diff --git a/internal/telemetry/trace/server.go b/internal/telemetry/trace/server.go
index 8f732df88..dd56402e3 100644
--- a/internal/telemetry/trace/server.go
+++ b/internal/telemetry/trace/server.go
@@ -3,7 +3,6 @@ package trace
 import (
 	"context"
 	"encoding/base64"
-	"encoding/hex"
 	"errors"
 	"fmt"
 	"net"
@@ -28,7 +27,6 @@ import (
 	"go.opentelemetry.io/otel/exporters/otlp/otlptrace"
 	"go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc"
 	sdktrace "go.opentelemetry.io/otel/sdk/trace"
-	"go.opentelemetry.io/otel/trace"
 	oteltrace "go.opentelemetry.io/otel/trace"
 )
 
@@ -148,13 +146,19 @@ func (r *ResourceInfo) computeID() string {
 	return base64.StdEncoding.EncodeToString(hash.Sum(nil))
 }
 
+type SpanObserver interface {
+	ObserveReference(id oteltrace.SpanID)
+	Observe(id oteltrace.SpanID)
+	Wait()
+}
+
 type spanObserver struct {
 	mu            sync.Mutex
-	referencedIDs map[unique.Handle[oteltrace.SpanID]]bool
+	referencedIDs map[oteltrace.SpanID]bool
 	unobservedIDs sync.WaitGroup
 }
 
-func (obs *spanObserver) ObserveReference(id unique.Handle[oteltrace.SpanID]) {
+func (obs *spanObserver) ObserveReference(id oteltrace.SpanID) {
 	obs.mu.Lock()
 	defer obs.mu.Unlock()
 	if _, referenced := obs.referencedIDs[id]; !referenced {
@@ -163,7 +167,7 @@ func (obs *spanObserver) ObserveReference(id unique.Handle[oteltrace.SpanID]) {
 	}
 }
 
-func (obs *spanObserver) Observe(id unique.Handle[oteltrace.SpanID]) {
+func (obs *spanObserver) Observe(id oteltrace.SpanID) {
 	obs.mu.Lock()
 	defer obs.mu.Unlock()
 	if observed, referenced := obs.referencedIDs[id]; !observed { // NB: subtle condition
@@ -178,6 +182,12 @@ func (obs *spanObserver) Wait() {
 	obs.unobservedIDs.Wait()
 }
 
+type noopSpanObserver struct{}
+
+func (noopSpanObserver) ObserveReference(oteltrace.SpanID) {}
+func (noopSpanObserver) Observe(oteltrace.SpanID)          {}
+func (noopSpanObserver) Wait()                             {}
+
 type SpanExportQueue struct {
 	mu                        sync.Mutex
 	pendingResourcesByTraceId map[unique.Handle[oteltrace.TraceID]]*PendingResources
@@ -185,23 +195,28 @@ type SpanExportQueue struct {
 	uploadC                   chan []*tracev1.ResourceSpans
 	closing                   bool
 	closed                    chan struct{}
-	debugLevel                int
-	debugAllObservedSpans     map[unique.Handle[oteltrace.SpanID]]*tracev1.Span
+	debugFlags                DebugFlags
+	debugAllObservedSpans     map[oteltrace.SpanID]*tracev1.Span
 	tracker                   *spanTracker
-	observer                  *spanObserver
+	observer                  SpanObserver
 }
 
 func NewSpanExportQueue(ctx context.Context, client otlptrace.Client) *SpanExportQueue {
-	observer := &spanObserver{referencedIDs: make(map[unique.Handle[oteltrace.SpanID]]bool)}
-	debugLevel := systemContextFromContext(ctx).DebugLevel
+	debug := systemContextFromContext(ctx).DebugFlags
+	var observer SpanObserver
+	if debug.Check(TrackSpanReferences) {
+		observer = &spanObserver{referencedIDs: make(map[oteltrace.SpanID]bool)}
+	} else {
+		observer = noopSpanObserver{}
+	}
 	q := &SpanExportQueue{
 		pendingResourcesByTraceId: make(map[unique.Handle[oteltrace.TraceID]]*PendingResources),
 		knownTraceIdMappings:      make(map[unique.Handle[oteltrace.TraceID]]unique.Handle[oteltrace.TraceID]),
 		uploadC:                   make(chan []*tracev1.ResourceSpans, 8),
 		closed:                    make(chan struct{}),
-		debugLevel:                debugLevel,
-		debugAllObservedSpans:     make(map[unique.Handle[oteltrace.SpanID]]*tracev1.Span),
-		tracker:                   &spanTracker{observer: observer, debugLevel: debugLevel},
+		debugFlags:                debug,
+		debugAllObservedSpans:     make(map[oteltrace.SpanID]*tracev1.Span),
+		tracker:                   &spanTracker{observer: observer, debugFlags: debug},
 		observer:                  observer,
 	}
 	go func() {
@@ -267,13 +282,12 @@ func (q *SpanExportQueue) Enqueue(ctx context.Context, req *coltracepb.ExportTra
 		for _, scope := range resource.ScopeSpans {
 			for _, span := range scope.Spans {
 				formatSpanName(span)
-				spanId := unique.Make(oteltrace.SpanID(span.SpanId))
-				parentSpanId := parentSpanID(span.ParentSpanId)
-				if q.debugLevel >= 1 {
+				spanId := oteltrace.SpanID(span.SpanId)
+				if q.debugFlags.Check(TrackAllSpans) {
 					q.debugAllObservedSpans[spanId] = span
 				}
-				if parentSpanId != rootSpanId {
-					q.observer.ObserveReference(parentSpanId)
+				if len(span.ParentSpanId) != 0 { // if parent is not a root span
+					q.observer.ObserveReference(oteltrace.SpanID(span.ParentSpanId))
 					continue
 				}
 				spanTraceId := unique.Make(oteltrace.TraceID(span.TraceId))
@@ -319,10 +333,10 @@ func (q *SpanExportQueue) Enqueue(ctx context.Context, req *coltracepb.ExportTra
 		for _, scope := range resource.ScopeSpans {
 			var knownSpans []*tracev1.Span
 			for _, span := range scope.Spans {
-				spanID := unique.Make(oteltrace.SpanID(span.SpanId))
-				spanTraceId := unique.Make(oteltrace.TraceID(span.TraceId))
+				spanID := oteltrace.SpanID(span.SpanId)
+				traceId := unique.Make(oteltrace.TraceID(span.TraceId))
 				q.observer.Observe(spanID)
-				if mapping, ok := q.knownTraceIdMappings[spanTraceId]; ok {
+				if mapping, ok := q.knownTraceIdMappings[traceId]; ok {
 					id := mapping.Value()
 					copy(span.TraceId, id[:])
 					knownSpans = append(knownSpans, span)
@@ -357,15 +371,6 @@ var (
 	ErrMissingParentSpans = errors.New("exporter shut down with missing parent spans")
 )
 
