diff --git a/docs/references/production_request_trace.md b/docs/references/production_request_trace.md
new file mode 100644
index 000000000..928e5fd3f
--- /dev/null
+++ b/docs/references/production_request_trace.md
@@ -0,0 +1,118 @@
+SGlang exports request trace data based on the OpenTelemetry Collector. You can enable tracing by adding the `--enable-trace` and configure the OpenTelemetry Collector endpoint using `--oltp-traces-endpoint` when launching the server.
+
+You can find example screenshots of the visualization in https://github.com/sgl-project/sglang/issues/8965.
+
+## Setup Guide
+This section explains how to configure the request tracing and export the trace data.
+1. Install the required packages and tools
+    * install Docker and Docker Compose
+    * install the dependencies
+    ```bash
+    # enter the SGLang root directory
+    pip install -e "python[tracing]"
+
+    # or manually install the dependencies using pip
+    pip install opentelemetry-sdk opentelemetry-api opentelemetry-exporter-otlp opentelemetry-exporter-otlp-proto-grpc
+    ```
+
+2. launch opentelemetry collector and jaeger
+    ```bash
+    docker compose -f examples/monitoring/tracing_compose.yaml up -d
+    ```
+
+3. start your SGLang server with tracing enabled
+    ```bash
+    python -m sglang.launch_server --enable-trace --oltp-traces-endpoint 0.0.0.0:4317 <other option>
+    ```
+
+    Replace `0.0.0.0:4317` with the actual endpoint of the opentelemetry collector. If you launched the openTelemetry collector with tracing_compose.yaml, the default receiving port is 4317.
+
+4. raise some requests
+5. Observe whether trace data is being exported
+    * Access port 16686 of Jaeger using a web browser to visualize the request traces.
+    * The OpenTelemetry Collector also exports trace data in JSON format to /tmp/otel_trace.json. In a follow-up patch, we will provide a tool to convert this data into a Perfetto-compatible format, enabling visualization of requests in the Perfetto UI.
+
+## How to add Tracing for slices you're interested in?
+We have already inserted instrumentation points in the tokenizer and scheduler main threads. If you wish to trace additional request execution segments or perform finer-grained tracing, please use the APIs from the tracing package as described below.
+
+1. initialization
+
+    Every process involved in tracing during the initialization phase should execute:
+    ```python
+    process_tracing_init(oltp_traces_endpoint, server_name)
+    ```
+    The oltp_traces_endpoint is obtained from the arguments, and you can set server_name freely, but it should remain consistent across all processes.
+
+    Every thread involved in tracing during the initialization phase should execute:
+    ```python
+    trace_set_thread_info("thread label", tp_rank, dp_rank)
+    ```
+    The "thread label" can be regarded as the name of the thread, used to distinguish different threads in the visualization view.
+
+2. Mark the beginning and end of a request
+    ```
+    trace_req_start(rid, bootstrap_room)
+    trace_req_finish(rid)
+    ```
+    These two APIs must be called within the same process, for example, in the tokenizer.
+
+3. Add tracing for slice
+
+    * Add slice tracing normally:
+        ```python
+        trace_slice_start("slice A", rid)
+        trace_slice_end("slice A", rid)
+        ```
+
+    - Use the "anonymous" flag to not specify a slice name at the start of the slice, allowing the slice name to be determined by trace_slice_end.
+    <br>Note: Anonymous slices must not be nested.
+        ```python
+        trace_slice_start("", rid, anonymous = True)
+        trace_slice_end("slice A", rid)
+        ```
+
+    - In trace_slice_end, use auto_next_anon to automatically create the next anonymous slice, which can reduce the number of instrumentation points needed.
+        ```python
+        trace_slice_start("", rid, anonymous = True)
+        trace_slice_end("slice A", rid, auto_next_anon = True)
+        trace_slice_end("slice B", rid, auto_next_anon = True)
+        trace_slice_end("slice C", rid, auto_next_anon = True)
+        trace_slice_end("slice D", rid)
+        ```
+    - The end of the last slice in a thread must be marked with thread_finish_flag=True; otherwise, the thread's span will not be properly generated.
+        ```python
+        trace_slice_end("slice D", rid, thread_finish_flag = True)
+        ```
+
+4. When the request execution flow transfers to another thread, the trace context needs to be explicitly propagated.
+    - sender: Execute the following code before sending the request to another thread via ZMQ
+        ```python
+        trace_context = trace_get_proc_propagate_context(rid)
+        req.trace_context = trace_context
+        ```
+    - receiver: Execute the following code after receiving the request via ZMQ
+        ```python
+        trace_set_proc_propagate_context(rid, req.trace_context)
+        ```
+
+## How to Extend the Tracing Framework to Support Complex Tracing Scenarios
+
+The currently provided tracing package still has potential for further development. If you wish to build more advanced features upon it, you must first understand its existing design principles.
+
+The core of the tracing framework's implementation lies in the design of the trace context. To aggregate scattered slices and enable concurrent tracking of multiple requests, we have designed a trace context with a three-level structure.
+
+The core of the tracing framework implementation lies in the design of the trace context. To aggregate scattered slices and enable concurrent tracking of multiple requests, we have designed a three-level trace context structure: `SglangTraceReqContext`, `SglangTraceThreadContext`, and `SglangTraceSliceContext`. Their relationship is as follows:
+```
+SglangTraceReqContext (req_id="req-123")
+├── SglangTraceThreadContext(thread_label="scheduler", tp_rank=0)
+│ └── SglangTraceSliceContext (name="prefill") # cur slice
+|
+└── SglangTraceThreadContext(thread_label="scheduler", tp_rank=1)
+  └── SglangTraceSliceContext (name="prefill") # cur slice
+```
+
+Each traced request maintains a global `SglangTraceReqContext`. For every thread processing the request, a corresponding `SglangTraceThreadContext` is recorded and composed within the `SglangTraceReqContext`. Within each thread, every currently traced slice (possibly nested) is represented by a `SglangTraceSliceContext`, which is stored in the `SglangTraceThreadContext`. Generate a span and release the corresponding context when slice tracing, thread tracing, or request tracing ends.
+
+In addition to the above hierarchy, each slice also records its previous slice via Span.add_link(), which can be used to trace the execution flow.
+
+When the request execution flow transfers to a new thread, the trace context needs to be explicitly propagated. In the framework, this is represented by `SglangTracePropagateContext`, which contains the context of the request span and the previous slice span.
diff --git a/examples/monitoring/opentelemetry.yaml b/examples/monitoring/opentelemetry.yaml
new file mode 100644
index 000000000..8593d9182
--- /dev/null
+++ b/examples/monitoring/opentelemetry.yaml
@@ -0,0 +1,38 @@
+receivers:
+  otlp:
+    protocols:
+      grpc:
+        endpoint: 0.0.0.0:4317
+      http:
+        endpoint: 0.0.0.0:4318
+processors:
+  batch:
+
+exporters:
+  otlp:
+    endpoint: jaeger:4317
+    tls:
+      insecure: true
+  file:
+    path: /tmp/otel_trace.json
+
+extensions:
+  health_check:
+  pprof:
+  zpages:
+
+service:
+  extensions: [health_check, pprof, zpages]
+  pipelines:
+    traces:
+      receivers: [otlp]
+      processors: [batch]
+      exporters: [otlp, file]
+    metrics:
+      receivers: [otlp]
+      processors: [batch]
+      exporters: [otlp]
+    logs:
+      receivers: [otlp]
+      processors: [batch]
+      exporters: [otlp]
diff --git a/examples/monitoring/tracing_compose.yaml b/examples/monitoring/tracing_compose.yaml
new file mode 100644
index 000000000..7ed1ecdda
--- /dev/null
+++ b/examples/monitoring/tracing_compose.yaml
@@ -0,0 +1,21 @@
+services:
+  otel-collector:
+    image: docker.io/otel/opentelemetry-collector
+    volumes:
+      - ./opentelemetry.yaml:/etc/otelcol/config.yaml
+      - /tmp:/tmp
+    ports:
+      - "4317:4317"   # OTLP gRPC
+      - "4318:4318"   # OTLP HTTP
+    depends_on:
+      - jaeger
+    restart: unless-stopped
+
+  jaeger:
+    image: jaegertracing/all-in-one
+    container_name: jaeger
+    ports:
+      - "16686:16686"
+    environment:
+      - COLLECTOR_OTLP_ENABLED=true
+    restart: unless-stopped
diff --git a/python/pyproject.toml b/python/pyproject.toml
index 060e918b4..403f68143 100755
--- a/python/pyproject.toml
+++ b/python/pyproject.toml
@@ -56,6 +56,13 @@ runtime_common = [
     "xgrammar==0.1.24",
 ]
 
