diff --git a/gorm.go b/gorm.go
index 1f1dac21..81b6e2af 100644
--- a/gorm.go
+++ b/gorm.go
@@ -248,10 +248,18 @@ func (db *DB) Session(config *Session) *DB {
 	if config.PrepareStmt {
 		if v, ok := db.cacheStore.Load(preparedStmtDBKey); ok {
 			preparedStmt := v.(*PreparedStmtDB)
-			tx.Statement.ConnPool = &PreparedStmtDB{
-				ConnPool: db.Config.ConnPool,
-				Mux:      preparedStmt.Mux,
-				Stmts:    preparedStmt.Stmts,
+			switch t := tx.Statement.ConnPool.(type) {
+			case Tx:
+				tx.Statement.ConnPool = &PreparedStmtTX{
+					Tx:             t,
+					PreparedStmtDB: preparedStmt,
+				}
+			default:
+				tx.Statement.ConnPool = &PreparedStmtDB{
+					ConnPool: db.Config.ConnPool,
+					Mux:      preparedStmt.Mux,
+					Stmts:    preparedStmt.Stmts,
+				}
 			}
 			txConfig.ConnPool = tx.Statement.ConnPool
 			txConfig.PrepareStmt = true
diff --git a/tests/prepared_stmt_test.go b/tests/prepared_stmt_test.go
index 8730e547..86e3630d 100644
--- a/tests/prepared_stmt_test.go
+++ b/tests/prepared_stmt_test.go
@@ -2,6 +2,7 @@ package tests_test
 
 import (
 	"context"
+	"errors"
 	"testing"
 	"time"
 
@@ -88,3 +89,19 @@ func TestPreparedStmtFromTransaction(t *testing.T) {
 	}
 	tx2.Commit()
 }
+
+func TestPreparedStmtInTransaction(t *testing.T) {
+	user := User{Name: "jinzhu"}
+
+	if err := DB.Transaction(func(tx *gorm.DB) error {
+		tx.Session(&gorm.Session{PrepareStmt: true}).Create(&user)
+		return errors.New("test")
+	}); err == nil {
+		t.Error(err)
+	}
+
+	var result User
+	if err := DB.First(&result, user.ID).Error; err == nil {
+		t.Errorf("Failed, got error: %v", err)
+	}
+}