-var rootSpanId = unique.Make(oteltrace.SpanID([8]byte{}))
-
-func parentSpanID(value []byte) unique.Handle[oteltrace.SpanID] {
-	if len(value) == 0 {
-		return rootSpanId
-	}
-	return unique.Make(oteltrace.SpanID(value))
-}
-
 func (q *SpanExportQueue) WaitForSpans(maxDuration time.Duration) error {
 	done := make(chan struct{})
 	go func() {
@@ -391,116 +396,122 @@ func (q *SpanExportQueue) Close(ctx context.Context) error {
 	case <-q.closed:
 		q.mu.Lock()
 		defer q.mu.Unlock()
-		if q.debugLevel >= 1 {
+		if q.debugFlags.Check(TrackSpanReferences) {
 			var unknownParentIds []string
-			for id, known := range q.observer.referencedIDs {
+			for id, known := range q.observer.(*spanObserver).referencedIDs {
 				if !known {
-					unknownParentIds = append(unknownParentIds, id.Value().String())
+					unknownParentIds = append(unknownParentIds, id.String())
 				}
 			}
 			if len(unknownParentIds) > 0 {
-				msg := strings.Builder{}
-				msg.WriteString("==================================================\n")
-				msg.WriteString("WARNING: parent spans referenced but never seen:\n")
+				msg := startMsg("WARNING: parent spans referenced but never seen:\n")
 				for _, str := range unknownParentIds {
 					msg.WriteString(str)
 					msg.WriteString("\n")
 				}
-				msg.WriteString("==================================================\n")
-				fmt.Fprint(os.Stderr, msg.String())
+				endMsg(msg)
 			}
 		}
+		didWarn := false
 		incomplete := len(q.pendingResourcesByTraceId) > 0
-		if incomplete || q.debugLevel >= 3 {
-			msg := strings.Builder{}
-			if incomplete && q.debugLevel >= 1 {
-				msg.WriteString("==================================================\n")
-				msg.WriteString("WARNING: exporter shut down with incomplete traces\n")
-				for k, v := range q.pendingResourcesByTraceId {
-					msg.WriteString(fmt.Sprintf("- Trace: %s\n", k.Value()))
-					for _, pendingScope := range v.scopesByResourceID {
-						msg.WriteString("  - Resource:\n")
-						for _, v := range pendingScope.resource.Resource.Attributes {
-							msg.WriteString(fmt.Sprintf("     %s=%s\n", v.Key, v.Value.String()))
+		if incomplete && q.debugFlags.Check(WarnOnIncompleteTraces) {
+			didWarn = true
+			msg := startMsg("WARNING: exporter shut down with incomplete traces\n")
+			for k, v := range q.pendingResourcesByTraceId {
+				fmt.Fprintf(msg, "- Trace: %s\n", k.Value())
+				for _, pendingScope := range v.scopesByResourceID {
+					msg.WriteString("  - Resource:\n")
+					for _, v := range pendingScope.resource.Resource.Attributes {
+						fmt.Fprintf(msg, "     %s=%s\n", v.Key, v.Value.String())
+					}
+					for _, scope := range pendingScope.spansByScope {
+						if scope.scope != nil {
+							fmt.Fprintf(msg, "    Scope: %s\n", scope.scope.Name)
+						} else {
+							msg.WriteString("    Scope: (unknown)\n")
 						}
-						for _, scope := range pendingScope.spansByScope {
-							if scope.scope != nil {
-								msg.WriteString(fmt.Sprintf("    Scope: %s\n", scope.scope.Name))
-							} else {
-								msg.WriteString("    Scope: (unknown)\n")
+						msg.WriteString("    Spans:\n")
+						longestName := 0
+						for _, span := range scope.spans {
+							longestName = max(longestName, len(span.Name)+2)
+						}
+						for _, span := range scope.spans {
+							parentSpanId := oteltrace.SpanID(span.ParentSpanId)
+							_, seenParent := q.debugAllObservedSpans[parentSpanId]
+							var missing string
+							if !seenParent {
+								missing = " [missing]"
 							}
-							msg.WriteString("    Spans:\n")
-							longestName := 0
-							for _, span := range scope.spans {
-								longestName = max(longestName, len(span.Name)+2)
-							}
-							for _, span := range scope.spans {
-								parentSpanId := parentSpanID(span.ParentSpanId)
-								_, seenParent := q.debugAllObservedSpans[parentSpanId]
-								var missing string
-								if !seenParent {
