diff --git a/requirements-dev.txt b/requirements-dev.txt
index c8293761eaa..e2ae04d9554 100644
--- a/requirements-dev.txt
+++ b/requirements-dev.txt
@@ -31,3 +31,7 @@ ruff==0.9.4
 lm_eval[api]==0.4.8
 docstring_parser
 genai-perf==0.0.13
+opentelemetry-sdk>=1.26.0
+opentelemetry-api>=1.26.0
+opentelemetry-exporter-otlp>=1.26.0
+opentelemetry-semantic-conventions-ai>=0.4.1
diff --git a/tests/unittest/others/test_tracing.py b/tests/unittest/others/test_tracing.py
new file mode 100644
index 00000000000..d2713001d35
--- /dev/null
+++ b/tests/unittest/others/test_tracing.py
@@ -0,0 +1,204 @@
+# Copyright (c) 2025, NVIDIA CORPORATION. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+
+import logging
+import os
+import tempfile
+import threading
+from collections.abc import Iterable
+from concurrent import futures
+from typing import Callable, Dict, Generator, Literal
+
+import openai
+import pytest
+import yaml
+from llmapi.apps.openai_server import RemoteOpenAIServer
+from llmapi.test_llm import get_model_path
+from opentelemetry.proto.collector.trace.v1.trace_service_pb2 import ExportTraceServiceResponse
+from opentelemetry.proto.collector.trace.v1.trace_service_pb2_grpc import (
+    TraceServiceServicer,
+    add_TraceServiceServicer_to_server,
+)
+from opentelemetry.proto.common.v1.common_pb2 import AnyValue, KeyValue
+from opentelemetry.sdk.environment_variables import OTEL_EXPORTER_OTLP_TRACES_INSECURE
+
+from tensorrt_llm.llmapi.tracing import SpanAttributes
+
+# Configure logging
+logging.basicConfig(level=logging.INFO)
+logger = logging.getLogger(__name__)
+
+
+class FakeTraceService(TraceServiceServicer):
+    def __init__(self):
+        self.request = None
+        self.evt = threading.Event()
+
+    def Export(self, request, context):
+        self.request = request
+        self.evt.set()
+        return ExportTraceServiceResponse()
+
+
+# The trace service binds a free port at runtime and exposes its address via the fixture.
+@pytest.fixture(scope="module")
+def trace_service() -> Generator[FakeTraceService, None, None]:
+    executor = futures.ThreadPoolExecutor(max_workers=1)
+    import grpc
+
+    server = grpc.server(executor)
+    service = FakeTraceService()
+    add_TraceServiceServicer_to_server(service, server)
+    # Bind to an ephemeral port to avoid conflicts with local collectors.
+    port = server.add_insecure_port("localhost:0")
+    service.address = f"localhost:{port}"
+    server.start()
+
+    yield service
+
+    server.stop(None)
+    executor.shutdown(wait=True)
+
+
+@pytest.fixture(scope="module", ids=["TinyLlama-1.1B-Chat"])
+def model_name():
+    return "llama-models-v2/TinyLlama-1.1B-Chat-v1.0"
+
+
+@pytest.fixture(scope="module", params=["pytorch", "trt"])
+def backend(request):
+    return request.param
+
+
+@pytest.fixture(scope="module", params=[0], ids=["disable_processpool"])
+def num_postprocess_workers(request):
+    return request.param
+
+
+@pytest.fixture(scope="module")
+def temp_extra_llm_api_options_file(request):
+    temp_dir = tempfile.gettempdir()
+    temp_file_path = os.path.join(temp_dir, "extra_llm_api_options.yaml")
+    try:
+        extra_llm_api_options_dict = {
+            "enable_chunked_prefill": False,
+            "kv_cache_config": {"enable_block_reuse": False, "max_tokens": 40000},
+            "return_perf_metrics": True,
+        }
+
+        with open(temp_file_path, "w") as f:
+            yaml.dump(extra_llm_api_options_dict, f)
+
+        yield temp_file_path
+    finally:
+        if os.path.exists(temp_file_path):
+            os.remove(temp_file_path)
+
+
+@pytest.fixture(scope="module")
+def server(
+    model_name: str,
+    backend: str,
+    temp_extra_llm_api_options_file: str,
+    num_postprocess_workers: int,
+    trace_service: FakeTraceService,
+):
