diff --git a/yarn-project/archiver/src/rpc/index.ts b/yarn-project/archiver/src/rpc/index.ts
index 5845eacb4b8..3535b22b32a 100644
--- a/yarn-project/archiver/src/rpc/index.ts
+++ b/yarn-project/archiver/src/rpc/index.ts
@@ -1,11 +1,11 @@
 import { type ArchiverApi, ArchiverApiSchema } from '@aztec/circuit-types';
-import { createSafeJsonRpcClient, makeFetch } from '@aztec/foundation/json-rpc/client';
-import { createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
+import { createSafeJsonRpcClient } from '@aztec/foundation/json-rpc/client';
+import { createTracedJsonRpcServer, makeTracedFetch } from '@aztec/telemetry-client';
 
-export function createArchiverClient(url: string, fetch = makeFetch([1, 2, 3], true)): ArchiverApi {
+export function createArchiverClient(url: string, fetch = makeTracedFetch([1, 2, 3], true)): ArchiverApi {
   return createSafeJsonRpcClient<ArchiverApi>(url, ArchiverApiSchema, false, 'archiver', fetch);
 }
 
 export function createArchiverRpcServer(handler: ArchiverApi) {
-  return createSafeJsonRpcServer(handler, ArchiverApiSchema);
+  return createTracedJsonRpcServer(handler, ArchiverApiSchema);
 }
diff --git a/yarn-project/aztec-node/src/aztec-node/http_rpc_server.ts b/yarn-project/aztec-node/src/aztec-node/http_rpc_server.ts
index 3ceaf4c6c69..04b21424e61 100644
--- a/yarn-project/aztec-node/src/aztec-node/http_rpc_server.ts
+++ b/yarn-project/aztec-node/src/aztec-node/http_rpc_server.ts
@@ -1,5 +1,5 @@
 import { type AztecNode, AztecNodeApiSchema } from '@aztec/circuit-types';
-import { createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
+import { createTracedJsonRpcServer } from '@aztec/telemetry-client';
 
 /**
  * Wrap an AztecNode instance with a JSON RPC HTTP server.
@@ -7,5 +7,5 @@ import { createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
  * @returns An JSON-RPC HTTP server
  */
 export function createAztecNodeRpcServer(node: AztecNode) {
-  return createSafeJsonRpcServer(node, AztecNodeApiSchema);
+  return createTracedJsonRpcServer(node, AztecNodeApiSchema);
 }
diff --git a/yarn-project/aztec/src/cli/aztec_start_action.ts b/yarn-project/aztec/src/cli/aztec_start_action.ts
index 7e8e81b142e..f97db8d053d 100644
--- a/yarn-project/aztec/src/cli/aztec_start_action.ts
+++ b/yarn-project/aztec/src/cli/aztec_start_action.ts
@@ -7,6 +7,7 @@ import {
 } from '@aztec/foundation/json-rpc/server';
 import { type LogFn, type Logger } from '@aztec/foundation/log';
 import { fileURLToPath } from '@aztec/foundation/url';
+import { getOtelJsonRpcPropagationMiddleware } from '@aztec/telemetry-client';
 
 import { readFileSync } from 'fs';
 import { dirname, resolve } from 'path';
@@ -102,7 +103,11 @@ export async function aztecStart(options: any, userLog: LogFn, debugLogger: Logg
   installSignalHandlers(debugLogger.info, signalHandlers);
 
   if (Object.entries(services).length > 0) {
-    const rpcServer = createNamespacedSafeJsonRpcServer(services, { http200OnError: false, log: debugLogger });
+    const rpcServer = createNamespacedSafeJsonRpcServer(services, {
+      http200OnError: false,
+      log: debugLogger,
+      middlewares: [getOtelJsonRpcPropagationMiddleware()],
+    });
     const { port } = await startHttpRpcServer(rpcServer, { port: options.port });
     debugLogger.info(`Aztec Server listening on port ${port}`);
   }
diff --git a/yarn-project/aztec/src/cli/cmds/start_pxe.ts b/yarn-project/aztec/src/cli/cmds/start_pxe.ts
index 949995d70b7..278892571a1 100644
--- a/yarn-project/aztec/src/cli/cmds/start_pxe.ts
+++ b/yarn-project/aztec/src/cli/cmds/start_pxe.ts
@@ -16,6 +16,7 @@ import {
   allPxeConfigMappings,
   createPXEService,
 } from '@aztec/pxe';
+import { makeTracedFetch } from '@aztec/telemetry-client';
 import { L2BasicContractsMap, Network } from '@aztec/types/network';
 
 import { extractRelevantOptions } from '../util.js';
@@ -76,7 +77,7 @@ export async function addPXE(
     process.exit(1);
   }
 
