diff --git a/packages/element/src/transaction/ledger.ts b/packages/element/src/transaction/ledger.ts
index 76946057cc..007d316ebd 100644
--- a/packages/element/src/transaction/ledger.ts
+++ b/packages/element/src/transaction/ledger.ts
@@ -105,7 +105,10 @@ const collectTouchedProps = (
       continue;
     }
     if (
-      !isLedgerValueEqual(getElementProp(before, key), getElementProp(after, key))
+      !isLedgerValueEqual(
+        getElementProp(before, key),
+        getElementProp(after, key),
+      )
     ) {
       touchedProps.add(key);
     }
diff --git a/packages/element/tests/transactionLedger.test.ts b/packages/element/tests/transactionLedger.test.ts
new file mode 100644
index 0000000000..ae4b3d48fc
--- /dev/null
+++ b/packages/element/tests/transactionLedger.test.ts
@@ -0,0 +1,125 @@
+import { arrayToMap } from "@excalidraw/common";
+import { API } from "@excalidraw/excalidraw/tests/helpers/api";
+
+import {
+  DEFAULT_TRANSACTION_MERGE_POLICY,
+  TransactionLedger,
+  collectChangedElementIds,
+} from "../src";
+
+import type { ExcalidrawElement } from "../src/types";
+
+describe("TransactionLedger", () => {
+  it("ignores metadata-only changes when collecting changed ids", () => {
+    const before = API.createElement({
+      type: "rectangle",
+      id: "rect-1",
+    });
+    const after = {
+      ...before,
+      version: before.version + 1,
+      versionNonce: before.versionNonce + 1,
+      seed: before.seed + 1,
+      updated: before.updated + 1,
+      index: "a2" as ExcalidrawElement["index"],
+    };
+
+    expect(
+      collectChangedElementIds(arrayToMap([before]), arrayToMap([after])),
+    ).toEqual([]);
+  });
+
+  it("drops ledger entry when element is created and deleted in one transaction", () => {
+    const ledger = new TransactionLedger();
+    const created = API.createElement({
+      type: "rectangle",
+      id: "rect-1",
+    });
+
+    ledger.recordStep(new Map(), arrayToMap([created]));
+    expect(ledger.hasEntries()).toBe(true);
+
+    ledger.recordStep(arrayToMap([created]), new Map());
+    expect(ledger.hasEntries()).toBe(false);
+  });
+
+  it("materializes create operation when live scene still matches target", () => {
+    const ledger = new TransactionLedger();
+    const created = API.createElement({
+      type: "rectangle",
+      id: "rect-1",
+      strokeColor: "#ff006e",
+    });
+
+    ledger.recordStep(new Map(), arrayToMap([created]));
+
+    const { logicalBefore, logicalAfter } = ledger.buildSyntheticSnapshots(
+      arrayToMap([created]),
+      DEFAULT_TRANSACTION_MERGE_POLICY,
+    );
+
+    expect(logicalBefore.has(created.id)).toBe(false);
+    expect(logicalAfter.get(created.id)?.strokeColor).toBe("#ff006e");
+  });
+
+  it("skips conflicting update when policy is live-wins", () => {
+    const ledger = new TransactionLedger();
+    const baseline = API.createElement({
+      type: "rectangle",
+      id: "rect-1",
+      strokeColor: "#000000",
+    });
+    const target = {
+      ...baseline,
+      strokeColor: "#ff006e",
+      version: baseline.version + 1,
+    };
+    const live = {
+      ...target,
+      strokeColor: "#3a86ff",
+      version: target.version + 1,
+    };
+
+    ledger.recordStep(arrayToMap([baseline]), arrayToMap([target]));
+
+    const { logicalBefore, logicalAfter } = ledger.buildSyntheticSnapshots(
+      arrayToMap([live]),
+      DEFAULT_TRANSACTION_MERGE_POLICY,
+    );
+
+    expect(logicalBefore.get(live.id)?.strokeColor).toBe("#3a86ff");
+    expect(logicalAfter.get(live.id)?.strokeColor).toBe("#3a86ff");
+  });
+
+  it("applies conflicting update when policy is transaction-wins", () => {
+    const ledger = new TransactionLedger();
+    const baseline = API.createElement({
+      type: "rectangle",
+      id: "rect-1",
+      strokeColor: "#000000",
+    });
+    const target = {
+      ...baseline,
+      strokeColor: "#ff006e",
+      version: baseline.version + 1,
+    };
+    const live = {
+      ...target,
+      strokeColor: "#3a86ff",
+      version: target.version + 1,
+    };
+
+    ledger.recordStep(arrayToMap([baseline]), arrayToMap([target]));
