diff --git a/mysql-test/suite/galera/r/MDEV-33064.result b/mysql-test/suite/galera/r/MDEV-33064.result
new file mode 100644
index 00000000000..22e1ce7a77a
--- /dev/null
+++ b/mysql-test/suite/galera/r/MDEV-33064.result
@@ -0,0 +1,26 @@
+connection node_2;
+connection node_1;
+connect con1,127.0.0.1,root,,test,$NODE_MYPORT_1;
+CREATE TABLE t1(c1 INT PRIMARY KEY) ENGINE=InnoDB;
+CREATE TABLE t1_fk(c1 INT PRIMARY KEY, c2 INT, INDEX (c2), FOREIGN KEY (c2) REFERENCES t1(c1)) ENGINE=InnoDB;
+INSERT INTO t1 VALUES (1);
+connection con1;
+SET SESSION wsrep_retry_autocommit = 0;
+SET DEBUG_SYNC = 'ib_after_row_insert SIGNAL may_alter WAIT_FOR bf_abort';
+INSERT INTO t1_fk VALUES (1, 1);
+connection node_1;
+SET DEBUG_SYNC = 'now WAIT_FOR may_alter';
+SET DEBUG_SYNC = 'lock_wait_end WAIT_FOR alter_continue';
+ALTER TABLE t1 ADD COLUMN c2 INT, ALGORITHM=INPLACE;
+connection con1;
+ERROR 40001: Deadlock found when trying to get lock; try restarting transaction
+SET DEBUG_SYNC = 'now SIGNAL alter_continue';
+connection node_1;
+connection node_2;
+INSERT INTO t1 (c1, c2) VALUES (2, 2);
+connection node_1;
+SET DEBUG_SYNC = 'RESET';
+DROP TABLE t1_fk, t1;
+disconnect con1;
+disconnect node_2;
+disconnect node_1;
diff --git a/mysql-test/suite/galera/t/MDEV-33064.test b/mysql-test/suite/galera/t/MDEV-33064.test
new file mode 100644
index 00000000000..704ed70ab56
--- /dev/null
+++ b/mysql-test/suite/galera/t/MDEV-33064.test
@@ -0,0 +1,57 @@
+#
+# MDEV-33064: ALTER INPLACE running TOI should abort a conflicting DML operation
+#
+# DDL operations may commit InnoDB transactions more than once during the execution.
+# In this case wsrep flag on trx object is cleared, which may cause wrong logic of
+# such operations afterwards (wsrep-related hooks are not run).
+# One of the consequences was that DDL operation couldn't abort a DML operation
+# holding conflicting locks.
+#
+# The fix: re-enable wsrep flag on trx restart if it's a part of a DDL operation.
+#
+
+--source include/galera_cluster.inc
+--source include/have_debug_sync.inc
+--source include/have_debug.inc
+
+--connect con1,127.0.0.1,root,,test,$NODE_MYPORT_1
+
+CREATE TABLE t1(c1 INT PRIMARY KEY) ENGINE=InnoDB;
+CREATE TABLE t1_fk(c1 INT PRIMARY KEY, c2 INT, INDEX (c2), FOREIGN KEY (c2) REFERENCES t1(c1)) ENGINE=InnoDB;
+
+INSERT INTO t1 VALUES (1);
+
+--connection con1
+SET SESSION wsrep_retry_autocommit = 0;
+SET DEBUG_SYNC = 'ib_after_row_insert SIGNAL may_alter WAIT_FOR bf_abort';
+# INSERT also grabs FK-referenced table lock.
+--send
+  INSERT INTO t1_fk VALUES (1, 1);
+
+--connection node_1
+SET DEBUG_SYNC = 'now WAIT_FOR may_alter';
+SET DEBUG_SYNC = 'lock_wait_end WAIT_FOR alter_continue';
+# ALTER BF-aborts INSERT.
+--send
+  ALTER TABLE t1 ADD COLUMN c2 INT, ALGORITHM=INPLACE;
+
+--connection con1
+# INSERT gets BF-aborted.
+--error ER_LOCK_DEADLOCK
+--reap
+SET DEBUG_SYNC = 'now SIGNAL alter_continue';
+
+--connection node_1
+# ALTER succeeds.
+--reap
+
+--connection node_2
+# Sanity check that ALTER has been replicated.
+INSERT INTO t1 (c1, c2) VALUES (2, 2);
+
+# Cleanup.
+--connection node_1
+SET DEBUG_SYNC = 'RESET';
+DROP TABLE t1_fk, t1;
+--disconnect con1
+--source include/galera_end.inc
diff --git a/sql/handler.cc b/sql/handler.cc
index a7214402163..97cf3f15b95 100644
--- a/sql/handler.cc
+++ b/sql/handler.cc
@@ -7885,7 +7885,9 @@ int handler::ha_delete_row(const uchar *buf)
     }
 #ifdef WITH_WSREP
     THD *thd= ha_thd();
-    if (WSREP_NNULL(thd))
+    /* For streaming replication, when removing fragments, don't call
+    wsrep_after_row() as that would initiate new streaming transaction */
+    if (WSREP_NNULL(thd) && !thd->wsrep_ignore_table)
     {
       /* for streaming replication, the following wsrep_after_row()
       may replicate a fragment, so we have to declare potential PA
diff --git a/sql/sql_class.cc b/sql/sql_class.cc
index e2d98771c87..7272ee2531b 100644
--- a/sql/sql_class.cc
+++ b/sql/sql_class.cc
@@ -5068,6 +5068,9 @@ MYSQL_THD create_background_thd()
   thd->real_id= 0;
   thd->thread_id= 0;
   thd->query_id= 0;
+#ifdef WITH_WSREP
+  thd->variables.wsrep_on= FALSE;
+#endif /* WITH_WSREP */
   return thd;
 }
 
