diff --git a/test/tap/tests/pgsql-transaction_variable_state_tracking-t.cpp b/test/tap/tests/pgsql-transaction_variable_state_tracking-t.cpp
new file mode 100644
index 000000000..730a5218f
--- /dev/null
+++ b/test/tap/tests/pgsql-transaction_variable_state_tracking-t.cpp
@@ -0,0 +1,290 @@
+/**
+ * @file pgsql-transaction_variable_state_tracking-t.cpp
+ * @brief TAP test validating PostgreSQL session parameter behavior in transactions.
+ * Tests rollback/commit/savepoint behavior for session variables to ensure state consistency.
+ */
+
+#include <unistd.h>
+#include <string>
+#include <sstream>
+#include <chrono>
+#include <thread>
+#include "libpq-fe.h"
+#include "command_line.h"
+#include "tap.h"
+#include "utils.h"
+
+CommandLine cl;
+
+using PGConnPtr = std::unique_ptr<PGconn, decltype(&PQfinish)>;
+using PGResultPtr = std::unique_ptr<PGresult, decltype(&PQclear)>;
+
+enum ConnType {
+    ADMIN,
+    BACKEND
+};
+
+PGConnPtr createNewConnection(ConnType conn_type, const std::string& options = "", bool with_ssl = false) {
+    
+    const char* host = (conn_type == BACKEND) ? cl.pgsql_host : cl.pgsql_admin_host;
+    int port = (conn_type == BACKEND) ? cl.pgsql_port : cl.pgsql_admin_port;
+    const char* username = (conn_type == BACKEND) ? cl.pgsql_root_username : cl.admin_username;
+    const char* password = (conn_type == BACKEND) ? cl.pgsql_root_password : cl.admin_password;
+
+    std::stringstream ss;
+
+    ss << "host=" << host << " port=" << port;
+    ss << " user=" << username << " password=" << password;
+    ss << (with_ssl ? " sslmode=require" : " sslmode=disable");
+
+    if (options.empty() == false) {
+		ss << " options='" << options << "'";
+    }
+
+    PGconn* conn = PQconnectdb(ss.str().c_str());
+    if (PQstatus(conn) != CONNECTION_OK) {
+        fprintf(stderr, "Connection failed to '%s': %s", (conn_type == BACKEND ? "Backend" : "Admin"), PQerrorMessage(conn));
+        PQfinish(conn);
+        return PGConnPtr(nullptr, &PQfinish);
+    }
+    return PGConnPtr(conn, &PQfinish);
+}
+
+struct TestCase {
+    std::string name;
+    std::function<bool()> test_fn;
+    bool should_fail;
+};
+
+struct TestVariable {
+    std::string name;
+    std::vector<std::string> test_values;
+};
+
+std::vector<TestCase> tests;
+
+PGResultPtr executeQuery(PGconn* conn, const std::string& query) {
+    diag("Executing: %s", query.c_str());
+    PGresult* res = PQexec(conn, query.c_str());
+    if (PQresultStatus(res) != PGRES_COMMAND_OK && PQresultStatus(res) != PGRES_TUPLES_OK) {
+        diag("Query failed: %s", PQerrorMessage(conn));
+    }
+    return PGResultPtr(res, &PQclear);
+}
+
+std::string getVariable(PGconn* conn, const std::string& var) {
+    auto res = executeQuery(conn, ("SHOW " + var));
+    return std::string(PQgetvalue(res.get(), 0, 0));
+}
+
+void reset_variable(PGconn* conn, const std::string& var, const std::string& original) {
+    executeQuery(conn, "SET " + var + " = " + original);
+}
+
+void add_test(const std::string& name, std::function<bool()> fn, bool should_fail = false) {
+    tests.push_back({ name, fn, should_fail });
+}
+
+void run_tests() {
+    
+    for (const auto& test : tests) {
+        bool result = false;
+
+        try {
+            result = test.test_fn();
+            if (test.should_fail) result = !result;
+        }
+        catch (const std::exception& e) {
+            result = false;
+        }
+
+		ok(result, "Test:%s should %s", test.name.c_str(), test.should_fail ? "FAIL" : "PASS");
+    }
+}
+
+// Common test scenarios
+bool test_transaction_rollback(const TestVariable& var) {
+    auto conn = createNewConnection(ConnType::BACKEND, "", false);
+    const auto original = getVariable(conn.get(), var.name);
