diff --git a/clients/native/Cargo.toml b/clients/native/Cargo.toml
index e84973d95d..b532ec3813 100644
--- a/clients/native/Cargo.toml
+++ b/clients/native/Cargo.toml
@@ -70,3 +70,11 @@ nym-client-websocket-requests = { path = "websocket-requests" }
 nym-id = { path = "../../common/nym-id" }
 
 [dev-dependencies]
+
+[features]
+default = []
+otel = [
+    "nym-client-core/otel",
+    "nym-bin-common/otel",
+    "nym-gateway-requests/otel",
+]
\ No newline at end of file
diff --git a/clients/native/src/websocket/handler.rs b/clients/native/src/websocket/handler.rs
index c0ba1343b1..3e0091670a 100644
--- a/clients/native/src/websocket/handler.rs
+++ b/clients/native/src/websocket/handler.rs
@@ -184,7 +184,14 @@ impl Handler {
         });
 
         // the ack control is now responsible for chunking, etc.
-        let input_msg = InputMessage::new_regular(recipient, message, lane, self.packet_type, None);
+        let input_msg = InputMessage::new_regular(
+            recipient,
+            message,
+            lane,
+            self.packet_type,
+            #[cfg(feature = "otel")]
+            None,
+        );
         if let Err(err) = self.msg_input.send(input_msg).await {
             if !self.shutdown_token.is_cancelled() {
                 error!("Failed to send message to the input buffer: {err}");
@@ -222,6 +229,7 @@ impl Handler {
             reply_surbs,
             lane,
             self.packet_type,
+            #[cfg(feature = "otel")]
             None,
         );
         if let Err(err) = self.msg_input.send(input_msg).await {
diff --git a/clients/socks5/Cargo.toml b/clients/socks5/Cargo.toml
index d4af6c8c6d..f9cc3f5e41 100644
--- a/clients/socks5/Cargo.toml
+++ b/clients/socks5/Cargo.toml
@@ -53,3 +53,7 @@ nym-validator-client = { path = "../../common/client-libs/validator-client", fea
 [features]
 default = []
 eth = []
+otel = [
+    "nym-socks5-client-core/otel",
+    "nym-bin-common/otel",
+]
\ No newline at end of file
diff --git a/common/client-core/src/client/base_client/mod.rs b/common/client-core/src/client/base_client/mod.rs
index 51610cf9fe..f95b1e2937 100644
--- a/common/client-core/src/client/base_client/mod.rs
+++ b/common/client-core/src/client/base_client/mod.rs
@@ -386,6 +386,7 @@ where
     }
 
     #[allow(clippy::too_many_arguments)]
+    #[instrument(skip_all)]
     fn start_real_traffic_controller(
         controller_config: real_messages_control::Config,
         key_rotation_config: KeyRotationConfig,
diff --git a/common/client-core/src/client/inbound_messages.rs b/common/client-core/src/client/inbound_messages.rs
index 64fb828456..c79a321dbd 100644
--- a/common/client-core/src/client/inbound_messages.rs
+++ b/common/client-core/src/client/inbound_messages.rs
@@ -29,7 +29,7 @@ pub enum InputMessage {
         data: Vec<u8>,
         lane: TransmissionLane,
         max_retransmissions: Option<u32>,
-        // add trace_id for optional tracing of individual messages in debug mode
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     },
 
@@ -47,6 +47,7 @@ pub enum InputMessage {
         reply_surbs: u32,
         lane: TransmissionLane,
         max_retransmissions: Option<u32>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     },
 
@@ -93,6 +94,7 @@ impl InputMessage {
         data: Vec<u8>,
         lane: TransmissionLane,
         packet_type: Option<PacketType>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Self {
         let message = InputMessage::Regular {
@@ -100,6 +102,7 @@ impl InputMessage {
             data,
             lane,
             max_retransmissions: None,
+            #[cfg(feature = "otel")]
             trace_id,
         };
         if let Some(packet_type) = packet_type {
@@ -115,6 +118,7 @@ impl InputMessage {
         reply_surbs: u32,
         lane: TransmissionLane,
         packet_type: Option<PacketType>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Self {
         let message = InputMessage::Anonymous {
@@ -123,6 +127,7 @@ impl InputMessage {
             reply_surbs,
             lane,
             max_retransmissions: None,
+            #[cfg(feature = "otel")]
             trace_id,
         };
         if let Some(packet_type) = packet_type {
@@ -193,6 +198,7 @@ impl InputMessage {
         self
     }
 
+    #[cfg(feature = "otel")]
     pub fn trace_id(&self) -> Option<[u8; 12]> {
         match self {
             InputMessage::Regular { trace_id, .. } => *trace_id,
diff --git a/common/client-core/src/client/real_messages_control/acknowledgement_control/input_message_listener.rs b/common/client-core/src/client/real_messages_control/acknowledgement_control/input_message_listener.rs
index f0833ebb5c..6e7e5d6e8e 100644
--- a/common/client-core/src/client/real_messages_control/acknowledgement_control/input_message_listener.rs
+++ b/common/client-core/src/client/real_messages_control/acknowledgement_control/input_message_listener.rs
@@ -78,6 +78,7 @@ where
         lane: TransmissionLane,
         packet_type: PacketType,
         max_retransmissions: Option<u32>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) {
         if let Err(err) = self
@@ -88,6 +89,7 @@ where
                 lane,
                 packet_type,
                 max_retransmissions,
+                #[cfg(feature = "otel")]
                 trace_id,
             )
             .await
@@ -105,6 +107,7 @@ where
         lane: TransmissionLane,
         packet_type: PacketType,
         max_retransmissions: Option<u32>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) {
         if let Err(err) = self
@@ -116,6 +119,7 @@ where
                 lane,
                 packet_type,
                 max_retransmissions,
+                #[cfg(feature = "otel")]
                 trace_id,
             )
             .await
@@ -127,9 +131,11 @@ where
     #[allow(clippy::panic)]
     #[instrument(skip_all)]
     async fn on_input_message(&mut self, msg: InputMessage) {
+        #[cfg(feature = "otel")]
         let trace_id = msg.trace_id();
+        #[cfg(feature = "otel")]
         if let Some(tid) = trace_id {
-            tracing::warn!("Processing input message with trace_id: {:?}", tid);
+            tracing::info!("Processing input message with trace_id: {:?}", tid);
         }
 
