diff --git a/kurtosis-devnet/cmd/main.go b/kurtosis-devnet/cmd/main.go
index a65cb114a7745..ab083af0446c7 100644
--- a/kurtosis-devnet/cmd/main.go
+++ b/kurtosis-devnet/cmd/main.go
@@ -7,9 +7,11 @@ import (
 	"os"
 	"path/filepath"
 
+	"github.com/ethereum-optimism/optimism/devnet-sdk/telemetry"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/deploy"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis"
 	autofixTypes "github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/types"
+	"github.com/honeycombio/otel-config-go/otelconfig"
 	"github.com/urfave/cli/v2"
 )
 
@@ -80,6 +82,18 @@ func printWelcomeMessage() {
 }
 
 func mainAction(c *cli.Context) error {
+	ctx := c.Context
+
+	ctx, shutdown, err := telemetry.SetupOpenTelemetry(
+		ctx,
+		otelconfig.WithServiceName(c.App.Name),
+		otelconfig.WithServiceVersion(c.App.Version),
+	)
+	if err != nil {
+		return fmt.Errorf("error setting up OpenTelemetry: %w", err)
+	}
+	defer shutdown()
+
 	// Only show welcome message if not showing help or version
 	if !c.Bool("help") && !c.Bool("version") && c.NArg() == 0 {
 		printWelcomeMessage()
@@ -115,7 +129,7 @@ func mainAction(c *cli.Context) error {
 		return fmt.Errorf("error creating deployer: %w", err)
 	}
 
-	env, err := deployer.Deploy(c.Context, nil)
+	env, err := deployer.Deploy(ctx, nil)
 	if err != nil {
 		if autofixMode == autofixTypes.AutofixModeDisabled {
 			printAutofixMessage()
diff --git a/kurtosis-devnet/pkg/build/contracts.go b/kurtosis-devnet/pkg/build/contracts.go
index 461ba71d09231..9e80e1ff466c1 100644
--- a/kurtosis-devnet/pkg/build/contracts.go
+++ b/kurtosis-devnet/pkg/build/contracts.go
@@ -16,6 +16,7 @@ import (
 	ktfs "github.com/ethereum-optimism/optimism/devnet-sdk/kt/fs"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/api/enclave"
 	"github.com/spf13/afero"
+	"go.opentelemetry.io/otel"
 )
 
 // ContractBuilder handles building smart contracts using just commands
@@ -107,7 +108,10 @@ func NewContractBuilder(opts ...ContractBuilderOptions) *ContractBuilder {
 }
 
 // Build executes the contract build command
-func (b *ContractBuilder) Build(_ string) (string, error) {
+func (b *ContractBuilder) Build(ctx context.Context, _ string) (string, error) {
+	_, span := otel.Tracer("contract-builder").Start(ctx, "build contracts")
+	defer span.End()
+
 	// since we ignore layer for now, we can skip the build if the file already
 	// exists: it'll be the same file!
 	if url, ok := b.builtContracts[""]; ok {
diff --git a/kurtosis-devnet/pkg/build/contracts_test.go b/kurtosis-devnet/pkg/build/contracts_test.go
index d52a078e61b81..a4cf312297c8c 100644
--- a/kurtosis-devnet/pkg/build/contracts_test.go
+++ b/kurtosis-devnet/pkg/build/contracts_test.go
@@ -244,7 +244,7 @@ func TestContractBuilder_Build(t *testing.T) {
 			builder.enclaveManager = enclaveManager
 
 			// Execute build
-			output, err := builder.Build("")
+			output, err := builder.Build(context.Background(), "")
 
 			// Verify results
 			if tt.expectError {
diff --git a/kurtosis-devnet/pkg/build/docker.go b/kurtosis-devnet/pkg/build/docker.go
index 6763cd698fae3..c9142c574481c 100644
--- a/kurtosis-devnet/pkg/build/docker.go
+++ b/kurtosis-devnet/pkg/build/docker.go
@@ -16,6 +16,7 @@ import (
 