-  const node = deps.node ?? createAztecNodeClient(nodeUrl!);
+  const node = deps.node ?? createAztecNodeClient(nodeUrl!, makeTracedFetch([1, 2, 3], true));
   const pxe = await createPXEService(node, pxeConfig as PXEServiceConfig);
 
   // register basic contracts
diff --git a/yarn-project/bot/src/factory.ts b/yarn-project/bot/src/factory.ts
index 440b219a3f5..d5f4eb73fe3 100644
--- a/yarn-project/bot/src/factory.ts
+++ b/yarn-project/bot/src/factory.ts
@@ -11,6 +11,7 @@ import { type AztecNode, type FunctionCall, type PXE } from '@aztec/circuit-type
 import { Fr, deriveSigningKey } from '@aztec/circuits.js';
 import { EasyPrivateTokenContract } from '@aztec/noir-contracts.js/EasyPrivateToken';
 import { TokenContract } from '@aztec/noir-contracts.js/Token';
+import { makeTracedFetch } from '@aztec/telemetry-client';
 
 import { type BotConfig, SupportedTokenContracts } from './config.js';
 import { getBalances, getPrivateBalance, isStandardTokenContract } from './utils.js';
@@ -39,7 +40,7 @@ export class BotFactory {
       return;
     }
     this.log.info(`Using remote PXE at ${config.pxeUrl!}`);
-    this.pxe = createPXEClient(config.pxeUrl!);
+    this.pxe = createPXEClient(config.pxeUrl!, makeTracedFetch([1, 2, 3], false));
   }
 
   /**
diff --git a/yarn-project/bot/src/rpc.ts b/yarn-project/bot/src/rpc.ts
index db21442eaec..d565919b239 100644
--- a/yarn-project/bot/src/rpc.ts
+++ b/yarn-project/bot/src/rpc.ts
@@ -1,4 +1,5 @@
-import { type ApiHandler, createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
+import { type ApiHandler } from '@aztec/foundation/json-rpc/server';
+import { createTracedJsonRpcServer } from '@aztec/telemetry-client';
 
 import { BotRunnerApiSchema } from './interface.js';
 import { type BotRunner } from './runner.js';
@@ -9,7 +10,7 @@ import { type BotRunner } from './runner.js';
  * @returns An JSON-RPC HTTP server
  */
 export function createBotRunnerRpcServer(botRunner: BotRunner) {
-  createSafeJsonRpcServer(botRunner, BotRunnerApiSchema, {
+  createTracedJsonRpcServer(botRunner, BotRunnerApiSchema, {
     http200OnError: false,
     healthCheck: botRunner.isHealthy.bind(botRunner),
   });
diff --git a/yarn-project/bot/src/runner.ts b/yarn-project/bot/src/runner.ts
index 626f8f6582c..e2731439d7b 100644
--- a/yarn-project/bot/src/runner.ts
+++ b/yarn-project/bot/src/runner.ts
@@ -1,6 +1,6 @@
 import { type AztecNode, type PXE, createAztecNodeClient, createLogger } from '@aztec/aztec.js';
 import { RunningPromise } from '@aztec/foundation/running-promise';
-import { type TelemetryClient, type Traceable, type Tracer, trackSpan } from '@aztec/telemetry-client';
+import { type TelemetryClient, type Traceable, type Tracer, makeTracedFetch, trackSpan } from '@aztec/telemetry-client';
 
 import { Bot } from './bot.js';
 import { type BotConfig } from './config.js';
@@ -26,19 +26,24 @@ export class BotRunner implements BotRunnerApi, Traceable {
     if (!dependencies.node && !config.nodeUrl) {
       throw new Error(`Missing node URL in config or dependencies`);
     }
-    this.node = dependencies.node ?? createAztecNodeClient(config.nodeUrl!);
+    this.node = dependencies.node ?? createAztecNodeClient(config.nodeUrl!, makeTracedFetch([1, 2, 3], true));
     this.runningPromise = new RunningPromise(() => this.#work(), this.log, config.txIntervalSeconds * 1000);
   }
 
