diff --git a/app/backend/app.py b/app/backend/app.py
index aabc506129..0f8e4843f8 100644
--- a/app/backend/app.py
+++ b/app/backend/app.py
@@ -561,8 +561,7 @@ def create_app():
     app = Quart(__name__)
     app.register_blueprint(bp)
 
-    if os.getenv("APPLICATIONINSIGHTS_CONNECTION_STRING"):
-        configure_azure_monitor()
+    def instrument_app():
         # This tracks HTTP requests made by aiohttp:
         AioHttpClientInstrumentor().instrument()
         # This tracks HTTP requests made by httpx:
@@ -572,6 +571,20 @@ def create_app():
         # This middleware tracks app route requests:
         app.asgi_app = OpenTelemetryMiddleware(app.asgi_app)  # type: ignore[assignment]
 
+    if os.getenv("APPLICATIONINSIGHTS_CONNECTION_STRING"):
+        configure_azure_monitor()
+        instrument_app()
+    elif os.getenv("OTEL_EXPORTER_OTLP_ENDPOINT"):
+        from otlp_tracing import configure_oltp_grpc_tracing
+
+        configure_oltp_grpc_tracing(
+            service_name=os.getenv("OTEL_SERVICE_NAME", "azure-search-openai-demo"),
+            endpoint=os.getenv("OTEL_EXPORTER_OTLP_ENDPOINT"),
+            insecure=os.getenv("OTEL_EXPORTER_OTLP_TRACES_INSECURE", "true").lower() == "true",
+            api_key=os.getenv("OTEL_EXPORTER_OTLP_TRACES_API_KEY"),
+        )
+        instrument_app()
+
     # Level should be one of https://docs.python.org/3/library/logging.html#logging-levels
     default_level = "INFO"  # In development, log more verbosely
     if os.getenv("WEBSITE_HOSTNAME"):  # In production, don't log as heavily
diff --git a/app/backend/otlp_tracing.py b/app/backend/otlp_tracing.py
new file mode 100644
index 0000000000..b481338b22
--- /dev/null
+++ b/app/backend/otlp_tracing.py
@@ -0,0 +1,52 @@
+import logging
+
+from opentelemetry import metrics, trace
+
+# Logging (Experimental)
+from opentelemetry._logs import set_logger_provider
+from opentelemetry.exporter.otlp.proto.grpc._log_exporter import (
+    OTLPLogExporter,
+)
+from opentelemetry.exporter.otlp.proto.grpc.metric_exporter import OTLPMetricExporter
+from opentelemetry.exporter.otlp.proto.grpc.trace_exporter import OTLPSpanExporter
+from opentelemetry.sdk._logs import LoggerProvider, LoggingHandler
+from opentelemetry.sdk._logs.export import BatchLogRecordProcessor
+from opentelemetry.sdk.metrics import MeterProvider
+from opentelemetry.sdk.metrics.export import PeriodicExportingMetricReader
+from opentelemetry.sdk.resources import SERVICE_NAME, Resource
+from opentelemetry.sdk.trace import TracerProvider
+from opentelemetry.sdk.trace.export import BatchSpanProcessor
+
+
+def configure_oltp_grpc_tracing(
+    service_name: str = "azure-search-openai-demo", endpoint=None, insecure=True, api_key=None
+):
+    # Service name is required for most backends
+    resource = Resource(attributes={SERVICE_NAME: service_name})
+
+    if api_key:
+        headers = {"x-otlp-api-key": api_key}
+    else:
+        headers = None
+
+    # Configure Tracing
+    traceProvider = TracerProvider(resource=resource)
+    processor = BatchSpanProcessor(OTLPSpanExporter(endpoint=endpoint, insecure=insecure, headers=headers))
+    traceProvider.add_span_processor(processor)
+    trace.set_tracer_provider(traceProvider)
+
+    # Configure Metrics