-									missing = " [missing]"
-								}
-								msg.WriteString(fmt.Sprintf("    - %-*s (trace: %s | span: %s | parent:%s %s)\n", longestName,
-									"'"+span.Name+"'", hex.EncodeToString(span.TraceId), hex.EncodeToString(span.SpanId), missing, parentSpanId.Value()))
-								for _, attr := range span.Attributes {
-									if attr.Key == "caller" {
-										msg.WriteString(fmt.Sprintf("      => caller: '%s'\n", attr.Value.GetStringValue()))
-									}
+							fmt.Fprintf(msg, "    - %-*s (trace: %s | span: %s | parent:%s %s)\n", longestName,
+								"'"+span.Name+"'", oteltrace.SpanID(span.TraceId), oteltrace.SpanID(span.SpanId), missing, parentSpanId)
+							for _, attr := range span.Attributes {
+								if attr.Key == "caller" {
+									fmt.Fprintf(msg, "      => caller: '%s'\n", attr.Value.GetStringValue())
+									break
 								}
 							}
 						}
 					}
 				}
-				msg.WriteString("==================================================\n")
-			}
-			if (incomplete && q.debugLevel >= 2) || (!incomplete && q.debugLevel >= 3) {
-				msg.WriteString("==================================================\n")
-				msg.WriteString("Known trace ids:\n")
-				for k, v := range q.knownTraceIdMappings {
-					if k != v {
-						msg.WriteString(fmt.Sprintf("%s => %s\n", k.Value(), v.Value()))
-					} else {
-						msg.WriteString(fmt.Sprintf("%s (no change)\n", k.Value()))
-					}
-				}
-				msg.WriteString("==================================================\n")
-				msg.WriteString("All exported spans:\n")
-				longestName := 0
-				for _, span := range q.debugAllObservedSpans {
-					longestName = max(longestName, len(span.Name)+2)
-				}
-				for _, span := range q.debugAllObservedSpans {
-					traceid := span.TraceId
-					spanid := span.SpanId
-					msg.WriteString(fmt.Sprintf("%-*s (trace: %s | span: %s | parent: %s)", longestName,
-						"'"+span.Name+"'", hex.EncodeToString(traceid[:]), hex.EncodeToString(spanid[:]), parentSpanID(span.ParentSpanId).Value()))
-					var foundCaller bool
-					for _, attr := range span.Attributes {
-						if attr.Key == "caller" {
-							msg.WriteString(fmt.Sprintf(" => %s\n", attr.Value.GetStringValue()))
-							foundCaller = true
-							break
-						}
-					}
-					if !foundCaller {
-						msg.WriteString("\n")
-					}
-				}
-				msg.WriteString("==================================================\n")
-			}
-			if msg.Len() > 0 {
-				fmt.Fprint(os.Stderr, msg.String())
-			}
-			if incomplete {
-				return ErrIncompleteTraces
 			}
+			endMsg(msg)
 		}
+
+		if q.debugFlags.Check(LogTraceIDMappings) || (didWarn && q.debugFlags.Check(LogTraceIDMappingsOnWarn)) {
+			msg := startMsg("Known trace ids:\n")
+			for k, v := range q.knownTraceIdMappings {
+				if k != v {
+					fmt.Fprintf(msg, "%s => %s\n", k.Value(), v.Value())
+				} else {
+					fmt.Fprintf(msg, "%s (no change)\n", k.Value())
+				}
+			}
+			endMsg(msg)
+		}
+		if q.debugFlags.Check(LogAllSpans) || (didWarn && q.debugFlags.Check(LogAllSpansOnWarn)) {
+			msg := startMsg("All exported spans:\n")
+			longestName := 0
+			for _, span := range q.debugAllObservedSpans {
+				longestName = max(longestName, len(span.Name)+2)
+			}
+			for _, span := range q.debugAllObservedSpans {
+				fmt.Fprintf(msg, "%-*s (trace: %s | span: %s | parent: %s)", longestName,
+					"'"+span.Name+"'", oteltrace.TraceID(span.TraceId), oteltrace.SpanID(span.SpanId), oteltrace.SpanID(span.ParentSpanId))
+				var foundCaller bool
+				for _, attr := range span.Attributes {
+					if attr.Key == "caller" {
+						fmt.Fprintf(msg, " => %s\n", attr.Value.GetStringValue())
+						foundCaller = true
+						break
+					}
+				}
+				if !foundCaller {
+					msg.WriteString("\n")
+				}
+			}
+			endMsg(msg)
+		}
+		if incomplete {
+			return ErrIncompleteTraces
+		}
+
 		log.Ctx(ctx).Debug().Msg("exporter shut down")
 		return nil
 	}
 }
 
