diff --git a/src/backend/access/fdwxact/fdwxact.c b/src/backend/access/fdwxact/fdwxact.c
index fdc6b1f415..a0ac22d9eb 100644
--- a/src/backend/access/fdwxact/fdwxact.c
+++ b/src/backend/access/fdwxact/fdwxact.c
@@ -232,7 +232,7 @@ static bool fdwXactExitRegistered = false;
 static void register_fdwxact(Oid serverid, Oid userid, bool modified);
 static void FdwXactParticipantEndTransaction(FdwXactParticipant *fdw_part, bool onephase,
 											 bool for_commit);
-static bool checkForeignTwophaseCommitRequired(void);
+static bool checkForeignTwophaseCommitRequired(bool for_prepare);
 static FdwXact FdwXactInsertFdwXactEntry(TransactionId xid, FdwXactParticipant *fdw_part);
 static FdwXact insert_fdwxact(Oid dbid, TransactionId xid, Oid serverid,
 							  Oid userid, Oid umid, char *fdwxact_id);
@@ -464,7 +464,7 @@ PreCommit_FdwXacts(void)
 	 * Check if we need to use foreign twophase commit. It's always false if
 	 * foreign twophase commit is disabled.
 	 */
-	need_twophase_commit = checkForeignTwophaseCommitRequired();
+	need_twophase_commit = checkForeignTwophaseCommitRequired(false);
 
 	/*
 	 * Prepare foreign transactions on foreign servers that support two-phase
@@ -511,10 +511,10 @@ PreCommit_FdwXacts(void)
  * in FdwXactParticipants and local server itself.
  */
 static bool
-checkForeignTwophaseCommitRequired(void)
+checkForeignTwophaseCommitRequired(bool for_prepare)
 {
 	ListCell   *lc;
-	bool		need_twophase_commit;
+	bool		need_twophase_commit = false;
 	bool		have_notwophase;
 	int			nserverswritten = 0;
 	int			nserverstwophase = 0;
@@ -538,32 +538,43 @@ checkForeignTwophaseCommitRequired(void)
 	/* check if there is a server that doesn't support two-phase commit */
 	have_notwophase = (nserverswritten != nserverstwophase);
 
-	/* Did we modify the local non-temporary data? */
-	if ((MyXactFlags & XACT_FLAGS_WROTENONTEMPREL) != 0)
-		nserverswritten++;
-
-	if (nserverswritten <= 1)
-		return false;
-
-	if (foreign_twophase_commit == FOREIGN_TWOPHASE_COMMIT_REQUIRED)
+	if (for_prepare)
 	{
 		/*
-		 * In 'required' case, we require for all modified server to support
-		 * two-phase commit.
+		 * In case of PREPARE TRANSACTION we must use 2PC even when
+		 * only one foreign server is modified
 		 */
-		need_twophase_commit = (nserverswritten >= 2);
+		need_twophase_commit = (nserverswritten >= 1);
 	}
-	else
+
+	/* Did we modify the local non-temporary data? */
+	if ((MyXactFlags & XACT_FLAGS_WROTENONTEMPREL) != 0)
+		nserverswritten++;
+
+	if (!for_prepare)
 	{
-		Assert(foreign_twophase_commit == FOREIGN_TWOPHASE_COMMIT_PREFER);
+		if (nserverswritten <= 1)
+			return false;
 
-		/*
-		 * In 'prefer' case, we prepare transactions on only servers that
-		 * capable of two-phase commit.
-		 */
-		need_twophase_commit = (nserverstwophase >= 2);
-	}
+		if (foreign_twophase_commit == FOREIGN_TWOPHASE_COMMIT_REQUIRED)
+		{
+			/*
+			 * In 'required' case, we require for all modified server to support
+			 * two-phase commit.
+			 */
+			need_twophase_commit = (nserverswritten >= 2);
+		}
+		else
+		{
+			Assert(foreign_twophase_commit == FOREIGN_TWOPHASE_COMMIT_PREFER);
 
+			/*
+			 * In 'prefer' case, we prepare transactions on only servers that
+			 * capable of two-phase commit.
+			 */
+			need_twophase_commit = (nserverstwophase >= 1);
+		}
+	}
 	/*
 	 * If foreign two phase commit is required then all foreign serves must be
 	 * capable of doing two-phase commit
@@ -589,6 +600,12 @@ checkForeignTwophaseCommitRequired(void)
 					(errcode(ERRCODE_FEATURE_NOT_SUPPORTED),
 					 errmsg("cannot process a distributed transaction that has operated on a foreign server"),
 					 errdetail("foreign_twophase_commit is \'required\' but the transaction has some foreign servers which are not capable of two-phase commit")));
+
+		if (have_notwophase && for_prepare)
+			ereport(ERROR,
+					(errcode(ERRCODE_FEATURE_NOT_SUPPORTED),
+					 errmsg("cannot process a distributed transaction that has operated on a foreign server"),
+					 errdetail("PREPARE TRANSACTION requires all foreign servers to support two-phase commit")));
 	}
 
 	return need_twophase_commit;
@@ -1001,7 +1018,7 @@ AtPrepare_FdwXacts(void)
 				(errcode(ERRCODE_FEATURE_NOT_SUPPORTED),
 				 errmsg("cannot PREPARE a distributed transaction when foreign_twophase_commit is \'disabled\'")));
 