+    reader = PeriodicExportingMetricReader(OTLPMetricExporter(endpoint=endpoint, insecure=insecure, headers=headers))
+    meterProvider = MeterProvider(resource=resource, metric_readers=[reader])
+    metrics.set_meter_provider(meterProvider)
+
+    # Configure Logging
+    logger_provider = LoggerProvider(resource=resource)
+    set_logger_provider(logger_provider)
+
+    exporter = OTLPLogExporter(endpoint=endpoint, insecure=insecure, headers=headers)
+    logger_provider.add_log_record_processor(BatchLogRecordProcessor(exporter))
+    handler = LoggingHandler(level=logging.NOTSET, logger_provider=logger_provider)
+
+    # Attach OTLP handler to root logger
+    logging.getLogger().addHandler(handler)
diff --git a/app/backend/requirements.in b/app/backend/requirements.in
index b0147e2f02..1008840ff8 100644
--- a/app/backend/requirements.in
+++ b/app/backend/requirements.in
@@ -16,6 +16,9 @@ opentelemetry-instrumentation-httpx
 opentelemetry-instrumentation-requests
 opentelemetry-instrumentation-aiohttp-client
 opentelemetry-instrumentation-openai
+opentelemetry-exporter-otlp-proto-grpc
+opentelemetry-exporter-otlp-proto-http
+
 msal
 azure-keyvault-secrets
 cryptography
diff --git a/app/backend/requirements.txt b/app/backend/requirements.txt
index ffacba9668..365f38ca1d 100644
--- a/app/backend/requirements.txt
+++ b/app/backend/requirements.txt
@@ -18,7 +18,7 @@ anyio==4.3.0
     # via
     #   httpx
     #   openai
-asgiref==3.7.2
+asgiref==3.8.1
     # via opentelemetry-instrumentation-asgi
 attrs==23.2.0
     # via aiohttp
@@ -89,7 +89,10 @@ cryptography==42.0.5
     #   pyjwt
     #   python-jose
 deprecated==1.2.14
-    # via opentelemetry-api
+    # via
+    #   opentelemetry-api
+    #   opentelemetry-exporter-otlp-proto-grpc
+    #   opentelemetry-exporter-otlp-proto-http
 distro==1.9.0
     # via openai
 ecdsa==0.18.0
@@ -102,6 +105,12 @@ frozenlist==1.4.1
     # via
     #   aiohttp
     #   aiosignal
+googleapis-common-protos==1.63.0
+    # via
+    #   opentelemetry-exporter-otlp-proto-grpc
+    #   opentelemetry-exporter-otlp-proto-http
+grpcio==1.62.1
+    # via opentelemetry-exporter-otlp-proto-grpc
 h11==0.14.0
     # via
     #   httpcore
@@ -114,7 +123,7 @@ h2==4.1.0
     #   hypercorn
 hpack==4.0.0
     # via h2
-httpcore==1.0.4
+httpcore==1.0.5
     # via httpx
 httpx[http2]==0.27.0
     # via
@@ -131,8 +140,10 @@ idna==3.7
     #   httpx
     #   requests
     #   yarl
-importlib-metadata==6.11.0
-    # via opentelemetry-api
+importlib-metadata==7.0.0
+    # via
+    #   opentelemetry-api
+    #   opentelemetry-instrumentation-flask
 isodate==0.6.1
     # via
     #   azure-ai-documentintelligence
@@ -174,7 +185,7 @@ microsoft-kiota-serialization-json==1.1.0
     # via msgraph-sdk
 microsoft-kiota-serialization-text==1.0.0
     # via msgraph-sdk
-msal==1.27.0
+msal==1.28.0
     # via
     #   -r requirements.in
     #   azure-identity
@@ -198,15 +209,12 @@ numpy==1.26.4
     #   pandas-stubs
 oauthlib==3.2.2
     # via requests-oauthlib
-openai[datalib]==1.13.3
+openai[datalib]==1.16.1
     # via -r requirements.in
-opentelemetry-api==1.23.0
+opentelemetry-api==1.24.0
     # via
     #   azure-core-tracing-opentelemetry
     #   azure-monitor-opentelemetry-exporter
-    #   microsoft-kiota-abstractions
