diff --git a/.github/workflows/testing.yml b/.github/workflows/testing.yml
index 1625a29..8dff996 100644
--- a/.github/workflows/testing.yml
+++ b/.github/workflows/testing.yml
@@ -13,7 +13,7 @@ jobs:
     runs-on: ubuntu-latest
     strategy:
       matrix:
-        ruby_version: [2.7.8, 3.0.7]
+        ruby_version: [3.3.10]
     steps:
       - uses: actions/checkout@v2
       - name: Set up Ruby
diff --git a/lib/active_operation.rb b/lib/active_operation.rb
index c207b74..48d0bf1 100644
--- a/lib/active_operation.rb
+++ b/lib/active_operation.rb
@@ -6,6 +6,12 @@
 module ActiveOperation
   class Error < RuntimeError; end
   class AlreadyCompletedError < Error; end
+
+  # Internal control-flow signals raised by #halt / #succeed from inside an
+  # operation's #execute. Inheriting from Exception (not StandardError) so
+  # user code's bare `rescue` does not silently swallow them.
+  class Halted < Exception; end
+  class Succeeded < Exception; end
 end
 
 require_relative "active_operation/version"
diff --git a/lib/active_operation/base.rb b/lib/active_operation/base.rb
index 33af0d2..75cea69 100644
--- a/lib/active_operation/base.rb
+++ b/lib/active_operation/base.rb
@@ -149,8 +149,15 @@ def perform
     run_callbacks :execute do
       catch(:abort) do
         next if completed?
-        @output = execute
-        self.state = :succeeded
+        @in_execute = true
+        begin
+          @output = execute
+          self.state = :succeeded
+        rescue ActiveOperation::Halted, ActiveOperation::Succeeded
+          # state and @output already set by #halt / #succeed
+        ensure
+          @in_execute = false
+        end
       end
     end
 
@@ -197,7 +204,11 @@ def halt(*args)
 
     self.state = :halted
     @output = args.length > 1 ? args : args.first
-    throw :abort
+    # Inside #execute, raise so we propagate cleanly through any enclosing
+    # ActiveRecord transaction (which will roll back). Outside #execute
+    # (i.e. from before/after callbacks), keep using `throw :abort` so
+    # ActiveSupport's callback chain halts and after-callbacks still run.
+    @in_execute ? raise(ActiveOperation::Halted) : throw(:abort)
   end
 
   def succeed(*args)
@@ -205,6 +216,6 @@ def succeed(*args)
 
     self.state = :succeeded
     @output = args.length > 1 ? args : args.first
-    throw :abort
+    @in_execute ? raise(ActiveOperation::Succeeded) : throw(:abort)
   end
 end