+tracing = [
+    "opentelemetry-sdk",
+    "opentelemetry-api",
+    "opentelemetry-exporter-otlp",
+    "opentelemetry-exporter-otlp-proto-grpc",
+]
+
 srt = [
     "sglang[runtime_common]",
     "sgl-kernel==0.3.9.post2",
diff --git a/python/sglang/srt/entrypoints/engine.py b/python/sglang/srt/entrypoints/engine.py
index 91e0d695c..390e0985a 100644
--- a/python/sglang/srt/entrypoints/engine.py
+++ b/python/sglang/srt/entrypoints/engine.py
@@ -33,6 +33,8 @@ import zmq
 import zmq.asyncio
 from PIL.Image import Image
 
+from sglang.srt.tracing.trace import process_tracing_init, trace_set_thread_info
+
 # Fix a bug of Python threading
 setattr(threading, "_register_atexit", lambda *args, **kwargs: None)
 
@@ -138,6 +140,12 @@ class Engine(EngineBase):
             context, zmq.DEALER, self.port_args.rpc_ipc_name, True
         )
 
+        if server_args.enable_trace:
+            process_tracing_init(server_args.oltp_traces_endpoint, "sglang")
+            if server_args.disaggregation_mode == "null":
+                thread_label = "Tokenizer"
+                trace_set_thread_info(thread_label)
+
     def generate(
         self,
         # The input prompt. It can be a single prompt or a batch of prompts.
diff --git a/python/sglang/srt/entrypoints/http_server.py b/python/sglang/srt/entrypoints/http_server.py
index 524db4693..28aa897f7 100644
--- a/python/sglang/srt/entrypoints/http_server.py
+++ b/python/sglang/srt/entrypoints/http_server.py
@@ -31,6 +31,8 @@ from typing import Any, AsyncIterator, Callable, Dict, List, Optional
 
 import setproctitle
 
+from sglang.srt.tracing.trace import process_tracing_init, trace_set_thread_info
+
 # Fix a bug of Python threading
 setattr(threading, "_register_atexit", lambda *args, **kwargs: None)
 
@@ -179,6 +181,13 @@ async def init_multi_tokenizer() -> ServerArgs:
             scheduler_info=scheduler_info,
         )
     )
+
+    if server_args.enable_trace:
+        process_tracing_init(server_args.oltp_traces_endpoint, "sglang")
+        if server_args.disaggregation_mode == "null":
+            thread_label = f"MultiTokenizer-{tokenizer_manager.worker_id}"
+            trace_set_thread_info(thread_label)
+
     return server_args
 
 
@@ -1203,6 +1212,12 @@ def launch_server(
             server_args=server_args,
         )
 
+        if server_args.enable_trace:
+            process_tracing_init(server_args.oltp_traces_endpoint, "sglang")
+            if server_args.disaggregation_mode == "null":
+                thread_label = "Tokenizer"
+                trace_set_thread_info(thread_label)
+
     set_global_state(
         _GlobalState(
             tokenizer_manager=tokenizer_manager,
diff --git a/python/sglang/srt/managers/io_struct.py b/python/sglang/srt/managers/io_struct.py
index 093060174..152c5a915 100644
--- a/python/sglang/srt/managers/io_struct.py
+++ b/python/sglang/srt/managers/io_struct.py
@@ -605,6 +605,9 @@ class TokenizedGenerateReqInput:
     # Image gen grpc migration
     return_bytes: bool = False
 