-    #   microsoft-kiota-authentication-azure
-    #   microsoft-kiota-http
     #   opentelemetry-instrumentation
     #   opentelemetry-instrumentation-aiohttp-client
     #   opentelemetry-instrumentation-asgi
@@ -222,7 +230,15 @@ opentelemetry-api==1.23.0
     #   opentelemetry-instrumentation-urllib3
     #   opentelemetry-instrumentation-wsgi
     #   opentelemetry-sdk
-opentelemetry-instrumentation==0.44b0
+opentelemetry-exporter-otlp-proto-common==1.24.0
+    # via
+    #   opentelemetry-exporter-otlp-proto-grpc
+    #   opentelemetry-exporter-otlp-proto-http
+opentelemetry-exporter-otlp-proto-grpc==1.24.0
+    # via -r requirements.in
+opentelemetry-exporter-otlp-proto-http==1.24.0
+    # via -r requirements.in
+opentelemetry-instrumentation==0.45b0
     # via
     #   opentelemetry-instrumentation-aiohttp-client
     #   opentelemetry-instrumentation-asgi
@@ -237,48 +253,50 @@ opentelemetry-instrumentation==0.44b0
     #   opentelemetry-instrumentation-urllib
     #   opentelemetry-instrumentation-urllib3
     #   opentelemetry-instrumentation-wsgi
-opentelemetry-instrumentation-aiohttp-client==0.44b0
+opentelemetry-instrumentation-aiohttp-client==0.45b0
     # via -r requirements.in
-opentelemetry-instrumentation-asgi==0.44b0
+opentelemetry-instrumentation-asgi==0.45b0
     # via
     #   -r requirements.in
     #   opentelemetry-instrumentation-fastapi
-opentelemetry-instrumentation-dbapi==0.44b0
+opentelemetry-instrumentation-dbapi==0.45b0
     # via opentelemetry-instrumentation-psycopg2
-opentelemetry-instrumentation-django==0.44b0
+opentelemetry-instrumentation-django==0.45b0
     # via azure-monitor-opentelemetry
-opentelemetry-instrumentation-fastapi==0.44b0
+opentelemetry-instrumentation-fastapi==0.45b0
     # via azure-monitor-opentelemetry
-opentelemetry-instrumentation-flask==0.44b0
+opentelemetry-instrumentation-flask==0.45b0
     # via azure-monitor-opentelemetry
-opentelemetry-instrumentation-httpx==0.44b0
+opentelemetry-instrumentation-httpx==0.45b0
     # via -r requirements.in
-opentelemetry-instrumentation-openai==0.13.1
+opentelemetry-instrumentation-openai==0.15.9
     # via -r requirements.in
-opentelemetry-instrumentation-psycopg2==0.44b0
+opentelemetry-instrumentation-psycopg2==0.45b0
     # via azure-monitor-opentelemetry
-opentelemetry-instrumentation-requests==0.44b0
+opentelemetry-instrumentation-requests==0.45b0
     # via
     #   -r requirements.in
     #   azure-monitor-opentelemetry
-opentelemetry-instrumentation-urllib==0.44b0
+opentelemetry-instrumentation-urllib==0.45b0
     # via azure-monitor-opentelemetry
-opentelemetry-instrumentation-urllib3==0.44b0
+opentelemetry-instrumentation-urllib3==0.45b0
     # via azure-monitor-opentelemetry
-opentelemetry-instrumentation-wsgi==0.44b0
+opentelemetry-instrumentation-wsgi==0.45b0
     # via
     #   opentelemetry-instrumentation-django
     #   opentelemetry-instrumentation-flask
+opentelemetry-proto==1.24.0
+    # via
+    #   opentelemetry-exporter-otlp-proto-common
+    #   opentelemetry-exporter-otlp-proto-grpc
+    #   opentelemetry-exporter-otlp-proto-http
 opentelemetry-resource-detector-azure==0.1.3
     # via azure-monitor-opentelemetry
-opentelemetry-sdk==1.23.0
+opentelemetry-sdk==1.24.0
     # via