@@ -6411,7 +6414,8 @@ int THD::decide_logging_format(TABLE_LIST *tables)
       wsrep_is_active(this) &&
       variables.wsrep_trx_fragment_size > 0)
   {
-    if (!is_current_stmt_binlog_format_row())
+    if (!is_current_stmt_binlog_disabled() &&
+        !is_current_stmt_binlog_format_row())
     {
       my_message(ER_NOT_SUPPORTED_YET,
                  "Streaming replication not supported with "
diff --git a/sql/wsrep_schema.cc b/sql/wsrep_schema.cc
index 32ce8310bc4..ec1d67780b9 100644
--- a/sql/wsrep_schema.cc
+++ b/sql/wsrep_schema.cc
@@ -155,6 +155,24 @@ private:
   my_bool m_wsrep_on;
 };
 
+class wsrep_ignore_table
+{
+public:
+  wsrep_ignore_table(THD* thd)
+    : m_thd(thd)
+    , m_wsrep_ignore_table(thd->wsrep_ignore_table)
+  {
+    thd->wsrep_ignore_table= true;
+  }
+  ~wsrep_ignore_table()
+  {
+    m_thd->wsrep_ignore_table= m_wsrep_ignore_table;
+  }
+private:
+  THD* m_thd;
+  my_bool m_wsrep_ignore_table;
+};
+
 class thd_server_status
 {
 public:
@@ -739,6 +757,12 @@ int Wsrep_schema::store_view(THD* thd, const Wsrep_view& view)
   Wsrep_schema_impl::binlog_off binlog_off(thd);
   Wsrep_schema_impl::sql_safe_updates sql_safe_updates(thd);
 
+  if (trans_begin(thd, MYSQL_START_TRANS_OPT_READ_WRITE))
+  {
+    WSREP_ERROR("Failed to start transaction for store view");
+    goto out_not_started;
+  }
+
   /*
     Clean up cluster table and members table.
   */
@@ -832,7 +856,22 @@ int Wsrep_schema::store_view(THD* thd, const Wsrep_view& view)
 #endif /* WSREP_SCHEMA_MEMBERS_HISTORY */
   ret= 0;
  out:
+  if (ret)
+  {
+    trans_rollback_stmt(thd);
+    if (!trans_rollback(thd))
+    {
+      close_thread_tables(thd);
+    }
+  }
+  else if (trans_commit(thd))
+  {
+    ret= 1;
+    WSREP_ERROR("Failed to commit transaction for store view");
+  }
+  thd->release_transactional_locks();
 
+out_not_started:
   DBUG_RETURN(ret);
 }
 
@@ -1184,7 +1223,7 @@ int Wsrep_schema::remove_fragments(THD* thd,
   int ret= 0;
 
