diff --git a/CHANGELOG.md b/CHANGELOG.md
index eb13795aae..740b27365c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,22 @@
 
 ## Unreleased
 
+### Features
+
+- Add `tracePropagationTargets` option ([#3230](https://github.com/getsentry/sentry-react-native/pull/3230))
+
+  This release adds support for [distributed tracing](https://docs.sentry.io/platforms/react-native/usage/distributed-tracing/)
+  without requiring performance monitoring to be active on the React Native SDK.
+  This means even if there is no sampled transaction/span, the SDK will still propagate traces to downstream services.
+  Distributed Tracing can be configured with the `tracePropagationTargets` option,
+  which controls what requests to attach the `sentry-trace` and `baggage` HTTP headers to (which is what propagates tracing information).
+
+  ```javascript
+    Sentry.init({
+      tracePropagationTargets: ["third-party-site.com", /^https:\/\/yourserver\.io\/api/],
+    });
+  ```
+
 ### Fixes
 
 - `Sentry.init` must be called before `Sentry.wrap`([#3227](https://github.com/getsentry/sentry-react-native/pull/3227))
diff --git a/sample-new-architecture/src/App.tsx b/sample-new-architecture/src/App.tsx
index d3b535d1c8..ab74583719 100644
--- a/sample-new-architecture/src/App.tsx
+++ b/sample-new-architecture/src/App.tsx
@@ -45,7 +45,6 @@ Sentry.init({
         // The time to wait in ms until the transaction will be finished, For testing, default is 1000 ms
         idleTimeout: 5000,
         routingInstrumentation: reactNavigationInstrumentation,
-        tracingOrigins: ['localhost', /^\//, /^https:\/\//],
         enableUserInteractionTracing: true,
         beforeNavigate: (context: Sentry.ReactNavigationTransactionContext) => {
           // Example of not sending a transaction for the screen with the name "Manual Tracker"
@@ -75,6 +74,7 @@ Sentry.init({
   // This will capture ALL TRACES and likely use up all your quota
   enableTracing: true,
   tracesSampleRate: 1.0,
+  tracePropagationTargets: ['localhost', /^\//, /^https:\/\//, /^http:\/\//],
   attachStacktrace: true,
   // Attach screenshots to events.
   attachScreenshot: true,
diff --git a/src/js/tracing/reactnativetracing.ts b/src/js/tracing/reactnativetracing.ts
index 276a605371..5155f61bee 100644
--- a/src/js/tracing/reactnativetracing.ts
+++ b/src/js/tracing/reactnativetracing.ts
@@ -165,6 +165,10 @@ export class ReactNativeTracing implements Integration {
     addGlobalEventProcessor: (callback: EventProcessor) => void,
     getCurrentHub: () => Hub,
   ): void {
+    const hub = getCurrentHub();
+    const client = hub.getClient();
+    const clientOptions = client && client.getOptions();
+
     // eslint-disable-next-line @typescript-eslint/unbound-method
     const {
       traceFetch,
@@ -173,7 +177,7 @@ export class ReactNativeTracing implements Integration {
       tracingOrigins,
       // @ts-ignore TODO
       shouldCreateSpanForRequest,
-      tracePropagationTargets,
+      tracePropagationTargets: thisOptionsTracePropagationTargets,
       routingInstrumentation,
       enableAppStartTracking,
       enableNativeFramesTracking,
@@ -182,6 +186,23 @@ export class ReactNativeTracing implements Integration {
 
     this._getCurrentHub = getCurrentHub;
 
+    const clientOptionsTracePropagationTargets = clientOptions && clientOptions.tracePropagationTargets;
+    // There are three ways to configure tracePropagationTargets:
+    // 1. via top level client option `tracePropagationTargets`
+    // 2. via ReactNativeTracing option `tracePropagationTargets`
+    // 3. via ReactNativeTracing option `tracingOrigins` (deprecated)
+    //
+    // To avoid confusion, favour top level client option `tracePropagationTargets`, and fallback to
+    // ReactNativeTracing option `tracePropagationTargets` and then `tracingOrigins` (deprecated).
+    //
+    // If both 1 and either one of 2 or 3 are set (from above), we log out a warning.
+    const tracePropagationTargets = clientOptionsTracePropagationTargets || thisOptionsTracePropagationTargets;
+    if (__DEV__ && (thisOptionsTracePropagationTargets || tracingOrigins) && clientOptionsTracePropagationTargets) {
+      logger.warn(
+        '[ReactNativeTracing] The `tracePropagationTargets` option was set in the ReactNativeTracing integration and top level `Sentry.init`. The top level `Sentry.init` value is being used.',
+      );
+    }
+
     if (enableAppStartTracking) {
       void this._instrumentAppStart();
     }