+func startMsg(title string) *strings.Builder {
+	msg := &strings.Builder{}
+	msg.WriteString("\n==================================================\n")
+	msg.WriteString(title)
+	return msg
+}
+
+func endMsg(msg *strings.Builder) {
+	msg.WriteString("==================================================\n")
+	fmt.Fprint(os.Stderr, msg.String())
+}
+
 func formatSpanName(span *tracev1.Span) {
 	hasPath := strings.Contains(span.GetName(), "${path}")
 	hasHost := strings.Contains(span.GetName(), "${host}")
@@ -605,15 +616,15 @@ func (srv *ExporterServer) Shutdown(ctx context.Context) error {
 type spanTracker struct {
 	inflightSpans sync.Map
 	allSpans      sync.Map
-	debugLevel    int
-	observer      *spanObserver
+	debugFlags    DebugFlags
+	observer      SpanObserver
 	shutdownOnce  sync.Once
 }
 
 type spanInfo struct {
 	Name        string
-	SpanContext trace.SpanContext
-	Parent      trace.SpanContext
+	SpanContext oteltrace.SpanContext
+	Parent      oteltrace.SpanContext
 }
 
 // ForceFlush implements trace.SpanProcessor.
@@ -623,16 +634,16 @@ func (t *spanTracker) ForceFlush(ctx context.Context) error {
 
 // OnEnd implements trace.SpanProcessor.
 func (t *spanTracker) OnEnd(s sdktrace.ReadOnlySpan) {
-	id := unique.Make(s.SpanContext().SpanID())
+	id := s.SpanContext().SpanID()
 	t.inflightSpans.Delete(id)
 }
 
 // OnStart implements trace.SpanProcessor.
 func (t *spanTracker) OnStart(parent context.Context, s sdktrace.ReadWriteSpan) {
-	id := unique.Make(s.SpanContext().SpanID())
+	id := s.SpanContext().SpanID()
 	t.inflightSpans.Store(id, struct{}{})
 	t.observer.Observe(id)
-	if t.debugLevel >= 3 {
+	if t.debugFlags.Check(TrackAllSpans) {
 		t.allSpans.Store(id, &spanInfo{
 			Name:        s.Name(),
 			SpanContext: s.SpanContext(),
@@ -643,50 +654,67 @@ func (t *spanTracker) OnStart(parent context.Context, s sdktrace.ReadWriteSpan)
 
 // Shutdown implements trace.SpanProcessor.
 func (t *spanTracker) Shutdown(ctx context.Context) error {
+	if t.debugFlags == 0 {
+		return nil
+	}
 	t.shutdownOnce.Do(func() {
-		msg := strings.Builder{}
-		if t.debugLevel >= 1 {
-			incompleteSpans := []*spanInfo{}
-			t.inflightSpans.Range(func(key, value any) bool {
-				if info, ok := t.allSpans.Load(key); ok {
-					incompleteSpans = append(incompleteSpans, info.(*spanInfo))
+		didWarn := false
+		if t.debugFlags.Check(WarnOnIncompleteSpans) {
+			if t.debugFlags.Check(TrackAllSpans) {
+				incompleteSpans := []*spanInfo{}
+				t.inflightSpans.Range(func(key, value any) bool {
+					if info, ok := t.allSpans.Load(key); ok {
+						incompleteSpans = append(incompleteSpans, info.(*spanInfo))
+					}
+					return true
+				})
+				if len(incompleteSpans) > 0 {
+					didWarn = true
+					msg := startMsg("WARNING: spans not ended:\n")
+					longestName := 0
+					for _, span := range incompleteSpans {
+						longestName = max(longestName, len(span.Name)+2)
+					}
+					for _, span := range incompleteSpans {
+						fmt.Fprintf(msg, "%-*s (trace: %s | span: %s | parent: %s)\n", longestName, "'"+span.Name+"'",
+							span.SpanContext.TraceID(), span.SpanContext.SpanID(), span.Parent.SpanID())
+					}
+					endMsg(msg)
 				}
-				return true
-			})
-			if len(incompleteSpans) > 0 {
-				msg.WriteString("==================================================\n")
-				msg.WriteString("WARNING: spans not ended:\n")
-				longestName := 0
-				for _, span := range incompleteSpans {
-					longestName = max(longestName, len(span.Name)+2)
+			} else {
+				incompleteSpans := []string{}
+				t.inflightSpans.Range(func(key, value any) bool {
+					incompleteSpans = append(incompleteSpans, key.(string))
+					return true
+				})
+				if len(incompleteSpans) > 0 {
+					didWarn = true
+					msg := startMsg("WARNING: spans not ended:\n")
+					for _, span := range incompleteSpans {
+						fmt.Fprintf(msg, "%s\n", span)
+					}
+					msg.WriteString("Note: set TrackAllObservedSpans flag for more info\n")
+					endMsg(msg)
 				}
-				for _, span := range incompleteSpans {
-					msg.WriteString(fmt.Sprintf("%-*s (trace: %s | span: %s | parent: %s)\n", longestName, "'"+span.Name+"'",
-						span.SpanContext.TraceID(), span.SpanContext.SpanID(), span.Parent.SpanID()))
-				}
-				msg.WriteString("==================================================\n")
 			}
 		}
-		if t.debugLevel >= 3 {
+
+		if t.debugFlags.Check(LogAllSpans) || (t.debugFlags.Check(LogAllSpansOnWarn) && didWarn) {
 			allSpans := []*spanInfo{}
 			t.allSpans.Range(func(key, value any) bool {
 				allSpans = append(allSpans, value.(*spanInfo))
 				return true
 			})
-			msg.WriteString("==================================================\n")
-			msg.WriteString("All observed spans:\n")
+			msg := startMsg("All observed spans:\n")
 			longestName := 0
 			for _, span := range allSpans {
 				longestName = max(longestName, len(span.Name)+2)
 			}
 			for _, span := range allSpans {
-				msg.WriteString(fmt.Sprintf("%-*s (trace: %s | span: %s | parent: %s)\n", longestName, "'"+span.Name+"'",
-					span.SpanContext.TraceID(), span.SpanContext.SpanID(), span.Parent.SpanID()))
+				fmt.Fprintf(msg, "%-*s (trace: %s | span: %s | parent: %s)\n", longestName, "'"+span.Name+"'",
+					span.SpanContext.TraceID(), span.SpanContext.SpanID(), span.Parent.SpanID())
 			}
-			msg.WriteString("==================================================\n")
-		}
-		if msg.Len() > 0 {
-			fmt.Fprint(os.Stderr, msg.String())
+			endMsg(msg)
 		}
 	})
 
