diff --git a/pyproject.toml b/pyproject.toml
index 4c2a171..39fb5c2 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -38,6 +38,8 @@ classifiers = [
 dependencies = [
     "mcp>=1.12.0",
     "semgrep==1.131.0",
+    "opentelemetry-api>=1.25.0",
+    "opentelemetry-sdk>=1.25.0",
 ]
 
 [project.license]
diff --git a/src/semgrep_mcp/semgrep.py b/src/semgrep_mcp/semgrep.py
index 79bddc7..f762947 100644
--- a/src/semgrep_mcp/semgrep.py
+++ b/src/semgrep_mcp/semgrep.py
@@ -7,6 +7,7 @@
 
 from mcp.shared.exceptions import McpError
 from mcp.types import INTERNAL_ERROR, ErrorData
+from opentelemetry import trace
 
 from semgrep_mcp.models import CodeFile
 from semgrep_mcp.semgrep_interfaces.semgrep_output_v1 import CliOutput
@@ -140,9 +141,11 @@ class SemgrepContext:
     process: asyncio.subprocess.Process
     stdin: asyncio.StreamWriter
     stdout: asyncio.StreamReader
+    top_level_span: trace.Span
 
-    def __init__(self, process: asyncio.subprocess.Process) -> None:
+    def __init__(self, process: asyncio.subprocess.Process, top_level_span: trace.Span) -> None:
         self.process = process
+        self.top_level_span = top_level_span
 
         if process.stdin is not None and process.stdout is not None:
             self.stdin = process.stdin
@@ -203,7 +206,7 @@ async def run_semgrep(args: list[str]) -> asyncio.subprocess.Process:
     return process
 
 
-async def run_semgrep_daemon() -> SemgrepContext | None:
+async def run_semgrep_daemon(top_level_span: trace.Span) -> SemgrepContext | None:
     """
     Runs the semgrep daemon (`semgrep mcp`) if the user has the Pro Engine installed.
 
@@ -211,6 +214,9 @@ async def run_semgrep_daemon() -> SemgrepContext | None:
     """
     resp = await run_semgrep(["--pro", "--version"])
 
+    # wait for the command to exit so the exit code is set
+    await resp.communicate()
+
     # The user doesn't seem to have the Pro Engine installed.
     # That's fine, let's just run the free engine, without the
     # `semgrep mcp` backend.
@@ -222,7 +228,7 @@ async def run_semgrep_daemon() -> SemgrepContext | None:
         return None
     else:
         process = await run_semgrep(["mcp", "--pro"])
-        return SemgrepContext(process=process)
+        return SemgrepContext(process=process, top_level_span=top_level_span)
 
 
 async def run_semgrep_output(args: list[str]) -> str:
diff --git a/src/semgrep_mcp/server.py b/src/semgrep_mcp/server.py
index a8878ad..4050f4c 100755
--- a/src/semgrep_mcp/server.py
+++ b/src/semgrep_mcp/server.py
@@ -31,6 +31,7 @@
     set_semgrep_executable,
 )
 from semgrep_mcp.semgrep_interfaces.semgrep_output_v1 import CliOutput
+from utilities.tracing import start_tracing, with_span
 
 # ---------------------------------------------------------------------------------
 # Constants
@@ -289,15 +290,16 @@ def remove_temp_dir_from_results(results: SemgrepScanResult, temp_dir: str) -> N
 @asynccontextmanager
 async def server_lifespan(_server: FastMCP) -> AsyncIterator[SemgrepContext | None]:
     """Manage server startup and shutdown lifecycle."""
-    # Initialize resources on startup
+    # Initialize resources on startup with tracing
     # MCP requires Pro Engine
-    context = await run_semgrep_daemon()
+    with start_tracing("mcp-python-server") as span:
+        context = await run_semgrep_daemon(top_level_span=span)
 
-    try:
-        yield context
-    finally:
-        if context is not None:
-            context.shutdown()
+        try:
+            yield context
+        finally:
+            if context is not None:
+                context.shutdown()
 