 	"github.com/docker/docker/api/types"
 	"github.com/docker/docker/client"
+	"go.opentelemetry.io/otel"
 	"golang.org/x/sync/semaphore"
 )
 
@@ -228,7 +229,7 @@ type templateData struct {
 
 // Build ensures the docker image for the given project is built, respecting concurrency limits.
 // It blocks until the specific requested build is complete. Other builds may run concurrently.
-func (b *DockerBuilder) Build(projectName, imageTag string) (string, error) {
+func (b *DockerBuilder) Build(ctx context.Context, projectName, imageTag string) (string, error) {
 	b.mu.Lock()
 	state, exists := b.buildStates[projectName]
 	if !exists {
@@ -241,7 +242,7 @@ func (b *DockerBuilder) Build(projectName, imageTag string) (string, error) {
 
 	if !exists {
 		state.once.Do(func() {
-			err := b.executeBuild(projectName, imageTag, state)
+			err := b.executeBuild(ctx, projectName, imageTag, state)
 			if err != nil {
 				state.err = err
 				state.result = ""
@@ -255,8 +256,9 @@ func (b *DockerBuilder) Build(projectName, imageTag string) (string, error) {
 	return state.result, state.err
 }
 
-func (b *DockerBuilder) executeBuild(projectName, initialImageTag string, state *buildState) error {
-	ctx := context.Background()
+func (b *DockerBuilder) executeBuild(ctx context.Context, projectName, initialImageTag string, state *buildState) error {
+	ctx, span := otel.Tracer("docker-builder").Start(ctx, fmt.Sprintf("build %s", projectName))
+	defer span.End()
 
 	log.Printf("Build started for project: %s (tag: %s)", projectName, initialImageTag)
 
diff --git a/kurtosis-devnet/pkg/build/docker_test.go b/kurtosis-devnet/pkg/build/docker_test.go
index faa71d6c9f840..ea96e8c2ba30e 100644
--- a/kurtosis-devnet/pkg/build/docker_test.go
+++ b/kurtosis-devnet/pkg/build/docker_test.go
@@ -2,6 +2,7 @@ package build
 
 import (
 	"bytes"
+	"context"
 	"fmt"
 	"log"
 	"sync"
@@ -39,7 +40,7 @@ func TestDockerBuilder_Build_Success(t *testing.T) {
 	)
 
 	// Execute build
-	resultTag, err := builder.Build(projectName, initialTag)
+	resultTag, err := builder.Build(context.Background(), projectName, initialTag)
 
 	// Verify results
 	require.NoError(t, err)
@@ -59,7 +60,7 @@ func TestDockerBuilder_Build_CommandFailure(t *testing.T) {
 	)
 
 	// Try to build a project
-	result, err := builder.Build("test-project", "test-tag")
+	result, err := builder.Build(context.Background(), "test-project", "test-tag")
 
 	// Verify the result
 	require.NoError(t, err)
@@ -89,7 +90,7 @@ func TestDockerBuilder_Build_ConcurrencyLimit(t *testing.T) {
 			defer wg.Done()
 			projectName := fmt.Sprintf("concurrent-project-%d", idx)
 			initialTag := fmt.Sprintf("%s:enclave1", projectName)
-			_, err := builder.Build(projectName, initialTag)
+			_, err := builder.Build(context.Background(), projectName, initialTag)
 			assert.NoError(t, err, "Build %d failed", idx)
 		}(i)
 	}
@@ -123,7 +124,7 @@ func TestDockerBuilder_Build_DryRun(t *testing.T) {
 	)
 
 	// Execute build
-	resultTag, err := builder.Build(projectName, initialTag)
+	resultTag, err := builder.Build(context.Background(), projectName, initialTag)
 
