diff --git a/gorm/transaction.go b/gorm/transaction.go
index faa83ff1..197635cc 100644
--- a/gorm/transaction.go
+++ b/gorm/transaction.go
@@ -69,7 +69,7 @@ func BeginFromContext(ctx context.Context) (*gorm.DB, error) {
 	if txn.parent == nil {
 		return nil, ErrCtxTxnNoDB
 	}
-	db := txn.Begin()
+	db := txn.beginWithContext(ctx)
 	if db.Error != nil {
 		return nil, db.Error
 	}
@@ -89,7 +89,7 @@ func BeginWithOptionsFromContext(ctx context.Context, opts *sql.TxOptions) (*gor
 	if txn.parent == nil {
 		return nil, ErrCtxTxnNoDB
 	}
-	db := txn.BeginWithOptions(opts)
+	db := txn.beginWithContextAndOptions(ctx, opts)
 	if db.Error != nil {
 		return nil, db.Error
 	}
@@ -99,11 +99,15 @@ func BeginWithOptionsFromContext(ctx context.Context, opts *sql.TxOptions) (*gor
 // Begin starts new transaction by calling `*gorm.DB.Begin()`
 // Returns new instance of `*gorm.DB` (error can be checked by `*gorm.DB.Error`)
 func (t *Transaction) Begin() *gorm.DB {
+	return t.beginWithContext(context.Background())
+}
+
+func (t *Transaction) beginWithContext(ctx context.Context) *gorm.DB {
 	t.mu.Lock()
 	defer t.mu.Unlock()
 
 	if t.current == nil {
-		t.current = t.parent.Begin()
+		t.current = t.parent.BeginTx(ctx, nil)
 	}
 
 	return t.current
@@ -112,16 +116,21 @@ func (t *Transaction) Begin() *gorm.DB {
 // BeginWithOptions starts new transaction by calling `*gorm.DB.BeginTx()`
 // Returns new instance of `*gorm.DB` (error can be checked by `*gorm.DB.Error`)
 func (t *Transaction) BeginWithOptions(opts *sql.TxOptions) *gorm.DB {
+	return t.beginWithContextAndOptions(context.Background(), opts)
+}
+
+func (t *Transaction) beginWithContextAndOptions(ctx context.Context, opts *sql.TxOptions) *gorm.DB {
 	t.mu.Lock()
 	defer t.mu.Unlock()
 
 	if t.current == nil {
-		t.current = t.parent.BeginTx(context.Background(), opts)
+		t.current = t.parent.BeginTx(ctx, opts)
 	}
 
 	return t.current
 }
 
+
 // Rollback terminates transaction by calling `*gorm.DB.Rollback()`
 // Reset current transaction and returns an error if any.
 func (t *Transaction) Rollback() error {
diff --git a/gorm/transaction_test.go b/gorm/transaction_test.go
index 8625a92d..208332f8 100644
--- a/gorm/transaction_test.go
+++ b/gorm/transaction_test.go
@@ -369,6 +369,7 @@ func TestBeginFromContext_Bad(t *testing.T) {
 	tests := []struct {
 		desc     string
 		withOpts bool
+		contextCanceled bool
 	}{
 		{
 			desc:     "begin without options",
@@ -378,11 +379,26 @@ func TestBeginFromContext_Bad(t *testing.T) {
 			desc:     "begin with options",
 			withOpts: true,
 		},
+		{
+			desc:     "canceled context without context",
+			withOpts: true,
+			contextCanceled: true,
+		},
+		{
+			desc:     "canceled context with options",
+			withOpts: false,
+			contextCanceled: true,
+		},
 	}
 	for _, test := range tests {
 		test := test
 		t.Run(test.desc, func(t *testing.T) {
 			ctx := context.Background()
+			if test.contextCanceled {
+				var cancel context.CancelFunc
+				ctx, cancel = context.WithCancel(ctx)
+				cancel()
+			}
 
 			// Case: Transaction missing from context
 			txn1, err := beginFromContext(ctx, test.withOpts)