diff --git a/internal/telemetry/trace/trace.go b/internal/telemetry/trace/trace.go
index 89aa10154..7287d7edb 100644
--- a/internal/telemetry/trace/trace.go
+++ b/internal/telemetry/trace/trace.go
@@ -26,8 +26,64 @@ type systemContextKeyType struct{}
 
 var systemContextKey systemContextKeyType
 
+type DebugFlags uint32
+
+const (
+	// If set, adds the "caller" attribute to each trace with the source location
+	// where the trace was started.
+	TrackSpanCallers = (1 << iota)
+
+	// If set, keeps track of all span references and will attempt to wait for
+	// all traces to complete when shutting down a trace context.
+	// Use with caution, this will cause increasing memory usage over time.
+	TrackSpanReferences = (1 << iota)
+
+	// If set, keeps track of all observed spans, including span context and
+	// all attributes.
+	// Use with caution, this will cause significantly increasing memory usage
+	// over time.
+	TrackAllSpans = (1 << iota)
+
+	// If set, will log all trace ID mappings on close.
+	LogTraceIDMappings = (1 << iota)
+
+	// If set, will log all spans observed by the exporter on close. These spans
+	// may belong to incomplete traces.
+	//
+	// Enables [TrackAllSpans]
+	LogAllSpans = (1 << iota) | TrackAllSpans
+
+	// If set, will log all exported spans when a warning is issued on close
+	// (requires warning flags to also be set)
+	//
+	// Enables [TrackAllSpans]
+	LogAllSpansOnWarn = (1 << iota) | TrackAllSpans
+
+	// If set, will log all trace ID mappings when a warning is issued on close.
+	// (requires warning flags to also be set)
+	LogTraceIDMappingsOnWarn = (1 << iota)
+
+	// If set, will print a warning to stderr on close if there are any incomplete
+	// traces (traces with no observed root spans)
+	WarnOnIncompleteTraces = (1 << iota)
+
+	// If set, will print a warning to stderr on close if there are any incomplete
+	// spans (spans started, but not ended)
+	WarnOnIncompleteSpans = (1 << iota)
+
+	// If set, will print a warning to stderr on close if there are any spans
+	// which reference unknown parent spans.
+	//
+	// Enables [TrackSpanReferences]
+	WarnOnUnresolvedReferences = (1 << iota) | TrackSpanReferences
+)
+
+func (df DebugFlags) Check(flags DebugFlags) bool {
+	return (df & flags) == flags
+}
+
 type Options struct {
-	DebugLevel int
+	DebugFlags DebugFlags
 }
 
 type systemContext struct {
@@ -119,7 +175,7 @@ func NewTracerProvider(ctx context.Context, serviceName string) trace.TracerProv
 	for _, proc := range sys.exporterServer.SpanProcessors() {
 		options = append(options, sdktrace.WithSpanProcessor(proc))
 	}
-	if sys.DebugLevel >= 1 {
+	if sys.DebugFlags.Check(TrackSpanCallers) {
 		options = append(options,
 			sdktrace.WithSpanProcessor(&stackTraceProcessor{}),
 		)
diff --git a/internal/testenv/environment.go b/internal/testenv/environment.go
index 461e529de..2cc6d50d7 100644
--- a/internal/testenv/environment.go
+++ b/internal/testenv/environment.go
@@ -33,6 +33,7 @@ import (
 
 	"github.com/pomerium/pomerium/config"
 	"github.com/pomerium/pomerium/config/envoyconfig/filemgr"
+	databroker_service "github.com/pomerium/pomerium/databroker"
 	"github.com/pomerium/pomerium/internal/log"
 	"github.com/pomerium/pomerium/internal/telemetry/trace"
 	"github.com/pomerium/pomerium/internal/testenv/envutil"
@@ -41,6 +42,8 @@ import (
 	"github.com/pomerium/pomerium/pkg/envoy"
 	"github.com/pomerium/pomerium/pkg/grpc/databroker"
 	"github.com/pomerium/pomerium/pkg/health"
+	"github.com/pomerium/pomerium/pkg/identity/legacymanager"
+	"github.com/pomerium/pomerium/pkg/identity/manager"
 	"github.com/pomerium/pomerium/pkg/netutil"
 	"github.com/pomerium/pomerium/pkg/slices"
 	"github.com/rs/zerolog"
@@ -225,9 +228,10 @@ type environment struct {
 }
 
 type EnvironmentOptions struct {
-	debug          bool
-	pauseOnFailure bool
-	forceSilent    bool
+	debug           bool
+	pauseOnFailure  bool
+	forceSilent     bool
+	traceDebugFlags trace.DebugFlags
 }
 
 type EnvironmentOption func(*EnvironmentOptions)
@@ -265,13 +269,27 @@ func Silent(silent ...bool) EnvironmentOption {
 	}
 }
 