   /** Initializes the bot if needed. Blocks until the bot setup is finished. */
   public async setup() {
     if (!this.bot) {
-      this.log.verbose(`Setting up bot`);
-      await this.#createBot();
-      this.log.info(`Bot set up completed`);
+      await this.doSetup();
     }
   }
 
+  @trackSpan('Bot.setup')
+  private async doSetup() {
+    this.log.verbose(`Setting up bot`);
+    await this.#createBot();
+    this.log.info(`Bot set up completed`);
+  }
+
   /**
    * Initializes the bot if needed and starts sending txs at regular intervals.
    * Blocks until the bot setup is finished.
diff --git a/yarn-project/foundation/src/json-rpc/client/fetch.ts b/yarn-project/foundation/src/json-rpc/client/fetch.ts
index 70ecc8ec363..fa02103a121 100644
--- a/yarn-project/foundation/src/json-rpc/client/fetch.ts
+++ b/yarn-project/foundation/src/json-rpc/client/fetch.ts
@@ -21,6 +21,7 @@ export async function defaultFetch(
   rpcMethod: string,
   body: any,
   useApiEndpoints: boolean,
+  extraHeaders: Record<string, string> = {},
   noRetry = false,
 ) {
   log.debug(format(`JsonRpcClient.fetch`, host, rpcMethod, '->', body));
@@ -30,13 +31,13 @@ export async function defaultFetch(
       resp = await fetch(`${host}/${rpcMethod}`, {
         method: 'POST',
         body: jsonStringify(body),
-        headers: { 'content-type': 'application/json' },
+        headers: { 'content-type': 'application/json', ...extraHeaders },
       });
     } else {
       resp = await fetch(host, {
         method: 'POST',
         body: jsonStringify({ ...body, method: rpcMethod }),
-        headers: { 'content-type': 'application/json' },
+        headers: { 'content-type': 'application/json', ...extraHeaders },
       });
     }
   } catch (err) {
@@ -55,7 +56,7 @@ export async function defaultFetch(
   }
 
   if (!resp.ok) {
-    const errorMessage = `(JSON-RPC PROPAGATED) (host ${host}) (method ${rpcMethod}) (code ${resp.status}) ${responseJson.error.message}`;
+    const errorMessage = `Error ${resp.status} from server ${host} on ${rpcMethod}: ${responseJson.error.message}`;
     if (noRetry || (resp.status >= 400 && resp.status < 500)) {
       throw new NoRetryError(errorMessage);
     } else {
@@ -73,10 +74,17 @@ export async function defaultFetch(
  * @param log - Optional logger for logging attempts.
  * @returns A fetch function.
  */
-export function makeFetch(retries: number[], defaultNoRetry: boolean, log?: Logger) {
-  return async (host: string, rpcMethod: string, body: any, useApiEndpoints: boolean, noRetry?: boolean) => {
+export function makeFetch(retries: number[], defaultNoRetry: boolean, log?: Logger): typeof defaultFetch {
+  return async (
+    host: string,
+    rpcMethod: string,
+    body: any,
+    useApiEndpoints: boolean,
+    extraHeaders: Record<string, string> = {},
+    noRetry?: boolean,
+  ) => {
     return await retry(
-      () => defaultFetch(host, rpcMethod, body, useApiEndpoints, noRetry ?? defaultNoRetry),
+      () => defaultFetch(host, rpcMethod, body, useApiEndpoints, extraHeaders, noRetry ?? defaultNoRetry),
       `JsonRpcClient request ${rpcMethod} to ${host}`,
       makeBackoff(retries),
       log,
diff --git a/yarn-project/foundation/src/json-rpc/server/safe_json_rpc_server.ts b/yarn-project/foundation/src/json-rpc/server/safe_json_rpc_server.ts
index 796e8482a63..723c0a00eb8 100644
--- a/yarn-project/foundation/src/json-rpc/server/safe_json_rpc_server.ts
+++ b/yarn-project/foundation/src/json-rpc/server/safe_json_rpc_server.ts
@@ -1,6 +1,6 @@
 import cors from '@koa/cors';
 import http from 'http';
-import Koa from 'koa';
+import { type default as Application, default as Koa } from 'koa';
 import bodyParser from 'koa-bodyparser';
 import compress from 'koa-compress';
 import Router from 'koa-router';
@@ -14,6 +14,15 @@ import { type ApiSchema, type ApiSchemaFor, parseWithOptionals, schemaHasMethod
 import { jsonStringify } from '../convert.js';
 import { assert } from '../js_utils.js';
 
