diff --git a/src/backend/tcop/postgres.c b/src/backend/tcop/postgres.c
index b185c1b..564855a 100644
--- a/src/backend/tcop/postgres.c
+++ b/src/backend/tcop/postgres.c
@@ -149,6 +149,11 @@ static bool doing_extended_query_message = false;
 static bool ignore_till_sync = false;
 
 /*
+ * Flag to keep track of whether we have started statement timeout timer.
+ */
+static bool st_timeout = false;
+
+/*
  * If an unnamed prepared statement exists, it's stored here.
  * We keep it separate from the hashtable kept by commands/prepare.c
  * in order to reduce overhead for short-lived queries.
@@ -188,6 +193,8 @@ static bool IsTransactionStmtList(List *parseTrees);
 static void drop_unnamed_stmt(void);
 static void SigHupHandler(SIGNAL_ARGS);
 static void log_disconnections(int code, Datum arg);
+static void enable_statement_timeout(void);
+static void disable_statement_timeout(void);
 
 
 /* ----------------------------------------------------------------
@@ -2002,6 +2009,11 @@ exec_execute_message(const char *portal_name, long max_rows)
 			 * those that start or end a transaction block.
 			 */
 			CommandCounterIncrement();
+
+			/*
+			 * We need to reset statement timeout if already set.
+			 */
+			disable_statement_timeout();
 		}
 
 		/* Send appropriate CommandComplete to client */
@@ -2433,14 +2445,10 @@ start_xact_command(void)
 				(errmsg_internal("StartTransactionCommand")));
 		StartTransactionCommand();
 
-		/* Set statement timeout running, if any */
-		/* NB: this mustn't be enabled until we are within an xact */
-		if (StatementTimeout > 0)
-			enable_timeout_after(STATEMENT_TIMEOUT, StatementTimeout);
-		else
-			disable_timeout(STATEMENT_TIMEOUT, false);
-
 		xact_started = true;
+
+		/* Set statement timeout running, if any */
+		enable_statement_timeout();
 	}
 }
 
@@ -2450,7 +2458,7 @@ finish_xact_command(void)
 	if (xact_started)
 	{
 		/* Cancel any active statement timeout before committing */
-		disable_timeout(STATEMENT_TIMEOUT, false);
+		disable_statement_timeout();
 
 		/* Now commit the command */
 		ereport(DEBUG3,
@@ -4510,3 +4518,51 @@ log_disconnections(int code, Datum arg)
 					port->user_name, port->database_name, port->remote_host,
 				  port->remote_port[0] ? " port=" : "", port->remote_port)));
 }
+
+/*
+ * Set statement timeout if any.
+ */
+static void enable_statement_timeout(void)
+{
+	if (!st_timeout)
+	{
+		if (StatementTimeout > 0)
+		{
+
+			/*
+			 * Sanity check
+			 */
+			if (!xact_started)
+			{
+				ereport(ERROR,
+						(errcode(ERRCODE_INVALID_PARAMETER_VALUE),
+						 errmsg("Transaction must have been already started to set statement timeout")));
+			}
+
+			ereport(DEBUG3,
+					(errmsg_internal("Set statement timeout")));
+
+			enable_timeout_after(STATEMENT_TIMEOUT, StatementTimeout);
+			st_timeout = true;
+		}
+		else
+			disable_timeout(STATEMENT_TIMEOUT, false);
+	}
+}
+
+/*
+ * Reset statement timeout if any.
+ */
+static void disable_statement_timeout(void)
+{
+	if (st_timeout)
+	{
+		ereport(DEBUG3,
+					(errmsg_internal("Disable statement timeout")));
+
+		/* Cancel any active statement timeout */
+		disable_timeout(STATEMENT_TIMEOUT, false);
+
+		st_timeout = false;
+	}
+}