+func TraceDebugFlags(flags trace.DebugFlags) EnvironmentOption {
+	return func(o *EnvironmentOptions) {
+		o.traceDebugFlags = flags
+	}
+}
+
+func AddTraceDebugFlags(flags trace.DebugFlags) EnvironmentOption {
+	return func(o *EnvironmentOptions) {
+		o.traceDebugFlags |= flags
+	}
+}
+
 var setGrpcLoggerOnce sync.Once
 
+const defaultTraceDebugFlags = trace.TrackSpanCallers
+
 var (
 	flagDebug           = flag.Bool("env.debug", false, "enables test environment debug logging (equivalent to Debug() option)")
 	flagPauseOnFailure  = flag.Bool("env.pause-on-failure", false, "enables pausing the test environment on failure (equivalent to PauseOnFailure() option)")
 	flagSilent          = flag.Bool("env.silent", false, "suppresses all test environment output (equivalent to Silent() option)")
-	flagTraceDebugLevel = flag.Int("env.trace-debug-level", 0, "trace debug level")
+	flagTraceDebugFlags = flag.Uint("env.trace-debug-flags", defaultTraceDebugFlags, "trace debug flags (equivalent to TraceDebugFlags() option)")
 )
 
 func New(t testing.TB, opts ...EnvironmentOption) Environment {
@@ -279,9 +297,10 @@ func New(t testing.TB, opts ...EnvironmentOption) Environment {
 		t.Skip("test environment only supported on linux")
 	}
 	options := EnvironmentOptions{
-		debug:          *flagDebug,
-		pauseOnFailure: *flagPauseOnFailure,
-		forceSilent:    *flagSilent,
+		debug:           *flagDebug,
+		pauseOnFailure:  *flagPauseOnFailure,
+		forceSilent:     *flagSilent,
+		traceDebugFlags: trace.DebugFlags(*flagTraceDebugFlags),
 	}
 	options.apply(opts...)
 	if testing.Short() {
@@ -323,7 +342,7 @@ func New(t testing.TB, opts ...EnvironmentOption) Environment {
 	logger := zerolog.New(writer).With().Timestamp().Logger().Level(zerolog.DebugLevel)
 
 	ctx := trace.Options{
-		DebugLevel: *flagTraceDebugLevel,
+		DebugFlags: options.traceDebugFlags,
 	}.NewContext(context.Background())
 	ctx = logger.WithContext(ctx)
 	tracerProvider := trace.NewTracerProvider(ctx, "Test Environment")
@@ -565,6 +584,10 @@ func (e *environment) Start() {
 		opts := []pomerium.Option{
 			pomerium.WithOverrideFileManager(fileMgr),
 			pomerium.WithEnvoyServerOptions(envoy.WithExitGracePeriod(10 * time.Second)),
+			pomerium.WithDataBrokerServerOptions(
+				databroker_service.WithManagerOptions(manager.WithLeaseTTL(1*time.Second)),
+				databroker_service.WithLegacyManagerOptions(legacymanager.WithLeaseTTL(1*time.Second)),
+			),
 		}
 		envoyBinaryPath := filepath.Join(e.workspaceFolder, fmt.Sprintf("pkg/envoy/files/envoy-%s-%s", runtime.GOOS, runtime.GOARCH))
 		if envutil.EnvoyProfilerAvailable(envoyBinaryPath) {
diff --git a/internal/testenv/selftests/tracing_test.go b/internal/testenv/selftests/tracing_test.go
index 47912de94..ffc5005db 100644
--- a/internal/testenv/selftests/tracing_test.go
+++ b/internal/testenv/selftests/tracing_test.go
@@ -4,21 +4,47 @@ import (
 	"context"
 	"io"
 	"net/http"
+	"os"
 	"testing"
+	"time"
 
 	"github.com/pomerium/pomerium/config"
+	"github.com/pomerium/pomerium/internal/telemetry/trace"
 	"github.com/pomerium/pomerium/internal/testenv"
 	"github.com/pomerium/pomerium/internal/testenv/scenarios"
 	"github.com/pomerium/pomerium/internal/testenv/snippets"
 	"github.com/pomerium/pomerium/internal/testenv/upstreams"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
-	"go.opentelemetry.io/otel/trace"
+	oteltrace "go.opentelemetry.io/otel/trace"
+	"google.golang.org/grpc"
+	"google.golang.org/grpc/connectivity"
+	"google.golang.org/grpc/credentials/insecure"
 )
 