     #   azure-monitor-opentelemetry-exporter
-    #   microsoft-kiota-abstractions
-    #   microsoft-kiota-authentication-azure
-    #   microsoft-kiota-http
     #   opentelemetry-resource-detector-azure
-opentelemetry-semantic-conventions==0.44b0
+opentelemetry-semantic-conventions==0.45b0
     # via
     #   opentelemetry-instrumentation-aiohttp-client
     #   opentelemetry-instrumentation-asgi
@@ -287,14 +305,15 @@ opentelemetry-semantic-conventions==0.44b0
     #   opentelemetry-instrumentation-fastapi
     #   opentelemetry-instrumentation-flask
     #   opentelemetry-instrumentation-httpx
+    #   opentelemetry-instrumentation-openai
     #   opentelemetry-instrumentation-requests
     #   opentelemetry-instrumentation-urllib
     #   opentelemetry-instrumentation-urllib3
     #   opentelemetry-instrumentation-wsgi
     #   opentelemetry-sdk
-opentelemetry-semantic-conventions-ai==0.0.20
+opentelemetry-semantic-conventions-ai==0.1.1
     # via opentelemetry-instrumentation-openai
-opentelemetry-util-http==0.44b0
+opentelemetry-util-http==0.45b0
     # via
     #   opentelemetry-instrumentation-aiohttp-client
     #   opentelemetry-instrumentation-asgi
@@ -306,13 +325,13 @@ opentelemetry-util-http==0.44b0
     #   opentelemetry-instrumentation-urllib
     #   opentelemetry-instrumentation-urllib3
     #   opentelemetry-instrumentation-wsgi
-packaging==23.2
+packaging==24.0
     # via
     #   msal-extensions
     #   opentelemetry-instrumentation-flask
 pandas==2.2.1
     # via openai
-pandas-stubs==2.2.0.240218
+pandas-stubs==2.2.1.240316
     # via openai
 pendulum==3.0.0
     # via microsoft-kiota-serialization-json
@@ -322,13 +341,17 @@ portalocker==2.8.2
     # via msal-extensions
 priority==2.0.0
     # via hypercorn
-pyasn1==0.5.1
+protobuf==4.25.3
+    # via
+    #   googleapis-common-protos
+    #   opentelemetry-proto
+pyasn1==0.6.0
     # via
     #   python-jose
     #   rsa
-pycparser==2.21
+pycparser==2.22
     # via cffi
-pydantic==2.6.3
+pydantic==2.6.4
     # via openai
 pydantic-core==2.16.3
     # via pydantic
@@ -352,7 +375,7 @@ python-jose[cryptography]==3.3.0
     # via -r requirements.in
 pytz==2024.1
     # via pandas
-quart==0.19.4
+quart==0.19.5
     # via
     #   -r requirements.in
     #   quart-cors
@@ -365,9 +388,10 @@ requests==2.31.0
     #   azure-core
     #   msal
     #   msrest
+    #   opentelemetry-exporter-otlp-proto-http
     #   requests-oauthlib
     #   tiktoken
-requests-oauthlib==1.3.1
+requests-oauthlib==2.0.0
     # via msrest
 rsa==4.9
     # via python-jose
@@ -398,7 +422,7 @@ types-beautifulsoup4==4.12.0.20240229
     # via -r requirements.in
 types-html5lib==1.1.11.20240228
     # via types-beautifulsoup4
-types-pillow==10.2.0.20240213
+types-pillow==10.2.0.20240331
     # via -r requirements.in
 types-pyasn1==0.6.0.20240402
     # via types-python-jose
@@ -423,9 +447,9 @@ tzdata==2024.1
     #   pendulum
 urllib3==2.2.1
     # via requests
-uvicorn==0.27.1
+uvicorn==0.29.0
     # via -r requirements.in
-werkzeug==3.0.1
+werkzeug==3.0.2
     # via
     #   flask
     #   quart
@@ -440,7 +464,7 @@ wsproto==1.2.0
     # via hypercorn
 yarl==1.9.4
     # via aiohttp
-zipp==3.17.0
+zipp==3.18.1
     # via importlib-metadata
 
