A system and method for providing transaction monitor integration with a service component architecture (SCA) runtime. In accordance with an embodiment, a transaction server, such as a Tuxedo or other transaction server, is provided with a transaction interface which provides one or more transaction services to other SCA software components. A configuration file, such as a schema file, can be used to define a transactional behavior of the transaction server within a service oriented environment based on the transaction interface, and to publish the one or more transaction services in the service oriented environment. The software components can use the schema file to invoke the one or more transaction services through the transaction interface.