+export type DiagnosticsData = {
+  id: number | string | null;
+  method: string;
+  params: any[];
+  headers: http.IncomingHttpHeaders;
+};
+
+export type DiagnosticsMiddleware = (ctx: DiagnosticsData, next: () => Promise<void>) => Promise<void>;
+
 export class SafeJsonRpcServer {
   /**
    * The HTTP server accepting remote requests.
@@ -31,6 +40,8 @@ export class SafeJsonRpcServer {
     private http200OnError = false,
     /** Health check function */
     private readonly healthCheck: StatusCheckFn = () => true,
+    /** Additional middlewares */
+    private extraMiddlewares: Application.Middleware[] = [],
     /** Logger */
     private log = createLogger('json-rpc:server'),
   ) {}
@@ -90,8 +101,11 @@ export class SafeJsonRpcServer {
       this.log.error(`Error on API handler: ${error}`);
     });
 
-    app.use(compress({ br: false } as any));
+    app.use(compress({ br: false }));
     app.use(jsonResponse);
+    for (const middleware of this.extraMiddlewares) {
+      app.use(middleware);
+    }
     app.use(exceptionHandler);
     app.use(bodyParser({ jsonLimit: '50mb', enableTypes: ['json'], detectJSON: () => true }));
     app.use(cors());
@@ -114,7 +128,9 @@ export class SafeJsonRpcServer {
       // Fail if not a registered function in the proxy
       if (typeof method !== 'string' || method === 'constructor' || !this.proxy.hasMethod(method)) {
         ctx.status = 400;
-        ctx.body = { jsonrpc, id, error: { code: -32601, message: `Method not found: ${method}` } };
+        const code = -32601;
+        const message = `Method not found: ${method}`;
+        ctx.body = { jsonrpc, id, error: { code, message } };
       } else {
         ctx.status = 200;
         const result = await this.proxy.call(method, params);
@@ -263,10 +279,11 @@ function makeAggregateHealthcheck(namedHandlers: NamespacedApiHandlers, log?: Lo
   };
 }
 
-type SafeJsonRpcServerOptions = {
+export type SafeJsonRpcServerOptions = {
   http200OnError: boolean;
   healthCheck?: StatusCheckFn;
   log?: Logger;
+  middlewares?: Application.Middleware[];
 };
 
 /**
@@ -276,25 +293,24 @@ type SafeJsonRpcServerOptions = {
  */
 export function createNamespacedSafeJsonRpcServer(
   handlers: NamespacedApiHandlers,
-  options: Omit<SafeJsonRpcServerOptions, 'healthcheck'> = {
-    http200OnError: false,
+  options: Partial<Omit<SafeJsonRpcServerOptions, 'healthcheck'>> = {
     log: createLogger('json-rpc:server'),
   },
 ): SafeJsonRpcServer {
-  const { http200OnError, log } = options;
+  const { middlewares, http200OnError, log } = options;
   const proxy = new NamespacedSafeJsonProxy(handlers);
   const healthCheck = makeAggregateHealthcheck(handlers, log);
-  return new SafeJsonRpcServer(proxy, http200OnError, healthCheck, log);
+  return new SafeJsonRpcServer(proxy, http200OnError, healthCheck, middlewares, log);
 }
 
 export function createSafeJsonRpcServer<T extends object = any>(
   handler: T,
   schema: ApiSchemaFor<T>,
-  options: SafeJsonRpcServerOptions = { http200OnError: false },
+  options: Partial<SafeJsonRpcServerOptions> = {},
 ) {
-  const { http200OnError, log, healthCheck } = options;
+  const { http200OnError, log, healthCheck, middlewares: extraMiddlewares } = options;
   const proxy = new SafeJsonProxy(handler, schema);
-  return new SafeJsonRpcServer(proxy, http200OnError, healthCheck, log);
+  return new SafeJsonRpcServer(proxy, http200OnError, healthCheck, extraMiddlewares, log);
 }
 
