diff --git a/CHANGELOG.md b/CHANGELOG.md
index f318d44c2..0f5d18088 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,7 @@
 
 - Expose `span_id` in `Span` constructor [#1945](https://github.com/getsentry/sentry-ruby/pull/1945)
 - Expose `end_timestamp` in `Span#finish` and `Transaction#finish` [#1946](https://github.com/getsentry/sentry-ruby/pull/1946)
+- Add `Transaction#set_context` api [#1947](https://github.com/getsentry/sentry-ruby/pull/1947)
 - Add OpenTelemetry support with new `sentry-opentelemetry` gem
   - Add `config.instrumenter` to switch between `:sentry` and `:otel` instrumentation [#1944](https://github.com/getsentry/sentry-ruby/pull/1944)
 
diff --git a/sentry-ruby/lib/sentry/transaction.rb b/sentry-ruby/lib/sentry/transaction.rb
index e237b5a9b..55a4b9e81 100644
--- a/sentry-ruby/lib/sentry/transaction.rb
+++ b/sentry-ruby/lib/sentry/transaction.rb
@@ -50,6 +50,10 @@ class Transaction < Span
     # @return [Float, nil]
     attr_reader :effective_sample_rate
 
+    # Additional contexts stored directly on the transaction object.
+    # @return [Hash]
+    attr_reader :contexts
+
     def initialize(
       hub:,
       name: nil,
@@ -60,8 +64,7 @@ def initialize(
     )
       super(transaction: self, **options)
 
-      @name = name
-      @source = SOURCES.include?(source) ? source.to_sym : :custom
+      set_name(name, source: source)
       @parent_sampled = parent_sampled
       @hub = hub
       @baggage = baggage
@@ -74,6 +77,7 @@ def initialize(
       @environment = hub.configuration.environment
       @dsn = hub.configuration.dsn
       @effective_sample_rate = nil
+      @contexts = {}
       init_span_recorder
     end
 
@@ -91,16 +95,10 @@ def self.from_sentry_trace(sentry_trace, baggage: nil, hub: Sentry.get_current_h
       return unless hub.configuration.tracing_enabled?
       return unless sentry_trace
 
-      match = SENTRY_TRACE_REGEXP.match(sentry_trace)
-      return if match.nil?
-      trace_id, parent_span_id, sampled_flag = match[1..3]
+      sentry_trace_data = extract_sentry_trace(sentry_trace)
+      return unless sentry_trace_data
 
-      parent_sampled =
-        if sampled_flag.nil?
-          nil
-        else
-          sampled_flag != "0"
-        end
+      trace_id, parent_span_id, parent_sampled = sentry_trace_data
 
       baggage = if baggage && !baggage.empty?
                   Baggage.from_incoming_header(baggage)
@@ -123,6 +121,20 @@ def self.from_sentry_trace(sentry_trace, baggage: nil, hub: Sentry.get_current_h
       )
     end
 
+    # Extract the trace_id, parent_span_id and parent_sampled values from a sentry-trace header.
+    #
+    # @param sentry_trace [String] the sentry-trace header value from the previous transaction.
+    # @return [Array, nil]
+    def self.extract_sentry_trace(sentry_trace)
+      match = SENTRY_TRACE_REGEXP.match(sentry_trace)
+      return nil if match.nil?
+
+      trace_id, parent_span_id, sampled_flag = match[1..3]
+      parent_sampled = sampled_flag.nil? ? nil : sampled_flag != "0"
+
+      [trace_id, parent_span_id, parent_sampled]
+    end
+
     # @return [Hash]
     def to_hash
       hash = super
@@ -244,6 +256,24 @@ def get_baggage
       @baggage
     end
 
