Are you running both EJB's in the same JVM? That would explain it, as TX rollback won't affect the changes you've done to TestEntity, only the operations you've done on cache. That is the changes TestEntity.update does on the object won't be affected by the TransactionManager.rollback call. Following will be affected though: cache.put(fqn, "key", "1"); | tm.begin(); | cache.put(fqn, "key", "2"); | tm.rollback(); | assert cache.get(fqn, "key").equals("1") : "this is true, won't fail!!!"; View the original post : http://www.jboss.org/index.html?module=bb&op=viewtopic&p=4238976#... Reply to the post : http://www.jboss.org/index.html?module=bb&op=posting&mode=reply&a...