+
+    executeQuery(conn.get(), "BEGIN");
+    executeQuery(conn.get(), "SET " + var.name + " = " + var.test_values[0]);
+    executeQuery(conn.get(), "ROLLBACK");
+
+    const bool success = getVariable(conn.get(), var.name) == original;
+    return success;
+}
+
+bool test_savepoint_rollback(const TestVariable& var) {
+    auto conn = createNewConnection(ConnType::BACKEND, "", false);
+    const auto original = getVariable(conn.get(), var.name);
+    diag(">>>>> Original value:'%s'", original.c_str());
+    executeQuery(conn.get(), "BEGIN");
+    executeQuery(conn.get(), "SAVEPOINT sp1");
+    executeQuery(conn.get(), "SET " + var.name + " = " + var.test_values[0]);
+    executeQuery(conn.get(), "ROLLBACK TO sp1");
+    executeQuery(conn.get(), "COMMIT");
+    auto value = getVariable(conn.get(), var.name);
+    const bool success = value == original;
+    diag(">>>>> Rollback value:'%s'", value.c_str());
+    return success;
+}
+
+bool test_transaction_commit(const TestVariable& var, const std::map<std::string, std::string>& original_values) {
+    auto conn = createNewConnection(ConnType::BACKEND, "", false);
+    const auto test_value = var.test_values[0];
+
+    executeQuery(conn.get(), "BEGIN");
+    executeQuery(conn.get(), "SET " + var.name + " = " + test_value);
+    executeQuery(conn.get(), "COMMIT");
+
+    const bool success = getVariable(conn.get(), var.name) == test_value;
+    reset_variable(conn.get(), var.name, original_values.at(var.name));
+    return success;
+}
+
+bool test_savepoint_commit(const TestVariable& var, const std::map<std::string, std::string>& original_values) {
+    auto conn = createNewConnection(ConnType::BACKEND, "", false);
+    const auto test_value = var.test_values[0];
+
+    executeQuery(conn.get(), "BEGIN");
+    executeQuery(conn.get(), "SAVEPOINT sp1");
+    executeQuery(conn.get(), "SET " + var.name + " = " + test_value);
+    executeQuery(conn.get(), "RELEASE SAVEPOINT sp1");
+    executeQuery(conn.get(), "COMMIT");
+
+    const bool success = getVariable(conn.get(), var.name) == test_value;
+    reset_variable(conn.get(), var.name, original_values.at(var.name));
+    return success;
+}
+
+bool test_savepoint_rollback_partial(const TestVariable& var, const std::map<std::string, std::string>& original_values) {
+    auto conn = createNewConnection(ConnType::BACKEND, "", false);
+    const auto original = getVariable(conn.get(), var.name);
+
+    executeQuery(conn.get(), "BEGIN");
+    executeQuery(conn.get(), "SET " + var.name + " = " + var.test_values[0]);
+    executeQuery(conn.get(), "SAVEPOINT sp1");
+    executeQuery(conn.get(), "SET " + var.name + " = " + var.test_values[1]);
+    executeQuery(conn.get(), "RELEASE SAVEPOINT sp1");
+    executeQuery(conn.get(), "COMMIT");
+
+    const bool success = getVariable(conn.get(), var.name) == var.test_values[1];
+    reset_variable(conn.get(), var.name, original_values.at(var.name));
+    return success;
+}
+
+int main(int argc, char** argv) {
+
+    if (cl.getEnv())
+        return exit_status();
+
+    std::map<std::string, std::string> original_values;
+    std::map<std::string, TestVariable> tracked_vars = {
+        {"client_encoding", {"client_encoding", {"LATIN1", "UTF8"}}},
+        {"datestyle", {"datestyle", {"ISO, MDY", "SQL, DMY"}}},
+        {"intervalstyle", {"intervalstyle", {"postgres", "iso_8601"}}},
+        {"standard_conforming_strings", {"standard_conforming_strings", {"on", "off"}}},
+        {"timezone", {"timezone", {"UTC", "PST8PDT"}}},
+        {"bytea_output", {"bytea_output", {"hex", "escape"}}},
+        {"allow_in_place_tablespaces", {"allow_in_place_tablespaces", {"on", "off"}}},
+        {"enable_bitmapscan", {"enable_bitmapscan", {"on", "off"}}},
