diff --git a/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/interceptor/TestTransactionInterceptor.java b/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/interceptor/TestTransactionInterceptor.java
index 4e3b0f770b5dbb..966b74446bd84c 100644
--- a/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/interceptor/TestTransactionInterceptor.java
+++ b/extensions/narayana-jta/runtime/src/main/java/io/quarkus/narayana/jta/runtime/interceptor/TestTransactionInterceptor.java
@@ -7,6 +7,7 @@
 import javax.inject.Inject;
 import javax.interceptor.AroundInvoke;
 import javax.interceptor.InvocationContext;
+import javax.transaction.Status;
 import javax.transaction.UserTransaction;
 
 import io.quarkus.narayana.jta.runtime.test.TestTransactionCallback;
@@ -28,6 +29,14 @@ public class TestTransactionInterceptor {
 
     @AroundInvoke
     public Object intercept(InvocationContext context) throws Exception {
+        // do nothing in case there is already a transaction (e.g. self-intercepted non-private non-test method in test class)
+        // w/o this check userTransaction.begin() would fail because there is already a tx associated with the current thread
+        if (userTransaction.getStatus() != Status.STATUS_NO_TRANSACTION) {
+            return context.proceed();
+        }
+
+        // an exception from proceed() has to be captured to avoid shadowing it in finally() with a exception from rollback()
+        Exception caught = null;
         try {
             userTransaction.begin();
             for (TestTransactionCallback i : CALLBACKS) {
@@ -38,9 +47,19 @@ public Object intercept(InvocationContext context) throws Exception {
                 i.preRollback();
             }
             return result;
+        } catch (Exception e) {
+            caught = e;
+            throw e;
         } finally {
-            userTransaction.rollback();
+            if (caught == null) {
+                userTransaction.rollback();
+            } else {
+                try {
+                    userTransaction.rollback();
+                } catch (Exception e) {
+                    caught.addSuppressed(e);
+                }
+            }
         }
     }
-
 }
diff --git a/integration-tests/hibernate-orm-panache/src/test/java/io/quarkus/it/panache/TestTransactionOnSingleMethodTest.java b/integration-tests/hibernate-orm-panache/src/test/java/io/quarkus/it/panache/TestTransactionOnSingleMethodTest.java
new file mode 100644
index 00000000000000..53e8fa750b3904
--- /dev/null
+++ b/integration-tests/hibernate-orm-panache/src/test/java/io/quarkus/it/panache/TestTransactionOnSingleMethodTest.java
@@ -0,0 +1,44 @@
+package io.quarkus.it.panache;
+
+import javax.transaction.Transactional;
+
+import org.junit.jupiter.api.Assertions;
+import org.junit.jupiter.api.MethodOrderer.MethodName;
+import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.TestMethodOrder;
+
+import io.quarkus.test.TestTransaction;
+import io.quarkus.test.junit.QuarkusTest;
+
+/**
+ * Tests that @TestTransaction works as expected when only used for a single test method
+ */
+@QuarkusTest
+@TestMethodOrder(MethodName.class)
+public class TestTransactionOnSingleMethodTest {
+
+    @Test
+    @TestTransaction
+    public void test1() {
+        Assertions.assertEquals(0, Beer.find("name", "Lager").count());
+        Beer b = new Beer();
+        b.name = "Lager";
+        Beer.persist(b);
+    }
+
+    @Test
+    @Transactional
+    public void test2() {
+        Assertions.assertEquals(0, Beer.find("name", "Lager").count());
+        Beer b = new Beer();
+        b.name = "Lager";
+        Beer.persist(b);
+    }
+
+    @Test
+    @Transactional
+    public void test3() {
+        Assertions.assertEquals(1, Beer.find("name", "Lager").count());
+        Beer.deleteAll();
+    }
+}
diff --git a/integration-tests/hibernate-orm-panache/src/test/java/io/quarkus/it/panache/TestTransactionTest.java b/integration-tests/hibernate-orm-panache/src/test/java/io/quarkus/it/panache/TestTransactionTest.java
index 892c9168979a34..4da5e4850b92be 100644
--- a/integration-tests/hibernate-orm-panache/src/test/java/io/quarkus/it/panache/TestTransactionTest.java
+++ b/integration-tests/hibernate-orm-panache/src/test/java/io/quarkus/it/panache/TestTransactionTest.java
@@ -1,20 +1,22 @@
 package io.quarkus.it.panache;
 
 import org.junit.jupiter.api.Assertions;
+import org.junit.jupiter.api.MethodOrderer.MethodName;
 import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.TestMethodOrder;
 
 import io.quarkus.test.TestTransaction;
 import io.quarkus.test.junit.QuarkusTest;
 
 /**
- * Tests that @TestTransaction works as expected
+ * Tests that @TestTransaction works as expected when used for the entire class
  */
 @QuarkusTest
 @TestTransaction
+@TestMethodOrder(MethodName.class)
 public class TestTransactionTest {
 
     @Test
-    @TestTransaction
     public void test1() {
         Assertions.assertEquals(0, Beer.find("name", "Lager").count());
         Beer b = new Beer();
@@ -23,11 +25,20 @@ public void test1() {
     }
 
     @Test
-    @TestTransaction
     public void test2() {
         Assertions.assertEquals(0, Beer.find("name", "Lager").count());
+        // interceptor must not choke on this self-intercepted non-test method invocation
+        intentionallyNonPrivateHelperMethod();
         Beer b = new Beer();
         b.name = "Lager";
         Beer.persist(b);
     }
+
+    @Test
+    public void test3() {
+        Assertions.assertEquals(0, Beer.find("name", "Lager").count());
+    }
+
+    void intentionallyNonPrivateHelperMethod() {
+    }
 }