diff --git a/sdk/pom.xml b/sdk/pom.xml
index 41731644a..0cf0af598 100644
--- a/sdk/pom.xml
+++ b/sdk/pom.xml
@@ -62,6 +62,12 @@
       <artifactId>mockito-core</artifactId>
       <scope>test</scope>
     </dependency>
+    <dependency>
+      <groupId>com.fasterxml.jackson.dataformat</groupId>
+      <artifactId>jackson-dataformat-xml</artifactId>
+      <version>2.11.3</version>
+      <scope>test</scope>
+    </dependency>
     <dependency>
       <groupId>commons-cli</groupId>
       <artifactId>commons-cli</artifactId>
diff --git a/sdk/src/main/java/io/dapr/client/DaprClientHttp.java b/sdk/src/main/java/io/dapr/client/DaprClientHttp.java
index bb8bcc273..76a8c6c05 100644
--- a/sdk/src/main/java/io/dapr/client/DaprClientHttp.java
+++ b/sdk/src/main/java/io/dapr/client/DaprClientHttp.java
@@ -395,7 +395,7 @@ public class DaprClientHttp extends AbstractDaprClient {
         }
         byte[] data = this.stateSerializer.serialize(state.getValue());
         // Custom serializer, so everything is byte[].
-        operations.add(new TransactionalStateOperation<>(operation.getOperation(),
+        internalOperationObjects.add(new TransactionalStateOperation<>(operation.getOperation(),
             new State<>(state.getKey(), data, state.getEtag(), state.getMetadata(), state.getOptions())));
       }
       TransactionalStateRequest<Object> req = new TransactionalStateRequest<>(internalOperationObjects, metadata);
diff --git a/sdk/src/test/java/io/dapr/client/DaprClientHttpTest.java b/sdk/src/test/java/io/dapr/client/DaprClientHttpTest.java
index b13c17036..429b177e5 100644
--- a/sdk/src/test/java/io/dapr/client/DaprClientHttpTest.java
+++ b/sdk/src/test/java/io/dapr/client/DaprClientHttpTest.java
@@ -5,6 +5,8 @@
 package io.dapr.client;
 
 import com.fasterxml.jackson.core.JsonParseException;
+import com.fasterxml.jackson.core.type.TypeReference;
+import com.fasterxml.jackson.dataformat.xml.XmlMapper;
 import io.dapr.client.domain.DeleteStateRequestBuilder;
 import io.dapr.client.domain.GetBulkStateRequestBuilder;
 import io.dapr.client.domain.GetStateRequestBuilder;
@@ -15,12 +17,17 @@ import io.dapr.client.domain.StateOptions;
 import io.dapr.client.domain.TransactionalStateOperation;
 import io.dapr.config.Properties;
 import io.dapr.exceptions.DaprException;
+import io.dapr.serializer.DaprObjectSerializer;
 import io.dapr.utils.TypeRef;
 import okhttp3.OkHttpClient;
+import okhttp3.Request;
 import okhttp3.ResponseBody;
 import okhttp3.mock.Behavior;
 import okhttp3.mock.MediaTypes;
 import okhttp3.mock.MockInterceptor;
+import okhttp3.mock.matchers.Matcher;
+import okio.Buffer;
+import okio.BufferedSink;
 import org.junit.Before;
 import org.junit.Test;
 import org.mockito.Mockito;
@@ -57,6 +64,8 @@ public class DaprClientHttpTest {
 
   private DaprClient daprClientHttp;
 
+  private DaprClient daprClientHttpXML;
+
   private DaprHttp daprHttp;
 
   private OkHttpClient okHttpClient;
@@ -69,6 +78,7 @@ public class DaprClientHttpTest {
     okHttpClient = new OkHttpClient.Builder().addInterceptor(mockInterceptor).build();
     daprHttp = new DaprHttp(Properties.SIDECAR_IP.get(), 3000, okHttpClient);
     daprClientHttp = new DaprClientProxy(new DaprClientHttp(daprHttp));
+    daprClientHttpXML = new DaprClientProxy(new DaprClientHttp(daprHttp, new XmlSerializer(), new XmlSerializer()));
   }
 
