diff --git a/pageserver/src/walingest.rs b/pageserver/src/walingest.rs
index 90c31aea93..e94fba38c6 100644
--- a/pageserver/src/walingest.rs
+++ b/pageserver/src/walingest.rs
@@ -168,6 +168,27 @@ struct ClogTruncate {
     oldest_xid_db: u32,
 }
 
+enum XactRecord {
+    Commit(XactCommon),
+    Abort(XactCommon),
+    CommitPrepared(XactCommon),
+    AbortPrepared(XactCommon),
+    Prepare(XactPrepare),
+}
+
+struct XactCommon {
+    parsed: XlXactParsedRecord,
+    origin_id: u16,
+    // Fields below are only used for logging
+    xl_xid: u32,
+    lsn: Lsn,
+}
+
+struct XactPrepare {
+    xl_xid: u32,
+    data: Bytes,
+}
+
 impl WalIngest {
     pub async fn new(
         timeline: &Timeline,
@@ -313,54 +334,10 @@ impl WalIngest {
                 }
             }
             pg_constants::RM_XACT_ID => {
-                let info = decoded.xl_info & pg_constants::XLOG_XACT_OPMASK;
-
-                if info == pg_constants::XLOG_XACT_COMMIT || info == pg_constants::XLOG_XACT_ABORT {
-                    let parsed_xact =
-                        XlXactParsedRecord::decode(&mut buf, decoded.xl_xid, decoded.xl_info);
-                    self.ingest_xact_record(
-                        modification,
-                        &parsed_xact,
-                        info == pg_constants::XLOG_XACT_COMMIT,
-                        decoded.origin_id,
-                        ctx,
-                    )
-                    .await?;
-                } else if info == pg_constants::XLOG_XACT_COMMIT_PREPARED
-                    || info == pg_constants::XLOG_XACT_ABORT_PREPARED
-                {
-                    let parsed_xact =
-                        XlXactParsedRecord::decode(&mut buf, decoded.xl_xid, decoded.xl_info);
-                    self.ingest_xact_record(
-                        modification,
-                        &parsed_xact,
-                        info == pg_constants::XLOG_XACT_COMMIT_PREPARED,
-                        decoded.origin_id,
-                        ctx,
-                    )
-                    .await?;
-                    // Remove twophase file. see RemoveTwoPhaseFile() in postgres code
-                    trace!(
-                        "Drop twophaseFile for xid {} parsed_xact.xid {} here at {}",
-                        decoded.xl_xid,
-                        parsed_xact.xid,
-                        lsn,
-                    );
-
-                    let xid: u64 = if pg_version >= 17 {
-                        self.adjust_to_full_transaction_id(parsed_xact.xid)?
-                    } else {
-                        parsed_xact.xid as u64
-                    };
-                    modification.drop_twophase_file(xid, ctx).await?;
-                } else if info == pg_constants::XLOG_XACT_PREPARE {
-                    let xid: u64 = if pg_version >= 17 {
-                        self.adjust_to_full_transaction_id(decoded.xl_xid)?
-                    } else {
-                        decoded.xl_xid as u64
-                    };
-                    modification
-                        .put_twophase_file(xid, Bytes::copy_from_slice(&buf[..]), ctx)
+                let maybe_xact_record =
+                    Self::decode_xact_record(&mut buf, &decoded, lsn, pg_version).unwrap();
+                if let Some(xact_record) = maybe_xact_record {
+                    self.ingest_xact_record(xact_record, modification, ctx)
                         .await?;
                 }
             }
@@ -1709,12 +1686,32 @@ impl WalIngest {
     ///
     async fn ingest_xact_record(
         &mut self,
+        record: XactRecord,
         modification: &mut DatadirModification<'_>,
-        parsed: &XlXactParsedRecord,
-        is_commit: bool,
-        origin_id: u16,
         ctx: &RequestContext,
     ) -> anyhow::Result<()> {
+        let (xact_common, is_commit, is_prepared) = match record {
+            XactRecord::Prepare(XactPrepare { xl_xid, data }) => {
+                let xid: u64 = if modification.tline.pg_version >= 17 {
+                    self.adjust_to_full_transaction_id(xl_xid)?