 /**
diff --git a/yarn-project/foundation/src/json-rpc/server/telemetry.ts b/yarn-project/foundation/src/json-rpc/server/telemetry.ts
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/yarn-project/prover-client/src/prover-agent/rpc.ts b/yarn-project/prover-client/src/prover-agent/rpc.ts
index 0e1cdc91fd0..14d8d3c90a6 100644
--- a/yarn-project/prover-client/src/prover-agent/rpc.ts
+++ b/yarn-project/prover-client/src/prover-agent/rpc.ts
@@ -1,14 +1,14 @@
 import { ProverAgentApiSchema, type ProvingJobSource, ProvingJobSourceSchema } from '@aztec/circuit-types';
-import { createSafeJsonRpcClient, makeFetch } from '@aztec/foundation/json-rpc/client';
-import { createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
+import { createSafeJsonRpcClient } from '@aztec/foundation/json-rpc/client';
+import { createTracedJsonRpcServer, makeTracedFetch } from '@aztec/telemetry-client';
 
 import { type ProverAgent } from './prover-agent.js';
 
 export function createProvingJobSourceServer(queue: ProvingJobSource) {
-  return createSafeJsonRpcServer(queue, ProvingJobSourceSchema);
+  return createTracedJsonRpcServer(queue, ProvingJobSourceSchema);
 }
 
-export function createProvingJobSourceClient(url: string, fetch = makeFetch([1, 2, 3], false)): ProvingJobSource {
+export function createProvingJobSourceClient(url: string, fetch = makeTracedFetch([1, 2, 3], false)): ProvingJobSource {
   return createSafeJsonRpcClient(url, ProvingJobSourceSchema, false, 'provingJobSource', fetch);
 }
 
@@ -18,5 +18,5 @@ export function createProvingJobSourceClient(url: string, fetch = makeFetch([1,
  * @returns An JSON-RPC HTTP server
  */
 export function createProverAgentRpcServer(agent: ProverAgent) {
-  return createSafeJsonRpcServer(agent, ProverAgentApiSchema);
+  return createTracedJsonRpcServer(agent, ProverAgentApiSchema);
 }
diff --git a/yarn-project/prover-client/src/proving_broker/rpc.ts b/yarn-project/prover-client/src/proving_broker/rpc.ts
index cabc716c988..74a66580357 100644
--- a/yarn-project/prover-client/src/proving_broker/rpc.ts
+++ b/yarn-project/prover-client/src/proving_broker/rpc.ts
@@ -9,9 +9,10 @@ import {
   ProvingJobStatus,
   ProvingRequestType,
 } from '@aztec/circuit-types';
-import { createSafeJsonRpcClient, makeFetch } from '@aztec/foundation/json-rpc/client';
-import { type SafeJsonRpcServer, createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
+import { createSafeJsonRpcClient } from '@aztec/foundation/json-rpc/client';
+import { type SafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
 import { type ApiSchemaFor, optional } from '@aztec/foundation/schemas';
+import { createTracedJsonRpcServer, makeTracedFetch } from '@aztec/telemetry-client';
 
 import { z } from 'zod';
 
@@ -47,17 +48,23 @@ export const ProvingJobBrokerSchema: ApiSchemaFor<ProvingJobBroker> = {
 };
 
 export function createProvingBrokerServer(broker: ProvingJobBroker): SafeJsonRpcServer {
-  return createSafeJsonRpcServer(broker, ProvingJobBrokerSchema);
+  return createTracedJsonRpcServer(broker, ProvingJobBrokerSchema);
 }
 
-export function createProvingJobBrokerClient(url: string, fetch = makeFetch([1, 2, 3], false)): ProvingJobBroker {
+export function createProvingJobBrokerClient(url: string, fetch = makeTracedFetch([1, 2, 3], false)): ProvingJobBroker {
   return createSafeJsonRpcClient(url, ProvingJobBrokerSchema, false, 'proverBroker', fetch);
 }
 
-export function createProvingJobProducerClient(url: string, fetch = makeFetch([1, 2, 3], false)): ProvingJobProducer {
+export function createProvingJobProducerClient(
+  url: string,
+  fetch = makeTracedFetch([1, 2, 3], false),
+): ProvingJobProducer {
   return createSafeJsonRpcClient(url, ProvingJobProducerSchema, false, 'provingJobProducer', fetch);
 }
 
-export function createProvingJobConsumerClient(url: string, fetch = makeFetch([1, 2, 3], false)): ProvingJobConsumer {
+export function createProvingJobConsumerClient(
+  url: string,
+  fetch = makeTracedFetch([1, 2, 3], false),
+): ProvingJobConsumer {
   return createSafeJsonRpcClient(url, ProvingJobConsumerSchema, false, 'provingJobConsumer', fetch);
 }
diff --git a/yarn-project/prover-node/src/http.ts b/yarn-project/prover-node/src/http.ts
index 0178e4be79d..dc15d4c3b31 100644
--- a/yarn-project/prover-node/src/http.ts
+++ b/yarn-project/prover-node/src/http.ts
@@ -1,5 +1,5 @@
 import { ProverNodeApiSchema } from '@aztec/circuit-types';
-import { createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
+import { createTracedJsonRpcServer } from '@aztec/telemetry-client';
 
 import { type ProverNode } from './prover-node.js';
 