+    # tracing context
+    trace_context: Optional[Dict] = None
+
 
 @dataclass
 class BatchTokenizedGenerateReqInput:
@@ -654,6 +657,9 @@ class EmbeddingReqInput:
     # For background responses (OpenAI responses API)
     background: bool = False
 
+    # tracing context
+    trace_context: Optional[Dict] = None
+
     def normalize_batch_and_arguments(self):
         # at least one of text, input_ids, or image should be provided
         if self.text is None and self.input_ids is None and self.image_data is None:
diff --git a/python/sglang/srt/managers/scheduler.py b/python/sglang/srt/managers/scheduler.py
index c66354be0..be7bc6a4a 100644
--- a/python/sglang/srt/managers/scheduler.py
+++ b/python/sglang/srt/managers/scheduler.py
@@ -149,6 +149,15 @@ from sglang.srt.parser.reasoning_parser import ReasoningParser
 from sglang.srt.server_args import PortArgs, ServerArgs
 from sglang.srt.speculative.spec_info import SpeculativeAlgorithm
 from sglang.srt.torch_memory_saver_adapter import TorchMemorySaverAdapter
+from sglang.srt.tracing.trace import (
+    process_tracing_init,
+    trace_event,
+    trace_set_proc_propagate_context,
+    trace_set_thread_info,
+    trace_slice,
+    trace_slice_end,
+    trace_slice_start,
+)
 from sglang.srt.two_batch_overlap import TboDPAttentionPreparer
 from sglang.srt.utils import (
     DynamicGradMode,
@@ -826,6 +835,10 @@ class Scheduler(
             batch = self.get_next_batch_to_run()
             self.cur_batch = batch
 
+            if batch:
+                for req in batch.reqs:
+                    trace_event("schedule", req.rid)
+
             if batch:
                 result = self.run_batch(batch)
                 self.process_batch_result(batch, result)
@@ -847,6 +860,10 @@ class Scheduler(
             batch = self.get_next_batch_to_run()
             self.cur_batch = batch
 
+            if batch:
+                for req in batch.reqs:
+                    trace_event("schedule", req.rid)
+
             if batch:
                 batch.launch_done = threading.Event()
                 result = self.run_batch(batch)
@@ -1110,6 +1127,12 @@ class Scheduler(
                 self.tp_cpu_group,
                 src=self.tp_group.ranks[0],
             )
+
+        for req in recv_reqs:
+            if isinstance(req, (TokenizedGenerateReqInput, TokenizedEmbeddingReqInput)):
+                trace_set_proc_propagate_context(req.rid, req.trace_context)
+                trace_slice_start("", req.rid, anonymous=True)
+
         return recv_reqs
 
     def process_input_requests(self, recv_reqs: List):
@@ -1347,6 +1370,7 @@ class Scheduler(
         else:
             self._prefetch_kvcache(req)
             self.waiting_queue.append(req)
+            trace_slice_end("process req", req.rid, auto_next_anon=True)
 
     def _prefetch_kvcache(self, req: Req):
         if self.enable_hicache_storage:
@@ -1914,8 +1938,23 @@ class Scheduler(
     ):
         if batch.forward_mode.is_decode():
             self.process_batch_result_decode(batch, result, launch_done)
+            for req in batch.reqs:
+                trace_slice(
+                    "decode loop",
+                    req.rid,
+                    auto_next_anon=not req.finished(),
+                    thread_finish_flag=req.finished(),
+                )
+
         elif batch.forward_mode.is_extend():
             self.process_batch_result_prefill(batch, result, launch_done)
+            for req in batch.reqs:
+                trace_slice(
+                    "prefill",
+                    req.rid,
+                    auto_next_anon=not req.finished(),
+                    thread_finish_flag=req.finished(),
+                )
         elif batch.forward_mode.is_idle():
             if self.enable_overlap:
                 self.tp_worker.resolve_last_batch_result(launch_done)
@@ -2600,6 +2639,12 @@ def run_scheduler_process(
     pipe_writer,
     balance_meta: Optional[DPBalanceMeta] = None,
 ):
+    if server_args.enable_trace:
+        process_tracing_init(server_args.oltp_traces_endpoint, "sglang")
+        if server_args.disaggregation_mode == "null":
+            thread_label = "Scheduler"
+            trace_set_thread_info(thread_label, tp_rank, dp_rank)
+
     if (numa_node := server_args.numa_node) is not None:
         numa_bind_to_node(numa_node[gpu_id])
 
diff --git a/python/sglang/srt/managers/tokenizer_manager.py b/python/sglang/srt/managers/tokenizer_manager.py
index be2e7c654..25b5fd87c 100644
--- a/python/sglang/srt/managers/tokenizer_manager.py
+++ b/python/sglang/srt/managers/tokenizer_manager.py
@@ -82,6 +82,13 @@ from sglang.srt.managers.tokenizer_communicator_mixin import TokenizerCommunicat
 from sglang.srt.metrics.collector import TokenizerMetricsCollector
 from sglang.srt.sampling.sampling_params import SamplingParams
 from sglang.srt.server_args import PortArgs, ServerArgs
+from sglang.srt.tracing.trace import (
+    trace_get_proc_propagate_context,
+    trace_req_finish,
+    trace_req_start,
+    trace_slice_end,
+    trace_slice_start,
+)
 from sglang.srt.utils import (
     configure_gc_warning,
     dataclass_to_string_truncated,
@@ -358,6 +365,24 @@ class TokenizerManager(TokenizerCommunicatorMixin):
                 # If it's a single value, add worker_id prefix
                 obj.rid = f"{self.worker_id}_{obj.rid}"
 
