diff --git a/.changeset/wicked-nails-taste.md b/.changeset/wicked-nails-taste.md
new file mode 100644
index 0000000000..880bb9c578
--- /dev/null
+++ b/.changeset/wicked-nails-taste.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-search-backend-module-pg': patch
+---
+
+Fix a bug in large document indexing logic by using sub-transaction rollbacks
diff --git a/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.test.ts b/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.test.ts
index fd9e4de34a..7a83a8d563 100644
--- a/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.test.ts
+++ b/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.test.ts
@@ -20,10 +20,18 @@ import { PgSearchEngineIndexer } from './PgSearchEngineIndexer';
 import { DatabaseStore } from '../database';
 
 describe('PgSearchEngineIndexer', () => {
+  const subTx = {
+    rollback: jest.fn(),
+    commit: jest.fn(),
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+  } as any;
+
   const tx = {
     rollback: jest.fn(),
     commit: jest.fn(),
+    transaction: jest.fn().mockResolvedValue(subTx),
     isCompleted: jest.fn(),
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
   } as any;
   let database: jest.Mocked<DatabaseStore>;
   let indexer: PgSearchEngineIndexer;
@@ -65,8 +73,14 @@ describe('PgSearchEngineIndexer', () => {
       'my-type',
       documents,
     );
-    expect(database.completeInsert).toHaveBeenCalledWith(tx, 'my-type', false);
+    expect(database.completeInsert).toHaveBeenCalledWith(
+      subTx,
+      'my-type',
+      false,
+    );
+    expect(subTx.commit).toHaveBeenCalled();
     expect(tx.commit).toHaveBeenCalled();
+    expect(subTx.rollback).not.toHaveBeenCalled();
     expect(tx.rollback).not.toHaveBeenCalled();
   });
 
@@ -95,18 +109,20 @@ describe('PgSearchEngineIndexer', () => {
     expect(database.completeInsert).toHaveBeenCalledTimes(2);
     expect(database.completeInsert).toHaveBeenNthCalledWith(
       1,
-      tx,
+      subTx,
       'my-type',
       false,
     );
     expect(database.completeInsert).toHaveBeenNthCalledWith(
       2,
-      tx,
+      subTx,
       'my-type',
       true,
     );
+    expect(subTx.commit).toHaveBeenCalled();
     expect(tx.commit).toHaveBeenCalled();
-    expect(tx.rollback).toHaveBeenCalledTimes(1);
+    expect(subTx.rollback).toHaveBeenCalledTimes(1);
+    expect(tx.rollback).not.toHaveBeenCalled();
   });
 
   it('should batch insert documents', async () => {
@@ -121,7 +137,11 @@ describe('PgSearchEngineIndexer', () => {
     expect(database.getTransaction).toHaveBeenCalledTimes(1);
     expect(database.prepareInsert).toHaveBeenCalledTimes(1);
     expect(database.insertDocuments).toHaveBeenCalledTimes(4);
-    expect(database.completeInsert).toHaveBeenCalledWith(tx, 'my-type', false);
+    expect(database.completeInsert).toHaveBeenCalledWith(
+      subTx,
+      'my-type',
+      false,
+    );
   });
 
   it('should rollback transaction if no documents indexed', async () => {
diff --git a/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.ts b/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.ts
index ad8c4f093f..f601ed2668 100644
--- a/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.ts
+++ b/plugins/search-backend-module-pg/src/PgSearchEngine/PgSearchEngineIndexer.ts
@@ -89,15 +89,28 @@ export class PgSearchEngineIndexer extends BatchSearchEngineIndexer {
     let retryTruncated = false;
 
     do {
+      // Sub-transaction allows a partial rollback if a truncated retry is needed
+      let subTx: Knex.Transaction;
+      try {
+        subTx = await this.tx!.transaction();
+      } catch (e) {
+        // If sub-transaction creation fails, rollback the outer transaction
+        // and re-throw the error so that the stream can be closed and
+        // destroyed properly.
+        this.tx!.rollback!(e);
+        throw e;
+      }
+
       // Attempt to complete and commit the transaction.
       try {
-        await this.store.completeInsert(this.tx!, this.type, retryTruncated);
-        this.tx!.commit();
+        await this.store.completeInsert(subTx, this.type, retryTruncated);
+
+        // Commit both transactions if successful
+        await subTx.commit();
+        await this.tx!.commit();
         retryTruncated = false;
       } catch (e) {
-        // Otherwise, rollback the transaction and re-throw the error so that the
-        // stream can be closed and destroyed properly.
-        this.tx!.rollback!(e);
+        await subTx.rollback(e); // Rollback the first completeInsert attempt
 
         if (
           e instanceof Error &&
@@ -108,6 +121,9 @@ export class PgSearchEngineIndexer extends BatchSearchEngineIndexer {
           // retry the operation with truncated text.
           retryTruncated = true;
         } else {
+          // Otherwise, rollback the outer transaction and re-throw the error so that the
+          // stream can be closed and destroyed properly.
+          this.tx!.rollback!(e);
           throw e;
         }
       }