diff --git a/utils/misc/dbutils.go b/utils/misc/dbutils.go
index d4bc215dde..f0f3b86607 100644
--- a/utils/misc/dbutils.go
+++ b/utils/misc/dbutils.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"net/url"
 	"os"
+	"time"
 
 	"github.com/lib/pq"
 
@@ -19,6 +20,8 @@ func GetConnectionString(c *config.Config, componentName string) string {
 	port := c.GetInt("DB.port", 5432)
 	password := c.GetString("DB.password", "ubuntu") // Reading secrets from
 	sslmode := c.GetString("DB.sslMode", "disable")
+	idleTxTimeout := c.GetDuration("DB.IdleTxTimeout", 5, time.Minute)
+
 	// Application Name can be any string of less than NAMEDATALEN characters (64 characters in a standard PostgreSQL build).
 	// There is no need to truncate the string on our own though since PostgreSQL auto-truncates this identifier and issues a relevant notice if necessary.
 	appName := DefaultString("rudder-server").OnError(os.Hostname())
@@ -26,8 +29,11 @@ func GetConnectionString(c *config.Config, componentName string) string {
 		appName = fmt.Sprintf("%s-%s", componentName, appName)
 	}
 	return fmt.Sprintf("host=%s port=%d user=%s "+
-		"password=%s dbname=%s sslmode=%s application_name=%s",
-		host, port, user, password, dbname, sslmode, appName)
+		"password=%s dbname=%s sslmode=%s application_name=%s "+
+		" options='-c idle_in_transaction_session_timeout=%d'",
+		host, port, user, password, dbname, sslmode, appName,
+		idleTxTimeout.Milliseconds(),
+	)
 }
 
 // SetAppNameInDBConnURL sets application name in db connection url
diff --git a/utils/misc/dbutils_test.go b/utils/misc/dbutils_test.go
index 44ba1bf765..9a3b74b830 100644
--- a/utils/misc/dbutils_test.go
+++ b/utils/misc/dbutils_test.go
@@ -1,8 +1,16 @@
 package misc_test
 
 import (
+	"database/sql"
+	"fmt"
 	"testing"
+	"time"
 
+	"github.com/ory/dockertest/v3"
+	"github.com/stretchr/testify/require"
+
+	"github.com/rudderlabs/rudder-go-kit/config"
+	"github.com/rudderlabs/rudder-go-kit/testhelper/docker/resource/postgres"
 	"github.com/rudderlabs/rudder-server/utils/misc"
 )
 
@@ -58,3 +66,65 @@ func TestSetApplicationNameInDBConnectionURL(t *testing.T) {
 		})
 	}
 }
+
+func TestIdleTxTimeout(t *testing.T) {
+	pool, err := dockertest.NewPool("")
+	require.NoError(t, err)
+	postgresContainer, err := postgres.Setup(pool, t)
+	require.NoError(t, err)
+
+	conf := config.New()
+	conf.Set("DB.host", postgresContainer.Host)
+	conf.Set("DB.user", postgresContainer.User)
+	conf.Set("DB.name", postgresContainer.Database)
+	conf.Set("DB.port", postgresContainer.Port)
+	conf.Set("DB.password", postgresContainer.Password)
+
+	txTimeout := 2 * time.Millisecond
+
+	conf.Set("DB.IdleTxTimeout", txTimeout)
+
+	dsn := misc.GetConnectionString(conf, "test")
+
+	db, err := sql.Open("postgres", dsn)
+	require.NoError(t, err)
+
+	var sessionTimeout string
+	err = db.QueryRow("SHOW idle_in_transaction_session_timeout;").Scan(&sessionTimeout)
+	require.NoError(t, err)
+	require.Equal(t, txTimeout.String(), sessionTimeout)
+
+	t.Run("timeout tx", func(t *testing.T) {
+		tx, err := db.Begin()
+		require.NoError(t, err)
+
+		var pid int
+		err = tx.QueryRow(`select pg_backend_pid();`).Scan(&pid)
+		require.NoError(t, err)
+
+		_, err = tx.Exec("select 1")
+		require.NoError(t, err)
+		t.Log("sleep double the timeout to close connection")
+		time.Sleep(2 * txTimeout)
+
+		err = tx.Commit()
+		require.EqualError(t, err, "driver: bad connection")
+
+		var count int
+		err = db.QueryRow(`SELECT count(*) FROM pg_stat_activity WHERE pid = $1`, pid).Scan(&count)
+		require.NoError(t, err)
+
+		require.Zero(t, count)
+	})
+
+	t.Run("successful tx", func(t *testing.T) {
+		tx, err := db.Begin()
+		require.NoError(t, err)
+		_, err = tx.Exec("select 1")
+		require.NoError(t, err)
+		_, err = tx.Exec(fmt.Sprintf("select pg_sleep(%f)", txTimeout.Seconds()))
+		require.NoError(t, err)
+
+		require.NoError(t, tx.Commit())
+	})
+}