@@ -9,5 +9,5 @@ import { type ProverNode } from './prover-node.js';
  * @returns An JSON-RPC HTTP server
  */
 export function createProverNodeRpcServer(node: ProverNode) {
-  return createSafeJsonRpcServer(node, ProverNodeApiSchema);
+  return createTracedJsonRpcServer(node, ProverNodeApiSchema);
 }
diff --git a/yarn-project/prover-node/src/prover-coordination/factory.ts b/yarn-project/prover-node/src/prover-coordination/factory.ts
index 88731deec2a..6a308f0830e 100644
--- a/yarn-project/prover-node/src/prover-coordination/factory.ts
+++ b/yarn-project/prover-node/src/prover-coordination/factory.ts
@@ -10,7 +10,7 @@ import { type EpochCache } from '@aztec/epoch-cache';
 import { createLogger } from '@aztec/foundation/log';
 import { type DataStoreConfig } from '@aztec/kv-store/config';
 import { createP2PClient } from '@aztec/p2p';
-import { type TelemetryClient } from '@aztec/telemetry-client';
+import { type TelemetryClient, makeTracedFetch } from '@aztec/telemetry-client';
 
 import { type ProverNodeConfig } from '../config.js';
 
@@ -64,7 +64,7 @@ export async function createProverCoordination(
 
   if (config.proverCoordinationNodeUrl) {
     log.info('Using prover coordination via node url');
-    return createAztecNodeClient(config.proverCoordinationNodeUrl);
+    return createAztecNodeClient(config.proverCoordinationNodeUrl, makeTracedFetch([1, 2, 3], false));
   } else {
     throw new Error(`Aztec Node URL for Tx Provider is not set.`);
   }
diff --git a/yarn-project/telemetry-client/package.json b/yarn-project/telemetry-client/package.json
index 48cbd579392..887088da917 100644
--- a/yarn-project/telemetry-client/package.json
+++ b/yarn-project/telemetry-client/package.json
@@ -50,6 +50,7 @@
   "devDependencies": {
     "@jest/globals": "^29.5.0",
     "@types/jest": "^29.5.0",
+    "@types/koa": "^2.15.0",
     "jest": "^29.5.0",
     "ts-node": "^10.9.1",
     "typescript": "^5.0.4"
diff --git a/yarn-project/telemetry-client/src/index.ts b/yarn-project/telemetry-client/src/index.ts
index e593b4575f4..c8617bdc5ef 100644
--- a/yarn-project/telemetry-client/src/index.ts
+++ b/yarn-project/telemetry-client/src/index.ts
@@ -5,3 +5,4 @@ export * from './prom_otel_adapter.js';
 export * from './lmdb_metrics.js';
 export * from './wrappers/index.js';
 export * from './start.js';
+export * from './otel_propagation.js';
diff --git a/yarn-project/telemetry-client/src/otel_propagation.ts b/yarn-project/telemetry-client/src/otel_propagation.ts
new file mode 100644
index 00000000000..99f766769c7
--- /dev/null
+++ b/yarn-project/telemetry-client/src/otel_propagation.ts
@@ -0,0 +1,50 @@
+import { ROOT_CONTEXT, type Span, SpanKind, SpanStatusCode, propagation } from '@opentelemetry/api';
+import type Koa from 'koa';
+
+import { getTelemetryClient } from './start.js';
+import {
+  ATTR_JSONRPC_ERROR_CODE,
+  ATTR_JSONRPC_ERROR_MSG,
+  ATTR_JSONRPC_METHOD,
+  ATTR_JSONRPC_REQUEST_ID,
+} from './vendor/attributes.js';
+
+export function getOtelJsonRpcPropagationMiddleware(
+  scope = 'JsonRpcServer',
+): (ctx: Koa.Context, next: () => Promise<void>) => void {
+  return function otelJsonRpcPropagation(ctx: Koa.Context, next: () => Promise<void>) {
+    const tracer = getTelemetryClient().getTracer(scope);
+    const context = propagation.extract(ROOT_CONTEXT, ctx.request.headers);
+    const method = (ctx.request.body as any)?.method;
+    return tracer.startActiveSpan(
+      `JsonRpcServer.${method ?? 'unknown'}`,
+      { kind: SpanKind.SERVER },
+      context,
+      async (span: Span): Promise<void> => {
+        if (ctx.id) {
+          span.setAttribute(ATTR_JSONRPC_REQUEST_ID, ctx.id);
+        }
+        if (method) {
+          span.setAttribute(ATTR_JSONRPC_METHOD, method);
+        }
+
+        try {
+          await next();
+          const err = (ctx.body as any).error?.message;
+          const code = (ctx.body as any).error?.code;
+          if (err) {
+            span.setStatus({ code: SpanStatusCode.ERROR, message: err });
+            span.setAttribute(ATTR_JSONRPC_ERROR_CODE, code);
+            span.setAttribute(ATTR_JSONRPC_ERROR_MSG, err);
+          } else {
+            span.setStatus({ code: SpanStatusCode.OK });
+          }
+        } catch (err) {
+          span.setStatus({ code: SpanStatusCode.ERROR, message: String(err) });
+        } finally {
+          span.end();
+        }
+      },
+    );
+  };
+}
diff --git a/yarn-project/telemetry-client/src/telemetry.ts b/yarn-project/telemetry-client/src/telemetry.ts
index 6672ce17659..3e4a2a1e887 100644
--- a/yarn-project/telemetry-client/src/telemetry.ts
+++ b/yarn-project/telemetry-client/src/telemetry.ts
@@ -20,7 +20,7 @@ import * as Attributes from './attributes.js';
 import * as Metrics from './metrics.js';
 import { getTelemetryClient } from './start.js';
 