         match msg {
@@ -140,7 +146,8 @@ where
                 max_retransmissions,
                 ..
             } => {
-                warn!(
+                #[cfg(feature = "otel")]
+                info!(
                     "Handling regular input message with trace_id: {:?}",
                     trace_id
                 );
@@ -150,6 +157,7 @@ where
                     lane,
                     PacketType::Mix,
                     max_retransmissions,
+                    #[cfg(feature = "otel")]
                     trace_id,
                 )
                 .await
@@ -162,7 +170,8 @@ where
                 max_retransmissions,
                 ..
             } => {
-                warn!(
+                #[cfg(feature = "otel")]
+                tracing::info!(
                     "Handling anonymous input message with trace_id: {:?}",
                     trace_id
                 );
@@ -173,6 +182,7 @@ where
                     lane,
                     PacketType::Mix,
                     max_retransmissions,
+                    #[cfg(feature = "otel")]
                     trace_id,
                 )
                 .await
@@ -183,7 +193,8 @@ where
                 lane,
                 max_retransmissions,
             } => {
-                warn!("Handling reply input message with trace_id: {:?}", trace_id);
+                #[cfg(feature = "otel")]
+                info!("Handling reply input message with trace_id: {:?}", trace_id);
                 self.handle_reply(recipient_tag, data, lane, max_retransmissions)
                     .await;
             }
@@ -199,7 +210,8 @@ where
                     max_retransmissions,
                     ..
                 } => {
-                    tracing::warn!(
+                    #[cfg(feature = "otel")]
+                    tracing::info!(
                         "Handling regular input message with trace_id: {:?}",
                         trace_id
                     );
@@ -209,6 +221,7 @@ where
                         lane,
                         packet_type,
                         max_retransmissions,
+                        #[cfg(feature = "otel")]
                         trace_id,
                     )
                     .await
@@ -228,6 +241,7 @@ where
                         lane,
                         packet_type,
                         max_retransmissions,
+                        #[cfg(feature = "otel")]
                         trace_id,
                     )
                     .await
diff --git a/common/client-core/src/client/real_messages_control/acknowledgement_control/retransmission_request_listener.rs b/common/client-core/src/client/real_messages_control/acknowledgement_control/retransmission_request_listener.rs
index 71a550e42c..c664b8e62f 100644
--- a/common/client-core/src/client/real_messages_control/acknowledgement_control/retransmission_request_listener.rs
+++ b/common/client-core/src/client/real_messages_control/acknowledgement_control/retransmission_request_listener.rs
@@ -60,7 +60,13 @@ where
 
         // TODO: Figure out retransmission packet type signaling
         self.message_handler
-            .try_prepare_single_chunk_for_sending(packet_recipient, chunk_data, packet_type, None)
+            .try_prepare_single_chunk_for_sending(
+                packet_recipient,
+                chunk_data,
+                packet_type,
+                #[cfg(feature = "otel")]
+                None
+            )
             .await
     }
 
diff --git a/common/client-core/src/client/real_messages_control/message_handler.rs b/common/client-core/src/client/real_messages_control/message_handler.rs
index 992d68e3c3..bb87a5ae03 100644
--- a/common/client-core/src/client/real_messages_control/message_handler.rs
+++ b/common/client-core/src/client/real_messages_control/message_handler.rs
@@ -484,6 +484,7 @@ where
         lane: TransmissionLane,
         packet_type: PacketType,
         max_retransmissions: Option<u32>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Result<(), PreparationError> {
         let message = NymMessage::new_plain(message);
@@ -493,6 +494,7 @@ where
             lane,
             packet_type,
             max_retransmissions,
+            #[cfg(feature = "otel")]
             trace_id,
         )
         .await
@@ -506,6 +508,7 @@ where
         lane: TransmissionLane,
         packet_type: PacketType,
         max_retransmissions: Option<u32>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Result<(), PreparationError> {
         debug!("Sending non-reply message with packet type {packet_type}");
@@ -539,6 +542,7 @@ where
                 &self.config.ack_key,
                 &recipient,
                 packet_type,
+                #[cfg(feature = "otel")]
                 trace_id,
             )?;
 
@@ -591,6 +595,7 @@ where
             TransmissionLane::AdditionalReplySurbs,
             packet_type,
             max_retransmissions,
+            #[cfg(feature = "otel")]
             None,
         )
         .await?;
@@ -609,6 +614,7 @@ where
         lane: TransmissionLane,
         packet_type: PacketType,
         max_retransmissions: Option<u32>,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Result<(), SurbWrappedPreparationError> {
         debug!("Sending message with reply SURBs with packet type {packet_type}");
@@ -633,6 +639,7 @@ where
             lane,
             packet_type,
             max_retransmissions,
+            #[cfg(feature = "otel")]
             trace_id,
         )
         .await?;
@@ -648,6 +655,7 @@ where
         recipient: Recipient,
         chunk: Fragment,
         packet_type: PacketType,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Result<PreparedFragment, PreparationError> {
         debug!("Sending single chunk with packet type {packet_type}");
@@ -660,6 +668,7 @@ where
             &self.config.ack_key,
             &recipient,
             packet_type,
+            #[cfg(feature = "otel")]
             trace_id,
         )?;
 
