diff --git a/cmd/collector/app/options.go b/cmd/collector/app/options.go
index 4f2f6134d09..c25140a4090 100644
--- a/cmd/collector/app/options.go
+++ b/cmd/collector/app/options.go
@@ -42,6 +42,7 @@ type options struct {
 	extraFormatTypes       []processor.SpanFormat
 	collectorTags          map[string]string
 	spanSizeMetricsEnabled bool
+	onDroppedSpan          func(span *model.Span)
 }
 
 // Option is a function that sets some option on StorageBuilder.
@@ -164,6 +165,13 @@ func (options) SpanSizeMetricsEnabled(spanSizeMetrics bool) Option {
 	}
 }
 
+// OnDroppedSpan creates an Option that initializes the onDroppedSpan function
+func (options) OnDroppedSpan(onDroppedSpan func(span *model.Span)) Option {
+	return func(b *options) {
+		b.onDroppedSpan = onDroppedSpan
+	}
+}
+
 func (o options) apply(opts ...Option) options {
 	ret := options{}
 	for _, opt := range opts {
diff --git a/cmd/collector/app/options_test.go b/cmd/collector/app/options_test.go
index ecbf4d10bef..e416166829f 100644
--- a/cmd/collector/app/options_test.go
+++ b/cmd/collector/app/options_test.go
@@ -46,6 +46,7 @@ func TestAllOptionSet(t *testing.T) {
 		Options.PreSave(func(span *model.Span, tenant string) {}),
 		Options.CollectorTags(map[string]string{"extra": "tags"}),
 		Options.SpanSizeMetricsEnabled(true),
+		Options.OnDroppedSpan(func(span *model.Span) {}),
 	)
 	assert.EqualValues(t, 5, opts.numWorkers)
 	assert.EqualValues(t, 10, opts.queueSize)
@@ -53,6 +54,7 @@ func TestAllOptionSet(t *testing.T) {
 	assert.EqualValues(t, 1000, opts.dynQueueSizeWarmup)
 	assert.EqualValues(t, 1024, opts.dynQueueSizeMemory)
 	assert.True(t, opts.spanSizeMetricsEnabled)
+	assert.NotNil(t, opts.onDroppedSpan)
 }
 
 func TestNoOptionsSet(t *testing.T) {
@@ -69,4 +71,5 @@ func TestNoOptionsSet(t *testing.T) {
 	assert.EqualValues(t, &span, opts.sanitizer(&span))
 	assert.EqualValues(t, 0, opts.dynQueueSizeWarmup)
 	assert.False(t, opts.spanSizeMetricsEnabled)
+	assert.Nil(t, opts.onDroppedSpan)
 }
diff --git a/cmd/collector/app/span_processor.go b/cmd/collector/app/span_processor.go
index 140acbd3325..04e8d43ab36 100644
--- a/cmd/collector/app/span_processor.go
+++ b/cmd/collector/app/span_processor.go
@@ -95,6 +95,9 @@ func newSpanProcessor(spanWriter spanstore.Writer, additional []ProcessSpan, opt
 		options.extraFormatTypes)
 	droppedItemHandler := func(item interface{}) {
 		handlerMetrics.SpansDropped.Inc(1)
+		if options.onDroppedSpan != nil {
+			options.onDroppedSpan(item.(*queueItem).span)
+		}
 	}
 	boundedQueue := queue.NewBoundedQueue(options.queueSize, droppedItemHandler)
 
diff --git a/cmd/collector/app/span_processor_test.go b/cmd/collector/app/span_processor_test.go
index 00c87f871ff..d66383919a0 100644
--- a/cmd/collector/app/span_processor_test.go
+++ b/cmd/collector/app/span_processor_test.go
@@ -332,7 +332,7 @@ func TestSpanProcessorBusy(t *testing.T) {
 		},
 	}, processor.SpansOptions{SpanFormat: processor.JaegerSpanFormat})
 
-	assert.Error(t, err, "expcting busy error")
+	assert.Error(t, err, "expecting busy error")
 	assert.Nil(t, res)
 }
 
@@ -653,3 +653,31 @@ func TestSpanProcessorContextPropagation(t *testing.T) {
 	// Verify no other tenantKey context values made it to writer
 	assert.True(t, reflect.DeepEqual(w.tenants, map[string]bool{dummyTenant: true}))
 }
+
+func TestSpanProcessorWithOnDroppedSpanOption(t *testing.T) {
+	var droppedOperations []string
+	customOnDroppedSpan := func(span *model.Span) {
+		droppedOperations = append(droppedOperations, span.OperationName)
+	}
+
+	w := &blockingWriter{}
+	p := NewSpanProcessor(w,
+		nil,
+		Options.NumWorkers(1),
+		Options.QueueSize(1),
+		Options.OnDroppedSpan(customOnDroppedSpan),
+	).(*spanProcessor)
+	defer p.Close()
+	// block the writer so that the first span is read from the queue and blocks the processor, and followings are dropped.
+	w.Lock()
+	defer w.Unlock()
+
+	_, err := p.ProcessSpans([]*model.Span{
+		{OperationName: "op1"},
+		{OperationName: "op2"},
+		{OperationName: "op3"},
+	}, processor.SpansOptions{SpanFormat: processor.JaegerSpanFormat})
+
+	assert.NoError(t, err)
+	assert.Equal(t, []string{"op2", "op3"}, droppedOperations)
+}