   @Test
@@ -848,6 +858,10 @@ public class DaprClientHttpTest {
   public void simpleExecuteTransaction() {
     mockInterceptor.addRule()
         .post("http://127.0.0.1:3000/v1.0/state/MyStateStore/transaction")
+        .matches(new BodyMatcher(
+            "{\"operations\":[{\"operation\":\"upsert\",\"request\":{\"value\":\"my data\",\"key\":\"key1\"," +
+                "\"etag\":\"ETag1\",\"options\":{}}},{\"operation\":\"delete\",\"request\":{\"key\":\"deleteKey\"}}]}"
+        ))
         .respond(EXPECTED_RESULT);
     String etag = "ETag1";
     String key = "key1";
@@ -867,6 +881,33 @@ public class DaprClientHttpTest {
     assertNull(mono.block());
   }
 
+  @Test
+  public void simpleExecuteTransactionXMLData() {
+    mockInterceptor.addRule()
+        .post("http://127.0.0.1:3000/v1.0/state/MyStateStore/transaction")
+        .matches(new BodyMatcher("{\"operations\":[{\"operation\":\"upsert\"," +
+            "\"request\":{\"value\":\"PFN0cmluZz5teSBkYXRhPC9TdHJpbmc+\",\"key\":\"key1\",\"etag\":\"ETag1\"," +
+            "\"options\":{}}},{\"operation\":\"delete\",\"request\":{\"value\":\"PG51bGwvPg==\"," +
+            "\"key\":\"deleteKey\"}}]}"))
+        .respond(EXPECTED_RESULT);
+    String etag = "ETag1";
+    String key = "key1";
+    String data = "my data";
+    StateOptions stateOptions = mock(StateOptions.class);
+
+
+    State<String> stateKey = new State<>(key, data, etag, stateOptions);
+    TransactionalStateOperation<String> upsertOperation = new TransactionalStateOperation<>(
+        TransactionalStateOperation.OperationType.UPSERT,
+        stateKey);
+    TransactionalStateOperation<String> deleteOperation = new TransactionalStateOperation<>(
+        TransactionalStateOperation.OperationType.DELETE,
+        new State<>("deleteKey"));
+    Mono<Void> mono = daprClientHttpXML.executeStateTransaction(STATE_STORE_NAME, Arrays.asList(upsertOperation,
+        deleteOperation));
+    assertNull(mono.block());
+  }
+
   @Test
   public void simpleExecuteTransactionNullEtag() {
     mockInterceptor.addRule()
@@ -1226,6 +1267,59 @@ public class DaprClientHttpTest {
     daprClientHttp.close();
   }
 
+  private static final class BodyMatcher implements Matcher {
+
+    private final String expected;
+
+    private BodyMatcher(String expected) {
+      this.expected = expected;
+    }
+
+    @Override
+    public boolean matches(Request request) {
+      BufferedSink sink = new Buffer();
+      try {
+        request.body().writeTo(sink);
+      } catch (IOException e) {
+        return false;
+      }
+      String body = sink.getBuffer().readByteString().utf8();
+      return expected.equals(body);
+    }
+
+    @Override
+    public String failReason(Request request) {
+      BufferedSink sink = new Buffer();
+      try {
+        request.body().writeTo(sink);
+      } catch (IOException e) {
+        throw new RuntimeException(e);
+      }
+      String body = sink.getBuffer().readByteString().utf8();
+      return String.format("Body does not match expected:\n%s\nvs actual\n%s", expected, body);
+    }
+  }
+
+  private static class XmlSerializer implements DaprObjectSerializer {
+
+    private static final XmlMapper XML_MAPPER = new XmlMapper();
+
+    @Override
+    public byte[] serialize(Object o) throws IOException {
+      return XML_MAPPER.writeValueAsBytes(o);
+    }
+
+    @Override
+    public <T> T deserialize(byte[] data, TypeRef<T> type) throws IOException {
+      return XML_MAPPER.readValue(data, new TypeReference<T>() {});
+    }
+
+    @Override
+    public String getContentType() {
+      return "application/xml";
+    }
+  }
+
   public static class MyObject {
     private Integer id;
     private String value;