diff --git a/common/client-core/src/client/statistics_control.rs b/common/client-core/src/client/statistics_control.rs
index 5ff60816f6..7f0d201551 100644
--- a/common/client-core/src/client/statistics_control.rs
+++ b/common/client-core/src/client/statistics_control.rs
@@ -80,6 +80,7 @@ impl StatisticsControl {
             stats_report.into(),
             TransmissionLane::General,
             None,
+            #[cfg(feature = "otel")]
             None,
         );
         if let Err(err) = self.report_tx.send(report_message).await {
diff --git a/common/client-libs/mixnet-client/src/client.rs b/common/client-libs/mixnet-client/src/client.rs
index 5f001810bd..5611ed497c 100644
--- a/common/client-libs/mixnet-client/src/client.rs
+++ b/common/client-libs/mixnet-client/src/client.rs
@@ -267,6 +267,7 @@ impl Client {
 }
 
 impl SendWithoutResponse for Client {
+    #[instrument(skip(self, packet))]
     fn send_without_response(&self, packet: MixPacket) -> io::Result<()> {
         let address = packet.next_hop_address();
         trace!("Sending packet to {address}");
diff --git a/common/gateway-requests/src/types/text_request/mod.rs b/common/gateway-requests/src/types/text_request/mod.rs
index 282c4697cc..8044f422d3 100644
--- a/common/gateway-requests/src/types/text_request/mod.rs
+++ b/common/gateway-requests/src/types/text_request/mod.rs
@@ -153,7 +153,7 @@ impl ClientControlRequest {
         })
     }
 
-    #[instrument]
+    #[instrument(skip_all)]
     pub fn new_authenticate_v2(
         shared_key: &SharedGatewayKey,
         identity_keys: &ed25519::KeyPair,
@@ -164,8 +164,6 @@ impl ClientControlRequest {
         #[cfg(feature = "otel")]
         let context_carrier = {
             use nym_bin_common::opentelemetry::context::extract_trace_id_from_tracing_cx;
-            let trace_id = extract_trace_id_from_tracing_cx();
-
             use tracing_opentelemetry::OpenTelemetrySpanExt;
 
             let current_span = tracing::Span::current();
diff --git a/common/node-tester-utils/Cargo.toml b/common/node-tester-utils/Cargo.toml
index 89e4043ad3..af47b169a7 100644
--- a/common/node-tester-utils/Cargo.toml
+++ b/common/node-tester-utils/Cargo.toml
@@ -30,3 +30,7 @@ workspace = true
 ## wasm-only dependencies
 [target."cfg(target_arch = \"wasm32\")".dependencies.wasm-utils]
 path = "../wasm/utils"
+
+[ features ]
+default = []
+otel = ["nym-sphinx/otel"]
\ No newline at end of file
diff --git a/common/node-tester-utils/src/tester.rs b/common/node-tester-utils/src/tester.rs
index 553130bfa3..ce8b6eb075 100644
--- a/common/node-tester-utils/src/tester.rs
+++ b/common/node-tester-utils/src/tester.rs
@@ -231,6 +231,7 @@ where
             &address,
             &address,
             PacketType::Mix,
+            #[cfg(feature = "otel")]
             None,
         )?)
     }
diff --git a/common/nym-connection-monitor/src/icmp_beacon.rs b/common/nym-connection-monitor/src/icmp_beacon.rs
index f98a1d6a47..07dd8df059 100644
--- a/common/nym-connection-monitor/src/icmp_beacon.rs
+++ b/common/nym-connection-monitor/src/icmp_beacon.rs
@@ -182,7 +182,6 @@ fn wrap_in_mixnet_message(recipient: Recipient, bundled_packets: Bytes) -> Resul
         surbs,
         TransmissionLane::General,
         None,
-        None,
     )
     .with_max_retransmissions(0);
     Ok(mixnet_message)
diff --git a/common/nym-connection-monitor/src/mixnet_beacon.rs b/common/nym-connection-monitor/src/mixnet_beacon.rs
index 3e5e7f7726..021519ef17 100644
--- a/common/nym-connection-monitor/src/mixnet_beacon.rs
+++ b/common/nym-connection-monitor/src/mixnet_beacon.rs
@@ -85,7 +85,6 @@ pub fn create_self_ping(our_address: Recipient) -> (InputMessage, u64) {
             request.to_bytes().unwrap(),
             TransmissionLane::General,
             None,
-            None,
         ),
         request_id,
     )
diff --git a/common/nymsphinx/Cargo.toml b/common/nymsphinx/Cargo.toml
index b37c5c613c..a8bbb706b5 100644
--- a/common/nymsphinx/Cargo.toml
+++ b/common/nymsphinx/Cargo.toml
@@ -60,4 +60,8 @@ outfox = [
 
 otel = [
     "nym-bin-common/otel",
+    "nym-sphinx-acknowledgements/otel",
+    "nym-sphinx-addressing/otel",
+    "nym-sphinx-cover/otel",
+    "nym-sphinx-anonymous-replies/otel",
 ] 
\ No newline at end of file
diff --git a/common/nymsphinx/acknowledgements/Cargo.toml b/common/nymsphinx/acknowledgements/Cargo.toml
index 117bc6b7d5..051bccc70e 100644
--- a/common/nymsphinx/acknowledgements/Cargo.toml
+++ b/common/nymsphinx/acknowledgements/Cargo.toml
@@ -24,3 +24,4 @@ nym-topology = { path = "../../topology" }
 
