diff --git a/.gitignore b/.gitignore
index 4f6f5693..50769013 100644
--- a/.gitignore
+++ b/.gitignore
@@ -13,3 +13,4 @@
 /.lsp/
 /dev/data/*
 /data*/**
+.calva/repl.calva-repl
diff --git a/deps.edn b/deps.edn
index 5fe32a77..78c1fba5 100644
--- a/deps.edn
+++ b/deps.edn
@@ -1,7 +1,7 @@
 {:deps {org.clojure/clojure    {:mvn/version "1.11.3"}
         org.clojure/core.async {:mvn/version "1.6.681"}
         com.fluree/db          {:git/url "https://github.com/fluree/db.git"
-                                :git/sha "dca1e35afb8b84f557d84b27f0dd387064626012"}
+                                :git/sha "5684c80721398c50886bccc37ba232722d9a406f"}
         com.fluree/json-ld     {:git/url "https://github.com/fluree/json-ld.git"
                                 :git/sha "73a990a4b803d0b4cfbbbe4dc16275b39a3add4e"}
 
@@ -24,6 +24,9 @@
         ch.qos.logback/logback-classic {:mvn/version "1.5.6"}
         org.slf4j/slf4j-api            {:mvn/version "2.0.13"}
 
+        ;; distributed tracing
+        com.github.steffan-westcott/clj-otel-api {:mvn/version "0.2.7"}
+
         ;; http
         ;; ring-jetty9-adapter 0.30.x+ uses Jetty 12 & requires JDK 17+
         ;; so we have to stay on 0.22.x b/c our minimum JDK version is 11
diff --git a/src/fluree/server/consensus.clj b/src/fluree/server/consensus.clj
index 79b1082e..16c0d26c 100644
--- a/src/fluree/server/consensus.clj
+++ b/src/fluree/server/consensus.clj
@@ -2,8 +2,11 @@
   "To allow for pluggable consensus, we have a Transactor protocol. In order to allow
   for a new consensus type, we need to create a record with all of the following
   methods. Currently, we support Raft and Standalone."
-  (:require [fluree.db.util.log :as log]
-            [fluree.server.consensus.events :as events]))
+  (:require [clojure.string :as string]
+            [fluree.db.util.log :as log]
+            [fluree.server.consensus.events :as events]
+            [steffan-westcott.clj-otel.api.trace.span :as span]
+            [steffan-westcott.clj-otel.context :as otel-context]))
 
 (set! *warn-on-reflection* true)
 
@@ -11,14 +14,34 @@
   (-queue-new-ledger [transactor new-ledger-params])
   (-queue-new-transaction [transactor new-tx-params]))
 
+(defn with-trace-context
+  [event]
+  (assoc event ::trace-context (otel-context/->headers)))
+
+;; need to lowercase map keys before calling otel-context/headers->merged-context
+;; https://github.com/steffan-westcott/clj-otel/issues/26
+(defn ^:private lowercase-keys [m]
+  (into {} (map (fn [[k v]] [(string/lower-case (name k)) v])) m))
+
+(defn get-trace-context [event]
+  (-> event ::trace-context lowercase-keys otel-context/headers->merged-context))
+
 (defn queue-new-ledger
   [transactor ledger-id tx-id txn opts]
-  (log/trace "queue-new-ledger:" ledger-id tx-id txn)
-  (let [event-params (events/create-ledger ledger-id tx-id txn opts)]
-    (-queue-new-ledger transactor event-params)))
+  (log/with-mdc {:tx.id tx-id}
+    (log/trace "queue-new-ledger:" ledger-id tx-id txn)
+    (span/with-span! {:name "fluree.server.consensus/queue-new-ledger"
+                      :span-kind :producer
+                      :attributes {:tx.id tx-id}}
+      (let [event-params (events/create-ledger ledger-id tx-id txn opts)]
+        (-queue-new-ledger transactor (with-trace-context event-params))))))
 
 (defn queue-new-transaction
   [transactor ledger-id tx-id txn opts]
-  (log/trace "queue-new-transaction:" txn)
-  (let [event-params (events/commit-transaction ledger-id tx-id txn opts)]
-    (-queue-new-transaction transactor event-params)))
+  (log/with-mdc {:tx.id tx-id}
+    (log/trace "queue-new-transaction:" txn)
+    (span/with-span!  {:name "fluree.server.consensus/queue-new-transaction"
+                       :span-kind :producer
+                       :attributes {:tx.id tx-id}}
+      (let [event-params (events/commit-transaction ledger-id tx-id txn opts)]
+        (-queue-new-transaction transactor (with-trace-context event-params))))))
diff --git a/src/fluree/server/consensus/standalone.clj b/src/fluree/server/consensus/standalone.clj
index 1d8ba83d..65fb8502 100644
--- a/src/fluree/server/consensus/standalone.clj
+++ b/src/fluree/server/consensus/standalone.clj
@@ -6,7 +6,10 @@
             [fluree.server.consensus :as consensus]
             [fluree.server.consensus.events :as events]
             [fluree.server.consensus.response :as response]
-            [fluree.server.handlers.shared :refer [deref!]]))
+            [fluree.server.handlers.shared :refer [deref!]]
+            [fluree.server.watcher :as watcher]
+            [fluree.server.handlers.shared :refer [deref!]]
+            [steffan-westcott.clj-otel.api.trace.span :as span]))
 
