diff --git a/crates/torii/core/src/engine.rs b/crates/torii/core/src/engine.rs
index 6ea55ce344..0d91e95ed3 100644
--- a/crates/torii/core/src/engine.rs
+++ b/crates/torii/core/src/engine.rs
@@ -284,6 +284,8 @@ impl<P: Provider + Send + Sync + std::fmt::Debug + 'static> Engine<P> {
                                 Err(e) => {
                                     error!(target: LOG_TARGET, error = %e, "Processing fetched data.");
                                     erroring_out = true;
+                                    // incase of error rollback the transaction
+                                    self.db.rollback().await?;
                                     sleep(backoff_delay).await;
                                     if backoff_delay < max_backoff_delay {
                                         backoff_delay *= 2;
diff --git a/crates/torii/core/src/executor/mod.rs b/crates/torii/core/src/executor/mod.rs
index c823aa1255..18c76f6d64 100644
--- a/crates/torii/core/src/executor/mod.rs
+++ b/crates/torii/core/src/executor/mod.rs
@@ -116,6 +116,8 @@ pub enum QueryType {
     // similar to execute but doesn't create a new transaction
     Flush,
     Execute,
+    // rollback's the current transaction and starts a new one
+    Rollback,
     Other,
 }
 
@@ -208,6 +210,19 @@ impl QueryMessage {
             rx,
         )
     }
+
+    pub fn rollback_recv() -> (Self, oneshot::Receiver<Result<()>>) {
+        let (tx, rx) = oneshot::channel();
+        (
+            Self {
+                statement: "".to_string(),
+                arguments: vec![],
+                query_type: QueryType::Rollback,
+                tx: Some(tx),
+            },
+            rx,
+        )
+    }
 }
 
 impl<'c, P: Provider + Sync + Send + 'static> Executor<'c, P> {
@@ -733,6 +748,20 @@ impl<'c, P: Provider + Sync + Send + 'static> Executor<'c, P> {
                 // defer executing these queries since they depend on TokenRegister queries
                 self.deferred_query_messages.push(query_message);
             }
+            QueryType::Rollback => {
+                debug!(target: LOG_TARGET, "Rolling back the transaction.");
+                // rollback's the current transaction and starts a new one
+                let res = self.rollback().await;
+                debug!(target: LOG_TARGET, "Rolled back the transaction.");
+
+                if let Some(sender) = query_message.tx {
+                    sender
+                        .send(res)
+                        .map_err(|_| anyhow::anyhow!("Failed to send rollback result"))?;
+                } else {
+                    res?;
+                }
+            }
             QueryType::Other => {
                 query.execute(&mut **tx).await.with_context(|| {
                     format!(
@@ -785,6 +814,16 @@ impl<'c, P: Provider + Sync + Send + 'static> Executor<'c, P> {
 
         Ok(())
     }
+
+    async fn rollback(&mut self) -> Result<()> {
+        let transaction = mem::replace(&mut self.transaction, self.pool.begin().await?);
+        transaction.rollback().await?;
+
+        // NOTE: clear doesn't reset the capacity
+        self.publish_queue.clear();
+        self.deferred_query_messages.clear();
+        Ok(())
+    }
 }
 
 fn send_broker_message(message: BrokerMessage) {
diff --git a/crates/torii/core/src/sql/mod.rs b/crates/torii/core/src/sql/mod.rs
index 11eedf6a3c..9c61405d99 100644
--- a/crates/torii/core/src/sql/mod.rs
+++ b/crates/torii/core/src/sql/mod.rs
@@ -1311,4 +1311,10 @@ impl Sql {
         self.executor.send(flush)?;
         recv.await?
     }
+
+    pub async fn rollback(&self) -> Result<()> {
+        let (rollback, recv) = QueryMessage::rollback_recv();
+        self.executor.send(rollback)?;
+        recv.await?
+    }
 }