 [features]
 serde = ["dep:serde", "generic-array"]
+otel = ["nym-sphinx-addressing/otel"]
diff --git a/common/nymsphinx/acknowledgements/src/surb_ack.rs b/common/nymsphinx/acknowledgements/src/surb_ack.rs
index 214830cc41..780fb8a283 100644
--- a/common/nymsphinx/acknowledgements/src/surb_ack.rs
+++ b/common/nymsphinx/acknowledgements/src/surb_ack.rs
@@ -61,6 +61,9 @@ impl SurbAck {
         };
 
         let delays = nym_sphinx_routing::generate_hop_delays(average_delay, route.len());
+        #[cfg(not(feature = "otel"))]
+        let destination = recipient.as_sphinx_destination();
+        #[cfg(feature = "otel")]
         let destination = recipient.as_sphinx_destination(None);
 
         let surb_ack_payload = prepare_identifier(rng, ack_key, marshaled_fragment_id);
diff --git a/common/nymsphinx/addressing/src/clients.rs b/common/nymsphinx/addressing/src/clients.rs
index ee6a6dc9fd..5c843baa86 100644
--- a/common/nymsphinx/addressing/src/clients.rs
+++ b/common/nymsphinx/addressing/src/clients.rs
@@ -153,7 +153,11 @@ impl Recipient {
     // TODO: Currently the `DestinationAddress` is equivalent to `ClientIdentity`, but perhaps
     // it shouldn't be? Maybe it should be (for example) H(`ClientIdentity || ClientEncryptionKey`)
     // instead? That is an open question.
-    pub fn as_sphinx_destination(&self, trace_id: Option<[u8; 12]>) -> Destination {
+    pub fn as_sphinx_destination(
+        &self,
+        #[cfg(feature = "otel")]
+        trace_id: Option<[u8; 12]>
+    ) -> Destination {
         #[cfg(feature = "otel")]
         use nym_bin_common::opentelemetry::compact_id_generator::decompress_trace_id;
         #[cfg(feature = "otel")]
@@ -162,17 +166,15 @@ impl Recipient {
         } else {
             decompress_trace_id(&[0u8; 12])
         };
-        #[cfg(not(feature = "otel"))]
-        let trace_id_16 = {
-            _ = trace_id;
-            [0u8; 16]
-        };
 
         // since the nym mix network differs slightly in design from loopix, we do not care
         // about "surb_id" field at all and just use the default value.
         Destination::new(
             self.client_identity.derive_destination_address(),
-            trace_id_16,
+            #[cfg(not(feature = "otel"))]
+            [0u8; 16],
+            #[cfg(feature = "otel")]
+            trace_id_16
         )
     }
 
diff --git a/common/nymsphinx/anonymous-replies/Cargo.toml b/common/nymsphinx/anonymous-replies/Cargo.toml
index ef9c74b73d..2e1655c9b2 100644
--- a/common/nymsphinx/anonymous-replies/Cargo.toml
+++ b/common/nymsphinx/anonymous-replies/Cargo.toml
@@ -25,3 +25,7 @@ workspace = true
 
 [dev-dependencies]
 rand_chacha = { workspace = true }
+
+[ features ]
+default = []
+otel = ["nym-sphinx-addressing/otel"]
\ No newline at end of file
diff --git a/common/nymsphinx/anonymous-replies/src/reply_surb.rs b/common/nymsphinx/anonymous-replies/src/reply_surb.rs
index 60d09fd6be..919b0dcc64 100644
--- a/common/nymsphinx/anonymous-replies/src/reply_surb.rs
+++ b/common/nymsphinx/anonymous-replies/src/reply_surb.rs
@@ -82,7 +82,10 @@ impl ReplySurb {
             topology.random_route_to_egress(rng, recipient.gateway())?
         };
         let delays = nym_sphinx_routing::generate_hop_delays(average_delay, route.len());
+        #[cfg(feature = "otel")]
         let destination = recipient.as_sphinx_destination(None);
+        #[cfg(not(feature = "otel"))]
+        let destination = recipient.as_sphinx_destination();
 
         let mut surb_material = SURBMaterial::new(route, delays, destination);
         if use_legacy_surb_format && !disable_mix_hops {
diff --git a/common/nymsphinx/cover/Cargo.toml b/common/nymsphinx/cover/Cargo.toml
index 59710923d1..639fe62e39 100644
--- a/common/nymsphinx/cover/Cargo.toml
+++ b/common/nymsphinx/cover/Cargo.toml
@@ -20,3 +20,6 @@ nym-sphinx-params = { path = "../params" }
 nym-sphinx-routing = { path = "../routing" }
 nym-sphinx-types = { path = "../types" }
 nym-topology = { path = "../../topology" }
+
+[features]
+otel = ["nym-sphinx-addressing/otel"]
\ No newline at end of file
diff --git a/common/nymsphinx/cover/src/lib.rs b/common/nymsphinx/cover/src/lib.rs
index 4da2bfe1cd..afb3a33089 100644
--- a/common/nymsphinx/cover/src/lib.rs
+++ b/common/nymsphinx/cover/src/lib.rs
@@ -125,6 +125,9 @@ where
 
     let route = topology.random_route_to_egress(rng, full_address.gateway())?;
     let delays = nym_sphinx_routing::generate_hop_delays(average_packet_delay, route.len());
+    #[cfg(not(feature = "otel"))]
+    let destination = full_address.as_sphinx_destination();
+    #[cfg(feature = "otel")]
     let destination = full_address.as_sphinx_destination(None);
 
     let rotation_id = topology.current_key_rotation();
diff --git a/common/nymsphinx/framing/src/processing.rs b/common/nymsphinx/framing/src/processing.rs
index 0d82b10c55..a4bc50d05a 100644
--- a/common/nymsphinx/framing/src/processing.rs
+++ b/common/nymsphinx/framing/src/processing.rs
@@ -161,6 +161,7 @@ impl PartiallyUnwrappedPacket {
         })
     }
 
