How do you implement the Saga pattern for distributed transactions?

Saga manages distributed transactions as sequence of local transactions with compensating actions for rollback. Coordination: Choreography (events trigger next steps - simple but harder to track), Orchestration (central coordinator directs flow - explicit but single point). Design: each step has compensating action, handle idempotency, manage concurrent sagas. Challenges: compensation complexity, observability, testing. Implementations: Temporal, Camunda, custom with message queues. Example: order saga - reserve inventory, charge payment, ship; each with compensating action. Critical for microservices without distributed transactions.