 func TestOTLPTracing(t *testing.T) {
-	t.Setenv("OTEL_EXPORTER_OTLP_TRACES_ENDPOINT", "http://localhost:4317")
-	env := testenv.New(t)
+	tracesEndpoint := os.Getenv("OTEL_EXPORTER_OTLP_TRACES_ENDPOINT")
+	if tracesEndpoint == "" {
+		tracesEndpoint = "http://localhost:4317"
+		os.Setenv("OTEL_EXPORTER_OTLP_TRACES_ENDPOINT", tracesEndpoint)
+	}
+	client, err := grpc.NewClient(tracesEndpoint, grpc.WithTransportCredentials(insecure.NewCredentials()))
+	require.NoError(t, err)
+	client.Connect()
+	ctx, ca := context.WithTimeout(context.Background(), 100*time.Millisecond)
+	defer ca()
+	if !client.WaitForStateChange(ctx, connectivity.Ready) {
+		t.Skip("OTLP server offline: " + tracesEndpoint)
+	}
+	client.Close()
+
+	env := testenv.New(t, testenv.AddTraceDebugFlags(
+		trace.WarnOnIncompleteSpans|
+			trace.WarnOnIncompleteTraces|
+			trace.WarnOnUnresolvedReferences|
+			trace.LogTraceIDMappingsOnWarn|
+			trace.LogAllSpansOnWarn,
+	))
 	defer env.Stop()
 	env.Add(testenv.ModifierFunc(func(ctx context.Context, cfg *config.Config) {
 		cfg.Options.ProxyLogLevel = config.LogLevelInfo
@@ -43,13 +69,13 @@ func TestOTLPTracing(t *testing.T) {
 	env.Start()
 	snippets.WaitStartupComplete(env)
 
-	ctx, span := env.Tracer().Start(env.Context(), "Authenticate", trace.WithNewRoot())
+	ctx, span := env.Tracer().Start(env.Context(), "Authenticate", oteltrace.WithNewRoot())
+	defer span.End()
 	resp, err := up.Get(route, upstreams.AuthenticateAs("foo@example.com"), upstreams.Path("/foo"), upstreams.Context(ctx))
-	span.End()
 	require.NoError(t, err)
 	body, err := io.ReadAll(resp.Body)
-	require.NoError(t, err)
-	resp.Body.Close()
+	assert.NoError(t, err)
+	assert.NoError(t, resp.Body.Close())
 	assert.Equal(t, resp.StatusCode, 200)
 	assert.Equal(t, "OK", string(body))
 }
diff --git a/internal/testenv/upstreams/http.go b/internal/testenv/upstreams/http.go
index f2bbbb217..f04256bae 100644
--- a/internal/testenv/upstreams/http.go
+++ b/internal/testenv/upstreams/http.go
@@ -26,6 +26,8 @@ import (
 	"go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp"
 
 	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	semconv "go.opentelemetry.io/otel/semconv/v1.26.0"
 	oteltrace "go.opentelemetry.io/otel/trace"
 	"google.golang.org/protobuf/proto"
 )
@@ -156,8 +158,9 @@ type httpUpstream struct {
 
 	clientCache sync.Map // map[testenv.Route]*http.Client
 
-	router         *mux.Router
-	tracerProvider values.MutableValue[oteltrace.TracerProvider]
+	router               *mux.Router
+	serverTracerProvider values.MutableValue[oteltrace.TracerProvider]
+	clientTracerProvider values.MutableValue[oteltrace.TracerProvider]
 }
 
 var (
@@ -172,11 +175,12 @@ func HTTP(tlsConfig values.Value[*tls.Config], opts ...HTTPUpstreamOption) HTTPU
 	}
 	options.apply(opts...)
 	up := &httpUpstream{
-		HTTPUpstreamOptions: options,
-		serverPort:          values.Deferred[int](),
-		router:              mux.NewRouter(),
-		tlsConfig:           tlsConfig,
-		tracerProvider:      values.Deferred[oteltrace.TracerProvider](),
+		HTTPUpstreamOptions:  options,
+		serverPort:           values.Deferred[int](),
+		router:               mux.NewRouter(),
+		tlsConfig:            tlsConfig,
+		serverTracerProvider: values.Deferred[oteltrace.TracerProvider](),
+		clientTracerProvider: values.Deferred[oteltrace.TracerProvider](),
 	}
 	up.RecordCaller()
 	return up
@@ -214,15 +218,16 @@ func (h *httpUpstream) Run(ctx context.Context) error {
 	if h.tlsConfig != nil {
 		tlsConfig = h.tlsConfig.Value()
 	}
-	h.tracerProvider.Resolve(trace.NewTracerProvider(ctx, h.displayName))
-	h.router.Use(trace.NewHTTPMiddleware(otelhttp.WithTracerProvider(h.tracerProvider.Value())))
+	h.serverTracerProvider.Resolve(trace.NewTracerProvider(ctx, h.displayName))
+	h.clientTracerProvider.Resolve(trace.NewTracerProvider(ctx, "HTTP Client"))
+	h.router.Use(trace.NewHTTPMiddleware(otelhttp.WithTracerProvider(h.serverTracerProvider.Value())))
 
 	server := &http.Server{
 		Handler:   h.router,
 		TLSConfig: tlsConfig,
-		BaseContext: func(net.Listener) context.Context {
-			return ctx
-		},
+		// BaseContext: func(net.Listener) context.Context {
+		// 	return ctx
+		// },
 	}
 	errC := make(chan error, 1)
 	go func() {
@@ -263,6 +268,12 @@ func (h *httpUpstream) Do(method string, r testenv.Route, opts ...RequestOption)
 			RawQuery: options.query.Encode(),
 		})
 	}
+	ctx, span := trace.Continue(options.requestCtx, "httpUpstream.Do", oteltrace.WithAttributes(
+		attribute.String("method", method),
+		attribute.String("url", u.String()),
+	))
+	options.requestCtx = ctx
+	defer span.End()
 
