diff --git a/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndDataSourceTransactionManager.java b/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndDataSourceTransactionManager.java
index e09e3a45..e58be223 100644
--- a/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndDataSourceTransactionManager.java
+++ b/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndDataSourceTransactionManager.java
@@ -77,8 +77,14 @@ public class ContextSourceAndDataSourceTransactionManager extends
 
         super.doBegin(actualTransactionObject.getDataSourceTransactionObject(),
                 definition);
-        ldapManagerDelegate.doBegin(actualTransactionObject
-                .getLdapTransactionObject(), definition);
+        try {
+            ldapManagerDelegate.doBegin(actualTransactionObject
+                    .getLdapTransactionObject(), definition);
+        } catch (TransactionException e) {
+            // Failed to start LDAP transaction - make sure we clean up properly
+            super.doCleanupAfterCompletion(actualTransactionObject.getDataSourceTransactionObject());
+            throw e;
+        }
     }
 
     /*
diff --git a/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndHibernateTransactionManager.java b/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndHibernateTransactionManager.java
index 45e9565b..ccf7543a 100755
--- a/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndHibernateTransactionManager.java
+++ b/core/src/main/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndHibernateTransactionManager.java
@@ -76,8 +76,14 @@ public class ContextSourceAndHibernateTransactionManager extends HibernateTransa
 
         super.doBegin(actualTransactionObject.getHibernateTransactionObject(),
                 definition);
-        ldapManagerDelegate.doBegin(actualTransactionObject
-                .getLdapTransactionObject(), definition);
+        try {
+            ldapManagerDelegate.doBegin(actualTransactionObject
+                    .getLdapTransactionObject(), definition);
+        } catch (TransactionException e) {
+            // Failed to start LDAP transaction - make sure we clean up properly
+            super.doCleanupAfterCompletion(actualTransactionObject.getHibernateTransactionObject());
+            throw e;
+        }
     }
 
     /*
diff --git a/test/integration-tests/src/test/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndDataSourceTransactionManagerLdap179IntegrationTest.java b/test/integration-tests/src/test/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndDataSourceTransactionManagerLdap179IntegrationTest.java
new file mode 100644
index 00000000..fe7e8ab8
--- /dev/null
+++ b/test/integration-tests/src/test/java/org/springframework/ldap/transaction/compensating/manager/ContextSourceAndDataSourceTransactionManagerLdap179IntegrationTest.java
@@ -0,0 +1,90 @@
+/*
+ * Copyright 2005-2010 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.ldap.transaction.compensating.manager;
+
+import org.apache.commons.logging.Log;
+import org.apache.commons.logging.LogFactory;
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.beans.factory.annotation.Qualifier;
+import org.springframework.jdbc.core.JdbcTemplate;
+import org.springframework.ldap.CommunicationException;
+import org.springframework.ldap.core.LdapTemplate;
+import org.springframework.ldap.itest.transaction.compensating.manager.DummyDao;
+import org.springframework.test.context.ContextConfiguration;
+import org.springframework.test.context.junit4.AbstractJUnit4SpringContextTests;
+import org.springframework.transaction.CannotCreateTransactionException;
+import org.springframework.transaction.support.TransactionSynchronizationManager;
+
+import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
+import static org.junit.Assert.fail;
+
+/**
+ * Integration tests for {@link org.springframework.ldap.transaction.compensating.manager.ContextSourceAndDataSourceTransactionManager}.
+ *
+ * @author Mattias Hellborg Arthursson
+ */
+@ContextConfiguration(locations = {"/conf/missingLdapAndJdbcTransactionTestContext.xml"})
+public class ContextSourceAndDataSourceTransactionManagerLdap179IntegrationTest extends AbstractJUnit4SpringContextTests {
+
+    private static Log log = LogFactory.getLog(ContextSourceAndDataSourceTransactionManagerLdap179IntegrationTest.class);
+
+    @Autowired
+    @Qualifier("dummyDao")
+    private DummyDao dummyDao;
+
+    @Autowired
+    private LdapTemplate ldapTemplate;
+
+    @Autowired
+    private JdbcTemplate jdbcTemplate;
+
+    @Before
+    public void prepareTestedInstance() throws Exception {
+        if (TransactionSynchronizationManager.isSynchronizationActive()) {
+            TransactionSynchronizationManager.clearSynchronization();
+        }
+    }
+
+    @After
+    public void cleanup() throws Exception {
+        jdbcTemplate.execute("drop table PERSON if exists");
+    }
+
+
+    @Test
+    public void verifyThatJdbcTransactionIsClosedIfLdapServerUnavailable_ldap179() {
+        try {
