diff --git a/lib/transaction.js b/lib/transaction.js
index f01b406..4831721 100644
--- a/lib/transaction.js
+++ b/lib/transaction.js
@@ -8,6 +8,7 @@ var assert = require('assert');
 var util = require('util');
 var EventEmitter = require('events').EventEmitter;
 var debug = require('debug')('loopback:connector:transaction');
+var uuid = require('uuid');
 
 module.exports = Transaction;
 
@@ -94,6 +95,27 @@ Transaction.begin = function(connector, options, cb) {
       connection.commit == undefined || connection.rollback == undefined) {
       tx = new Transaction(connector, connection);
     }
+    // Set an informational transaction id
+    tx.id = uuid.v1();
+    // NOTE(lehni) Handling of transaction timeouts here only works with recent
+    // versions of `loopback-datasource-juggler` which make its own handling of
+    // timeouts conditional based on the absence of an already set `tx.timeout`,
+    // see: https://github.com/strongloop/loopback-datasource-juggler/pull/1484
+    if (options.timeout) {
+      tx.timeout = setTimeout(function() {
+        var context = {
+          transaction: tx,
+          operation: 'timeout',
+        };
+        tx.notifyObserversOf('timeout', context, function(err) {
+          if (!err) {
+            tx.rollback(function() {
+              debug('Transaction %s is rolled back due to timeout', tx.id);
+            });
+          }
+        });
+      }, options.timeout);
+    }
     cb(err, tx);
   });
 };
diff --git a/package.json b/package.json
index 65096e2..2645265 100644
--- a/package.json
+++ b/package.json
@@ -26,7 +26,8 @@
     "bluebird": "^3.4.6",
     "debug": "^2.2.0",
     "msgpack5": "^3.4.1",
-    "strong-globalize": "^2.5.8"
+    "strong-globalize": "^2.5.8",
+    "uuid": "^3.0.1"
   },
   "devDependencies": {
     "chai": "~3.5.0",