diff --git a/common/tools/dev-tool/src/commands/run/bundle.ts b/common/tools/dev-tool/src/commands/run/bundle.ts
index 0ea2ac7f364c..1c98d12c4c01 100644
--- a/common/tools/dev-tool/src/commands/run/bundle.ts
+++ b/common/tools/dev-tool/src/commands/run/bundle.ts
@@ -100,6 +100,7 @@ export default leafCommand(commandInfo, async (options) => {
         ...nodeBuiltins,
         ...Object.keys(info.packageJson.dependencies),
         ...Object.keys(info.packageJson.devDependencies),
+        ...Object.keys(info.packageJson.peerDependencies ?? {}),
       ],
       preserveSymlinks: false,
       plugins: [nodeResolve(), sourcemaps()],
diff --git a/common/tools/dev-tool/src/util/resolveProject.ts b/common/tools/dev-tool/src/util/resolveProject.ts
index be9323461dcd..7d0f667e411f 100644
--- a/common/tools/dev-tool/src/util/resolveProject.ts
+++ b/common/tools/dev-tool/src/util/resolveProject.ts
@@ -60,6 +60,7 @@ declare global {
     private: boolean;
 
     dependencies: Record<string, string>;
+    peerDependencies?: Record<string, string>;
     devDependencies: Record<string, string>;
 
     [METADATA_KEY]?: AzureSdkMetadata;
diff --git a/sdk/test-utils/test-utils/package.json b/sdk/test-utils/test-utils/package.json
index 6af07e902cde..b4d3d378f06b 100644
--- a/sdk/test-utils/test-utils/package.json
+++ b/sdk/test-utils/test-utils/package.json
@@ -58,7 +58,6 @@
     "@azure-tools/test-recorder": "^3.0.0",
     "@azure/abort-controller": "^2.0.0",
     "@azure/core-rest-pipeline": "^1.1.0",
-    "@azure/core-tracing": "^1.0.0",
     "@opentelemetry/api": "^1.8.0",
     "@types/chai": "^4.1.6",
     "@types/chai-as-promised": "^7.1.4",
@@ -68,6 +67,9 @@
     "mocha": "^10.0.0",
     "tslib": "^2.2.0"
   },
+  "peerDependencies": {
+    "@azure/core-tracing": "^1.0.0"
+  },
   "devDependencies": {
     "@azure/dev-tool": "^1.0.0",
     "@azure/eslint-plugin-azure-sdk": "^3.0.0",