-export { Span, ValueType } from '@opentelemetry/api';
+export { Span, SpanStatusCode, ValueType } from '@opentelemetry/api';
 
 type ValuesOf<T> = T extends Record<string, infer U> ? U : never;
 
diff --git a/yarn-project/telemetry-client/src/vendor/attributes.ts b/yarn-project/telemetry-client/src/vendor/attributes.ts
new file mode 100644
index 00000000000..9603a5254a0
--- /dev/null
+++ b/yarn-project/telemetry-client/src/vendor/attributes.ts
@@ -0,0 +1,5 @@
+// See https://opentelemetry.io/docs/specs/semconv/rpc/json-rpc/
+export const ATTR_JSONRPC_METHOD = 'rpc.method';
+export const ATTR_JSONRPC_REQUEST_ID = 'rpc.jsonrpc.request_id';
+export const ATTR_JSONRPC_ERROR_CODE = 'rpc.jsonrpc.error_code';
+export const ATTR_JSONRPC_ERROR_MSG = 'rpc.jsonrpc.error_message';
diff --git a/yarn-project/telemetry-client/src/wrappers/fetch.ts b/yarn-project/telemetry-client/src/wrappers/fetch.ts
new file mode 100644
index 00000000000..d4506deb824
--- /dev/null
+++ b/yarn-project/telemetry-client/src/wrappers/fetch.ts
@@ -0,0 +1,52 @@
+import { defaultFetch } from '@aztec/foundation/json-rpc/client';
+import { type Logger } from '@aztec/foundation/log';
+import { makeBackoff, retry } from '@aztec/foundation/retry';
+
+import { SpanKind, SpanStatusCode, context, propagation } from '@opentelemetry/api';
+
+import { getTelemetryClient } from '../start.js';
+import { ATTR_JSONRPC_METHOD, ATTR_JSONRPC_REQUEST_ID } from '../vendor/attributes.js';
+
+/**
+ * Makes a fetch function that retries based on the given attempts and propagates trace information.
+ * @param retries - Sequence of intervals (in seconds) to retry.
+ * @param noRetry - Whether to stop retries on server errors.
+ * @param log - Optional logger for logging attempts.
+ * @returns A fetch function.
+ */
+export function makeTracedFetch(retries: number[], defaultNoRetry: boolean, log?: Logger) {
+  return (
+    host: string,
+    rpcMethod: string,
+    body: any,
+    useApiEndpoints: boolean,
+    extraHeaders: Record<string, string> = {},
+    noRetry?: boolean,
+  ) => {
+    const telemetry = getTelemetryClient();
+    return telemetry
+      .getTracer('fetch')
+      .startActiveSpan(`JsonRpcClient.${rpcMethod}`, { kind: SpanKind.CLIENT }, async span => {
+        try {
+          if (body && typeof body.id === 'number') {
+            span.setAttribute(ATTR_JSONRPC_REQUEST_ID, body.id);
+          }
+          span.setAttribute(ATTR_JSONRPC_METHOD, rpcMethod);
+          const headers = { ...extraHeaders };
+          propagation.inject(context.active(), headers);
+          return await retry(
+            () => defaultFetch(host, rpcMethod, body, useApiEndpoints, headers, noRetry ?? defaultNoRetry),
+            `JsonRpcClient request ${rpcMethod} to ${host}`,
+            makeBackoff(retries),
+            log,
+            false,
+          );
+        } catch (err: any) {