+                } else {
+                    xl_xid as u64
+                };
+                return modification.put_twophase_file(xid, data, ctx).await;
+            }
+            XactRecord::Commit(common) => (common, true, false),
+            XactRecord::Abort(common) => (common, false, false),
+            XactRecord::CommitPrepared(common) => (common, true, true),
+            XactRecord::AbortPrepared(common) => (common, false, true),
+        };
+
+        let XactCommon {
+            parsed,
+            origin_id,
+            xl_xid,
+            lsn,
+        } = xact_common;
+
         // Record update of CLOG pages
         let mut pageno = parsed.xid / pg_constants::CLOG_XACTS_PER_PAGE;
         let mut segno = pageno / pg_constants::SLRU_PAGES_PER_SEGMENT;
@@ -1785,9 +1782,80 @@ impl WalIngest {
                 .set_replorigin(origin_id, parsed.origin_lsn)
                 .await?;
         }
+
+        if is_prepared {
+            // Remove twophase file. see RemoveTwoPhaseFile() in postgres code
+            trace!(
+                "Drop twophaseFile for xid {} parsed_xact.xid {} here at {}",
+                xl_xid,
+                parsed.xid,
+                lsn,
+            );
+
+            let xid: u64 = if modification.tline.pg_version >= 17 {
+                self.adjust_to_full_transaction_id(parsed.xid)?
+            } else {
+                parsed.xid as u64
+            };
+            modification.drop_twophase_file(xid, ctx).await?;
+        }
+
         Ok(())
     }
 
+    // TODO(vlad): Standardise interface for `decode_...`
+    fn decode_xact_record(
+        buf: &mut Bytes,
+        decoded: &DecodedWALRecord,
+        lsn: Lsn,
+        _pg_version: u32,
+    ) -> anyhow::Result<Option<XactRecord>> {
+        let info = decoded.xl_info & pg_constants::XLOG_XACT_OPMASK;
+        let origin_id = decoded.origin_id;
+        let xl_xid = decoded.xl_xid;
+
+        if info == pg_constants::XLOG_XACT_COMMIT {
+            let parsed = XlXactParsedRecord::decode(buf, decoded.xl_xid, decoded.xl_info);
+            return Ok(Some(XactRecord::Commit(XactCommon {
+                parsed,
+                origin_id,
+                xl_xid,
+                lsn,
+            })));
+        } else if info == pg_constants::XLOG_XACT_ABORT {
+            let parsed = XlXactParsedRecord::decode(buf, decoded.xl_xid, decoded.xl_info);
+            return Ok(Some(XactRecord::Abort(XactCommon {
+                parsed,
+                origin_id,
+                xl_xid,
+                lsn,
+            })));
+        } else if info == pg_constants::XLOG_XACT_COMMIT_PREPARED {
+            let parsed = XlXactParsedRecord::decode(buf, decoded.xl_xid, decoded.xl_info);
+            return Ok(Some(XactRecord::CommitPrepared(XactCommon {
+                parsed,
+                origin_id,
+                xl_xid,
+                lsn,
+            })));
+        } else if info == pg_constants::XLOG_XACT_ABORT_PREPARED {
+            let parsed = XlXactParsedRecord::decode(buf, decoded.xl_xid, decoded.xl_info);
+            return Ok(Some(XactRecord::AbortPrepared(XactCommon {
+                parsed,
+                origin_id,
+                xl_xid,
+                lsn,
+            })));
+        } else if info == pg_constants::XLOG_XACT_PREPARE {
+            return Ok(Some(XactRecord::Prepare(XactPrepare {
+                xl_xid: decoded.xl_xid,
+                data: Bytes::copy_from_slice(&buf[..]),
+            })));
+        }
+
+        Ok(None)
+    }
+
     async fn ingest_clog_truncate_record(
         &mut self,
         truncate: ClogTruncate,