+
+    const { logicalBefore, logicalAfter } = ledger.buildSyntheticSnapshots(
+      arrayToMap([live]),
+      {
+        ...DEFAULT_TRANSACTION_MERGE_POLICY,
+        conflictWinner: "transaction",
+      },
+    );
+
+    expect(logicalBefore.get(live.id)?.strokeColor).toBe("#000000");
+    expect(logicalAfter.get(live.id)?.strokeColor).toBe("#ff006e");
+  });
+});
diff --git a/packages/excalidraw/tests/transactionManager.test.tsx b/packages/excalidraw/tests/transactionManager.test.tsx
new file mode 100644
index 0000000000..3268eb6a91
--- /dev/null
+++ b/packages/excalidraw/tests/transactionManager.test.tsx
@@ -0,0 +1,404 @@
+import React from "react";
+
+import { CaptureUpdateAction, newElementWith } from "@excalidraw/element";
+
+import type { ExcalidrawElement } from "@excalidraw/element/types";
+
+import { Excalidraw } from "../index";
+
+import { API } from "./helpers/api";
+import { Keyboard } from "./helpers/ui";
+import { act, render, unmountComponent, waitFor } from "./test-utils";
+
+import type { ObservedAppState } from "../types";
+import type { TransactionSummary } from "../transaction/types";
+
+const { h } = window;
+
+const getElement = (id: string) =>
+  h.app.scene.getNonDeletedElementsMap().get(id) ?? null;
+
+const applyElementUpdate = (
+  id: string,
+  updates: Partial<ExcalidrawElement>,
+  captureUpdate: keyof typeof CaptureUpdateAction,
+) => {
+  const nextElements = h.app.scene
+    .getElementsIncludingDeleted()
+    .map((element) =>
+      element.id === id
+        ? (newElementWith(element as any, updates as any) as ExcalidrawElement)
+        : element,
+    );
+
+  API.updateScene({
+    elements: nextElements,
+    captureUpdate: CaptureUpdateAction[captureUpdate],
+  });
+};
+
+const setSceneBaseline = (elements: readonly ExcalidrawElement[]) => {
+  API.updateScene({
+    elements,
+    captureUpdate: CaptureUpdateAction.NEVER,
+  });
+};
+
+const appendElement = (
+  element: ExcalidrawElement,
+  captureUpdate: keyof typeof CaptureUpdateAction,
+) => {
+  const nextElements = [...h.app.scene.getElementsIncludingDeleted(), element];
+
+  API.updateScene({
+    elements: nextElements,
+    captureUpdate: CaptureUpdateAction[captureUpdate],
+  });
+};
+
+const commitSession = (session: { commit: () => TransactionSummary }) => {
+  let summary!: TransactionSummary;
+  act(() => {
+    summary = session.commit();
+  });
+  return summary;
+};
+
+describe("TransactionManager", () => {
+  beforeEach(async () => {
+    unmountComponent();
+    vi.restoreAllMocks();
+    await render(<Excalidraw handleKeyboardGlobally={true} />);
+  });
+
+  it("run() commits on success and returns summary", async () => {
+    const element = API.createElement({
+      type: "rectangle",
+      id: "rect-1",
+    });
+    setSceneBaseline([element]);
+
+    const commitSyntheticHistoryEntry = vi
+      .spyOn(h.app, "commitSyntheticHistoryEntry")
+      .mockReturnValue(true);
+
+    const { result, summary } = await h.app.transactionManager.run(
+      async (tx) => {
+        return tx.apply(async () => {
+          const current = h.app.scene
+            .getElementsMapIncludingDeleted()
+            .get(element.id)!;
+          API.updateElement(current, {
+            strokeColor: "#ff006e",
+          });
+          return "updated";
+        });
+      },
+    );
+
+    expect(result.applied).toBe(true);
+    expect(result.value).toBe("updated");
+    expect(summary.state).toBe("finalized");
+    expect(summary.appliedMutations).toBe(1);
+    expect(summary.touchedElementIds).toEqual([element.id]);
+    expect(summary.historyCommitted).toBe(true);
+    expect(commitSyntheticHistoryEntry).toHaveBeenCalledTimes(1);
+  });
+
+  it("run() preserves original error when cancel path fails", async () => {
+    const originalError = new Error("work failed");
+    const cancelError = new Error("cancel failed");
+    const consoleErrorSpy = vi
+      .spyOn(console, "error")
+      .mockImplementation(() => {});
+    const session = h.app.transactionManager.open();
+
+    vi.spyOn(session, "cancel").mockImplementation(() => {
+      throw cancelError;