+    #[instrument(skip_all)]
     pub fn finalise_unwrapping(self) -> Result<MixProcessingResult, PacketProcessingError> {
         let packet_size = self.received_data.packet_size();
         let packet_type = self.received_data.packet_type();
@@ -281,10 +282,10 @@ fn wrap_processed_sphinx_packet(
                         opentelemetry::trace::TraceId::from_bytes(full_trace_id_bytes);
                     let context_propagator =
                         ManualContextPropagator::new_from_tid("final_hop", full_trace_id);
-                    info_span!(parent: &context_propagator.root_span, "final_hop_processing", trace_id=%full_trace_id)
+                    tracing::info_span!(parent: &context_propagator.root_span, "final_hop_processing", trace_id=%full_trace_id)
                 }
                 _ => {
-                    debug_span!("final_hop_processing")
+                    tracing::debug_span!("final_hop_processing")
                 }
             };
             #[cfg(feature = "otel")]
@@ -343,6 +344,7 @@ fn wrap_processed_outfox_packet(
     }
 }
 
+#[instrument(skip_all)]
 fn perform_final_processing(
     packet: NymProcessedPacket,
     packet_size: PacketSize,
diff --git a/common/nymsphinx/src/preparer/mod.rs b/common/nymsphinx/src/preparer/mod.rs
index ee439dbebd..aad79dbcdf 100644
--- a/common/nymsphinx/src/preparer/mod.rs
+++ b/common/nymsphinx/src/preparer/mod.rs
@@ -176,6 +176,7 @@ pub trait FragmentPreparer {
         packet_sender: &Recipient,
         packet_recipient: &Recipient,
         packet_type: PacketType,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Result<PreparedFragment, NymTopologyError> {
         debug!("Preparing chunk for sending");
@@ -237,11 +238,17 @@ pub trait FragmentPreparer {
             topology.random_route_to_egress(&mut rng, destination)?
         };
 
+        #[cfg(feature = "otel")]
         let destination = packet_recipient.as_sphinx_destination(trace_id);
-        tracing::warn!(
+
+        #[cfg(feature = "otel")]
+        tracing::info!(
             "Packet destination with trace id: {:?}",
             &destination.identifier
         );
+        
+        #[cfg(not(feature = "otel"))]
+        let destination = packet_recipient.as_sphinx_destination();
 
         // including set of delays
         let delays =
@@ -421,6 +428,7 @@ where
         ack_key: &AckKey,
         packet_recipient: &Recipient,
         packet_type: PacketType,
+        #[cfg(feature = "otel")]
         trace_id: Option<[u8; 12]>,
     ) -> Result<PreparedFragment, NymTopologyError> {
         let sender = self.sender_address;
@@ -433,6 +441,7 @@ where
             &sender,
             packet_recipient,
             packet_type,
+            #[cfg(feature = "otel")]
             trace_id,
         )
     }
diff --git a/common/socks5-client-core/Cargo.toml b/common/socks5-client-core/Cargo.toml
index ce8421f3d7..d0fa080bd0 100644
--- a/common/socks5-client-core/Cargo.toml
+++ b/common/socks5-client-core/Cargo.toml
@@ -37,3 +37,4 @@ nym-validator-client = { path = "../client-libs/validator-client" }
 
 [features]
 default = []
+otel = ["nym-sphinx/otel"]
diff --git a/common/socks5-client-core/src/socks/client.rs b/common/socks5-client-core/src/socks/client.rs
index f86e7daa13..2252e0a203 100644
--- a/common/socks5-client-core/src/socks/client.rs
+++ b/common/socks5-client-core/src/socks/client.rs
@@ -350,6 +350,7 @@ impl SocksClient {
             self.config.connection_start_surbs,
             TransmissionLane::ConnectionId(self.connection_id),
             self.packet_type,
+            #[cfg(feature = "otel")]
             None,
         );
         self.input_sender
@@ -374,6 +375,7 @@ impl SocksClient {
             msg.into_bytes(),
             TransmissionLane::ConnectionId(self.connection_id),
             self.packet_type,
+            #[cfg(feature = "otel")]
             None,
         );
         self.input_sender
@@ -441,6 +443,7 @@ impl SocksClient {
                     per_request_surbs,
                     lane,
                     packet_type,
+                    #[cfg(feature = "otel")]
                     None,
                 )
             } else {
@@ -449,6 +452,7 @@ impl SocksClient {
                     provider_message.into_bytes(),
                     lane,
                     packet_type,
+                    #[cfg(feature = "otel")]
                     None,
                 )
             }
diff --git a/gateway/Cargo.toml b/gateway/Cargo.toml
index 26492d860d..ddebfaa4bd 100644
--- a/gateway/Cargo.toml
+++ b/gateway/Cargo.toml
@@ -100,6 +100,7 @@ otel = [
     "nym-client-core/otel",
     "nym-gateway-requests/otel",
     "nym-sphinx/otel",
+    "nym-sdk/otel",
     "opentelemetry",
     "opentelemetry_sdk",
     "tracing-opentelemetry",
diff --git a/gateway/src/node/client_handling/websocket/connection_handler/authenticated.rs b/gateway/src/node/client_handling/websocket/connection_handler/authenticated.rs
index c506827929..4bde8878d0 100644
--- a/gateway/src/node/client_handling/websocket/connection_handler/authenticated.rs
+++ b/gateway/src/node/client_handling/websocket/connection_handler/authenticated.rs
@@ -344,6 +344,7 @@ impl<R, S> AuthenticatedHandler<R, S> {
         let remaining_bandwidth = self
             .bandwidth_storage_manager
             .try_use_bandwidth(required_bandwidth)
+            .in_current_span()
             .await?;
         self.forward_packet(mix_packet);
 