+          span.setStatus({ code: SpanStatusCode.ERROR, message: err?.message ?? String(err) });
+          throw err;
+        } finally {
+          span.end();
+        }
+      });
+  };
+}
diff --git a/yarn-project/telemetry-client/src/wrappers/index.ts b/yarn-project/telemetry-client/src/wrappers/index.ts
index 3a6efb1f42e..ea9c9632436 100644
--- a/yarn-project/telemetry-client/src/wrappers/index.ts
+++ b/yarn-project/telemetry-client/src/wrappers/index.ts
@@ -1 +1,3 @@
 export * from './l2_block_stream.js';
+export * from './fetch.js';
+export * from './json_rpc_server.js';
diff --git a/yarn-project/telemetry-client/src/wrappers/json_rpc_server.ts b/yarn-project/telemetry-client/src/wrappers/json_rpc_server.ts
new file mode 100644
index 00000000000..f600fedd4a7
--- /dev/null
+++ b/yarn-project/telemetry-client/src/wrappers/json_rpc_server.ts
@@ -0,0 +1,15 @@
+import { type SafeJsonRpcServerOptions, createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
+import { type ApiSchemaFor } from '@aztec/foundation/schemas';
+
+import { getOtelJsonRpcPropagationMiddleware } from '../otel_propagation.js';
+
+export function createTracedJsonRpcServer<T extends object = any>(
+  handler: T,
+  schema: ApiSchemaFor<T>,
+  options: Partial<SafeJsonRpcServerOptions> = {},
+) {
+  return createSafeJsonRpcServer(handler, schema, {
+    ...options,
+    middlewares: [...(options.middlewares ?? []), getOtelJsonRpcPropagationMiddleware()],
+  });
+}
diff --git a/yarn-project/txe/src/index.ts b/yarn-project/txe/src/index.ts
index a2d48d610b7..915eb46e09d 100644
--- a/yarn-project/txe/src/index.ts
+++ b/yarn-project/txe/src/index.ts
@@ -1,7 +1,7 @@
 import { loadContractArtifact } from '@aztec/aztec.js';
-import { createSafeJsonRpcServer } from '@aztec/foundation/json-rpc/server';
 import { type Logger } from '@aztec/foundation/log';
 import { type ApiSchemaFor, type ZodFor } from '@aztec/foundation/schemas';
+import { createTracedJsonRpcServer } from '@aztec/telemetry-client';
 
 import { readFile, readdir } from 'fs/promises';
 import { join } from 'path';
@@ -120,5 +120,7 @@ const TXEDispatcherApiSchema: ApiSchemaFor<TXEDispatcher> = {
  * @returns A TXE RPC server.
  */
 export function createTXERpcServer(logger: Logger) {
-  return createSafeJsonRpcServer(new TXEDispatcher(logger), TXEDispatcherApiSchema, { http200OnError: true });
+  return createTracedJsonRpcServer(new TXEDispatcher(logger), TXEDispatcherApiSchema, {
+    http200OnError: true,
+  });
 }
diff --git a/yarn-project/yarn.lock b/yarn-project/yarn.lock
index cf5d80eacad..96530873d7b 100644
--- a/yarn-project/yarn.lock
+++ b/yarn-project/yarn.lock
@@ -1296,6 +1296,7 @@ __metadata:
     "@opentelemetry/sdk-trace-node": "npm:^1.28.0"
     "@opentelemetry/semantic-conventions": "npm:^1.28.0"
     "@types/jest": "npm:^29.5.0"
+    "@types/koa": "npm:^2.15.0"
     jest: "npm:^29.5.0"
     prom-client: "npm:^15.1.3"
     ts-node: "npm:^10.9.1"