+    });
+    vi.spyOn(h.app.transactionManager, "open").mockReturnValue(session);
+
+    await expect(
+      h.app.transactionManager.run(async () => {
+        throw originalError;
+      }),
+    ).rejects.toBe(originalError);
+    expect(consoleErrorSpy).toHaveBeenCalledTimes(1);
+
+    consoleErrorSpy.mockRestore();
+  });
+
+  it("commit() is idempotent and does not commit history when there are no entries", () => {
+    const commitSyntheticHistoryEntry = vi.spyOn(
+      h.app,
+      "commitSyntheticHistoryEntry",
+    );
+    const session = h.app.transactionManager.open();
+
+    const first = session.commit();
+    const second = session.commit();
+
+    expect(second).toBe(first);
+    expect(first.state).toBe("finalized");
+    expect(first.historyCommitted).toBe(false);
+    expect(commitSyntheticHistoryEntry).not.toHaveBeenCalled();
+  });
+
+  it("forwards appState patch to commitSyntheticHistoryEntry()", async () => {
+    const element = API.createElement({
+      type: "rectangle",
+      id: "rect-1",
+    });
+    setSceneBaseline([element]);
+
+    const commitSyntheticHistoryEntry = vi
+      .spyOn(h.app, "commitSyntheticHistoryEntry")
+      .mockReturnValue(true);
+
+    const session = h.app.transactionManager.open();
+
+    await session.apply(async () => {
+      const current = h.app.scene
+        .getElementsMapIncludingDeleted()
+        .get(element.id)!;
+      API.updateElement(current, {
+        backgroundColor: "#ffbe0b",
+      });
+    });
+
+    const appStatePatch: {
+      before: Partial<ObservedAppState>;
+      after: Partial<ObservedAppState>;
+    } = {
+      before: { selectedElementIds: {} },
+      after: { selectedElementIds: { [element.id]: true } },
+    };
+    session.setAppStatePatch(appStatePatch);
+
+    act(() => {
+      session.commit();
+    });
+
+    expect(commitSyntheticHistoryEntry).toHaveBeenCalledWith(
+      expect.objectContaining({
+        appStateBefore: appStatePatch.before,
+        appStateAfter: appStatePatch.after,
+      }),
+    );
+  });
+
+  it("returns inactive reason for capture/apply after cancel()", async () => {
+    const session = h.app.transactionManager.open();
+
+    session.cancel();
+
+    const captureResult = session.capture(new Map(), new Map());
+    const applyResult = await session.apply(async () => undefined);
+
+    expect(captureResult.applied).toBe(false);
+    expect(captureResult.reason).toContain("canceled");
+    expect(applyResult.applied).toBe(false);
+    expect(applyResult.reason).toContain("canceled");
+  });
+
+  it("keeps interleaved user edits and transaction history entries separated", async () => {
+    const transactionElement = API.createElement({
+      type: "rectangle",
+      id: "tx-rect",
+      x: 0,
+      y: 0,
+      strokeColor: "#1e1e1e",
+      opacity: 100,
+    });
+    const userElement = API.createElement({
+      type: "rectangle",
+      id: "user-rect",
+      x: 300,
+      y: 0,
+      backgroundColor: "#ffe8cc",
+    });
+
+    setSceneBaseline([transactionElement, userElement]);
+    expect(API.getUndoStack().length).toBe(0);
+
+    const session = h.app.transactionManager.open();
+
+    await session.apply(async () => {
+      applyElementUpdate(
+        transactionElement.id,
+        { x: 180, strokeColor: "#ff006e" },
+        "NEVER",
+      );
+    });
+
+    applyElementUpdate(
+      userElement.id,
+      { backgroundColor: "#00f5d4" },
+      "IMMEDIATELY",
+    );
+
+    await session.apply(async () => {
+      applyElementUpdate(transactionElement.id, { opacity: 60 }, "NEVER");
+    });
+
+    applyElementUpdate(userElement.id, { y: 220 }, "IMMEDIATELY");
+
+    expect(API.getUndoStack().length).toBe(2);
+    const summary = commitSession(session);
+    expect(summary.historyCommitted).toBe(true);
+
+    await waitFor(() => {
+      expect(API.getUndoStack().length).toBe(3);
+    });
+
+    let liveTxElement = getElement(transactionElement.id)!;
+    let liveUserElement = getElement(userElement.id)!;
+    expect(liveTxElement.x).toBe(180);
+    expect(liveTxElement.strokeColor).toBe("#ff006e");