+        if obj.is_single:
+            bootstrap_room = (
+                obj.bootstrap_room if hasattr(obj, "bootstrap_room") else None
+            )
+            trace_req_start(obj.rid, bootstrap_room, ts=int(created_time * 1e9))
+            trace_slice_start("", obj.rid, ts=int(created_time * 1e9), anonymous=True)
+        else:
+            for i in range(len(obj.rid)):
+                bootstrap_room = (
+                    obj.bootstrap_room[i]
+                    if hasattr(obj, "bootstrap_room") and obj.bootstrap_room
+                    else None
+                )
+                trace_req_start(obj.rid[i], bootstrap_room, ts=int(created_time * 1e9))
+                trace_slice_start(
+                    "", obj.rid[i], ts=int(created_time * 1e9), anonymous=True
+                )
+
         if self.log_requests:
             max_length, skip_names, _ = self.log_request_metadata
             logger.info(
@@ -574,6 +599,7 @@ class TokenizerManager(TokenizerCommunicatorMixin):
             mm_inputs = None
 
         self._validate_one_request(obj, input_ids)
+        trace_slice_end("tokenize", obj.rid)
         return self._create_tokenized_object(
             obj, input_text, input_ids, input_embeds, mm_inputs, token_type_ids
         )
@@ -752,6 +778,7 @@ class TokenizerManager(TokenizerCommunicatorMixin):
                     req, req.text, input_ids_list[i], None, None, token_type_ids
                 )
             )
+            trace_slice_end("tokenize", req.rid)
         logger.debug(f"Completed batch processing for {batch_size} requests")
         return tokenized_objs
 
@@ -779,9 +806,12 @@ class TokenizerManager(TokenizerCommunicatorMixin):
         tokenized_obj: Union[TokenizedGenerateReqInput, TokenizedEmbeddingReqInput],
         created_time: Optional[float] = None,
     ):
+        trace_slice_start("dispatch", obj.rid)
+        tokenized_obj.trace_context = trace_get_proc_propagate_context(obj.rid)
         self.send_to_scheduler.send_pyobj(tokenized_obj)
         state = ReqState([], False, asyncio.Event(), obj, created_time=created_time)
         self.rid_to_state[obj.rid] = state
+        trace_slice_end("dispatch", obj.rid, thread_finish_flag=True)
         return state
 
     def _send_batch_request(
@@ -1429,6 +1459,9 @@ class TokenizerManager(TokenizerCommunicatorMixin):
                     meta_info["spec_verify_ct"] = recv_obj.spec_verify_ct[i]
                 state.finished_time = time.time()
                 meta_info["e2e_latency"] = state.finished_time - state.created_time
+
+                trace_req_finish(rid, ts=int(state.finished_time * 1e9))
+
                 del self.rid_to_state[rid]
 
                 # Mark ongoing LoRA request as finished.
diff --git a/python/sglang/srt/server_args.py b/python/sglang/srt/server_args.py
index ce67d1f7b..925f51ea1 100644
--- a/python/sglang/srt/server_args.py
+++ b/python/sglang/srt/server_args.py
@@ -215,6 +215,8 @@ class ServerArgs:
     enable_request_time_stats_logging: bool = False
     kv_events_config: Optional[str] = None
     gc_warning_threshold_secs: float = 0.0
+    enable_trace: bool = False
+    oltp_traces_endpoint: str = "localhost:4317"
 
     # API related
     api_key: Optional[str] = None
@@ -1390,6 +1392,17 @@ class ServerArgs:
             default=None,
             help="Config in json format for NVIDIA dynamo KV event publishing. Publishing will be enabled if this flag is used.",
         )
+        parser.add_argument(
+            "--enable-trace",
+            action="store_true",
+            help="Enable opentelemetry trace",
+        )
+        parser.add_argument(
+            "--oltp-traces-endpoint",
+            type=str,
+            default="localhost:4317",
+            help="Config opentelemetry collector endpoint if --enable-trace is set. format: <ip>:<port>",
+        )
 
