diff --git a/mysql-test/suite/sql_sequence/other.result b/mysql-test/suite/sql_sequence/other.result
index 8ac766702d3..930401616df 100644
--- a/mysql-test/suite/sql_sequence/other.result
+++ b/mysql-test/suite/sql_sequence/other.result
@@ -359,4 +359,34 @@ Note	4092	Unknown VIEW: 'test.s'
 DROP VIEW v1;
 DROP SEQUENCE s;
 DROP TABLE t;
+#
 # End of 10.3 tests
+#
+#
+# MDEV-32541 Assertion `!(thd->server_status & (1U | 8192U))' failed in MDL_context::release_transactional_locks
+#
+create sequence s1;
+create sequence s2;
+connect  con1,localhost,root,,;
+set session transaction read only;
+start transaction;
+connection default;
+start transaction;
+insert into s2 values (1, 1, 10000, 100, 1, 1000, 0, 0);
+connection con1;
+select lastval(s1);
+lastval(s1)
+NULL
+select lastval(s2);;
+connection default;
+set lock_wait_timeout= 1;
+insert into s1 values (1, 1, 10000, 100, 1, 1000, 0, 0);
+connection con1;
+ERROR 40001: Deadlock found when trying to get lock; try restarting transaction
+disconnect con1;
+connection default;
+drop sequence s1;
+drop sequence s2;
+#
+# End of 10.4 tests
+#
diff --git a/mysql-test/suite/sql_sequence/other.test b/mysql-test/suite/sql_sequence/other.test
index a811853751a..48db1578ec7 100644
--- a/mysql-test/suite/sql_sequence/other.test
+++ b/mysql-test/suite/sql_sequence/other.test
@@ -387,4 +387,39 @@ DROP VIEW IF EXISTS s;
 DROP VIEW v1;
 DROP SEQUENCE s;
 DROP TABLE t;
+--echo #
 --echo # End of 10.3 tests
+--echo #
+
+--echo #
+--echo # MDEV-32541 Assertion `!(thd->server_status & (1U | 8192U))' failed in MDL_context::release_transactional_locks
+--echo #
+create sequence s1;
+create sequence s2;
+--connect (con1,localhost,root,,)
+set session transaction read only;
+start transaction;
+
+--connection default
+start transaction;
+insert into s2 values (1, 1, 10000, 100, 1, 1000, 0, 0);
+
+--connection con1
+select lastval(s1);
+--send select lastval(s2);
+
+--connection default
+set lock_wait_timeout= 1;
+insert into s1 values (1, 1, 10000, 100, 1, 1000, 0, 0);
+
+--connection con1
+--error ER_LOCK_DEADLOCK
+--reap
+--disconnect con1
+--connection default
+drop sequence s1;
+drop sequence s2;
+
+--echo #
+--echo # End of 10.4 tests
+--echo #
diff --git a/sql/transaction.cc b/sql/transaction.cc
index e98672eaa9d..2ccb05a9aec 100644
--- a/sql/transaction.cc
+++ b/sql/transaction.cc
@@ -383,7 +383,7 @@ bool trans_rollback_implicit(THD *thd)
   */
   DBUG_ASSERT(thd->transaction.stmt.is_empty() && !thd->in_sub_stmt);
 
-  thd->server_status&= ~SERVER_STATUS_IN_TRANS;
+  thd->server_status&= ~(SERVER_STATUS_IN_TRANS | SERVER_STATUS_IN_TRANS_READONLY);
   DBUG_PRINT("info", ("clearing SERVER_STATUS_IN_TRANS"));
   res= ha_rollback_trans(thd, true);
   /*
diff --git a/sql/wsrep_high_priority_service.cc b/sql/wsrep_high_priority_service.cc
index 4874da51673..d1e58ed5bad 100644
--- a/sql/wsrep_high_priority_service.cc
+++ b/sql/wsrep_high_priority_service.cc
@@ -45,7 +45,7 @@ public:
     , m_server_status(thd->server_status)
   {
     m_thd->variables.option_bits&= ~OPTION_BEGIN;
-    m_thd->server_status&= ~SERVER_STATUS_IN_TRANS;
+    m_thd->server_status&= ~(SERVER_STATUS_IN_TRANS | SERVER_STATUS_IN_TRANS_READONLY);
     m_thd->wsrep_cs().enter_toi_mode(ws_meta);
   }
   ~Wsrep_non_trans_mode()