diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4eebcfb0f..f412a938e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,11 +2,12 @@
 
 ## 1.1.1 under development
 
-- no changes in this release.
+- New #617: Add debug collector for `yiisoft/yii-debug` (@xepozz)
+- Enh #617, #733: Add specific psalm annotation of `$closure` parameter in `ConnectionInterface::transaction()` 
+  method (@xepozz, @vjik)
 
 ## 1.1.0 July 24, 2023
 
-- Enh #617: Add debug collector for yiisoft/yii-debug (@xepozz)
 - Chg #722: Remove legacy array syntax for typecast. Use `Param` instead (@terabytesoftw)
 - Chg #724: Typecast refactoring (@Tigrov)
 - Chg #728: Refactor `AbstractSchema::getColumnPhpType()` (@Tigrov)
diff --git a/src/Connection/ConnectionInterface.php b/src/Connection/ConnectionInterface.php
index c4f2e24d6..596a5df24 100644
--- a/src/Connection/ConnectionInterface.php
+++ b/src/Connection/ConnectionInterface.php
@@ -212,13 +212,15 @@ public function setTablePrefix(string $value): void;
     /**
      * Executes callback provided in a transaction.
      *
-     * @psalm-param Closure(ConnectionInterface): mixed $closure A valid PHP callback that performs the job. Accepts connection instance as parameter.
+     * @param Closure $closure A valid PHP callback that performs the job. Accepts connection instance as parameter.
      * @param string|null $isolationLevel The isolation level to use for this transaction.
      * {@see TransactionInterface::begin()} for details.
      *
      * @throws Throwable If there is any exception during query. In this case, the transaction will be rolled back.
      *
      * @return mixed Result of callback function.
+     *
+     * @psalm-param Closure(ConnectionInterface):mixed|Closure(ConnectionInterface):void $closure
      */
     public function transaction(Closure $closure, string $isolationLevel = null): mixed;
 }