diff --git a/CHANGELOG.md b/CHANGELOG.md
index f6fdba4b4..b35e7ac0c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,10 +3,16 @@
 ## Unreleased
 
 
+## [v6.0.3](https://github.com/stellar/js-stellar-base/compare/v6.0.2..v6.0.3)
+
+### Fix
+- When creating a `Transaction`, forward the optional `withMuxing` flag along to its operations so that their properties are also decoded with the appropriate muxing state ([#469](https://github.com/stellar/js-stellar-base/pull/469)).
+
+
 ## [v6.0.2](https://github.com/stellar/js-stellar-base/compare/v6.0.1..v6.0.2)
 
 ### Fix
- - Fix Typescript signatures for operations to universally allow setting the `withMuxing` flag.
+- Fix Typescript signatures for operations to universally allow setting the `withMuxing` flag ([#466](https://github.com/stellar/js-stellar-base/pull/466)).
 
 
 ## [v6.0.1](https://github.com/stellar/js-stellar-base/compare/v5.3.2..v6.0.1)
diff --git a/package.json b/package.json
index 1d5fd14b1..1c9cbbbee 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "stellar-base",
-  "version": "6.0.2",
+  "version": "6.0.3",
   "description": "Low level stellar support library",
   "main": "./lib/index.js",
   "types": "./types/index.d.ts",
diff --git a/src/operation.js b/src/operation.js
index ae4cd73f1..cd11f37dc 100644
--- a/src/operation.js
+++ b/src/operation.js
@@ -114,8 +114,8 @@ export class Operation {
    * was used to create the operation (i.e. the `opts` parameter to most ops).
    *
    * @param {xdr.Operation}   operation - An XDR Operation.
-   * @param {boolean}         [withMuxing] - Indicates that the operation
-   *     contains M... addresses which should be interpreted fully as muxed
+   * @param {boolean}         [withMuxing] - Indicates that if the operation
+   *     contains M... addresses, they should be interpreted fully as muxed
    *     accounts. By default, this option is disabled until muxed accounts are
    *     mature.
    *
diff --git a/src/transaction.js b/src/transaction.js
index b52362ac4..02b41ab5e 100644
--- a/src/transaction.js
+++ b/src/transaction.js
@@ -83,7 +83,9 @@ export class Transaction extends TransactionBase {
       };
     }
     const operations = tx.operations() || [];
-    this._operations = map(operations, (op) => Operation.fromXDRObject(op));
+    this._operations = map(operations, (op) =>
+      Operation.fromXDRObject(op, withMuxing)
+    );
   }
 
   /**
diff --git a/test/unit/transaction_test.js b/test/unit/transaction_test.js
index 929613379..2b5ec3a51 100644
--- a/test/unit/transaction_test.js
+++ b/test/unit/transaction_test.js
@@ -532,25 +532,19 @@ describe('Transaction', function() {
         )
         .addMemo(StellarBase.Memo.text('Happy birthday!'))
         .build();
-      let med25519 = new StellarBase.xdr.MuxedAccountMed25519({
-        id: StellarBase.xdr.Uint64.fromString('0'),
-        ed25519: source.rawPublicKey()
-      });
-      let muxedAccount = StellarBase.xdr.MuxedAccount.keyTypeMuxedEd25519(
-        med25519
-      );
+
+      // force the source to be muxed in the envelope
+      const muxedSource = new StellarBase.MuxedAccount(account, '0');
       const envelope = tx.toEnvelope();
       envelope
         .v1()
         .tx()
-        .sourceAccount(muxedAccount);
-
-      let destMed25519 = new StellarBase.xdr.MuxedAccountMed25519({
-        id: StellarBase.xdr.Uint64.fromString('0'),
-        ed25519: StellarBase.StrKey.decodeEd25519PublicKey(destination)
-      });
-      let destMuxedAccount = StellarBase.xdr.MuxedAccount.keyTypeMuxedEd25519(
-        destMed25519
+        .sourceAccount(muxedSource.toXDRObject());
+
+      // force the payment destination to be muxed in the envelope
+      const destinationMuxed = new StellarBase.MuxedAccount(
+        new StellarBase.Account(destination, '1'),
+        '0'
       );
       envelope
         .v1()
@@ -558,16 +552,27 @@ describe('Transaction', function() {
         .operations()[0]
         .body()
         .value()
-        .destination(destMuxedAccount);
+        .destination(destinationMuxed.toXDRObject());
 
-      const txWithMuxedAccount = new StellarBase.Transaction(
+      // make sure there are no muxed properties on decoding by default
+      const unmuxedTx = new StellarBase.Transaction(
         envelope,
         networkPassphrase
       );
-      expect(txWithMuxedAccount.source).to.equal(source.publicKey());
       expect(tx.source).to.equal(source.publicKey());
-      var operation = txWithMuxedAccount.operations[0];
-      expect(operation.destination).to.be.equal(destination);
+      expect(unmuxedTx.source).to.equal(source.publicKey());
+      expect(unmuxedTx.operations[0].destination).to.be.equal(destination);
+
+      // but they should be muxed if we enforce it
+      const muxedTx = new StellarBase.Transaction(
+        envelope,
+        StellarBase.Networks.TESTNET,
+        true
+      );
+      expect(muxedTx.source).to.be.equal(muxedSource.accountId());
+      expect(muxedTx.operations[0].destination).to.be.equal(
+        destinationMuxed.accountId()
+      );
     });
   });
 });