diff --git a/datastore/query_test.go b/datastore/query_test.go
index 36d72b40c8ac..6c191f09326a 100644
--- a/datastore/query_test.go
+++ b/datastore/query_test.go
@@ -763,8 +763,8 @@ func TestReadOptions(t *testing.T) {
 	}
 	// Test errors.
 	for _, q := range []*Query{
-		NewQuery("").Transaction(&Transaction{id: nil}),
-		NewQuery("").Transaction(&Transaction{id: tid}).EventualConsistency(),
+		NewQuery("").Transaction(&Transaction{id: nil, state: transactionStateExpired}),
+		NewQuery("").Transaction(&Transaction{id: tid, state: transactionStateInProgress}).EventualConsistency(),
 	} {
 		req := &pb.RunQueryRequest{}
 		if err := q.toRunQueryRequest(req); err == nil {
diff --git a/datastore/transaction.go b/datastore/transaction.go
index cbd64b342527..647e50b27942 100644
--- a/datastore/transaction.go
+++ b/datastore/transaction.go
@@ -37,6 +37,14 @@ type transactionSettings struct {
 	readOnly bool
 	prevID   []byte // ID of the transaction to retry
 	readTime *timestamppb.Timestamp
+
+	// When set, skips the initial BeginTransaction RPC call to obtain txn id and
+	// uses the piggybacked txn id from first read rpc call.
+	// If there are no read operations on transaction, BeginTransaction RPC call is made
+	// before rollback or commit
+	// Currently, this setting is set but unused
+	// TODO: b/291258189 - Use this setting
+	beginLater bool
 }
 
 // newTransactionSettings creates a transactionSettings with a given TransactionOption slice.
@@ -91,6 +99,7 @@ var ReadOnly TransactionOption
 
 func init() {
 	ReadOnly = readOnly{}
+	BeginLater = beginLater{}
 }
 
 type readOnly struct{}
@@ -99,6 +108,25 @@ func (readOnly) apply(s *transactionSettings) {
 	s.readOnly = true
 }
 
+// BeginLater is a TransactionOption that can be used to improve transaction performance
+// Currently, it is a no-op
+// TODO: b/291258189 - Add implementation
+var BeginLater TransactionOption
+
+type beginLater struct{}
+
+func (beginLater) apply(s *transactionSettings) {
+	s.beginLater = true
+}
+
+type transactionState int
+
+const (
+	transactionStateNotStarted transactionState = iota // Currently unused
+	transactionStateInProgress
+	transactionStateExpired
+)
+
 // Transaction represents a set of datastore operations to be committed atomically.
 //
 // Operations are enqueued by calling the Put and Delete methods on Transaction
@@ -114,6 +142,8 @@ type Transaction struct {
 	ctx       context.Context
 	mutations []*pb.Mutation      // The mutations to apply.
 	pending   map[int]*PendingKey // Map from mutation index to incomplete keys pending transaction completion.
+	settings  *transactionSettings
+	state     transactionState
 }
 
 // NewTransaction starts a new transaction.
@@ -167,6 +197,8 @@ func (c *Client) newTransaction(ctx context.Context, s *transactionSettings) (_
 		client:    c,
 		mutations: nil,
 		pending:   make(map[int]*PendingKey),
+		state:     transactionStateInProgress,
+		settings:  s,
 	}, nil
 }
 
@@ -223,7 +255,7 @@ func (t *Transaction) Commit() (c *Commit, err error) {
 	t.ctx = trace.StartSpan(t.ctx, "cloud.google.com/go/datastore.Transaction.Commit")
 	defer func() { trace.EndSpan(t.ctx, err) }()
 
-	if t.id == nil {
+	if t.state == transactionStateExpired {
 		return nil, errExpiredTransaction
 	}
 	req := &pb.CommitRequest{
@@ -237,7 +269,7 @@ func (t *Transaction) Commit() (c *Commit, err error) {
 	if status.Code(err) == codes.Aborted {
 		return nil, ErrConcurrentTransaction
 	}
-	t.id = nil // mark the transaction as expired
+	t.state = transactionStateExpired // mark the transaction as expired
 	if err != nil {
 		return nil, err
 	}
@@ -264,15 +296,14 @@ func (t *Transaction) Rollback() (err error) {
 	t.ctx = trace.StartSpan(t.ctx, "cloud.google.com/go/datastore.Transaction.Rollback")
 	defer func() { trace.EndSpan(t.ctx, err) }()
 
-	if t.id == nil {
+	if t.state == transactionStateExpired {
 		return errExpiredTransaction
 	}
-	id := t.id
-	t.id = nil
+	t.state = transactionStateExpired
 	_, err = t.client.client.Rollback(t.ctx, &pb.RollbackRequest{
 		ProjectId:   t.client.dataset,
 		DatabaseId:  t.client.databaseID,
-		Transaction: id,
+		Transaction: t.id,
 	})
 	return err
 }
@@ -303,7 +334,7 @@ func (t *Transaction) GetMulti(keys []*Key, dst interface{}) (err error) {
 	t.ctx = trace.StartSpan(t.ctx, "cloud.google.com/go/datastore.Transaction.GetMulti")
 	defer func() { trace.EndSpan(t.ctx, err) }()
 
-	if t.id == nil {
+	if t.state == transactionStateExpired {
 		return errExpiredTransaction
 	}
 	opts := &pb.ReadOptions{
@@ -336,7 +367,7 @@ func (t *Transaction) Put(key *Key, src interface{}) (*PendingKey, error) {
 // element of src in the same order.
 // TODO(jba): rewrite in terms of Mutate.
 func (t *Transaction) PutMulti(keys []*Key, src interface{}) (ret []*PendingKey, err error) {
-	if t.id == nil {
+	if t.state == transactionStateExpired {
 		return nil, errExpiredTransaction
 	}
 	mutations, err := putMutations(keys, src)
@@ -376,7 +407,7 @@ func (t *Transaction) Delete(key *Key) error {
 // DeleteMulti is a batch version of Delete.
 // TODO(jba): rewrite in terms of Mutate.
 func (t *Transaction) DeleteMulti(keys []*Key) (err error) {
-	if t.id == nil {
+	if t.state == transactionStateExpired {
 		return errExpiredTransaction
 	}
 	mutations, err := deleteMutations(keys)
@@ -396,7 +427,7 @@ func (t *Transaction) DeleteMulti(keys []*Key) (err error) {
 //
 // For an example, see Client.Mutate.
 func (t *Transaction) Mutate(muts ...*Mutation) ([]*PendingKey, error) {
-	if t.id == nil {
+	if t.state == transactionStateExpired {
 		return nil, errExpiredTransaction
 	}
 	pmuts, err := mutationProtos(muts)