diff --git a/services/identity/src/client_service.rs b/services/identity/src/client_service.rs
--- a/services/identity/src/client_service.rs
+++ b/services/identity/src/client_service.rs
@@ -17,7 +17,7 @@
 use crate::database::{
   DBDeviceTypeInt, DatabaseClient, DeviceType, KeyPayload, UserInfoAndPasswordFile,
 };
-use crate::ddb_utils::Identifier;
+use crate::ddb_utils::{Identifier, is_transaction_conflict};
 use crate::device_list::SignedDeviceList;
 use crate::error::{DeviceListError, Error as DBError, consume_error};
 use crate::grpc_services::authenticated::{DeletePasswordUserInfo, UpdatePasswordInfo};
@@ -1253,6 +1253,10 @@
     | E::AwsSdk(DDBError::RequestLimitExceeded(_)) => {
       Status::unavailable(msg::RETRY)
     }
+    E::AwsSdk(ref err) if is_transaction_conflict(err) => {
+      warn!("DB operation conflicted. Returning RETRY status.");
+      Status::unavailable(msg::RETRY)
+    }
     E::DeviceList(DeviceListError::InvalidDeviceListUpdate) => {
       Status::invalid_argument(msg::INVALID_DEVICE_LIST_UPDATE)
     }
diff --git a/services/identity/src/ddb_utils.rs b/services/identity/src/ddb_utils.rs
--- a/services/identity/src/ddb_utils.rs
+++ b/services/identity/src/ddb_utils.rs
@@ -9,12 +9,13 @@
   },
   database::{AttributeExtractor, AttributeMap},
 };
+use once_cell::sync::Lazy;
 use std::collections::{HashMap, HashSet};
 use std::iter::IntoIterator;
 
 use crate::{
   constants::{
-    USERS_TABLE_FARCASTER_ID_ATTRIBUTE_NAME,
+    retry, USERS_TABLE_FARCASTER_ID_ATTRIBUTE_NAME,
     USERS_TABLE_SOCIAL_PROOF_ATTRIBUTE_NAME, USERS_TABLE_USERNAME_ATTRIBUTE,
     USERS_TABLE_WALLET_ADDRESS_ATTRIBUTE,
   },
@@ -244,6 +245,27 @@
   }
 }
 
+/// There are two error codes for operation failure due to already ongoing
+/// transaction:
+/// - `DynamoDBError::TransactionConflict`
+/// - `DynamoDBError::TransactionCanceled` if `reason == "TransactionConflict"`
+///
+/// The former is thrown in case of normal write operation
+/// (WriteItem, UpdateItem, etc) when a transaction is modifying them
+/// at the moment.
+///
+/// The latter is thrown in transaction operation (TransactWriteItem) when
+/// another transaction is modifying them at the moment.
+pub fn is_transaction_conflict(err: &DynamoDBError) -> bool {
+  static RETRYABLE_CODES: Lazy<HashSet<&str>> =
+    Lazy::new(|| HashSet::from([retry::TRANSACTION_CONFLICT]));
+
+  match err {
+    DynamoDBError::TransactionConflictException(_) => true,
+    _ => is_transaction_retryable(err, &RETRYABLE_CODES),
+  }
+}
+
 #[cfg(test)]
 mod tests {
   use crate::constants::one_time_keys_table;