diff --git a/.changeset/pink-beees-brake.md b/.changeset/pink-beees-brake.md
new file mode 100644
index 000000000000..b1d05c7fcf9c
--- /dev/null
+++ b/.changeset/pink-beees-brake.md
@@ -0,0 +1,5 @@
+---
+"wrangler": patch
+---
+
+Remove dummy auth from SDK setup
diff --git a/.changeset/pink-bees-brake.md b/.changeset/pink-bees-brake.md
new file mode 100644
index 000000000000..c4787f55139c
--- /dev/null
+++ b/.changeset/pink-bees-brake.md
@@ -0,0 +1,5 @@
+---
+"wrangler": patch
+---
+
+Add `WRANGLER_TRACE_ID` environment variable to support internal testing
diff --git a/packages/wrangler/package.json b/packages/wrangler/package.json
index 173c24b6d457..d3f3ea2fe56b 100644
--- a/packages/wrangler/package.json
+++ b/packages/wrangler/package.json
@@ -111,7 +111,7 @@
 		"chalk": "^5.2.0",
 		"chokidar": "^4.0.1",
 		"cli-table3": "^0.6.3",
-		"cloudflare": "^4.5.0",
+		"cloudflare": "^5.1.0",
 		"cmd-shim": "^4.1.0",
 		"command-exists": "^1.2.9",
 		"concurrently": "^8.2.2",
diff --git a/packages/wrangler/src/cfetch/internal.ts b/packages/wrangler/src/cfetch/internal.ts
index 58781946c33d..332704335703 100644
--- a/packages/wrangler/src/cfetch/internal.ts
+++ b/packages/wrangler/src/cfetch/internal.ts
@@ -2,7 +2,10 @@ import assert from "node:assert";
 import Cloudflare from "cloudflare";
 import { fetch, FormData, Headers, Request, Response } from "undici";
 import { version as wranglerVersion } from "../../package.json";
-import { getCloudflareApiBaseUrl } from "../environment-variables/misc-variables";
+import {
+	getCloudflareApiBaseUrl,
+	getTraceHeader,
+} from "../environment-variables/misc-variables";
 import { UserError } from "../errors";
 import { logger } from "../logger";
 import { APIError, parseJSON } from "../parse";
@@ -73,10 +76,6 @@ export function createCloudflareClient(complianceConfig: ComplianceConfig) {
 			await logResponse(response);
 			return response;
 		},
-		// We inject authentication using Wrangler's existing auth setup and a custom fetcher (see above for the custom fetch)
-		// However, `cloudflare` doesn't like not being given an API token, so we provide a dummy one
-		// Otherwise, errors like "Could not resolve authentication method." are thrown.
-		apiToken: "dummy",
 		baseURL: getCloudflareApiBaseUrl(complianceConfig),
 	});
 }
@@ -104,6 +103,7 @@ export async function performApiFetch(
 	const headers = cloneHeaders(new Headers(init.headers));
 	addAuthorizationHeader(headers, apiToken);
 	addUserAgent(headers);
+	maybeAddTraceHeader(headers);
 
 	const queryString = queryParams ? `?${queryParams.toString()}` : "";
 	logger.debug(
@@ -243,6 +243,13 @@ export function addUserAgent(headers: Headers): void {
 	headers.set("User-Agent", `wrangler/${wranglerVersion}`);
 }
 
+export function maybeAddTraceHeader(headers: Headers): void {
+	const traceHeader = getTraceHeader();
+	if (traceHeader) {
+		headers.set("Cf-Trace-Id", traceHeader);
+	}
+}
+
 /**
  * The implementation for fetching a kv value from the cloudflare API.
  * We special-case this one call, because it's the only API call that
diff --git a/packages/wrangler/src/environment-variables/factory.ts b/packages/wrangler/src/environment-variables/factory.ts
index 0ab232b2a21d..562bce40972e 100644
--- a/packages/wrangler/src/environment-variables/factory.ts
+++ b/packages/wrangler/src/environment-variables/factory.ts
@@ -34,6 +34,8 @@ type VariableNames =
 	| "CLOUDFLARE_LOAD_DEV_VARS_FROM_DOT_ENV"
 	/** Include process.env in development variables (default: false). */
 	| "CLOUDFLARE_INCLUDE_PROCESS_ENV"
+	/** Include a trace header in all API requests that Wrangler makes (for internal use only) */
+	| "WRANGLER_TRACE_ID"
 
 	// ## Logging & Output
 
diff --git a/packages/wrangler/src/environment-variables/misc-variables.ts b/packages/wrangler/src/environment-variables/misc-variables.ts
index acab5c02108b..a6828fb87f6d 100644
--- a/packages/wrangler/src/environment-variables/misc-variables.ts
+++ b/packages/wrangler/src/environment-variables/misc-variables.ts
@@ -290,3 +290,7 @@ export const getCloudflareIncludeProcessEnvFromEnv =
 		variableName: "CLOUDFLARE_INCLUDE_PROCESS_ENV",
 		defaultValue: false,
 	});
+
+export const getTraceHeader = getEnvironmentVariableFactory({
+	variableName: "WRANGLER_TRACE_ID",
+});
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index edd2d2dc6a13..90c7ef4ba541 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -3734,8 +3734,8 @@ importers:
         specifier: ^0.6.3
         version: 0.6.3
       cloudflare:
-        specifier: ^4.5.0
-        version: 4.5.0(encoding@0.1.13)
+        specifier: ^5.1.0
+        version: 5.1.0(encoding@0.1.13)
       cmd-shim:
         specifier: ^4.1.0
         version: 4.1.0
@@ -8324,8 +8324,8 @@ packages:
     resolution: {integrity: sha512-3Pe/CF1Nn94hyhIYpjtiLhdCoEoz0DqQ+988E9gmeEdQZlojxnOb74wctFyuwWQHzqyf9X7C7MG8juUpqBJT8w==}
     engines: {node: '>=0.8'}
 
-  cloudflare@4.5.0:
-    resolution: {integrity: sha512-fPcbPKx4zF45jBvQ0z7PCdgejVAPBBCZxwqk1k7krQNfpM07Cfj97/Q6wBzvYqlWXx/zt1S9+m8vnfCe06umbQ==}
+  cloudflare@5.1.0:
+    resolution: {integrity: sha512-J2vT90WHio8VSbGUmuHckJr9pabH6N+nQKQsgjfwydgV2bgyQoV/KqWw1Df+YKZ5T/QqP7KadKr4bxh+WiRafg==}
 
   clsx@1.2.1:
     resolution: {integrity: sha512-EcR6r5a8bj6pu3ycsa/E/cKVGuTgZJZdsyUYHOksG/UHIiKfjxzRxYJpyVBwYaQeOvghal9fcc4PidlgzugAQg==}
@@ -18562,7 +18562,7 @@ snapshots:
 
   clone@2.1.2: {}
 
-  cloudflare@4.5.0(encoding@0.1.13):
+  cloudflare@5.1.0(encoding@0.1.13):
     dependencies:
       '@types/node': 20.19.9
       '@types/node-fetch': 2.6.11