   WSREP_DEBUG("Removing %zu fragments", fragments.size());
-  Wsrep_schema_impl::wsrep_off  wsrep_off(thd);
+  Wsrep_schema_impl::wsrep_ignore_table wsrep_ignore_table(thd);
   Wsrep_schema_impl::binlog_off binlog_off(thd);
   Wsrep_schema_impl::sql_safe_updates sql_safe_updates(thd);
 
diff --git a/sql/wsrep_server_service.cc b/sql/wsrep_server_service.cc
index 19fa4470687..71252c94399 100644
--- a/sql/wsrep_server_service.cc
+++ b/sql/wsrep_server_service.cc
@@ -239,29 +239,9 @@ void Wsrep_server_service::log_view(
                     view.state_id().seqno().get() >= prev_view.state_id().seqno().get());
       }
 
-      if (trans_begin(applier->m_thd, MYSQL_START_TRANS_OPT_READ_WRITE))
+      if (wsrep_schema->store_view(applier->m_thd, view))
       {
-        WSREP_WARN("Failed to start transaction for store view");
-      }
-      else
-      {
-        if (wsrep_schema->store_view(applier->m_thd, view))
-        {
-          WSREP_WARN("Failed to store view");
-          trans_rollback_stmt(applier->m_thd);
-          if (!trans_rollback(applier->m_thd))
-          {
-            close_thread_tables(applier->m_thd);
-          }
-        }
-        else
-        {
-          if (trans_commit(applier->m_thd))
-          {
-            WSREP_WARN("Failed to commit transaction for store view");
-          }
-        }
-        applier->m_thd->release_transactional_locks();
+        WSREP_WARN("Failed to store view");
       }
 
       /*
diff --git a/storage/innobase/handler/ha_innodb.cc b/storage/innobase/handler/ha_innodb.cc
index 084b7fa350f..d0afde153b0 100644
--- a/storage/innobase/handler/ha_innodb.cc
+++ b/storage/innobase/handler/ha_innodb.cc
@@ -2892,10 +2892,6 @@ innobase_trx_init(
 		thd, OPTION_RELAXED_UNIQUE_CHECKS);
 	trx->snapshot_isolation = THDVAR(thd, snapshot_isolation) & 1;
 
-#ifdef WITH_WSREP
-	trx->wsrep = wsrep_on(thd);
-#endif
-
 	DBUG_VOID_RETURN;
 }
 
@@ -4414,9 +4410,6 @@ innobase_commit_low(
 		trx_commit_for_mysql(trx);
 	} else {
 		trx->will_lock = false;
-#ifdef WITH_WSREP
-		trx->wsrep = false;
-#endif /* WITH_WSREP */
 	}
 
 #ifdef WITH_WSREP
@@ -8718,7 +8711,10 @@ func_exit:
 	}
 
 #ifdef WITH_WSREP
-	if (error == DB_SUCCESS && trx->is_wsrep()
+	if (error == DB_SUCCESS &&
+	    /* For sequences, InnoDB transaction may not have been started yet.
+	    Check THD-level wsrep state in that case. */
+	    (trx->is_wsrep() || (!trx_is_started(trx) && wsrep_on(m_user_thd)))
 	    && wsrep_thd_is_local(m_user_thd)
 	    && !wsrep_thd_ignore_table(m_user_thd)) {
 		DBUG_PRINT("wsrep", ("update row key"));
diff --git a/storage/innobase/trx/trx0trx.cc b/storage/innobase/trx/trx0trx.cc
index a05ddbe901d..bd28a491a13 100644
--- a/storage/innobase/trx/trx0trx.cc
+++ b/storage/innobase/trx/trx0trx.cc
@@ -919,6 +919,7 @@ trx_start_low(
 
 #ifdef WITH_WSREP
 	trx->xid.null();
+	trx->wsrep = wsrep_on(trx->mysql_thd);
 #endif /* WITH_WSREP */
 
 	ut_a(ib_vector_is_empty(trx->autoinc_locks));
@@ -1492,6 +1493,8 @@ TRANSACTIONAL_INLINE inline void trx_t::commit_in_memory(const mtr_t *mtr)
     trx_finalize_for_fts(this, undo_no != 0);
 
 #ifdef WITH_WSREP
+  ut_ad(is_wsrep() == wsrep_on(mysql_thd));
+
   /* Serialization history has been written and the transaction is
   committed in memory, which makes this commit ordered. Release commit
   order critical section. */