 (set! *warn-on-reflection* true)
 
@@ -36,27 +39,31 @@
 
 (defn process-event
   [conn watcher broadcaster event]
-  (go
-    (try
-      (let [event*     (if (events/resolve-txn? event)
-                         (<? (events/resolve-txns conn event))
-                         event)
-            event-type (events/event-type event*)]
-        (cond
-          (= :ledger-create event-type)
-          (<? (create-ledger! conn watcher broadcaster event*))
-
-          (= :tx-queue event-type)
-          (<? (transact! conn watcher broadcaster event*))
-
-          :else
-          (throw (ex-info (str "Unexpected event message: event type '" event-type "' not"
-                               " one of (':ledger-create', ':tx-queue')")
-                          {:status 500, :error :consensus/unexpected-event}))))
-      (catch Exception e
-        (let [{:keys [ledger-id tx-id]} event]
-          (log/warn e "Error processing consensus event")
-          (response/announce-error watcher broadcaster ledger-id tx-id e))))))
+  (span/with-span!  {:name "fluree.server.consensus.standalone/process-event"
+                      ;; should be :consumer but only :server supported by xray  https://github.com/aws-observability/aws-otel-collector/issues/1773
+                     :span-kind :server
+                     :parent (consensus/get-trace-context event)}
+    (go
+      (try
+        (let [event*     (if (events/resolve-txn? event)
+                           (<? (events/resolve-txns conn event))
+                           event)
+              event-type (events/event-type event*)]
+          (cond
+            (= :ledger-create event-type)
+            (<? (create-ledger! conn watcher broadcaster event*))
+
+            (= :tx-queue event-type)
+            (<? (transact! conn watcher broadcaster event*))
+
+            :else
+            (throw (ex-info (str "Unexpected event message: event type '" event-type "' not"
+                                 " one of (':ledger-create', ':tx-queue')")
+                            {:status 500, :error :consensus/unexpected-event}))))
+        (catch Exception e
+          (let [{:keys [ledger-id tx-id]} event]
+            (log/warn e "Error processing consensus event")
+            (response/announce-error watcher broadcaster ledger-id tx-id e)))))))
 
 (defn error?
   [result]
diff --git a/src/fluree/server/handler.clj b/src/fluree/server/handler.clj
index 234be485..dfea821d 100644
--- a/src/fluree/server/handler.clj
+++ b/src/fluree/server/handler.clj
@@ -25,7 +25,8 @@
             [reitit.swagger :as swagger]
             [reitit.swagger-ui :as swagger-ui]
             [ring.adapter.jetty9 :as http]
-            [ring.middleware.cors :as rmc])
+            [ring.middleware.cors :as rmc]
+            [steffan-westcott.clj-otel.api.trace.http :as trace-http])
   (:import (java.io InputStream)))
 
 (set! *warn-on-reflection* true)
@@ -446,6 +447,8 @@
                                 [10 wrap-cors]
                                 [10 (partial wrap-assoc-system connection consensus
                                              watcher subscriptions)]
+                                [20 (partial trace-http/wrap-reitit-route)]
+                                [25 (partial trace-http/wrap-server-span)]
                                 [50 unwrap-credential]
                                 [100 wrap-set-fuel-header]
                                 [200 coercion/coerce-exceptions-middleware]
diff --git a/src/fluree/server/handlers/create.clj b/src/fluree/server/handlers/create.clj
index d361dd1f..9546ec95 100644
--- a/src/fluree/server/handlers/create.clj
+++ b/src/fluree/server/handlers/create.clj
@@ -7,7 +7,8 @@
    [fluree.server.handlers.transact :refer [derive-tx-id extract-ledger-id
                                             monitor-consensus-persistence
                                             monitor-commit]]
-   [fluree.server.watcher :as watcher]))
+   [fluree.server.watcher :as watcher]
+   [steffan-westcott.clj-otel.api.trace.span :as span]))
 
 (set! *warn-on-reflection* true)
 
@@ -22,8 +23,10 @@
   (let [p         (promise)
         tx-id     (derive-tx-id txn)
         result-ch (watcher/create-watch watcher tx-id)]
-    (queue-consensus consensus watcher ledger-id tx-id txn opts)
-    (monitor-commit p ledger-id tx-id result-ch)
+    (log/with-mdc {:tx.id tx-id}
+      (span/add-span-data! {:tx.id tx-id})
+      (queue-consensus consensus watcher ledger-id tx-id txn opts)
+      (monitor-commit p ledger-id tx-id result-ch))
     p))
 
