A system and method for managing transactions in an application server is described. In some example embodiments, the system registers to receive notifications from a timeout manager associated with a transaction (e.g., a database query). If the transaction becomes locked or runs longer than anticipated, the system receives a notification indicating a timeout event. The system, upon receiving the event notification, may then cancel the transaction or perform other actions to notify an application that initiated the transaction, such as via a newly created thread.