-	if (!checkForeignTwophaseCommitRequired())
+	if (!checkForeignTwophaseCommitRequired(true))
 		return;
 
 	/* Prepare transactions on participating foreign servers. */
diff --git a/src/test/modules/test_fdwxact/expected/test_fdwxact.out b/src/test/modules/test_fdwxact/expected/test_fdwxact.out
index a5c8b89655..97f5052928 100644
--- a/src/test/modules/test_fdwxact/expected/test_fdwxact.out
+++ b/src/test/modules/test_fdwxact/expected/test_fdwxact.out
@@ -186,3 +186,41 @@ BEGIN;
 INSERT INTO t VALUES (1);
 INSERT INTO ft_no2pc_1 VALUES (1);
 COMMIT;
+SELECT count(*)  FROM pg_foreign_xacts();
+ count 
+-------
+     0
+(1 row)
+
+BEGIN;
+INSERT INTO ft_2pc_1 VALUES(1);
+INSERT INTO t VALUES(3);
+PREPARE TRANSACTION 'global_x1';
+SELECT count(*)  FROM pg_foreign_xacts();
+ count 
+-------
+     1
+(1 row)
+
+COMMIT PREPARED 'global_x1';
+BEGIN;
+INSERT INTO ft_2pc_1 VALUES(1);
+PREPARE TRANSACTION 'global_x1';
+SELECT count(*)  FROM pg_foreign_xacts();
+ count 
+-------
+     1
+(1 row)
+
+COMMIT PREPARED 'global_x1';
+--ERROR case
+BEGIN;
+INSERT INTO ft_no2pc_1 VALUES (1);
+PREPARE TRANSACTION 'global_x1';
+ERROR:  cannot process a distributed transaction that has operated on a foreign server
+DETAIL:  PREPARE TRANSACTION requires all foreign servers to support two-phase commit
+BEGIN;
+INSERT INTO ft_no2pc_1 VALUES (1);
+INSERT INTO ft_2pc_1 VALUES (1);
+INSERT INTO t VALUES (1);
+COMMIT /*should do 2PC*/;
diff --git a/src/test/modules/test_fdwxact/sql/test_fdwxact.sql b/src/test/modules/test_fdwxact/sql/test_fdwxact.sql
index 554312542f..271f651baf 100644
--- a/src/test/modules/test_fdwxact/sql/test_fdwxact.sql
+++ b/src/test/modules/test_fdwxact/sql/test_fdwxact.sql
@@ -160,10 +160,12 @@ BEGIN;
 INSERT INTO ft_1 VALUES (1);
 INSERT INTO ft_2pc_1 VALUES (1);
 COMMIT;
+
 BEGIN;
 INSERT INTO ft_no2pc_1 VALUES (1);
 INSERT INTO ft_2pc_1 VALUES (1);
 COMMIT;
+
 BEGIN;
 INSERT INTO ft_1 VALUES (1);
 INSERT INTO ft_2 VALUES (1);
@@ -176,3 +178,29 @@ BEGIN;
 INSERT INTO t VALUES (1);
 INSERT INTO ft_no2pc_1 VALUES (1);
 COMMIT;
+
+SELECT count(*)  FROM pg_foreign_xacts();
+
+BEGIN;
+INSERT INTO ft_2pc_1 VALUES(1);
+INSERT INTO t VALUES(3);
+PREPARE TRANSACTION 'global_x1';
+SELECT count(*)  FROM pg_foreign_xacts();
+COMMIT PREPARED 'global_x1';
+
+BEGIN;
+INSERT INTO ft_2pc_1 VALUES(1);
+PREPARE TRANSACTION 'global_x1';
+SELECT count(*)  FROM pg_foreign_xacts();
+COMMIT PREPARED 'global_x1';
+
+--ERROR case
+BEGIN;
+INSERT INTO ft_no2pc_1 VALUES (1);
+PREPARE TRANSACTION 'global_x1';
+
+BEGIN;
+INSERT INTO ft_no2pc_1 VALUES (1);
+INSERT INTO ft_2pc_1 VALUES (1);
+INSERT INTO t VALUES (1);
+COMMIT /*should do 2PC*/;