Himanshu,

Yes, embedded mode supports the XA transactions *if* you configure a transaction manager and you use XA capable sources in your VDB. It is *not* a out of the box functionality in embedded mode. If you need OOB then you need to use full server version of Teiid that runs on JBoss AS. Teiid makes use of standard transaction manager API's such that any compatible manager can be plugged in, however we only tested so far with JBoss Transaction Manager. If you do work on plugging in a separate transaction manager please let us know your experiences.

Thanks

Ramesh..

Use EmbeddedConfiguration.setTransactionManager to make the server aware of transaction use.  I also just made a set of doc updates to https://docs.jboss.org/author/display/TEIID/Embedded+Guide that may help.

Steve