@@ -383,7 +384,7 @@ impl<R, S> AuthenticatedHandler<R, S> {
                 // currently only a single type exists
                 BinaryRequest::ForwardSphinx { packet }
                 | BinaryRequest::ForwardSphinxV2 { packet } => {
-                    self.handle_forward_sphinx(packet).await.into_ws_message()
+                    self.handle_forward_sphinx(packet).in_current_span().await.into_ws_message()
                 }
                 _ => RequestHandlingError::UnknownBinaryRequest.into_error_message(),
             },
diff --git a/gateway/src/node/client_handling/websocket/connection_handler/fresh.rs b/gateway/src/node/client_handling/websocket/connection_handler/fresh.rs
index 2e0abb07bc..6cb2fc321c 100644
--- a/gateway/src/node/client_handling/websocket/connection_handler/fresh.rs
+++ b/gateway/src/node/client_handling/websocket/connection_handler/fresh.rs
@@ -338,6 +338,7 @@ impl<R, S> FreshHandler<R, S> {
     ///
     /// * `client_address`: address of the client that is going to receive the messages.
     /// * `shared_keys`: shared keys derived between the client and the gateway used to encrypt and tag the messages.
+    #[instrument(skip_all)]
     async fn push_stored_messages_to_client(
         &mut self,
         client_address: DestinationAddressBytes,
diff --git a/gateway/src/node/client_handling/websocket/connection_handler/mod.rs b/gateway/src/node/client_handling/websocket/connection_handler/mod.rs
index 3c567be156..b348eadb46 100644
--- a/gateway/src/node/client_handling/websocket/connection_handler/mod.rs
+++ b/gateway/src/node/client_handling/websocket/connection_handler/mod.rs
@@ -13,7 +13,6 @@ use std::time::Duration;
 use time::OffsetDateTime;
 use tokio::io::{AsyncRead, AsyncWrite};
 use tokio_tungstenite::WebSocketStream;
-#[cfg(feature = "otel")]
 use tracing::Instrument;
 use tracing::{debug, instrument, trace, warn};
 
@@ -126,7 +125,7 @@ where
 
     trace!("managed to perform websocket handshake!");
 
-    if let Some(auth_handle) = handle.handle_until_authenticated_or_failure().await {
+    if let Some(auth_handle) = handle.handle_until_authenticated_or_failure().in_current_span().await {
         #[cfg(feature = "otel")]
         {
             let from_client_span = {
diff --git a/gateway/src/node/internal_service_providers/authenticator/mixnet_listener.rs b/gateway/src/node/internal_service_providers/authenticator/mixnet_listener.rs
index 1e7decccfe..25f9181932 100644
--- a/gateway/src/node/internal_service_providers/authenticator/mixnet_listener.rs
+++ b/gateway/src/node/internal_service_providers/authenticator/mixnet_listener.rs
@@ -977,6 +977,7 @@ fn create_input_message(
             response_packet,
             lane,
             packet_type,
+            #[cfg(feature = "otel")]
             None,
         ))
     } else {
diff --git a/nym-api/Cargo.toml b/nym-api/Cargo.toml
index 2188d421b1..fa0ca9ccc5 100644
--- a/nym-api/Cargo.toml
+++ b/nym-api/Cargo.toml
@@ -110,6 +110,10 @@ nym-ecash-signer-check = { path = "../common/ecash-signer-check" }
 no-reward = []
 v2-performance = []
 generate-ts = ["ts-rs"]
+otel = [
+    "nym-bin-common/otel",
+    "nym-node-tester-utils/otel",
+]
 
 [build-dependencies]
 anyhow = { workspace = true }
diff --git a/nym-authenticator-client/src/helpers.rs b/nym-authenticator-client/src/helpers.rs
index 700b8870d7..a68bedad13 100644
--- a/nym-authenticator-client/src/helpers.rs
+++ b/nym-authenticator-client/src/helpers.rs
@@ -15,14 +15,12 @@ pub(crate) fn create_input_message(
             surbs,
             TransmissionLane::General,
             None,
-            None,
         ),
         IncludedSurbs::ExposeSelfAddress => nym_sdk::mixnet::InputMessage::new_regular(
             recipient,
             data,
             TransmissionLane::General,
             None,
-            None,
         ),
     }
 }
diff --git a/nym-ip-packet-client/src/connect.rs b/nym-ip-packet-client/src/connect.rs
index 8f5c56c777..5a37cf6d82 100644
--- a/nym-ip-packet-client/src/connect.rs
+++ b/nym-ip-packet-client/src/connect.rs
@@ -194,6 +194,5 @@ fn create_input_message(
         surbs,
         TransmissionLane::General,
         None,
-        None,
     ))
 }
diff --git a/nym-node/src/node/mixnet/handler.rs b/nym-node/src/node/mixnet/handler.rs
index c3f875c545..28e776d6cc 100644
--- a/nym-node/src/node/mixnet/handler.rs
+++ b/nym-node/src/node/mixnet/handler.rs
@@ -130,6 +130,7 @@ impl ConnectionHandler {
         Some(now + delay)
     }
 
+    #[instrument(skip_all, level = "debug")]
     fn handle_forward_packet(&self, now: Instant, mix_packet: MixPacket, delay: Option<Delay>) {
         if !self.shared.processing_config.forward_hop_processing_enabled {
             trace!("this nym-node does not support forward hop packets");
@@ -141,6 +142,7 @@ impl ConnectionHandler {
         self.shared.forward_mix_packet(mix_packet, forward_instant);
     }
 
