diff --git a/docker-compose-library.yaml b/docker-compose-library.yaml
index 2e3d948ce..d9293a85b 100755
--- a/docker-compose-library.yaml
+++ b/docker-compose-library.yaml
@@ -61,6 +61,11 @@ services:
       - FAISS_VECTOR_STORE_ID=${FAISS_VECTOR_STORE_ID:-}
       # Prevent HuggingFace Hub update checks (HTTP 429 rate-limiting in CI from parallel jobs).
       - HF_HUB_OFFLINE=1
+      # OpenTelemetry configuration (tracing disabled by default)
+      - OTEL_EXPORTER_OTLP_ENDPOINT=${OTEL_EXPORTER_OTLP_ENDPOINT:-}
+      - OTEL_EXPORTER_OTLP_PROTOCOL=${OTEL_EXPORTER_OTLP_PROTOCOL:-}
+      - OTEL_SERVICE_NAME=${OTEL_SERVICE_NAME:-}
+      - OTEL_SDK_DISABLED=${OTEL_SDK_DISABLED:-true}
     healthcheck:
       test: ["CMD", "curl", "-f", "http://localhost:8080/liveness"]
       interval: 10s   # how often to run the check
diff --git a/docker-compose.yaml b/docker-compose.yaml
index aa4631ad6..01508941a 100755
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -101,6 +101,11 @@ services:
       # Substituted in mounted lightspeed-stack.yaml (llama_stack.url); GitHub Actions sets via vars
       - E2E_LLAMA_HOSTNAME=${E2E_LLAMA_HOSTNAME:-llama-stack}
       - E2E_LLAMA_PORT=${E2E_LLAMA_PORT:-8321}
+      # OpenTelemetry configuration (tracing disabled by default)
+      - OTEL_EXPORTER_OTLP_ENDPOINT=${OTEL_EXPORTER_OTLP_ENDPOINT:-}
+      - OTEL_EXPORTER_OTLP_PROTOCOL=${OTEL_EXPORTER_OTLP_PROTOCOL:-}
+      - OTEL_SERVICE_NAME=${OTEL_SERVICE_NAME:-}
+      - OTEL_SDK_DISABLED=${OTEL_SDK_DISABLED:-true}
     depends_on:
         llama-stack:
           condition: service_healthy