+    model_path = get_model_path(model_name)
+    args = ["--backend", f"{backend}"]
+    if backend == "trt":
+        args.extend(["--max_beam_width", "4"])
+    args.extend(["--extra_llm_api_options", temp_extra_llm_api_options_file])
+    args.extend(["--num_postprocess_workers", f"{num_postprocess_workers}"])
+    args.extend(["--otlp_traces_endpoint", trace_service.address])
+
+    os.environ[OTEL_EXPORTER_OTLP_TRACES_INSECURE] = "true"
+
+    with RemoteOpenAIServer(model_path, args) as remote_server:
+        yield remote_server
+
+
+FieldName = Literal["bool_value", "string_value", "int_value", "double_value", "array_value"]
+
+
+def decode_value(value: AnyValue):
+    field_decoders: Dict[FieldName, Callable[[AnyValue], object]] = {
+        "bool_value": (lambda v: v.bool_value),
+        "string_value": (lambda v: v.string_value),
+        "int_value": (lambda v: v.int_value),
+        "double_value": (lambda v: v.double_value),
+        "array_value": (lambda v: [decode_value(item) for item in v.array_value.values]),
+    }
+    for field, decoder in field_decoders.items():
+        if value.HasField(field):
+            return decoder(value)
+    raise ValueError(f"Couldn't decode value: {value}")
+
+
+def decode_attributes(attributes: Iterable[KeyValue]):
+    return {kv.key: decode_value(kv.value) for kv in attributes}
+
+
+@pytest.fixture(scope="module")
+def client(server: RemoteOpenAIServer):
+    return server.get_client()
+
+
+@pytest.fixture(scope="module")
+def async_client(server: RemoteOpenAIServer):
+    return server.get_async_client()
+
+
+@pytest.mark.threadleak(enabled=False)
+def test_tracing(client: openai.OpenAI, model_name: str, trace_service: FakeTraceService):
+    messages = [
+        {"role": "system", "content": "you are a helpful assistant"},
+        {"role": "user", "content": "what is 1+1?"},
+    ]
+
+    temperature = 0.9
+    top_p = 0.9
+    max_completion_tokens = 10
+
+    chat_completion = client.chat.completions.create(
+        model=model_name,
+        messages=messages,
+        max_completion_tokens=max_completion_tokens,
+        temperature=temperature,
+        top_p=top_p,
+        logprobs=False,
+    )
+
+    timeout = 10
+    if not trace_service.evt.wait(timeout):
+        raise TimeoutError(
+            f"The fake trace service didn't receive a trace within the {timeout} seconds timeout"
+        )
+
+    request = trace_service.request
+    assert len(request.resource_spans) == 1, (
+        f"Expected 1 resource span, but got {len(request.resource_spans)}"
+    )
+    assert len(request.resource_spans[0].scope_spans) == 1, (
+        f"Expected 1 scope span, but got {len(request.resource_spans[0].scope_spans)}"
+    )
+    assert len(request.resource_spans[0].scope_spans[0].spans) == 1, (
+        f"Expected 1 span, but got {len(request.resource_spans[0].scope_spans[0].spans)}"
+    )
+
+    attributes = decode_attributes(request.resource_spans[0].scope_spans[0].spans[0].attributes)
+
+    assert (
+        attributes.get(SpanAttributes.GEN_AI_USAGE_COMPLETION_TOKENS)
+        == chat_completion.usage.completion_tokens
+    )
+    assert (
+        attributes.get(SpanAttributes.GEN_AI_USAGE_PROMPT_TOKENS)
+        == chat_completion.usage.prompt_tokens
+    )
+    assert attributes.get(SpanAttributes.GEN_AI_REQUEST_MAX_TOKENS) == max_completion_tokens
+    assert attributes.get(SpanAttributes.GEN_AI_REQUEST_TOP_P) == top_p
+    assert attributes.get(SpanAttributes.GEN_AI_REQUEST_TEMPERATURE) == temperature
+    assert attributes.get(SpanAttributes.GEN_AI_LATENCY_TIME_TO_FIRST_TOKEN) > 0
+    assert attributes.get(SpanAttributes.GEN_AI_LATENCY_E2E) > 0
+    assert attributes.get(SpanAttributes.GEN_AI_LATENCY_TIME_IN_QUEUE) > 0
+    assert len(attributes.get(SpanAttributes.GEN_AI_RESPONSE_FINISH_REASONS)) > 0