         # API related
         parser.add_argument(
diff --git a/python/sglang/srt/tracing/trace.py b/python/sglang/srt/tracing/trace.py
new file mode 100644
index 000000000..b4ccbfa9f
--- /dev/null
+++ b/python/sglang/srt/tracing/trace.py
@@ -0,0 +1,552 @@
+# Copyright 2023-2024 SGLang Team
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+# ==============================================================================
+"""package for sglang requests tracing"""
+
+from __future__ import annotations
+
+import ctypes
+import logging
+import os
+import random
+import threading
+import time
+import uuid
+from dataclasses import dataclass
+from typing import Any, Dict, List, Optional
+
+logger = logging.getLogger(__name__)
+opentelemetry_imported = False
+tracing_enabled = False
+
+try:
+    from opentelemetry import context, propagate, trace
+    from opentelemetry.exporter.otlp.proto.grpc.trace_exporter import OTLPSpanExporter
+    from opentelemetry.sdk.resources import SERVICE_NAME, Resource
+    from opentelemetry.sdk.trace import TracerProvider, id_generator
+    from opentelemetry.sdk.trace.export import BatchSpanProcessor
+
+    opentelemetry_imported = True
+except ImportError:
+
+    class id_generator:
+        class IdGenerator:
+            pass
+
+    logger.info("opentelemetry package is not installed, tracing disabled")
+
+
+@dataclass
+class SglangTraceThreadInfo:
+    host_id: str
+    pid: int
+    thread_label: str
+    tp_rank: int
+    dp_rank: int
+    tracer: trace.Tracer
+
+
+@dataclass
+class SglangTraceSliceContext:
+    slice_name: str
+    span: Optional[trace.span.Span] = None
+    # When True, defers slice_name assignment until trace_slice_end()
+    anonymous: bool = False
+
+
+@dataclass
+class SglangTraceThreadContext:
+    thread_info: SglangTraceThreadInfo
+    cur_slice_stack: List[SglangTraceSliceContext]
+    thread_span: Optional[trace.span.Span] = None
+    # Record the most recently completed span as the previous span for the next span to be created.
+    last_span_context: Optional[trace.span.SpanContext] = None
+
+
+@dataclass
+class SglangTraceReqContext:
+    rid: str
+    start_time_ns: int
+    threads_context: Dict[int, SglangTraceThreadContext]
+    bootstrap_room: Optional[int] = None
+
+    # Indicates whether this instance is a replica from the main process.
+    # When True, root_span is None and only root_span_context is preserved.
+    is_copy: bool = False
+    root_span: Optional[trace.span.Span] = None
+    root_span_context: Optional[context.Context] = None
+
+
+@dataclass
+class SglangTracePropagateContext:
+    root_span_context: context.Context
+    prev_span_context: Optional[trace.span.SpanContext]
+
+    def to_dict(self):
+        carrier: dict[str, str] = {}
+        context.attach(self.root_span_context)
+        propagate.inject(carrier)
+
+        if self.prev_span_context:
+            return {
+                "root_span": carrier,
+                "prev_span": {
+                    "span_id": self.prev_span_context.span_id,
+                    "trace_id": self.prev_span_context.trace_id,
+                },
+            }
+        else:
+            return {"root_span": carrier, "prev_span": "None"}
+
+    @classmethod
+    def instance_from_dict(cls, d):
+        if "root_span" not in d or "prev_span" not in d:
+            return None
+
+        carrier = d["root_span"]
+        root_span_context = propagate.extract(carrier)
+
+        if d["prev_span"] == "None":
+            prev_span_context = None
+        else:
+            prev_span_context = trace.span.SpanContext(
+                trace_id=d["prev_span"]["trace_id"],
+                span_id=d["prev_span"]["span_id"],
+                is_remote=True,
+            )
+
+        return cls(root_span_context, prev_span_context)
+
+
+class SglangTraceCustomIdGenerator(id_generator.IdGenerator):
+    """
+    The default IdGenerator may produce duplicate trace IDs across multiple TP scheduler processes,
+    hence a custom IdGenerator is implemented.
+    """
+
+    def __init__(self):
+        super().__init__()
+        self.local_random = random.Random()
+        self.local_random.seed(time.time())
+
+    def generate_trace_id(self) -> int:
+        return self.local_random.getrandbits(64)
+
+    def generate_span_id(self) -> int:
+        return self.local_random.getrandbits(64)
+
+
+# global variables
+threads_info: Dict[int, SglangTraceThreadInfo] = {}
+reqs_context: Dict[str, SglangTraceReqContext] = {}
+
+__get_cur_time_ns = lambda: int(time.time() * 1e9)
+
+
+def __get_host_id() -> str:
+    """
+    In distributed tracing systems, obtain a unique node identifier
+    and inject it into all subsequently generated spans
+    to prevent PID conflicts between threads on different nodes.
+    """
+    if os.path.exists("/etc/machine-id"):
+        try:
+            with open("/etc/machine-id", "r") as f:
+                return f.read().strip()
+        except:
+            pass
+
+    mac = uuid.getnode()
+    if mac != 0:
+        return uuid.UUID(int=mac).hex
+
+    return "unknown"
+
+
+# Should be called by each tracked process.
+def process_tracing_init(otlp_endpoint, server_name):
+    global tracing_enabled
+    global __get_cur_time_ns
+    if not opentelemetry_imported:
+        tracing_enabled = False
+        return
+
+    try:
+        resource = Resource.create(
+            attributes={
+                SERVICE_NAME: server_name,
+            }
+        )
+        tracer_provider = TracerProvider(
+            resource=resource, id_generator=SglangTraceCustomIdGenerator()
+        )
+
+        processor = BatchSpanProcessor(
+            OTLPSpanExporter(endpoint=otlp_endpoint, insecure=True)
+        )
+        tracer_provider.add_span_processor(processor)
+        trace.set_tracer_provider(tracer_provider)
+    except Exception as e:
+        logger.error(f": initialize opentelemetry error:{e}")
+        logger.warning("pelease set correct otlp endpoint")
+        tracing_enabled = False
+        return
+
+    if hasattr(time, "time_ns"):
+        __get_cur_time_ns = lambda: int(time.time_ns())
+
+    tracing_enabled = True
+
+
+# Should be called by each tracked thread.
+def trace_set_thread_info(
+    thread_label: str, tp_rank: Optional[int] = None, dp_rank: Optional[int] = None
+):