 # The following packages are considered to be unsafe in a requirements file:
diff --git a/docs/localdev.md b/docs/localdev.md
index 252cca0a8c..5657e50df3 100644
--- a/docs/localdev.md
+++ b/docs/localdev.md
@@ -65,3 +65,7 @@ If you're running inside a dev container, use this local URL instead:
 ```shell
 azd env set OPENAI_BASE_URL http://host.docker.internal:8080/v1
 ```
+
+## (Optional) Running with OpenTelemetry tracing
+
+To run the service with OpenTelemetry tracing, you can use the local Aspire Dashboard, see [OpenTelemetry support](opentelemetry.md) for details on starting the dashboard.
\ No newline at end of file
diff --git a/docs/opentelemetry.md b/docs/opentelemetry.md
new file mode 100644
index 0000000000..d80ce5e289
--- /dev/null
+++ b/docs/opentelemetry.md
@@ -0,0 +1,34 @@
+# OpenTelemetry support
+
+This project has instrumentation for OpenTelemetry. The OpenTelemetry project provides a single set of APIs, libraries, agents, and instrumentation resources to capture distributed traces and metrics from your application. There are two supported options for viewing traces emitted by this application:
+
+1. Locally using [the .NET Aspire Dashboard](#starting-the-aspire-dashboard)
+2. Remotely using [Azure Monitor and Application Insights](../README.md#monitoring-with-application-insights)
+
+## Starting the .NET Aspire Dashboard
+
+The .NET Aspire dashboard is an OpenTelemetry dashboard service that can be run locally using Docker. The dashboard is a web application that can be accessed at `http://localhost:18888`. The .NET Aspire Dashboard is designed for local development and testing. Once the container is stopped, any traces, logs and metrics will be destroyed. For persistent logging, see the [Azure Monitor and Application Insights](../README.md#monitoring-with-application-insights) integration.
+
+You can set a temporary key for OTLP API as an environment variable when starting the container. The key is used to verify that incoming data is from a trusted source. The key is used to authenticate the data source and is not used to authenticate users accessing the dashboard.
+
+```console
+export OTLP_KEY=f142d227-486e-4e80-b7bd-3446e6aa8ea1  # Your own unique key
+docker run --rm -it -p 18888:18888 -p 4317:18889 --name aspire-dashboard \
+  -e DASHBOARD__OTLP__AUTHMODE='ApiKey' \
+  -e DASHBOARD__OTLP__PRIMARYAPIKEY='${OTLP_KEY}' \
+  mcr.microsoft.com/dotnet/nightly/aspire-dashboard:8.0-preview
+```
+
+Once you have started the container, look at the output for a link to the dashboard, the service generates a unique sign-in key that you can use to access the dashboard and prints this to stdout.
+
+## Starting the service with OpenTelemetry
+
+To send data to the Aspire dashboard, you need to configure your application to send data to the OpenTelemetry collector. The collector is a service that receives telemetry data from your application and forwards it to the dashboard.
+
+From the `app/` directory, you can start the service with the following command and additional environment variables:
+
+```console
+$ OTEL_EXPORTER_OTLP_ENDPOINT=http://localhost:4317 OTEL_EXPORTER_OTLP_TRACES_API_KEY=${OTLP_KEY}  ./start.sh
+```
+
+This will launch the web services and connect all tracing to the OTLP endpoint running in the dashboard container.