+    #[instrument(skip_all, level = "debug")]
     async fn handle_final_hop(&self, final_hop_data: ProcessedFinalHop) {
         if !self.shared.processing_config.final_hop_processing_enabled {
             trace!("this nym-node does not support final hop packets");
@@ -269,6 +271,7 @@ impl ConnectionHandler {
         }
     }
 
+    #[instrument(skip_all, level = "debug")]
     async fn handle_received_packet_with_replay_detection(
         &mut self,
         now: Instant,
@@ -379,6 +382,7 @@ impl ConnectionHandler {
         true
     }
 
+    #[instrument(skip_all)]
     async fn handle_pending_packets_batch(&mut self, now: Instant) {
         let batch = self.pending_packets.reset(now);
         let replay_tags = self.pending_packets.replay_tags();
diff --git a/nym-node/src/node/mixnet/packet_forwarding/mod.rs b/nym-node/src/node/mixnet/packet_forwarding/mod.rs
index 1fb7f6e290..e2a5d13035 100644
--- a/nym-node/src/node/mixnet/packet_forwarding/mod.rs
+++ b/nym-node/src/node/mixnet/packet_forwarding/mod.rs
@@ -13,7 +13,7 @@ use nym_sphinx_forwarding::packet::MixPacket;
 use nym_task::ShutdownToken;
 use std::io;
 use tokio::time::Instant;
-use tracing::{debug, error, instrument, trace, warn};
+use tracing::{debug, error, instrument, Instrument, trace, warn};
 
 pub(crate) mod global;
 
@@ -133,16 +133,16 @@ impl<C, F> PacketForwarder<C, F> {
         loop {
             tokio::select! {
                 biased;
-                _ = shutdown_token.cancelled() => {
+                _ = shutdown_token.cancelled().in_current_span() => {
                     debug!("PacketForwarder: Received shutdown");
                     break;
                 }
-                delayed = self.delay_queue.next() => {
+                delayed = self.delay_queue.next().in_current_span() => {
                     // SAFETY: `stream` implementation of `NonExhaustiveDelayQueue` never returns `None`
                     #[allow(clippy::unwrap_used)]
                     self.handle_done_delaying(delayed.unwrap());
                 }
-                new_packet = self.packet_receiver.next() => {
+                new_packet = self.packet_receiver.next().in_current_span() => {
                     // this one is impossible to ever panic - the struct itself contains a sender
                     // and hence it can't happen that ALL senders are dropped
                     #[allow(clippy::unwrap_used)]
diff --git a/nym-node/src/node/mixnet/shared/mod.rs b/nym-node/src/node/mixnet/shared/mod.rs
index 787ffb749c..e434b9cf04 100644
--- a/nym-node/src/node/mixnet/shared/mod.rs
+++ b/nym-node/src/node/mixnet/shared/mod.rs
@@ -186,6 +186,7 @@ impl SharedData {
         }
     }
 
+    #[instrument(skip_all)]
     pub(super) fn forward_mix_packet(&self, packet: MixPacket, delay_until: Option<Instant>) {
         if self
             .mixnet_forwarder
diff --git a/nym-node/src/node/mod.rs b/nym-node/src/node/mod.rs
index 5404c2cd16..33aaa3564f 100644
--- a/nym-node/src/node/mod.rs
+++ b/nym-node/src/node/mod.rs
@@ -1103,7 +1103,7 @@ impl NymNode {
         let shutdown_token = self.shutdown_token();
 
         self.shutdown_tracker().try_spawn_named(
-            async move { packet_forwarder.run(shutdown_token).await },
+            async move { packet_forwarder.run(shutdown_token).in_current_span().await },
             "PacketForwarder",
         );
 
@@ -1242,7 +1242,7 @@ impl NymNode {
                 // ideally we'd also do some cleanup here, but currently there's no easy way to access the handles
                 return Ok(())
             }
-            startup_result = self.start_nym_node_tasks() => {
+            startup_result = self.start_nym_node_tasks().in_current_span() => {
                 let mut shutdown_manager = startup_result?;
                 shutdown_manager.replace_shutdown_signals(shutdown_signals);
                 shutdown_manager.run_until_shutdown().await;
diff --git a/sdk/rust/nym-sdk/Cargo.toml b/sdk/rust/nym-sdk/Cargo.toml
index 1b448ca59d..6e668d7de4 100644
--- a/sdk/rust/nym-sdk/Cargo.toml
+++ b/sdk/rust/nym-sdk/Cargo.toml
@@ -104,6 +104,7 @@ libp2p-vanilla = []
 otel = [
     "nym-bin-common/otel",
     "nym-gateway-requests/otel",
+    "nym-socks5-client-core/otel",
     "opentelemetry",
     "opentelemetry_sdk",
     "opentelemetry-otlp",
diff --git a/sdk/rust/nym-sdk/src/mixnet/client.rs b/sdk/rust/nym-sdk/src/mixnet/client.rs
index e5cf15129e..34cb6c8722 100644
--- a/sdk/rust/nym-sdk/src/mixnet/client.rs
+++ b/sdk/rust/nym-sdk/src/mixnet/client.rs
@@ -38,8 +38,7 @@ use std::path::Path;
 use std::path::PathBuf;
 #[cfg(unix)]
 use std::sync::Arc;
-use tokio_util::sync::CancellationToken;
-use tracing::instrument;
+use tracing::{instrument, Instrument};
 use url::Url;
 use zeroize::Zeroizing;
 
@@ -476,6 +475,7 @@ where
         })
     }
 
+    #[instrument(skip_all)]
     fn get_api_endpoints(&self) -> Vec<Url> {
         self.config
             .network_details
@@ -486,6 +486,7 @@ where
             .collect()
     }
 
+    #[instrument(skip_all)]
     fn get_nyxd_endpoints(&self) -> Vec<Url> {
         self.config
             .network_details
@@ -496,6 +497,7 @@ where
             .collect()
     }
 
