diff --git a/spring-modulith-events/spring-modulith-events-api/src/main/java/org/springframework/modulith/events/ApplicationModuleListener.java b/spring-modulith-events/spring-modulith-events-api/src/main/java/org/springframework/modulith/events/ApplicationModuleListener.java
index d0c9abc6..2296f641 100644
--- a/spring-modulith-events/spring-modulith-events-api/src/main/java/org/springframework/modulith/events/ApplicationModuleListener.java
+++ b/spring-modulith-events/spring-modulith-events-api/src/main/java/org/springframework/modulith/events/ApplicationModuleListener.java
@@ -76,4 +76,13 @@ public @interface ApplicationModuleListener {
 	 */
 	@AliasFor(annotation = EventListener.class, attribute = "condition")
 	String condition() default "";
+
+	/**
+	 * The transaction propagation type. Defaults to {@link Propagation#REQUIRES_NEW}
+	 *
+	 * @since 1.3
+	 * @see Transactional#propagation()
+	 */
+	@AliasFor(annotation = Transactional.class, attribute = "propagation")
+	Propagation propagation() default Propagation.REQUIRES_NEW;
 }
diff --git a/spring-modulith-events/spring-modulith-events-api/src/test/java/org/springframework/modulith/events/ApplicationModuleListenerUnitTests.java b/spring-modulith-events/spring-modulith-events-api/src/test/java/org/springframework/modulith/events/ApplicationModuleListenerUnitTests.java
index 5e44df65..7d8db131 100644
--- a/spring-modulith-events/spring-modulith-events-api/src/test/java/org/springframework/modulith/events/ApplicationModuleListenerUnitTests.java
+++ b/spring-modulith-events/spring-modulith-events-api/src/test/java/org/springframework/modulith/events/ApplicationModuleListenerUnitTests.java
@@ -23,6 +23,8 @@ import org.junit.jupiter.api.Test;
 import org.springframework.context.event.ApplicationListenerMethodAdapter;
 import org.springframework.context.event.EventListener;
 import org.springframework.core.annotation.AnnotatedElementUtils;
+import org.springframework.transaction.annotation.Propagation;
+import org.springframework.transaction.annotation.Transactional;
 
 /**
  * Unit tests for {@link ApplicationModuleListener}.
@@ -50,10 +52,22 @@ class ApplicationModuleListenerUnitTests {
 		assertThat(adapter.getCondition()).isEqualTo("#{false}");
 	}
 
+	@Test // GH-858
+	void declaresCustomTransactionPropagation() throws Exception {
+
+		var method = Sample.class.getDeclaredMethod("withCustomPropagation");
+		var annotation = findMergedAnnotation(method, Transactional.class);
+
+		assertThat(annotation.propagation()).isEqualTo(Propagation.SUPPORTS);
+	}
+
 	static class Sample {
 
 		@ApplicationModuleListener(condition = "#{false}")
 		void someMethod(Object event) {}
+
+		@ApplicationModuleListener(propagation = Propagation.SUPPORTS)
+		void withCustomPropagation() {}
 	}
 
 	static class CustomAdapter extends ApplicationListenerMethodAdapter {