import com.arjuna.ats.jta.UserTransaction;
 
-import io.quarkus.arc.Unremovable;
-
 @Dependent
 public class NarayanaJtaProducers {
 
@@ -39,7 +37,6 @@ public XAResourceRecoveryRegistry xaResourceRecoveryRegistry() {
 
     @Produces
     @ApplicationScoped
-    @Unremovable // needed by Arc for transactional observers
     public TransactionSynchronizationRegistry transactionSynchronizationRegistry() {
         return new TransactionSynchronizationRegistryImple();
     }
diff --git a/independent-projects/arc/runtime/src/main/java/io/quarkus/arc/impl/EventImpl.java b/independent-projects/arc/runtime/src/main/java/io/quarkus/arc/impl/EventImpl.java
index f1b5672e3220b..ac0510f57cb1b 100644
--- a/independent-projects/arc/runtime/src/main/java/io/quarkus/arc/impl/EventImpl.java
+++ b/independent-projects/arc/runtime/src/main/java/io/quarkus/arc/impl/EventImpl.java
@@ -35,7 +35,8 @@
 import javax.enterprise.util.TypeLiteral;
 import javax.transaction.RollbackException;
 import javax.transaction.Synchronization;
-import javax.transaction.TransactionSynchronizationRegistry;
+import javax.transaction.SystemException;
+import javax.transaction.TransactionManager;
 import org.jboss.logging.Logger;
 
 /**
@@ -246,35 +247,45 @@ void notify(T event, ObserverExceptionHandler exceptionHandler, boolean async) {
 
                 if (!async && hasTxObservers) {
                     // Note that tx observers are never async
-                    InstanceHandle<TransactionSynchronizationRegistry> registryInstance = Arc.container()
-                            .instance(TransactionSynchronizationRegistry.class);
-
-                    if (registryInstance.isAvailable() &&
-                            registryInstance.get().getTransactionStatus() == javax.transaction.Status.STATUS_ACTIVE) {
-                        // we have one or more transactional OM, and TransactionSynchronizationRegistry is available
-                        // we attempt to register a JTA synchronization
-                        List<DeferredEventNotification<?>> deferredEvents = new ArrayList<>();
-                        EventContext eventContext = new EventContextImpl<>(event, eventMetadata);
-
-                        for (ObserverMethod<? super T> om : observerMethods) {
-                            if (isTxObserver(om)) {
-                                deferredEvents.add(new DeferredEventNotification<>(om, eventContext,
-                                        Status.valueOf(om.getTransactionPhase())));
+                    InstanceHandle<TransactionManager> transactionManagerInstance = Arc.container()
+                            .instance(TransactionManager.class);
+
+                    try {
+                        if (transactionManagerInstance.isAvailable() &&
+                                transactionManagerInstance.get().getStatus() == javax.transaction.Status.STATUS_ACTIVE) {
+                            // we have one or more transactional OM, and TransactionManager is available
+                            // we attempt to register a JTA synchronization
+                            List<DeferredEventNotification<?>> deferredEvents = new ArrayList<>();
+                            EventContext eventContext = new EventContextImpl<>(event, eventMetadata);
+
+                            for (ObserverMethod<? super T> om : observerMethods) {
+                                if (isTxObserver(om)) {
+                                    deferredEvents.add(new DeferredEventNotification<>(om, eventContext,
+                                            Status.valueOf(om.getTransactionPhase())));
+                                }
                             }
-                        }
 
-                        Synchronization sync = new ArcSynchronization(deferredEvents);
-                        TransactionSynchronizationRegistry registry = registryInstance.get();
-                        try {
-                            registry.registerInterposedSynchronization(sync);
-                            // registration succeeded, notify all non-tx observers synchronously
-                            predicate = predicate.and(this::isNotTxObserver);
-                        } catch (Exception e) {
-                            if (e.getCause() instanceof RollbackException || e.getCause() instanceof IllegalStateException) {
-                                // registration failed, AFTER_SUCCESS OMs are accordingly to CDI spec left out
-                                predicate = predicate.and(this::isNotAfterSuccess);
+                            Synchronization sync = new ArcSynchronization(deferredEvents);
+                            TransactionManager txManager = transactionManagerInstance.get();
+                            try {
+                                // NOTE - We are using standard synchronization on purpose as that seems more
+                                // fitting than interposed sync. Either way will have some use-cases that won't work.
+                                // See for instance discussions on https://github.com/eclipse-ee4j/cdi/issues/467
+                                txManager.getTransaction().registerSynchronization(sync);
+                                // registration succeeded, notify all non-tx observers synchronously
+                                predicate = predicate.and(this::isNotTxObserver);
+                            } catch (Exception e) {
+                                if (e.getCause() instanceof RollbackException
+                                        || e.getCause() instanceof IllegalStateException
+                                        || e.getCause() instanceof SystemException) {
+                                    // registration failed, AFTER_SUCCESS OMs are accordingly to CDI spec left out
+                                    predicate = predicate.and(this::isNotAfterSuccess);
+                                }
                             }
                         }
+                    } catch (SystemException e) {
+                        // In theory, this can be thrown by TransactionManager#getStatus() at which point we cannot even
+                        // determine if we should register some synchronization, therefore, no action is taken
                     }
                 }