+    expect(liveTxElement.opacity).toBe(60);
+    expect(liveUserElement.backgroundColor).toBe("#00f5d4");
+    expect(liveUserElement.y).toBe(220);
+
+    act(() => {
+      Keyboard.undo();
+    });
+    await waitFor(() => {
+      liveTxElement = getElement(transactionElement.id)!;
+      expect(liveTxElement.x).toBe(transactionElement.x);
+      expect(liveTxElement.strokeColor).toBe(transactionElement.strokeColor);
+      expect(liveTxElement.opacity).toBe(transactionElement.opacity);
+    });
+    liveUserElement = getElement(userElement.id)!;
+    expect(liveUserElement.backgroundColor).toBe("#00f5d4");
+    expect(liveUserElement.y).toBe(220);
+
+    act(() => {
+      Keyboard.undo();
+    });
+    await waitFor(() => {
+      liveUserElement = getElement(userElement.id)!;
+      expect(liveUserElement.y).toBe(userElement.y);
+      expect(liveUserElement.backgroundColor).toBe("#00f5d4");
+    });
+
+    act(() => {
+      Keyboard.undo();
+    });
+    await waitFor(() => {
+      liveUserElement = getElement(userElement.id)!;
+      expect(liveUserElement.backgroundColor).toBe(userElement.backgroundColor);
+      expect(liveUserElement.y).toBe(userElement.y);
+    });
+  });
+
+  it("undoes transaction-created elements without rolling back user history entries", async () => {
+    const base = API.createElement({
+      type: "rectangle",
+      id: "base",
+      x: 0,
+      y: 0,
+    });
+    const txCreated = API.createElement({
+      type: "ellipse",
+      id: "tx-created",
+      x: 420,
+      y: 100,
+      backgroundColor: "#b197fc",
+    });
+
+    setSceneBaseline([base]);
+    expect(getElement(txCreated.id)).toBeNull();
+
+    const session = h.app.transactionManager.open();
+
+    await session.apply(async () => {
+      appendElement(txCreated, "NEVER");
+    });
+
+    applyElementUpdate(base.id, { x: 120 }, "IMMEDIATELY");
+    expect(API.getUndoStack().length).toBe(1);
+    const summary = commitSession(session);
+    expect(summary.historyCommitted).toBe(true);
+
+    await waitFor(() => {
+      expect(API.getUndoStack().length).toBe(2);
+    });
+    expect(getElement(txCreated.id)).not.toBeNull();
+
+    act(() => {
+      Keyboard.undo();
+    });
+    await waitFor(() => {
+      expect(getElement(txCreated.id)).toBeNull();
+      expect(getElement(base.id)?.x).toBe(120);
+    });
+
+    act(() => {
+      Keyboard.undo();
+    });
+    await waitFor(() => {
+      expect(getElement(base.id)?.x).toBe(base.x);
+    });
+  });
+
+  it("keeps same-element user edits separated from transaction rollback", async () => {
+    const element = API.createElement({
+      type: "rectangle",
+      id: "shared",
+      x: 0,
+      y: 0,
+      strokeColor: "#1e1e1e",
+      backgroundColor: "#ffe8cc",
+    });
+
+    setSceneBaseline([element]);
+    expect(API.getUndoStack().length).toBe(0);
+
+    const session = h.app.transactionManager.open();
+
+    await session.apply(async () => {
+      applyElementUpdate(
+        element.id,
+        { strokeColor: "#ff006e", x: 200 },
+        "NEVER",
+      );
+    });
+
+    applyElementUpdate(
+      element.id,
+      { backgroundColor: "#00f5d4" },
+      "IMMEDIATELY",
+    );
+    const summary = commitSession(session);
+    expect(summary.historyCommitted).toBe(true);
+
+    await waitFor(() => {
+      expect(API.getUndoStack().length).toBe(2);
+    });
+
+    let live = getElement(element.id)!;
+    expect(live.strokeColor).toBe("#ff006e");
+    expect(live.x).toBe(200);
+    expect(live.backgroundColor).toBe("#00f5d4");
+
+    act(() => {
+      Keyboard.undo();
+    });
+    await waitFor(() => {
+      live = getElement(element.id)!;
+      expect(live.strokeColor).toBe(element.strokeColor);
+      expect(live.x).toBe(element.x);
+      expect(live.backgroundColor).toBe("#00f5d4");
+    });
+
+    act(() => {
+      Keyboard.undo();
+    });
+    await waitFor(() => {
+      live = getElement(element.id)!;
+      expect(live.backgroundColor).toBe(element.backgroundColor);
+      expect(live.strokeColor).toBe(element.strokeColor);
+      expect(live.x).toBe(element.x);
+    });
+  });
+});