diff --git a/docs/advanced_features.rst b/docs/advanced_features.rst
index 4db58460..a707019e 100644
--- a/docs/advanced_features.rst
+++ b/docs/advanced_features.rst
@@ -151,6 +151,14 @@ like this, which is much easier to read:
 Be sure to call pipe.multi() in the callable passed to Valkey.transaction
 prior to any write commands.
 
+.. warning::
+
+   Transactions are retried an infinite amount of times by default, which
+   can lead to infinite loops - for example, if one were to accidentally
+   write ``r.set`` instead of ``pipe.set`` in the above example. You can
+   use the ``transaction`` arguments ``watch_delay`` and ``max_tries``
+   to mitigate this risk.
+
 Pipelines in clusters
 ~~~~~~~~~~~~~~~~~~~~~
 
diff --git a/tests/test_asyncio/test_pipeline.py b/tests/test_asyncio/test_pipeline.py
index 5021f91c..8ef1873c 100644
--- a/tests/test_asyncio/test_pipeline.py
+++ b/tests/test_asyncio/test_pipeline.py
@@ -329,6 +329,47 @@ async def my_transaction(pipe):
         assert result == [True]
         assert await r.get("c") == b"4"
 
+    @pytest.mark.onlynoncluster
+    async def test_transaction_loop(self, r):
+        await r.set("a", 0)
+        run_count = 0
+
+        async def my_transaction(pipe):
+            nonlocal run_count
+            run_count += 1
+            if run_count > 10:
+                raise RuntimeError("Run too many times")
+            a_value = int(await pipe.get("a"))
+            pipe.multi()
+            await r.set("a", a_value + 1)  # force WatchError
+
+        # without max_tries (infinite loop)
+        with pytest.raises(RuntimeError) as ex:
+            await r.transaction(my_transaction, "a")
+        assert str(ex.value).startswith("Run too many times")
+        assert run_count == 11
+
+        run_count = 0
+        # with max_tries
+        with pytest.raises(valkey.ValkeyError) as ex:
+            await r.transaction(my_transaction, "a", max_tries=3)
+        assert str(ex.value).startswith("Bailing out of transaction after 3 tries")
+        assert run_count == 3
+
+        run_count = 0
+        # with max_tries=0 (same as without; infinite loop)
+        with pytest.raises(RuntimeError) as ex:
+            await r.transaction(my_transaction, "a", max_tries=0)
+        assert str(ex.value).startswith("Run too many times")
+        assert run_count == 11
+
+        run_count = 0
+        # with negative max_tries (immediate error)
+        with pytest.raises(valkey.ValkeyError) as ex:
+            await r.transaction(my_transaction, "a", max_tries=-3)
+        assert str(ex.value).startswith("Bailing out of transaction after 0 tries")
+        assert run_count == 0
+
     @pytest.mark.onlynoncluster
     async def test_transaction_callable_returns_value_from_callable(self, r):
         async def callback(pipe):
diff --git a/tests/test_pipeline.py b/tests/test_pipeline.py
index 065f898c..3b8339ca 100644
--- a/tests/test_pipeline.py
+++ b/tests/test_pipeline.py
@@ -330,6 +330,47 @@ def my_transaction(pipe):
         assert result == [True]
         assert r["c"] == b"4"
 
+    @pytest.mark.onlynoncluster
+    def test_transaction_loop(self, r):
+        r["a"] = 0
+        run_count = 0
+
+        def my_transaction(pipe):
+            nonlocal run_count
+            run_count += 1
+            if run_count > 10:
+                raise RuntimeError("Run too many times")
+            a_value = int(pipe.get("a"))
+            pipe.multi()
+            r.set("a", a_value + 1)  # force WatchError
+
+        # without max_tries (infinite loop)
+        with pytest.raises(RuntimeError) as ex:
+            r.transaction(my_transaction, "a")
+        assert str(ex.value).startswith("Run too many times")
+        assert run_count == 11
+
+        run_count = 0
+        # with max_tries
+        with pytest.raises(valkey.ValkeyError) as ex:
+            r.transaction(my_transaction, "a", max_tries=3)
+        assert str(ex.value).startswith("Bailing out of transaction after 3 tries")
+        assert run_count == 3
+
+        run_count = 0
+        # with max_tries=0 (same as without; infinite loop)
+        with pytest.raises(RuntimeError) as ex:
+            r.transaction(my_transaction, "a", max_tries=0)
+        assert str(ex.value).startswith("Run too many times")
+        assert run_count == 11
+
+        run_count = 0
+        # with negative max_tries (immediate error)
+        with pytest.raises(valkey.ValkeyError) as ex:
+            r.transaction(my_transaction, "a", max_tries=-3)
+        assert str(ex.value).startswith("Bailing out of transaction after 0 tries")
+        assert run_count == 0
+
     @pytest.mark.onlynoncluster
     def test_transaction_callable_returns_value_from_callable(self, r):
         def callback(pipe):
diff --git a/valkey/asyncio/client.py b/valkey/asyncio/client.py
index 10c47818..851b2cc1 100644
--- a/valkey/asyncio/client.py
+++ b/valkey/asyncio/client.py
@@ -437,15 +437,28 @@ async def transaction(
         shard_hint: Optional[str] = None,
         value_from_callable: bool = False,
         watch_delay: Optional[float] = None,
+        max_tries: Optional[int] = None,
     ):
         """
         Convenience method for executing the callable `func` as a transaction
         while watching all keys specified in `watches`. The 'func' callable
         should expect a single argument which is a Pipeline object.
+
+        :param watch_delay: Lets you specify a delay time in seconds after a
+            `WatchError` before the transaction is retried. Default is no delay.
+        :param max_tries: Lets you specify the maximum number of times the
+            transaction is retried. If the limit is reached, a `ValkeyError`
+            is raised. Default is 0, meaning an **infinite** number of retries!
         """
         pipe: Pipeline
         async with self.pipeline(True, shard_hint) as pipe:
+            tries = 0
             while True:
+                tries += 1
+                if max_tries and tries > max_tries:
+                    raise ValkeyError(
+                        f"Bailing out of transaction after {tries - 1} tries"
+                    )
                 try:
                     if watches:
                         await pipe.watch(*watches)
diff --git a/valkey/client.py b/valkey/client.py
index 88703129..df265ab4 100755
--- a/valkey/client.py
+++ b/valkey/client.py
@@ -404,12 +404,27 @@ def transaction(
         Convenience method for executing the callable `func` as a transaction
         while watching all keys specified in `watches`. The 'func' callable
         should expect a single argument which is a Pipeline object.
+
+        :param watch_delay: This keyword-only argument lets you specify a
+            delay time in seconds after a `WatchError` before the transaction
+            is retried. Default is no delay.
+        :param max_tries: This keyword-only argument lets you specify the
+            maximum number to times the transaction should be retried. If the
+            limit is reached, a `ValkeyError` is raised. Default is 0, meaning
+            an **infinite** number of retries!
         """
         shard_hint = kwargs.pop("shard_hint", None)
         value_from_callable = kwargs.pop("value_from_callable", False)
         watch_delay = kwargs.pop("watch_delay", None)
+        max_tries = kwargs.pop("max_tries", None)
         with self.pipeline(True, shard_hint) as pipe:
+            tries = 0
             while True:
+                tries += 1
+                if max_tries and tries > max_tries:
+                    raise ValkeyError(
+                        f"Bailing out of transaction after {tries - 1} tries"
+                    )
                 try:
                     if watches:
                         pipe.watch(*watches)