A network storage server implements a method to perform transactional failover of data sets. Multiple storage objects are organized into primary and secondary data sets, and a disaster recovery policy is configured for failing-over a primary data set to a secondary data set. A failover operation is defined for the disaster recovery policy. The failover operation includes multiple failover actions. During a failover situation, the failover operation is invoked to fail-over the primary data set. The failover operation is transactionally processed to ensure that all failover actions of the failover operation are performed in a single transaction.