diff --git a/src/backend/distributed/transaction/transaction_management.c b/src/backend/distributed/transaction/transaction_management.c
index 0d898236a..e86e5ac55 100644
--- a/src/backend/distributed/transaction/transaction_management.c
+++ b/src/backend/distributed/transaction/transaction_management.c
@@ -117,7 +117,8 @@ static bool MaybeExecutingUDF(void);
 void
 UseCoordinatedTransaction(void)
 {
-	if (CurrentCoordinatedTransactionState == COORD_TRANS_STARTED)
+	if (CurrentCoordinatedTransactionState == COORD_TRANS_STARTED ||
+		CurrentCoordinatedTransactionState == COORD_TRANS_STARTED_ON_WORKER)
 	{
 		return;
 	}
@@ -130,7 +131,21 @@ UseCoordinatedTransaction(void)
 
 	CurrentCoordinatedTransactionState = COORD_TRANS_STARTED;
 
-	AssignDistributedTransactionId();
+	/*
+	 * This might be part of bigger distributed transaction originating from
+	 * another node, in which case transaction id has already been assigned
+	 * by a assign_distributed_transaction_id() call.
+	 */
+	DistributedTransactionId *transactionId = GetCurrentDistributedTransactionId();
+	if (transactionId->transactionNumber == 0)
+	{
+		CurrentCoordinatedTransactionState = COORD_TRANS_STARTED_ON_WORKER;
+		AssignDistributedTransactionId();
+	}
+	else
+	{
+		CurrentCoordinatedTransactionState = COORD_TRANS_STARTED;
+	}
 }
 
 
diff --git a/src/include/distributed/transaction_management.h b/src/include/distributed/transaction_management.h
index 924d836be..f1e9ece90 100644
--- a/src/include/distributed/transaction_management.h
+++ b/src/include/distributed/transaction_management.h
@@ -35,6 +35,13 @@ typedef enum CoordinatedTransactionState
 	/* no coordinated transaction in progress, but connections established */
 	COORD_TRANS_IDLE,
 
+	/*
+	 * Coordinated transaction was initiated by coordinator, but the worker also
+	 * needs to start a coordinated transaction to be able to send commands to
+	 * other workers.
+	 */
+	COORD_TRANS_STARTED_ON_WORKER,
+
 	/* coordinated transaction in progress */
 	COORD_TRANS_STARTED,