diff --git a/dev-tools/mage/gotest.go b/dev-tools/mage/gotest.go
index 6d6590a1c31b..de7db7e3825a 100644
--- a/dev-tools/mage/gotest.go
+++ b/dev-tools/mage/gotest.go
@@ -471,6 +471,13 @@ func BuildSystemTestBinary() error {
 	return BuildSystemTestGoBinary(DefaultTestBinaryArgs())
 }
 
+// BuildSystemTestOTelBinary builds beat binary that includes otel.
+func BuildSystemTestOTelBinary() error {
+	args := DefaultTestBinaryArgs()
+	args.ExtraFlags = []string{"-tags", "otelbeat"}
+	return BuildSystemTestGoBinary(args)
+}
+
 // BuildSystemTestGoBinary build a binary for testing that is instrumented for
 // testing and measuring code coverage. The binary is only instrumented for
 // coverage when TEST_COVERAGE=true (default is false).
diff --git a/x-pack/filebeat/cmd/otel_test.go b/x-pack/filebeat/cmd/otel_test.go
deleted file mode 100644
index f50a0bfc39af..000000000000
--- a/x-pack/filebeat/cmd/otel_test.go
+++ /dev/null
@@ -1,44 +0,0 @@
-// Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
-// or more contributor license agreements. Licensed under the Elastic License;
-// you may not use this file except in compliance with the Elastic License.
-
-package cmd
-
-import (
-	"context"
-	"path/filepath"
-	"testing"
-	"time"
-
-	"github.com/stretchr/testify/require"
-
-	"github.com/elastic/beats/v7/x-pack/libbeat/common/otelbeat"
-)
-
-func TestOtel(t *testing.T) {
-	rootDir, _ := filepath.Abs("../filebeat-otel.yml")
-
-	// Create the command
-	cmd := otelbeat.OTelCmd("filebeat")
-	cmd.SetArgs([]string{"otel", "--config", rootDir})
-
-	// Set up a context with a timeout to avoid indefinite blocking
-	ctx, cancel := context.WithTimeout(context.Background(), 15*time.Second)
-	defer cancel()
-
-	// Run the command in a goroutine
-	errCh := make(chan error, 1)
-	go func() {
-		err := cmd.Execute()
-		errCh <- err
-	}()
-
-	// Wait for 15s to check there were no errors in starting the otel collector
-	select {
-	case err := <-errCh:
-		// Assert no error occurred
-		require.NoError(t, err, "cmd.RunE should not return an error")
-	case <-ctx.Done():
-		return
-	}
-}
diff --git a/x-pack/filebeat/cmd/otelcmd_disabled.go b/x-pack/filebeat/cmd/otelcmd_disabled.go
new file mode 100644
index 000000000000..af7e1424dd0a
--- /dev/null
+++ b/x-pack/filebeat/cmd/otelcmd_disabled.go
@@ -0,0 +1,15 @@
+// Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
+// or more contributor license agreements. Licensed under the Elastic License;
+// you may not use this file except in compliance with the Elastic License.
+
+//go:build !otelbeat
+
+package cmd
+
+import (
+	cmd "github.com/elastic/beats/v7/libbeat/cmd"
+)
+
+func addOTelCommand(command *cmd.BeatsRootCmd) {
+	// No-op
+}
diff --git a/x-pack/filebeat/cmd/otelcmd_enabled.go b/x-pack/filebeat/cmd/otelcmd_enabled.go
new file mode 100644
index 000000000000..09bf09cdade2
--- /dev/null
+++ b/x-pack/filebeat/cmd/otelcmd_enabled.go
@@ -0,0 +1,17 @@
+// Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
+// or more contributor license agreements. Licensed under the Elastic License;
+// you may not use this file except in compliance with the Elastic License.
+
+//go:build otelbeat
+
+package cmd
+
+import (
+	fbcmd "github.com/elastic/beats/v7/filebeat/cmd"
+	cmd "github.com/elastic/beats/v7/libbeat/cmd"
+	"github.com/elastic/beats/v7/x-pack/libbeat/common/otelbeat"
+)
+
+func addOTelCommand(command *cmd.BeatsRootCmd) {
+	command.AddCommand(otelbeat.OTelCmd(fbcmd.Name))
+}
diff --git a/x-pack/filebeat/cmd/root.go b/x-pack/filebeat/cmd/root.go
index 1e3ad48c2a02..9b44ebb55960 100644
--- a/x-pack/filebeat/cmd/root.go
+++ b/x-pack/filebeat/cmd/root.go
@@ -17,7 +17,6 @@ import (
 	"github.com/elastic/beats/v7/libbeat/publisher/processing"
 	"github.com/elastic/beats/v7/x-pack/filebeat/include"
 	inputs "github.com/elastic/beats/v7/x-pack/filebeat/input/default-inputs"
-	"github.com/elastic/beats/v7/x-pack/libbeat/common/otelbeat"
 	"github.com/elastic/beats/v7/x-pack/libbeat/management"
 
 	// Register the includes.
@@ -41,7 +40,7 @@ func Filebeat() *cmd.BeatsRootCmd {
 	command.PersistentPreRun = func(cmd *cobra.Command, args []string) {
 		management.ConfigTransform.SetTransform(filebeatCfg)
 	}
-	command.AddCommand(otelbeat.OTelCmd(fbcmd.Name))
+	addOTelCommand(command)
 	return command
 }
 
diff --git a/x-pack/filebeat/magefile.go b/x-pack/filebeat/magefile.go
index cd1cff476781..91fb608c31d5 100644
--- a/x-pack/filebeat/magefile.go
+++ b/x-pack/filebeat/magefile.go
@@ -43,6 +43,13 @@ func Build() error {
 	return devtools.Build(devtools.DefaultBuildArgs())
 }
 
+// BuildOTel builds the Beat binary with OTel sub command
+func BuildOTel() error {
+	args := devtools.DefaultBuildArgs()
+	args.ExtraFlags = append(args.ExtraFlags, "-tags", "otelbeat")
+	return devtools.Build(args)
+}
+
 // BuildSystemTestBinary builds a binary instrumented for use with Python system tests.
 func BuildSystemTestBinary() error {
 	return devtools.BuildSystemTestBinary()
@@ -168,13 +175,15 @@ func IntegTest() {
 
 // GoIntegTest starts the docker containers and executes the Go integration tests.
 func GoIntegTest(ctx context.Context) error {
-	mg.Deps(BuildSystemTestBinary)
+	// build integration test binary with otel sub command
+	devtools.BuildSystemTestOTelBinary()
 	return devtools.GoIntegTestFromHost(ctx, devtools.DefaultGoTestIntegrationFromHostArgs())
 }
 
 // GoFIPSOnlyIntegTest starts the docker containers and executes the Go integration tests with GODEBUG=fips140=only set.
 func GoFIPSOnlyIntegTest(ctx context.Context) error {
-	mg.Deps(BuildSystemTestBinary)
+	// build integration test binary with otel sub command
+	devtools.BuildSystemTestOTelBinary()
 	return devtools.GoIntegTestFromHost(ctx, devtools.FIPSOnlyGoTestIntegrationFromHostArgs())
 }