 (defhandler default
@@ -33,5 +36,7 @@
   (let [txn       (fluree/format-txn body opts)
         ledger-id (or (:ledger opts)
                       (extract-ledger-id txn))
-        resp-p    (create-ledger consensus watcher ledger-id txn {})]
+        resp-p    (log/with-mdc {:ledger.id ledger-id}
+                    (do (span/add-span-data! {:attributes (org.slf4j.MDC/getCopyOfContextMap)})
+                        (create-ledger consensus watcher ledger-id txn {})))]
     {:status 201, :body (deref! resp-p)}))
diff --git a/src/fluree/server/handlers/ledger.clj b/src/fluree/server/handlers/ledger.clj
index db1534dd..f45295f3 100644
--- a/src/fluree/server/handlers/ledger.clj
+++ b/src/fluree/server/handlers/ledger.clj
@@ -3,7 +3,8 @@
    [fluree.db.api :as fluree]
    [fluree.db.util.log :as log]
    [fluree.server.handler :as-alias handler]
-   [fluree.server.handlers.shared :refer [defhandler deref!]]))
+   [fluree.server.handlers.shared :refer [defhandler deref!]]
+   [steffan-westcott.clj-otel.api.trace.span :as span]))
 
 (defhandler query
   [{:keys [fluree/conn fluree/opts] {:keys [body]} :parameters :as _req}]
@@ -14,9 +15,10 @@
 
 (defhandler history
   [{:keys [fluree/conn fluree/opts] {{ledger :from :as query} :body} :parameters :as _req}]
-
   (let [ledger*       (->> ledger (fluree/load conn) deref!)
         query*        (dissoc query :from)]
-    (log/debug "history handler received query:" query opts)
-    {:status 200
-     :body   (deref! (fluree/history ledger* query* opts))}))
+    (log/with-mdc {:ledger.id ledger}
+      (span/add-span-data! {:attributes (org.slf4j.MDC/getCopyOfContextMap)})
+      (log/debug "history handler received query:" query opts)
+      {:status 200
+       :body   (deref! (fluree/history ledger* query* opts))})))
diff --git a/src/fluree/server/handlers/remote_resource.clj b/src/fluree/server/handlers/remote_resource.clj
index 507471bc..095d96d3 100644
--- a/src/fluree/server/handlers/remote_resource.clj
+++ b/src/fluree/server/handlers/remote_resource.clj
@@ -3,11 +3,13 @@
             [fluree.db.connection :as connection]
             [fluree.db.util.async :refer [<??]]
             [fluree.db.util.log :as log]
-            [fluree.server.handlers.shared :refer [defhandler]]))
+            [fluree.server.handlers.shared :refer [defhandler]]
+            [steffan-westcott.clj-otel.api.trace.span :as span]))
 
 (defhandler latest-commit
   [{:keys [fluree/conn]
     {{ledger-address :resource :as body} :body} :parameters}]
+    ;; todo: mdc and span properties as needed
   (log/debug "Latest commit lookup request:" body)
   (let [result (<?? (connection/read-publisher-commit conn ledger-address))]
     {:status 200
@@ -16,6 +18,7 @@
 (defhandler read-resource-address
   [{:keys [fluree/conn]
     {{resource-address :resource :as body} :body} :parameters}]
+    ;; todo: mdc and span properties as needed
   (log/debug "Remote resource read request:" body)
   (let [result (<?? (connection/read-file-address conn resource-address))]
     {:status 200
@@ -24,7 +27,9 @@
 (defhandler published-ledger-addresses
   [{:keys [fluree/conn]
     {{:keys [ledger] :as body} :body} :parameters}]
-  (log/debug "Retrieve ledger address request:" body)
-  (let [result (<?? (connection/published-addresses conn ledger))]
-    {:status 200
-     :body   {:addresses result}}))
+  (log/with-mdc {:ledger.id ledger}
+    (span/add-span-data! {:attributes (org.slf4j.MDC/getCopyOfContextMap)})
+    (log/debug "Retrieve ledger address request:" body)
+    (let [result (<?? (connection/published-addresses conn ledger))]
+      {:status 200
+       :body   {:addresses result}})))
diff --git a/src/fluree/server/handlers/transact.clj b/src/fluree/server/handlers/transact.clj
index 592d4999..71b2f62c 100644
--- a/src/fluree/server/handlers/transact.clj
+++ b/src/fluree/server/handlers/transact.clj
@@ -9,7 +9,8 @@
             [fluree.server.consensus :as consensus]
             [fluree.server.consensus.events :as events]
             [fluree.server.handlers.shared :refer [defhandler deref!]]
-            [fluree.server.watcher :as watcher]))
+            [fluree.server.watcher :as watcher]
+            [steffan-westcott.clj-otel.api.trace.span :as span]))
 
 (set! *warn-on-reflection* true)
 
@@ -109,5 +110,7 @@
         opts*     (cond-> (assoc opts :format :fql)
                     raw-txn (assoc :raw-txn raw-txn)
                     did     (assoc :did did))
-        resp-p    (transact! consensus watcher ledger-id txn opts*)]
+        resp-p      (log/with-mdc {:ledger.id ledger-id}
+                      (do (span/add-span-data! {:attributes (org.slf4j.MDC/getCopyOfContextMap)})
+                          (transact! consensus watcher ledger-id txn opts*)))]
     {:status 200, :body (deref! resp-p)}))