diff --git a/CHANGELOG.md b/CHANGELOG.md
index 80a37c806..f412a938e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,8 @@
 ## 1.1.1 under development
 
 - New #617: Add debug collector for `yiisoft/yii-debug` (@xepozz)
+- Enh #617, #733: Add specific psalm annotation of `$closure` parameter in `ConnectionInterface::transaction()` 
+  method (@xepozz, @vjik)
 
 ## 1.1.0 July 24, 2023
 
diff --git a/src/Connection/ConnectionInterface.php b/src/Connection/ConnectionInterface.php
index dccde543a..596a5df24 100644
--- a/src/Connection/ConnectionInterface.php
+++ b/src/Connection/ConnectionInterface.php
@@ -220,7 +220,7 @@ public function setTablePrefix(string $value): void;
      *
      * @return mixed Result of callback function.
      *
-     * @psalm-param Closure(ConnectionInterface): mixed $closure
+     * @psalm-param Closure(ConnectionInterface):mixed|Closure(ConnectionInterface):void $closure
      */
     public function transaction(Closure $closure, string $isolationLevel = null): mixed;
 }