 	newClient := func() *http.Client {
 		c := http.Client{
@@ -272,7 +283,7 @@ func (h *httpUpstream) Do(method string, r testenv.Route, opts ...RequestOption)
 					Certificates: options.clientCerts,
 				},
 			},
-				otelhttp.WithTracerProvider(h.tracerProvider.Value()),
+				otelhttp.WithTracerProvider(h.clientTracerProvider.Value()),
 				otelhttp.WithSpanNameFormatter(func(operation string, r *http.Request) string {
 					return fmt.Sprintf("Client: %s %s", r.Method, r.URL.Path)
 				}),
@@ -288,16 +299,20 @@ func (h *httpUpstream) Do(method string, r testenv.Route, opts ...RequestOption)
 		var cachedClient any
 		var ok bool
 		if cachedClient, ok = h.clientCache.Load(r); !ok {
+			span.AddEvent("creating new http client")
 			cachedClient, _ = h.clientCache.LoadOrStore(r, newClient())
+		} else {
+			span.AddEvent("using cached http client")
 		}
 		client = cachedClient.(*http.Client)
 	}
 
 	var resp *http.Response
-	if err := retry.Retry(options.requestCtx, "http", func(ctx context.Context) error {
-		req, err := http.NewRequestWithContext(options.requestCtx, method, u.String(), nil)
+	resendCount := 0
+	if err := retry.Retry(ctx, "http", func(ctx context.Context) error {
+		req, err := http.NewRequestWithContext(ctx, method, u.String(), nil)
 		if err != nil {
-			return err
+			return retry.NewTerminalError(err)
 		}
 		switch body := options.body.(type) {
 		case string:
@@ -309,7 +324,7 @@ func (h *httpUpstream) Do(method string, r testenv.Route, opts ...RequestOption)
 		case proto.Message:
 			buf, err := proto.Marshal(body)
 			if err != nil {
-				return err
+				return retry.NewTerminalError(err)
 			}
 			req.Body = io.NopCloser(bytes.NewReader(buf))
 			req.Header.Set("Content-Type", "application/octet-stream")
@@ -330,52 +345,70 @@ func (h *httpUpstream) Do(method string, r testenv.Route, opts ...RequestOption)
 		}
 		// retry on connection refused
 		if err != nil {
+			span.RecordError(err)
 			var opErr *net.OpError
 			if errors.As(err, &opErr) && opErr.Op == "dial" && opErr.Err.Error() == "connect: connection refused" {
-				oteltrace.SpanFromContext(ctx).AddEvent("Retrying on dial error")
+				span.AddEvent("Retrying on dial error")
 				return err
 			}
 			return retry.NewTerminalError(err)
 		}
 		if resp.StatusCode/100 == 5 {
-			if err := resp.Body.Close(); err != nil {
-				panic(err)
-			}
-			oteltrace.SpanFromContext(ctx).AddEvent("Retrying on 5xx error", oteltrace.WithAttributes(
+			resendCount++
+			io.ReadAll(resp.Body)
+			resp.Body.Close()
+			span.SetAttributes(semconv.HTTPRequestResendCount(resendCount))
+			span.AddEvent("Retrying on 5xx error", oteltrace.WithAttributes(
 				attribute.String("status", resp.Status),
 			))
 			return errors.New(http.StatusText(resp.StatusCode))
 		}
+		span.SetStatus(codes.Ok, "request completed successfully")
 		return nil
-	}, retry.WithMaxInterval(100*time.Millisecond)); err != nil {
+	},
+		retry.WithInitialInterval(1*time.Millisecond),
+		retry.WithMaxInterval(100*time.Millisecond),
+	); err != nil {
 		return nil, err
 	}
 	return resp, nil
 }
 
 func authenticateFlow(ctx context.Context, client *http.Client, req *http.Request, email string) (*http.Response, error) {
+	span := oteltrace.SpanFromContext(ctx)
 	var res *http.Response
 	originalHostname := req.URL.Hostname()
 	res, err := client.Do(req)
 	if err != nil {
+		span.RecordError(err)
 		return nil, err
 	}
 	location := res.Request.URL
 	if location.Hostname() == originalHostname {
 		// already authenticated
-		return res, err
+		span.SetStatus(codes.Ok, "already authenticated")
+		return res, nil
 	}
-	defer res.Body.Close()
 	fs := forms.Parse(res.Body)
+	io.ReadAll(res.Body)
+	res.Body.Close()
 	if len(fs) > 0 {
 		f := fs[0]
 		f.Inputs["email"] = email
 		f.Inputs["token_expiration"] = strconv.Itoa(int((time.Hour * 24).Seconds()))
+		span.AddEvent("submitting form", oteltrace.WithAttributes(attribute.String("location", location.String())))
 		formReq, err := f.NewRequestWithContext(ctx, location)
 		if err != nil {
+			span.RecordError(err)
 			return nil, err
 		}
-		return client.Do(formReq)
+		resp, err := client.Do(formReq)
+		if err != nil {
+			span.RecordError(err)
+			return nil, err
+		}
+		span.SetStatus(codes.Ok, "form submitted successfully")
+		return resp, nil
 	}
 	return nil, fmt.Errorf("test bug: expected IDP login form")
 }