+    #[instrument(skip_all)]
     async fn setup_client_keys(&self) -> Result<()> {
         let mut rng = OsRng;
         let key_store = self.storage.key_store();
@@ -836,7 +838,7 @@ where
         if self.socks5_config.is_some() {
             return Err(Error::Socks5Config { set: true });
         }
-        let (mut started_client, nym_address) = self.connect_to_mixnet_common().await?;
+        let (mut started_client, nym_address) = self.connect_to_mixnet_common().in_current_span().await?;
         let client_input = started_client.client_input.register_producer();
         let mut client_output = started_client.client_output.register_consumer();
         let client_state: nym_client_core::client::base_client::ClientState =
diff --git a/sdk/rust/nym-sdk/src/mixnet/sink.rs b/sdk/rust/nym-sdk/src/mixnet/sink.rs
index 0c51bbce66..a01359eb14 100644
--- a/sdk/rust/nym-sdk/src/mixnet/sink.rs
+++ b/sdk/rust/nym-sdk/src/mixnet/sink.rs
@@ -59,6 +59,7 @@ impl MixnetMessageSinkTranslator for DefaultMixnetMessageSinkTranslator {
                     bytes,
                     self.lane,
                     self.packet_type,
+                    #[cfg(feature = "otel")]
                     None,
                 )),
                 IncludedSurbs::Amount(surbs) => Ok(InputMessage::new_anonymous(
@@ -67,6 +68,7 @@ impl MixnetMessageSinkTranslator for DefaultMixnetMessageSinkTranslator {
                     *surbs,
                     self.lane,
                     self.packet_type,
+                    #[cfg(feature = "otel")]
                     None,
                 )),
             },
diff --git a/sdk/rust/nym-sdk/src/mixnet/traits.rs b/sdk/rust/nym-sdk/src/mixnet/traits.rs
index 965d90fb58..4a1ab15f0b 100644
--- a/sdk/rust/nym-sdk/src/mixnet/traits.rs
+++ b/sdk/rust/nym-sdk/src/mixnet/traits.rs
@@ -84,8 +84,6 @@ pub trait MixnetMessageSender {
             tracing::info!("[DEBUG] Trace id in send_message: {:?}", trace_id);
             Some(compress_trace_id(&trace_id))
         };
-        #[cfg(not(feature = "otel"))]
-        let trace_id = None;
 
         let lane = TransmissionLane::General;
         let input_msg = match surbs {
@@ -95,6 +93,7 @@ pub trait MixnetMessageSender {
                 surbs,
                 lane,
                 self.packet_type(),
+                #[cfg(feature = "otel")]
                 trace_id,
             ),
             IncludedSurbs::ExposeSelfAddress => InputMessage::new_regular(
@@ -102,6 +101,7 @@ pub trait MixnetMessageSender {
                 message.as_ref().to_vec(),
                 lane,
                 self.packet_type(),
+                #[cfg(feature = "otel")]
                 trace_id,
             ),
         };
diff --git a/service-providers/ip-packet-router/Cargo.toml b/service-providers/ip-packet-router/Cargo.toml
index 14cedf7743..765924d5eb 100644
--- a/service-providers/ip-packet-router/Cargo.toml
+++ b/service-providers/ip-packet-router/Cargo.toml
@@ -50,3 +50,7 @@ tokio-tun.workspace = true
 
 [dev-dependencies]
 async-trait.workspace = true
+
+[features]
+default = []
+otel = ["nym-client-core/otel"]
diff --git a/service-providers/ip-packet-router/src/util/create_message.rs b/service-providers/ip-packet-router/src/util/create_message.rs
index 178c318b38..2473266a59 100644
--- a/service-providers/ip-packet-router/src/util/create_message.rs
+++ b/service-providers/ip-packet-router/src/util/create_message.rs
@@ -11,10 +11,22 @@ pub(crate) fn create_input_message(
     let packet_type = None;
     match recipient {
         ConnectedClientId::NymAddress(recipient) => {
-            InputMessage::new_regular(**recipient, response_packet, lane, packet_type, None)
+            InputMessage::new_regular(
+                **recipient,
+                response_packet,
+                lane,
+                packet_type,
+                #[cfg(feature = "otel")]
+                None,
+            )
         }
         ConnectedClientId::AnonymousSenderTag(tag) => {
-            InputMessage::new_reply(*tag, response_packet, lane, packet_type)
+            InputMessage::new_reply(
+                *tag,
+                response_packet,
+                lane,
+                packet_type,
+            )
         }
     }
 }
diff --git a/service-providers/network-requester/Cargo.toml b/service-providers/network-requester/Cargo.toml
index 521d664efe..f2e4ccd72e 100644
--- a/service-providers/network-requester/Cargo.toml
+++ b/service-providers/network-requester/Cargo.toml
@@ -64,3 +64,12 @@ nym-id = { path = "../../common/nym-id" }
 
 [dev-dependencies]
 tempfile = { workspace = true }
+
+[features]
+default = []
+otel = [
+    "nym-client-core/otel",
+    "nym-sphinx/otel", 
+    "nym-bin-common/otel", 
+    "nym-sdk/otel"
+]
\ No newline at end of file
diff --git a/service-providers/network-requester/src/reply.rs b/service-providers/network-requester/src/reply.rs
index 5e60302fc1..f366e757a7 100644
--- a/service-providers/network-requester/src/reply.rs
+++ b/service-providers/network-requester/src/reply.rs
@@ -192,6 +192,7 @@ impl MixnetAddress {
                     data: message,
                     lane: TransmissionLane::ConnectionId(connection_id),
                     max_retransmissions: None,
+                    #[cfg(feature = "otel")]
                     trace_id: None,
                 }),
                 packet_type,