+            dummyDao.create("Sweden", "company1", "some testperson", "testperson", "some description");
+            fail("CannotCreateTransactionException expected");
+        } catch (CannotCreateTransactionException expected) {
+            assertTrue(expected.getCause() instanceof CommunicationException);
+        }
+
+        // Make sure there is no transaction synchronization
+        assertFalse(TransactionSynchronizationManager.isSynchronizationActive());
+
+        try {
+            dummyDao.create("Sweden", "company1", "some testperson", "testperson", "some description");
+            fail("CannotCreateTransactionException expected");
+        } catch (CannotCreateTransactionException expected) {
+            assertTrue(expected.getCause() instanceof CommunicationException);
+        }
+    }
+}
diff --git a/test/integration-tests/src/test/java/org/springframework/ldap/transaction/compensating/manager/hibernate/ContextSourceAndHibernateTransactionManagerLdap179IntegrationTest.java b/test/integration-tests/src/test/java/org/springframework/ldap/transaction/compensating/manager/hibernate/ContextSourceAndHibernateTransactionManagerLdap179IntegrationTest.java
new file mode 100755
index 00000000..82bc4a3c
--- /dev/null
+++ b/test/integration-tests/src/test/java/org/springframework/ldap/transaction/compensating/manager/hibernate/ContextSourceAndHibernateTransactionManagerLdap179IntegrationTest.java
@@ -0,0 +1,82 @@
+/*
+ * Copyright 2005-2010 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.ldap.transaction.compensating.manager.hibernate;
+
+import org.apache.commons.logging.Log;
+import org.apache.commons.logging.LogFactory;
+import org.junit.Before;
+import org.junit.Test;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.beans.factory.annotation.Qualifier;
+import org.springframework.ldap.CommunicationException;
+import org.springframework.ldap.itest.transaction.compensating.manager.hibernate.OrgPerson;
+import org.springframework.ldap.itest.transaction.compensating.manager.hibernate.OrgPersonDao;
+import org.springframework.test.context.ContextConfiguration;
+import org.springframework.test.context.junit4.AbstractJUnit4SpringContextTests;
+import org.springframework.transaction.CannotCreateTransactionException;
+import org.springframework.transaction.support.TransactionSynchronizationManager;
+
+import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
+
+/**
+ * Integration tests for {@link org.springframework.ldap.transaction.compensating.manager.ContextSourceAndHibernateTransactionManager}.
+ *
+ * @author Hans Westerbeek
+ */
+@ContextConfiguration(locations = { "/conf/missingLdapAndHibernateTransactionTestContext.xml" })
+public class ContextSourceAndHibernateTransactionManagerLdap179IntegrationTest extends AbstractJUnit4SpringContextTests {
+
+	private static Log log = LogFactory.getLog(ContextSourceAndHibernateTransactionManagerLdap179IntegrationTest.class);
+
+	@Autowired
+	@Qualifier("dummyDao")
+	private OrgPersonDao dummyDao;
+
+	@Before
+	public void prepareTest() throws Exception {
+		if (TransactionSynchronizationManager.isSynchronizationActive()) {
+			TransactionSynchronizationManager.clearSynchronization();
+		}
+	}
+
+	@Test
+	public void testCreate() {
+		OrgPerson person = new OrgPerson();
+
+		person.setId(new Integer(2));
+		person.setDescription("some description");
+		person.setFullname("Some testperson");
+		person.setLastname("testperson");
+		person.setCountry("Sweden");
+		person.setCompany("company1");
+
+        try {
+            this.dummyDao.create(person);
+        } catch (CannotCreateTransactionException expected) {
+            assertTrue(expected.getCause() instanceof CommunicationException);
+        }
+
+        // Make sure there is no transaction synchronization
+        assertFalse(TransactionSynchronizationManager.isSynchronizationActive());
+
+        try {
+            this.dummyDao.create(person);
+        } catch (CannotCreateTransactionException expected) {
+            assertTrue(expected.getCause() instanceof CommunicationException);
+        }
+    }
+}
diff --git a/test/integration-tests/src/test/resources/conf/missingLdapAndHibernateTransactionTestContext.xml b/test/integration-tests/src/test/resources/conf/missingLdapAndHibernateTransactionTestContext.xml
new file mode 100755
index 00000000..fcef7e06
--- /dev/null
+++ b/test/integration-tests/src/test/resources/conf/missingLdapAndHibernateTransactionTestContext.xml
@@ -0,0 +1,77 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xsi:schemaLocation="http://www.springframework.org/schema/beans
+                           http://www.springframework.org/schema/beans/spring-beans-2.0.xsd">
+
+    <import resource="classpath:/conf/commonTestContext.xml"/>
+
+    <!-- This LDAP server shouldn't exist, and that's what we're testing -->
+    <bean id="contextSource"
+          class="org.springframework.ldap.core.support.LdapContextSource">
+        <property name="userDn" value="${userDn}" />
+        <property name="password" value="${password}" />