+    if not tracing_enabled:
+        return
+
+    pid = threading.get_native_id()
+    if pid in threads_info:
+        return
+
+    threads_info[pid] = SglangTraceThreadInfo(
+        host_id=__get_host_id(),
+        pid=pid,
+        thread_label=thread_label,
+        tp_rank=tp_rank,
+        dp_rank=dp_rank,
+        tracer=trace.get_tracer("sglang server"),
+    )
+
+
+def __create_thread_context(pid, req_span_context, ts: Optional[int] = None):
+    if pid not in threads_info:
+        trace_set_thread_info("unknown")
+
+    thread_info = threads_info[pid]
+    thread_context = SglangTraceThreadContext(
+        thread_info=thread_info,
+        cur_slice_stack=[],
+    )
+
+    thread_name = f"{thread_info.thread_label}"
+    if thread_info.tp_rank is not None:
+        thread_name += f" [TP {thread_info.tp_rank}] "
+    thread_name += f"(host:{thread_info.host_id[:8]} | pid:{pid})"
+    ts = ts or __get_cur_time_ns()
+    thread_context.thread_span = thread_context.thread_info.tracer.start_span(
+        name=thread_name,
+        start_time=ts,
+        context=req_span_context,
+    )
+
+    if thread_info.tp_rank is not None:
+        thread_context.thread_span.set_attributes({"tp_rank": thread_info.tp_rank})
+
+    thread_context.thread_span.set_attributes(
+        {
+            "host_id": thread_info.host_id,
+            "pid": thread_info.pid,
+            "thread_label": thread_info.thread_label,
+        }
+    )
+
+    return thread_context
+
+
+def trace_get_proc_propagate_context(rid) -> Optional[Dict[str, Any]]:
+    if not tracing_enabled:
+        return None
+
+    rid = str(rid)
+    if rid not in reqs_context or not reqs_context[rid].root_span_context:
+        return None
+
+    pid = threading.get_native_id()
+    prev_span_context = None
+    thread_context = reqs_context[rid].threads_context[pid]
+    if thread_context.cur_slice_stack:
+        cur_slice_info = thread_context.cur_slice_stack[0]
+        prev_span_context = cur_slice_info.span.get_span_context()
+    elif thread_context.last_span_context:
+        prev_span_context = thread_context.last_span_context
+
+    trace_context = SglangTracePropagateContext(
+        reqs_context[rid].root_span_context, prev_span_context
+    )
+    return trace_context.to_dict()
+
+
+def trace_set_proc_propagate_context(rid, trace_context: Optional[Dict[str, Any]]):
+    if not tracing_enabled:
+        return
+    if not trace_context:
+        return
+
+    trace_context = SglangTracePropagateContext.instance_from_dict(trace_context)
+    if not trace_context:
+        return
+
+    rid = str(rid)
+    # Create a copy of the request context
+    if rid not in reqs_context:
+        reqs_context[rid] = SglangTraceReqContext(
+            rid=rid,
+            start_time_ns=__get_cur_time_ns(),
+            threads_context={},
+            root_span_context=trace_context.root_span_context,
+            is_copy=True,
+        )
+
+    pid = threading.get_native_id()
+
+    if pid in reqs_context[rid].threads_context:
+        return
+
+    # Create new thread context.
+    reqs_context[rid].threads_context[pid] = __create_thread_context(
+        pid,
+        trace_context.root_span_context,
+        reqs_context[rid].start_time_ns,
+    )
+
+    reqs_context[rid].threads_context[
+        pid
+    ].last_span_context = trace_context.prev_span_context
+
+
+def trace_req_start(
+    rid: str,
+    bootstrap_room: Optional[int] = None,
+    ts: Optional[int] = None,
+):
+    if not tracing_enabled:
+        return
+
+    rid = str(rid)
+
+    ts = ts or __get_cur_time_ns()
+
+    pid = threading.get_native_id()
+    if pid not in threads_info:
+        return
+
+    # create req context and root span
+    reqs_context[rid] = SglangTraceReqContext(
+        rid=rid,
+        start_time_ns=ts,
+        threads_context={},
+        bootstrap_room=bootstrap_room,
+        is_copy=False,
+    )
+
+    # Drop the worker_id added by MultiTokenizer
+    orig_rid = rid.split("_")[-1]
+    tracer = threads_info[pid].tracer
+    root_span = tracer.start_span(
+        name=f"Req {orig_rid[:8]}",
+        start_time=ts,
+    )
+
+    root_span.set_attributes(
+        {
+            "rid": rid,
+            "bootstrap_room": bootstrap_room if bootstrap_room else "None",
+        }
+    )
+
+    reqs_context[rid].root_span = root_span
+    reqs_context[rid].root_span_context = trace.set_span_in_context(root_span)
+
+    # create thread context and thread span
+    reqs_context[rid].threads_context[pid] = __create_thread_context(
+        pid,
+        reqs_context[rid].root_span_context,
+        ts,
+    )
+
+
+def trace_req_finish(
+    rid: str, ts: Optional[int] = None, attrs: Optional[Dict[str, Any]] = None
+):
+    if not tracing_enabled:
+        return
+
+    rid = str(rid)
+    if rid not in reqs_context:
+        return
+
+    req_context = reqs_context[rid]
+    ts = ts or __get_cur_time_ns()
+
+    # End all unclosed thread spans.
+    for thread_context in req_context.threads_context.values():
+        thread_context.thread_span.end(end_time=ts)
+
+    if attrs:
+        req_context.root_span.set_attributes(attrs)
+
+    req_context.root_span.end(end_time=ts)
+
+    del reqs_context[rid]
+
+
+def trace_slice_start(
+    name: str,
+    rid: str,
+    ts: Optional[int] = None,
+    anonymous: bool = False,
+):
+
+    rid = str(rid)
+    if not tracing_enabled or rid not in reqs_context:
+        return
+
+    pid = threading.get_native_id()
+    if pid not in reqs_context[rid].threads_context:
+        return
+
+    thread_context = reqs_context[rid].threads_context[pid]
+
+    ts = ts or __get_cur_time_ns()
+
+    slice_info = SglangTraceSliceContext(
+        slice_name=name,
+        anonymous=anonymous,
+    )
+
+    # find prev slice
+    prev_span_context = None
+    if not thread_context.cur_slice_stack:
+        if thread_context.last_span_context:
+            prev_span_context = thread_context.last_span_context
+
+    parent_span = thread_context.thread_span
+    if thread_context.cur_slice_stack:
+        parent_span = thread_context.cur_slice_stack[-1].span
+
+    parent_span_context = trace.set_span_in_context(parent_span)
+    span = thread_context.thread_info.tracer.start_span(
+        name=slice_info.slice_name,
+        start_time=ts,
+        context=parent_span_context,
