diff --git a/packages/basehub/CHANGELOG.md b/packages/basehub/CHANGELOG.md
index d85eff7..31aee5a 100644
--- a/packages/basehub/CHANGELOG.md
+++ b/packages/basehub/CHANGELOG.md
@@ -1,5 +1,11 @@
 # basehub
 
+## 6.0.7
+
+### Patch Changes
+
+- improve transaction typings
+
 ## 6.0.6
 
 ### Patch Changes
diff --git a/packages/basehub/package.json b/packages/basehub/package.json
index a114f71..bdd7b2b 100644
--- a/packages/basehub/package.json
+++ b/packages/basehub/package.json
@@ -2,7 +2,7 @@
   "name": "basehub",
   "description": "The first AI-native content hub.",
   "author": "JB <jb@basehub.com>",
-  "version": "6.0.6",
+  "version": "6.0.7",
   "license": "MIT",
   "repository": "basehub-ai/basehub",
   "bugs": "https://github.com/basehub-ai/basehub/issues",
diff --git a/packages/basehub/src/bin/main.ts b/packages/basehub/src/bin/main.ts
index 96ff92b..55b4f52 100644
--- a/packages/basehub/src/bin/main.ts
+++ b/packages/basehub/src/bin/main.ts
@@ -107,8 +107,8 @@ export const main = async (
     );
 
     schemaFileContents = schemaFileContents.replace(
-      "...options",
-      "...options,\n    headers: { ...options?.headers, ...headers }"
+      "\n    ...options",
+      "    ...options,\n    headers: { ...options?.headers, ...headers }"
     );
 
     // 2. remove export for `createClient`, as it holds options that we don't want to expose.
@@ -126,6 +126,29 @@ export const main = async (
       })}}`
     );
 
+    if (
+      schemaFileContents.includes("mutation<R extends MutationGenqlSelection>")
+    ) {
+      // edit `MutationGenqlSelection` to receive the Transaction directly instead of a string
+      schemaFileContents = schemaFileContents.replace(
+        "mutation<R extends MutationGenqlSelection>",
+        `mutation<
+R extends Omit<MutationGenqlSelection, "transaction"> & {
+  transaction?: Omit<MutationGenqlSelection["transaction"], "__args"> & {
+    __args: Omit<
+      NonNullable<MutationGenqlSelection["transaction"]>["__args"],
+      "data"
+    > & { data: Transaction | string };
+  };
+},
+>`
+      );
+
+      // add import for Transaction at the start of the file
+      schemaFileContents +=
+        "\nimport type { Transaction } from './api-transaction';\n";
+    }
+
     // 3. append our basehub function to the end of the file.
     const basehubExport = getBaseHubExport(draft);
     if (!schemaFileContents.includes(basehubExport)) {
diff --git a/playground/CHANGELOG.md b/playground/CHANGELOG.md
index b6a4c07..a08b63b 100644
--- a/playground/CHANGELOG.md
+++ b/playground/CHANGELOG.md
@@ -1,5 +1,12 @@
 # playground
 
+## 0.0.106
+
+### Patch Changes
+
+- Updated dependencies
+  - basehub@6.0.7
+
 ## 0.0.105
 
 ### Patch Changes
diff --git a/playground/package.json b/playground/package.json
index cc5bb7a..6552d14 100644
--- a/playground/package.json
+++ b/playground/package.json
@@ -1,7 +1,7 @@
 {
   "name": "playground",
   "private": true,
-  "version": "0.0.105",
+  "version": "0.0.106",
   "scripts": {
     "dev": "basehub dev & next dev",
     "build": "basehub && next build",