diff --git a/oslo_db/sqlalchemy/enginefacade.py b/oslo_db/sqlalchemy/enginefacade.py
index 2b3fa73..d80ff05 100644
--- a/oslo_db/sqlalchemy/enginefacade.py
+++ b/oslo_db/sqlalchemy/enginefacade.py
@@ -13,6 +13,7 @@
 
 import contextlib
 import functools
+import inspect
 import operator
 import threading
 import warnings
@@ -700,10 +701,15 @@ class _TransactionContextManager(object):
 
     def __call__(self, fn):
         """Decorate a function."""
+        argspec = inspect.getargspec(fn)
+        if argspec.args[0] == 'self' or argspec.args[0] == 'cls':
+            context_index = 1
+        else:
+            context_index = 0
 
         @functools.wraps(fn)
         def wrapper(*args, **kwargs):
-            context = args[0]
+            context = args[context_index]
 
             with self._transaction_scope(context):
                 return fn(*args, **kwargs)
diff --git a/oslo_db/tests/sqlalchemy/test_enginefacade.py b/oslo_db/tests/sqlalchemy/test_enginefacade.py
index 97229f0..7f77c28 100644
--- a/oslo_db/tests/sqlalchemy/test_enginefacade.py
+++ b/oslo_db/tests/sqlalchemy/test_enginefacade.py
@@ -1004,6 +1004,19 @@ class MockFacadeTest(oslo_test_base.BaseTestCase):
             getattr, context, 'transaction_ctx'
         )
 
+    def test_context_found_for_bound_method(self):
+        context = oslo_context.RequestContext()
+
+        @enginefacade.reader
+        def go(self, context):
+            context.session.execute("test")
+        go(self, context)
+
+        with self._assert_engines() as engines:
+            with self._assert_makers(engines) as makers:
+                with self._assert_reader_session(makers) as session:
+                    session.execute("test")
+
 
 class SynchronousReaderWSlaveMockFacadeTest(MockFacadeTest):
     synchronous_reader = True