+        <property name="url" value="ldap://127.0.0.1:1337" />
+    </bean>
+
+	<bean id="dataSource"
+		class="org.springframework.jdbc.datasource.DriverManagerDataSource">
+		<property name="driverClassName" value="org.hsqldb.jdbcDriver" />
+		<property name="url" value="jdbc:hsqldb:mem:aname" />
+		<property name="username" value="sa" />
+		<property name="password" value="" />
+	</bean>
+
+	<bean id="transactedContextSource"
+		class="org.springframework.ldap.transaction.compensating.manager.TransactionAwareContextSourceProxy">
+		<constructor-arg ref="contextSource" />
+	</bean>
+
+	<bean id="ldapTemplate"
+		class="org.springframework.ldap.core.LdapTemplate">
+		<constructor-arg ref="transactedContextSource" />
+	</bean>
+	
+	<bean id="hibernateTemplate" class="org.springframework.orm.hibernate3.HibernateTemplate">
+		<property name="sessionFactory" ref="sessionFactory" />
+	</bean>
+
+	 <bean id="sessionFactory" class="org.springframework.orm.hibernate3.LocalSessionFactoryBean">
+	    <property name="dataSource" ref="dataSource"/>
+	    <property name="mappingResources">
+	      <list>
+	        <value>conf/OrgPerson.hbm.xml</value>
+	      </list>
+	    </property>
+	    <property name="hibernateProperties">
+	      <value>
+	        hibernate.dialect=org.hibernate.dialect.HSQLDialect
+	        hibernate.hbm2ddl.auto=create
+	      </value>
+	    </property>
+	  </bean>
+	<bean id="transactionManager"
+		class="org.springframework.ldap.transaction.compensating.manager.ContextSourceAndHibernateTransactionManager">
+		<property name="sessionFactory" ref="sessionFactory" />
+		<property name="contextSource" ref="transactedContextSource" />
+	</bean>
+
+
+	<bean name="dummyDaoTarget"
+		class="org.springframework.ldap.itest.transaction.compensating.manager.hibernate.DummyDaoLdapAndHibernateImpl">
+		<property name="ldapTemplate" ref="ldapTemplate" />
+		<property name="sessionFactory" ref="sessionFactory" />
+	</bean>
+
+	<bean name="dummyDao"
+		class="org.springframework.transaction.interceptor.TransactionProxyFactoryBean">
+		<property name="transactionManager"
+			ref="transactionManager" />
+		<property name="target" ref="dummyDaoTarget" />
+		<property name="transactionAttributes">
+			<props>
+				<prop key="*">PROPAGATION_REQUIRES_NEW</prop>
+			</props>
+		</property>
+	</bean>
+</beans>
diff --git a/test/integration-tests/src/test/resources/conf/missingLdapAndJdbcTransactionTestContext.xml b/test/integration-tests/src/test/resources/conf/missingLdapAndJdbcTransactionTestContext.xml
new file mode 100644
index 00000000..5ece78e9
--- /dev/null
+++ b/test/integration-tests/src/test/resources/conf/missingLdapAndJdbcTransactionTestContext.xml
@@ -0,0 +1,63 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xsi:schemaLocation="http://www.springframework.org/schema/beans
+                           http://www.springframework.org/schema/beans/spring-beans-2.0.xsd">
+    <import resource="classpath:/conf/commonTestContext.xml"/>
+
+    <!-- This LDAP server shouldn't exist, and that's what we're testing -->
+	<bean id="contextSource"
+		class="org.springframework.ldap.core.support.LdapContextSource">
+		<property name="userDn" value="${userDn}" />
+		<property name="password" value="${password}" />
+        <property name="url" value="ldap://127.0.0.1:1337" />
+	</bean>
+
+	<bean id="dataSource"
+		class="org.springframework.jdbc.datasource.DriverManagerDataSource">
+		<property name="driverClassName" value="org.hsqldb.jdbcDriver" />
+		<property name="url" value="jdbc:hsqldb:mem:aname" />
+		<property name="username" value="sa" />
+		<property name="password" value="" />
+	</bean>
+
+	<bean id="transactedContextSource"
+		class="org.springframework.ldap.transaction.compensating.manager.TransactionAwareContextSourceProxy">
+		<constructor-arg ref="contextSource" />
+	</bean>
+
+	<bean id="ldapTemplate"
+		class="org.springframework.ldap.core.LdapTemplate">
+		<constructor-arg ref="transactedContextSource" />
+	</bean>
+
+	<bean id="jdbcTemplate"
+		class="org.springframework.jdbc.core.JdbcTemplate">
+		<property name="dataSource" ref="dataSource" />
+	</bean>
+
+	<bean id="transactionManager"
+		class="org.springframework.ldap.transaction.compensating.manager.ContextSourceAndDataSourceTransactionManager">
+		<property name="dataSource" ref="dataSource" />
+		<property name="contextSource" ref="transactedContextSource" />
+	</bean>
+
+
+	<bean name="dummyDaoTarget"
+		class="org.springframework.ldap.itest.transaction.compensating.manager.LdapAndJdbcDummyDaoImpl">
+		<property name="ldapTemplate" ref="ldapTemplate" />
+		<property name="jdbcTemplate" ref="jdbcTemplate" />
+	</bean>
+
+	<bean name="dummyDao"
+		class="org.springframework.transaction.interceptor.TransactionProxyFactoryBean">
+		<property name="transactionManager"
+			ref="transactionManager" />
+		<property name="target" ref="dummyDaoTarget" />
+		<property name="transactionAttributes">
+			<props>
+				<prop key="*">PROPAGATION_REQUIRES_NEW</prop>
+			</props>
+		</property>
+	</bean>
+</beans>