+        {"enable_hashjoin", {"enable_hashjoin", {"on", "off"}}},
+        {"enable_indexscan", {"enable_indexscan", {"on", "off"}}},
+        {"enable_nestloop", {"enable_nestloop", {"on", "off"}}},
+        {"enable_seqscan", {"enable_seqscan", {"on", "off"}}},
+        {"enable_sort", {"enable_sort", {"on", "off"}}},
+        {"escape_string_warning", {"escape_string_warning", {"on", "off"}}},
+        {"synchronous_commit", {"synchronous_commit", {"on", "off"}}},
+        {"extra_float_digits", {"extra_float_digits", {"0", "3"}}},
+        {"client_min_messages", {"client_min_messages", {"notice", "warning"}}}
+    };
+
+
+    PGConnPtr conn = createNewConnection(ConnType::BACKEND, "", false);
+    if (!conn || PQstatus(conn.get()) != CONNECTION_OK) {
+        BAIL_OUT("Error: failed to connect to the database in file %s, line %d", __FILE__, __LINE__);
+        return exit_status();
+    }
+
+    // Store original values
+    for (const auto& [name, var] : tracked_vars) {
+        original_values[name] = getVariable(conn.get(), name);
+    }
+
+
+    // Add generic tests
+    add_test("Commit without transaction should fail", [&]() {
+        auto conn = createNewConnection(ConnType::BACKEND, "", false);
+        PGresult* res = PQexec(conn.get(), "COMMIT");
+        const bool failed = PQresultStatus(res) != PGRES_COMMAND_OK;
+        PQclear(res);
+        return failed;
+        }, true);
+
+    // Add variable-specific tests using containers
+    for (const auto& [name, var] : tracked_vars) {
+        add_test("Rollback reverts " + var.name, [var]() {
+            return test_transaction_rollback(var);
+            });
+
+        add_test("Commit persists " + var.name, [&]() {
+            return test_transaction_commit(var, original_values);
+            });
+
+        add_test("Savepoint rollback for " + var.name, [var]() {
+            return test_savepoint_rollback(var);
+            });
+
+        add_test("Savepoint commit for " + var.name, [&]() {
+            return test_savepoint_commit(var, original_values);
+            });
+
+        // Multi-value savepoint test
+        if (var.test_values.size() > 1) {
+           add_test("Multi-value savepoint for " + var.name, [&]() {
+                return test_savepoint_rollback_partial(var, original_values);
+                });
+        }
+    }
+
+    // Add complex scenario tests
+    add_test("Nested BEGIN with rollback", [&]() {
+        auto conn = createNewConnection(ConnType::BACKEND, "", false);
+        const auto original_tz = getVariable(conn.get(), "timezone");
+
+        executeQuery(conn.get(), "BEGIN");
+        executeQuery(conn.get(), "SET timezone = 'UTC'");
+        executeQuery(conn.get(), "BEGIN");  // Second BEGIN
+        executeQuery(conn.get(), "SET timezone = 'PST8PDT'");
+        executeQuery(conn.get(), "ROLLBACK");
+
+        const bool success = getVariable(conn.get(), "timezone") == original_tz;
+        return success;
+        });
+
+    add_test("Mixed variables in transaction", [&]() {
+        auto conn = createNewConnection(ConnType::BACKEND, "", false);
+        bool success = true;
+
+        executeQuery(conn.get(), "BEGIN");
+        for (const auto& [name, var] : tracked_vars) {
+            executeQuery(conn.get(), "SET " + var.name + " = " + var.test_values[0]);
+        }
+        executeQuery(conn.get(), "ROLLBACK");
+
+        for (const auto& [name, var] : tracked_vars) {
+            success = (getVariable(conn.get(), var.name) == original_values.at(var.name));
+        }
+        return success;
+        });
+
+    int total_tests = 0;
+
+    total_tests = tests.size();
+    plan(total_tests);
+
+    run_tests();
+   
+    return exit_status();
+}