diff --git a/api.js b/api.js
index c992cbe6f5..3c9f04be92 100644
--- a/api.js
+++ b/api.js
@@ -477,7 +477,7 @@ API.prototype.createWebTransaction = function createWebTransaction(url, callback
       tx.id
     )
     tx.partialName = NAMES.CUSTOM + NAMES.ACTION_DELIMITER + url
-    tx.setName(url, 0)
+    tx.url = url
     tx.webSegment = tracer.addSegment(url, recordWeb)
 
     return callback.apply(this, arguments)
@@ -553,6 +553,7 @@ API.prototype.endTransaction = function endTransaction() {
     if (tx.webSegment) {
       tx.webSegment.markAsWeb(tx.url)
       tx.webSegment.end()
+      tx.setName(tx.url, 0)
     }
     tx.end()
   } else {
diff --git a/test/unit/api/custom-instrumentation.test.js b/test/unit/api/custom-instrumentation.test.js
index c7b91d543d..a760482fa4 100644
--- a/test/unit/api/custom-instrumentation.test.js
+++ b/test/unit/api/custom-instrumentation.test.js
@@ -299,6 +299,20 @@ describe('The custom instrumentation API', function () {
       var value = txHandler()
       expect(value).to.be.equal('a thing')
     })
+
+    it('should allow changing the transaction name', function (done) {
+      var txHandler = api.createWebTransaction('/custom/transaction', function (outerTx) {
+        var tx = agent.tracer.getTransaction()
+
+        api.setTransactionName('new_name')
+        api.endTransaction()
+
+        expect(tx.name).to.be.equal('WebTransaction/Custom/new_name')
+        done()
+      })
+
+      txHandler()
+    })
   })
 
   describe('when creating an background transaction', function () {