+    )
+
+    if prev_span_context:
+        span.add_link(prev_span_context)
+
+    slice_info.span = span
+
+    thread_context.cur_slice_stack.append(slice_info)
+
+
+def trace_slice_end(
+    name: str,
+    rid: str,
+    ts: Optional[int] = None,
+    attrs: Optional[Dict[str, Any]] = None,
+    auto_next_anon: bool = False,
+    thread_finish_flag: bool = False,
+):
+    rid = str(rid)
+    if not tracing_enabled or rid not in reqs_context:
+        return
+
+    pid = threading.get_native_id()
+    if pid not in reqs_context[rid].threads_context:
+        return
+
+    thread_context = reqs_context[rid].threads_context[pid]
+
+    if not thread_context.cur_slice_stack:
+        logger.warning(f"No matching with the SLICE_START event{name} is required.")
+        return
+
+    ts = ts or __get_cur_time_ns()
+    slice_info = thread_context.cur_slice_stack[-1]
+    span = slice_info.span
+
+    if slice_info.anonymous:
+        span.update_name(name)
+    else:
+        span = slice_info.span
+        if slice_info.slice_name != name:
+            span.set_status(trace.Status(trace.StatusCode.ERROR))
+            logger.warning(f"Slice name mismatch: {name} != {slice_info.slice_name}")
+
+    if attrs:
+        span.set_attributes(attrs)
+
+    span.end(end_time=ts)
+
+    thread_context.cur_slice_stack.pop()
+    if len(thread_context.cur_slice_stack) == 0:
+        thread_context.last_span_context = span.get_span_context()
+
+    # If this is the last slice in the thread,
+    # release the thread context and check whether to release the request context.
+    if thread_finish_flag:
+        thread_context.thread_span.end(end_time=ts)
+        del reqs_context[rid].threads_context[pid]
+        if reqs_context[rid].is_copy and not reqs_context[rid].threads_context:
+            del reqs_context[rid]
+        return
+
+    if auto_next_anon:
+        trace_slice_start("", rid, ts, True)
+
+
+# alias
+trace_slice = trace_slice_end
+
+
+# Add event to the current slice on the same thread with the same rid.
+def trace_event(name: str, rid: str, ts: Optional[int] = None):
+    if not tracing_enabled or rid not in reqs_context:
+        return
+
+    rid = str(rid)
+    pid = threading.get_native_id()
+    if pid not in reqs_context[rid].threads_context:
+        return
+
+    thread_context = reqs_context[rid].threads_context[pid]
+
+    if not thread_context.cur_slice_stack:
+        logger.warning(f"No slice is currently being traced.")
+        return
+
+    ts = ts or __get_cur_time_ns()
+
+    slice_info = thread_context.cur_slice_stack[-1]
+    slice_info.span.add_event(name=name, timestamp=ts)
+
+
+# Add attrs to the current slice on the same thread with the same rid.
+def trace_slice_add_attr(rid: str, attrs: Dict[str, Any]):
+    if not tracing_enabled or rid not in reqs_context:
+        return
+
+    rid = str(rid)
+    pid = threading.get_native_id()
+    if pid not in reqs_context[rid].threads_context:
+        return
+
+    thread_context = reqs_context[rid].threads_context[pid]
+
+    if not thread_context.cur_slice_stack:
+        logger.warning(f"No slice is currently being traced.")
+        return
+
+    slice_info = thread_context.cur_slice_stack[-1]
+    slice_info.span.set_attributes(attrs)
diff --git a/test/srt/test_tracing.py b/test/srt/test_tracing.py
new file mode 100644
index 000000000..a3e6de6b5
--- /dev/null
+++ b/test/srt/test_tracing.py
@@ -0,0 +1,273 @@
+import multiprocessing as mp
+import os
+import subprocess
+import time
+import unittest
+from dataclasses import dataclass
+from typing import Any, Dict, Optional
+
+import requests
+import zmq
+
+from sglang import Engine
+from sglang.srt.managers.io_struct import TokenizedGenerateReqInput
+from sglang.srt.tracing.trace import *
+from sglang.srt.utils import get_zmq_socket, kill_process_tree
+from sglang.test.test_utils import (
+    DEFAULT_SMALL_MODEL_NAME_FOR_TEST,
+    DEFAULT_TIMEOUT_FOR_SERVER_LAUNCH,
+    DEFAULT_URL_FOR_TEST,
+    CustomTestCase,
+    popen_launch_server,
+)
+
+
+@dataclass
+class Req:
+    rid: int
+    trace_context: Optional[Dict[str, Any]] = None
+
+
+class TestTrace(CustomTestCase):
+    def __launch_otel_jaeger(self):
+        cmd = [
+            "docker",
+            "compose",
+            "-f",
+            "../../examples/monitoring/tracing_compose.yaml",
+            "up",
+            "-d",
+        ]
+        proc = subprocess.run(cmd)
+
+        if proc.returncode != 0:
+            print("launch opentelemetry collector and jaeger docker err")
+            return False
+        return True
+
+    def __stop_otel_jaeger(self):
+        cmd = [
+            "docker",
+            "compose",
+            "-f",
+            "../../examples/monitoring/tracing_compose.yaml",
+            "down",
+        ]
+        proc = subprocess.run(cmd)
+
+        if proc.returncode != 0:
+            print("stop opentelemetry collector and jaeger docker err")
+            return False
+        return True
+
+    def __clear_trace_file(self):
+        try:
+            os.remove("/tmp/otel_trace.json")
+        except:
+            pass
+
+    def test_trace_enable(self):
+        self.__clear_trace_file()
+        assert self.__launch_otel_jaeger()
+
+        process = popen_launch_server(
+            DEFAULT_SMALL_MODEL_NAME_FOR_TEST,
+            DEFAULT_URL_FOR_TEST,
+            timeout=DEFAULT_TIMEOUT_FOR_SERVER_LAUNCH,
+            other_args=["--enable-trace", "--oltp-traces-endpoint", "0.0.0.0:4317"],
+        )
+
+        try:
+            # Make some requests to generate trace data
+            response = requests.get(f"{DEFAULT_URL_FOR_TEST}/health_generate")
+            self.assertEqual(response.status_code, 200)
+
+            response = requests.post(
+                f"{DEFAULT_URL_FOR_TEST}/generate",
+                json={
+                    "text": "The capital of France is",
+                    "sampling_params": {
+                        "temperature": 0,
+                        "max_new_tokens": 32,
+                    },
+                    "stream": True,
+                },
+                stream=True,
+            )
+            for _ in response.iter_lines(decode_unicode=False):
+                pass
+
+            # sleep for a few seconds to wait for opentelemetry collector to asynchronously export data to file.