 
 # Create a fast MCP server
@@ -688,7 +690,8 @@ async def semgrep_scan_rpc(
     temp_dir = None
     try:
         # TODO: perhaps should return more interpretable results?
-        cli_output = await run_semgrep_via_rpc(context, code_files)
+        with with_span(context.top_level_span, "semgrep_scan_rpc"):
+            cli_output = await run_semgrep_via_rpc(context, code_files)
         return cli_output
     except McpError as e:
         raise e
diff --git a/src/utilities/tracing.py b/src/utilities/tracing.py
new file mode 100644
index 0000000..6a38c47
--- /dev/null
+++ b/src/utilities/tracing.py
@@ -0,0 +1,80 @@
+#!/usr/bin/env python3
+
+import logging
+import os
+from collections.abc import Generator
+from contextlib import contextmanager
+
+from opentelemetry import trace
+from opentelemetry.exporter.otlp.proto.http.trace_exporter import OTLPSpanExporter
+from opentelemetry.sdk.resources import DEPLOYMENT_ENVIRONMENT, SERVICE_NAME, Resource
+from opentelemetry.sdk.trace import TracerProvider
+from opentelemetry.sdk.trace.export import BatchSpanProcessor
+
+# coupling: these need to be kept in sync with semgrep-proprietary/tracing.py
+DEFAULT_TRACE_ENDPOINT = "https://telemetry.semgrep.dev/v1/traces"
+DEFAULT_DEV_ENDPOINT = "https://telemetry.dev2.semgrep.dev/v1/traces"
+DEFAULT_LOCAL_ENDPOINT = "http://localhost:4318/v1/traces"
+
+MCP_SERVICE_NAME = "mcp"
+
+
+def get_trace_endpoint() -> tuple[str, str]:
+    """Get the appropriate trace endpoint based on environment."""
+    env = os.environ.get("ENVIRONMENT", "dev").lower()
+
+    if env == "prod":
+        return (DEFAULT_TRACE_ENDPOINT, "prod")
+    elif env == "local":
+        return (DEFAULT_LOCAL_ENDPOINT, "local")
+    else:
+        return (DEFAULT_DEV_ENDPOINT, "dev")
+
+
+@contextmanager
+def start_tracing(name: str) -> Generator[trace.Span, None, None]:
+    """Initialize OpenTelemetry tracing."""
+    (endpoint, env) = get_trace_endpoint()
+
+    # Create resource with basic attributes
+    resource = Resource.create(
+        {
+            SERVICE_NAME: MCP_SERVICE_NAME,
+            DEPLOYMENT_ENVIRONMENT: env,
+        }
+    )
+    # Create tracer provider
+    provider = TracerProvider(resource=resource)
+
+    # Create OTLP exporter
+    exporter = OTLPSpanExporter(endpoint=endpoint)
+
+    # Create span processor
+    processor = BatchSpanProcessor(exporter)
+    provider.add_span_processor(processor)
+
+    # Set the global tracer provider
+    trace.set_tracer_provider(provider)
+
+    # Get tracer instance
+    tracer = trace.get_tracer(MCP_SERVICE_NAME)
+
+    with tracer.start_as_current_span(name) as span:
+        trace_id = trace.format_trace_id(span.get_span_context().trace_id)
+
+        logging.info("Tracing initialized")
+        logging.info(f"Tracing initialized with trace ID: {trace_id}")
+
+        yield span
+
+
+@contextmanager
+def with_span(
+    parent_span: trace.Span,
+    name: str,
+) -> Generator[trace.Span, None, None]:
+    tracer = trace.get_tracer(MCP_SERVICE_NAME)
+
+    context = trace.set_span_in_context(parent_span)
+    with tracer.start_span(name, context=context) as span:
+        yield span
diff --git a/uv.lock b/uv.lock
index 2f31bc5..59d5d3d 100644
--- a/uv.lock
+++ b/uv.lock
@@ -1157,6 +1157,8 @@ version = "0.4.1"
 source = { editable = "." }
 dependencies = [
     { name = "mcp" },
+    { name = "opentelemetry-api" },
+    { name = "opentelemetry-sdk" },
     { name = "semgrep" },
 ]
 
@@ -1176,6 +1178,8 @@ dev = [
 requires-dist = [
     { name = "mcp", specifier = ">=1.12.0" },
     { name = "semgrep", specifier = "==1.131.0" },
+    { name = "opentelemetry-api", specifier = ">=1.25.0" },
+    { name = "opentelemetry-sdk", specifier = ">=1.25.0" },
 ]
 
 [package.metadata.requires-dev]