+    # Set the transaction name directly.
+    # Considered internal api since it bypasses the usual scope logic.
+    # @param name [String]
+    # @param source [Symbol]
+    # @return [void]
+    def set_name(name, source: :custom)
+      @name = name
+      @source = SOURCES.include?(source) ? source.to_sym : :custom
+    end
+
+    # Set contexts directly on the transaction.
+    # @param key [String, Symbol]
+    # @param value [Object]
+    # @return [void]
+    def set_context(key, value)
+      @contexts[key] = value
+    end
+
     protected
 
     def init_span_recorder(limit = 1000)
diff --git a/sentry-ruby/lib/sentry/transaction_event.rb b/sentry-ruby/lib/sentry/transaction_event.rb
index 06f89488f..389ca45b0 100644
--- a/sentry-ruby/lib/sentry/transaction_event.rb
+++ b/sentry-ruby/lib/sentry/transaction_event.rb
@@ -19,6 +19,7 @@ def initialize(transaction:, **options)
 
       self.transaction = transaction.name
       self.transaction_info = { source: transaction.source }
+      self.contexts.merge!(transaction.contexts)
       self.contexts.merge!(trace: transaction.get_trace_context)
       self.timestamp = transaction.timestamp
       self.start_timestamp = transaction.start_timestamp
diff --git a/sentry-ruby/spec/sentry/client_spec.rb b/sentry-ruby/spec/sentry/client_spec.rb
index a0ee904f8..0ae7edd63 100644
--- a/sentry-ruby/spec/sentry/client_spec.rb
+++ b/sentry-ruby/spec/sentry/client_spec.rb
@@ -160,6 +160,12 @@ def sentry_context
         "trace_id" => transaction.trace_id
       })
     end
+
+    it "adds explicitly added contexts to event" do
+      transaction.set_context(:foo, { bar: 42 })
+      event = subject.event_from_transaction(transaction)
+      expect(event.contexts).to include({ foo: { bar: 42 } })
+    end
   end
 
   describe "#event_from_exception" do
diff --git a/sentry-ruby/spec/sentry/hub_spec.rb b/sentry-ruby/spec/sentry/hub_spec.rb
index f73852a05..3b43000a2 100644
--- a/sentry-ruby/spec/sentry/hub_spec.rb
+++ b/sentry-ruby/spec/sentry/hub_spec.rb
@@ -241,6 +241,25 @@
       end
     end
 
+    context "when event is a transaction" do
+      it "transaction.set_context merges and takes precedence over scope.set_context" do
+        scope.set_context(:foo, { val: 42 })
+        scope.set_context(:bar, { val: 43 })
+
+        transaction = Sentry::Transaction.new(hub: subject, name: 'test')
+        transaction.set_context(:foo, { val: 44 })
+        transaction.set_context(:baz, { val: 45 })
+
+        transaction_event = subject.current_client.event_from_transaction(transaction)
+        subject.capture_event(transaction_event)
+
+        event = transport.events.last
+        expect(event.contexts[:foo]). to eq({ val: 44 })
+        expect(event.contexts[:bar]). to eq({ val: 43 })
+        expect(event.contexts[:baz]). to eq({ val: 45 })
+      end
+    end
+
     it_behaves_like "capture_helper" do
       let(:capture_helper) { :capture_event }
       let(:capture_subject) { event }
diff --git a/sentry-ruby/spec/sentry/transaction_spec.rb b/sentry-ruby/spec/sentry/transaction_spec.rb
index da7f54a68..665095aa1 100644
--- a/sentry-ruby/spec/sentry/transaction_spec.rb
+++ b/sentry-ruby/spec/sentry/transaction_spec.rb
@@ -559,4 +559,19 @@
       end
     end
   end
+
+  describe "#set_name" do
+    it "sets name and source directly" do
+      subject.set_name("bar", source: :url)
+      expect(subject.name).to eq("bar")
+      expect(subject.source).to eq(:url)
+    end
+  end
+
+  describe "#set_context" do
+    it "sets arbitrary context" do
+      subject.set_context(:foo, { bar: 42 })
+      expect(subject.contexts).to eq({ foo: { bar: 42 } })
+    end
+  end
 end