diff --git a/quixstreams/app.py b/quixstreams/app.py
index 30d71ab4e..7bdb47664 100644
--- a/quixstreams/app.py
+++ b/quixstreams/app.py
@@ -756,7 +756,7 @@ def add_source(self, source: BaseSource, topic: Optional[Topic] = None) -> Topic
         self._source_manager.register(
             source,
             topic,
-            self._get_internal_producer(transactional=False),
+            self._get_internal_producer(),
             self._get_internal_consumer(
                 extra_config_overrides=consumer_extra_config_overrides
             ),
diff --git a/tests/test_quixstreams/test_app.py b/tests/test_quixstreams/test_app.py
index fa39be29d..3c015914d 100644
--- a/tests/test_quixstreams/test_app.py
+++ b/tests/test_quixstreams/test_app.py
@@ -2354,6 +2354,37 @@ def _run_app(source, done):
         )
         _run_app(source, finished)
 
+    @pytest.mark.parametrize("processing_guarantee", ["at-least-once", "exactly-once"])
+    def test_source_producer_transactional_setting(
+        self, app_factory, processing_guarantee
+    ):
+        """
+        Test that source producers respect the processing_guarantee setting.
+
+        When processing_guarantee="exactly-once", the source producer should be transactional.
+        When processing_guarantee="at-least-once", the source producer should not be transactional.
+        """
+        app = app_factory(processing_guarantee=processing_guarantee)
+
+        # Create a dummy source
+        source = DummySource(values=[{"test": "data"}])
+
+        # Add the source to the app - this should create a producer with the correct transactional setting
+        app.add_source(source)
+
+        # Get the source process from the source manager
+        source_process = app._source_manager.processes[0]
+
+        # Verify the producer's transactional setting matches the processing guarantee
+        expected_transactional = processing_guarantee == "exactly-once"
+        assert (
+            source_process._producer._producer.transactional == expected_transactional
+        ), (
+            f"Expected producer.transactional={expected_transactional} for "
+            f"processing_guarantee='{processing_guarantee}', but got "
+            f"producer.transactional={source_process._producer._producer.transactional}"
+        )
+
 
 class TestApplicationMultipleSdf:
     def test_multiple_sdfs(