Abstract: Transaction is one of the key technologies that decide whether grid computing may be applied to actual applications, especially to commercial applications. The transaction for grid environment must provide the abilities to coordinate both short-lived operations and long-lived business activities. Based on the Globus Toolkit and agent technology, a transaction mechanism is proposed which can simultaneously manage atomic transaction and cohesion transaction, and the corresponding coordination algorithms which enable transaction to recover from various failures are also studied. By generating and executing compensation transaction automatically, the cohesion transaction mechanism may satisfy the requirements of long-lived transaction in grid computing.