+            time.sleep(10)
+
+            # check trace file
+            assert os.path.isfile("/tmp/otel_trace.json"), "trace file not exist"
+            assert os.path.getsize("/tmp/otel_trace.json") > 0, "trace file is empty"
+
+        finally:
+            kill_process_tree(process.pid)
+            assert self.__stop_otel_jaeger()
+
+    def test_trace_engine_enable(self):
+        self.__clear_trace_file()
+        assert self.__launch_otel_jaeger()
+
+        prompt = "Today is a sunny day and I like"
+        model_path = DEFAULT_SMALL_MODEL_NAME_FOR_TEST
+
+        sampling_params = {"temperature": 0, "max_new_tokens": 8}
+
+        engine = Engine(
+            model_path=model_path,
+            random_seed=42,
+            enable_trace=True,
+            oltp_traces_endpoint="localhost:4317",
+        )
+
+        try:
+            engine.generate(prompt, sampling_params)
+
+            # sleep for a few seconds to wait for opentelemetry collector to asynchronously export data to file.
+            time.sleep(10)
+
+            # check trace file
+            assert os.path.isfile("/tmp/otel_trace.json"), "trace file not exist"
+            assert os.path.getsize("/tmp/otel_trace.json") > 0, "trace file is empty"
+        finally:
+            engine.shutdown()
+            assert self.__stop_otel_jaeger()
+
+    def test_trace_engine_encode(self):
+        self.__clear_trace_file()
+        assert self.__launch_otel_jaeger()
+
+        prompt = "Today is a sunny day and I like"
+        model_path = "Qwen/Qwen2-7B"
+
+        engine = Engine(
+            model_path=model_path,
+            random_seed=42,
+            enable_trace=True,
+            oltp_traces_endpoint="localhost:4317",
+            is_embedding=True,
+        )
+
+        try:
+            engine.encode(prompt)
+
+            # sleep for a few seconds to wait for opentelemetry collector to asynchronously export data to file.
+            time.sleep(10)
+
+            # check trace file
+            assert os.path.isfile("/tmp/otel_trace.json"), "trace file not exist"
+            assert os.path.getsize("/tmp/otel_trace.json") > 0, "trace file is empty"
+        finally:
+            engine.shutdown()
+            assert self.__stop_otel_jaeger()
+
+    def test_slice_trace_simple(self):
+        self.__clear_trace_file()
+        assert self.__launch_otel_jaeger()
+        try:
+            process_tracing_init("0.0.0.0:4317", "test")
+            trace_set_thread_info("Test")
+            trace_req_start(0)
+            trace_slice_start("test slice", 0)
+            time.sleep(1)
+            trace_slice_end("test slice", 0)
+            trace_req_finish(0)
+
+            # sleep for a few seconds to wait for opentelemetry collector to asynchronously export data to file.
+            time.sleep(10)
+            # check trace file
+            assert os.path.isfile("/tmp/otel_trace.json"), "trace file not exist"
+            assert os.path.getsize("/tmp/otel_trace.json") > 0, "trace file is empty"
+        finally:
+            assert self.__stop_otel_jaeger()
+
+    def test_slice_trace_complex(self):
+        self.__clear_trace_file()
+        assert self.__launch_otel_jaeger()
+        try:
+            process_tracing_init("0.0.0.0:4317", "test")
+            trace_set_thread_info("Test")
+            trace_req_start(0)
+            trace_slice_start("", 0, anonymous=True)
+            time.sleep(1)
+            trace_slice_end("slice A", 0, auto_next_anon=True)
+            time.sleep(1)
+            trace_slice_end("slice B", 0, auto_next_anon=True)
+            time.sleep(1)
+            trace_slice_end("slice C", 0, thread_finish_flag=True)
+            trace_req_finish(0)
+
+            # sleep for a few seconds to wait for opentelemetry collector to asynchronously export data to file.
+            time.sleep(10)
+            # check trace file
+            assert os.path.isfile("/tmp/otel_trace.json"), "trace file not exist"
+            assert os.path.getsize("/tmp/otel_trace.json") > 0, "trace file is empty"
+        finally:
+            assert self.__stop_otel_jaeger()
+
+    def test_trace_context_propagete(self):
+        def __process_work():
+            process_tracing_init("0.0.0.0:4317", "test")
+            trace_set_thread_info("Sub Process")
+
+            context = zmq.Context(2)
+            recv_from_main = get_zmq_socket(
+                context, zmq.PULL, "ipc:///tmp/zmq_test.ipc", True
+            )
+
+            try:
+                req = recv_from_main.recv_pyobj()
+                trace_set_proc_propagate_context(req.rid, req.trace_context)
+                trace_slice_start("work", req.rid)
+                time.sleep(1)
+                trace_slice_end("work", req.rid, thread_finish_flag=True)
+            finally:
+                recv_from_main.close()
+                context.term()
+
+        self.__clear_trace_file()
+        assert self.__launch_otel_jaeger()
+
+        context = zmq.Context(2)
+        send_to_subproc = get_zmq_socket(
+            context, zmq.PUSH, "ipc:///tmp/zmq_test.ipc", False
+        )
+        try:
+            process_tracing_init("0.0.0.0:4317", "test")
+            trace_set_thread_info("Main Process")
+
+            subproc = mp.Process(target=__process_work)
+            subproc.start()
+
+            # sleep for a few second to ensure subprocess init
+            time.sleep(1)
+
+            req = Req(rid=0)
+            trace_req_start(req.rid)
+            trace_slice_start("dispatch", req.rid)
+            time.sleep(1)
+            req.trace_context = trace_get_proc_propagate_context(req.rid)
+            send_to_subproc.send_pyobj(req)
+            trace_slice_end("dispatch", req.rid)
+
+            subproc.join()
+            trace_req_finish(req.rid)
+
+            # sleep for a few seconds to wait for opentelemetry collector to asynchronously export data to file.
+            time.sleep(10)
+            # check trace file
+            assert os.path.isfile("/tmp/otel_trace.json"), "trace file not exist"
+            assert os.path.getsize("/tmp/otel_trace.json") > 0, "trace file is empty"
+
+        finally:
+            send_to_subproc.close()
+            context.term()
+            assert self.__stop_otel_jaeger()
+
+
+if __name__ == "__main__":
+    unittest.main()