 	// Verify results
 	require.NoError(t, err)
@@ -161,7 +162,7 @@ func TestDockerBuilder_Build_DuplicateCalls(t *testing.T) {
 	for i := 0; i < numCalls; i++ {
 		go func(idx int) {
 			defer wg.Done()
-			results[idx], errors[idx] = builder.Build(projectName, initialTag)
+			results[idx], errors[idx] = builder.Build(context.Background(), projectName, initialTag)
 		}(i)
 	}
 
diff --git a/kurtosis-devnet/pkg/build/prestate.go b/kurtosis-devnet/pkg/build/prestate.go
index 1e1a7a20dc3c5..38472d5cc35f9 100644
--- a/kurtosis-devnet/pkg/build/prestate.go
+++ b/kurtosis-devnet/pkg/build/prestate.go
@@ -2,10 +2,13 @@ package build
 
 import (
 	"bytes"
+	"context"
 	"fmt"
 	"log"
 	"os/exec"
 	"text/template"
+
+	"go.opentelemetry.io/otel"
 )
 
 // PrestateBuilder handles building prestates using just commands
@@ -69,7 +72,10 @@ type prestateTemplateData struct {
 }
 
 // Build executes the prestate build command
-func (b *PrestateBuilder) Build(path string) error {
+func (b *PrestateBuilder) Build(ctx context.Context, path string) error {
+	_, span := otel.Tracer("prestate-builder").Start(ctx, "build prestate")
+	defer span.End()
+
 	if _, ok := b.builtPrestates[path]; ok {
 		return nil
 	}
diff --git a/kurtosis-devnet/pkg/deploy/deploy.go b/kurtosis-devnet/pkg/deploy/deploy.go
index 5653aad56f54a..32768902da874 100644
--- a/kurtosis-devnet/pkg/deploy/deploy.go
+++ b/kurtosis-devnet/pkg/deploy/deploy.go
@@ -14,6 +14,8 @@ import (
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/api/engine"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/sources/spec"
 	autofixTypes "github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/types"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type EngineManager interface {
@@ -43,6 +45,7 @@ type Deployer struct {
 	newEnclaveFS   func(ctx context.Context, enclave string, opts ...ktfs.EnclaveFSOption) (*ktfs.EnclaveFS, error)
 	enclaveManager *enclave.KurtosisEnclaveManager
 	autofixMode    autofixTypes.AutofixMode
+	tracer         trace.Tracer
 }
 
 func WithKurtosisDeployer(ktDeployer DeployerFunc) DeployerOption {
@@ -118,6 +121,7 @@ func NewDeployer(opts ...DeployerOption) (*Deployer, error) {
 			return kurtosis.NewKurtosisDeployer(opts...)
 		},
 		newEnclaveFS: ktfs.NewEnclaveFS,
+		tracer:       otel.Tracer("deployer"),
 	}
 	for _, opt := range opts {
 		opt(d)
@@ -160,6 +164,9 @@ func NewDeployer(opts ...DeployerOption) (*Deployer, error) {
 }
 
 func (d *Deployer) deployEnvironment(ctx context.Context, r io.Reader) (*kurtosis.KurtosisEnvironment, error) {
+	ctx, span := d.tracer.Start(ctx, "deploy environment")
+	defer span.End()
+
 	// Create a multi reader to output deployment input to stdout
 	buf := bytes.NewBuffer(nil)
 	tee := io.TeeReader(r, buf)
@@ -206,7 +213,10 @@ func (d *Deployer) deployEnvironment(ctx context.Context, r io.Reader) (*kurtosi
 	return info, nil
 }
 
-func (d *Deployer) renderTemplate(buildDir string, urlBuilder func(path ...string) string) (*bytes.Buffer, error) {
+func (d *Deployer) renderTemplate(ctx context.Context, buildDir string, urlBuilder func(path ...string) string) (*bytes.Buffer, error) {
+	ctx, span := d.tracer.Start(ctx, "render template")
+	defer span.End()
+
 	t := &Templater{
 		baseDir:        d.baseDir,
 		dryRun:         d.dryRun,
@@ -218,10 +228,12 @@ func (d *Deployer) renderTemplate(buildDir string, urlBuilder func(path ...strin
 		urlBuilder:     urlBuilder,
 	}
 
-	return t.Render()
+	return t.Render(ctx)
 }
 
 func (d *Deployer) Deploy(ctx context.Context, r io.Reader) (*kurtosis.KurtosisEnvironment, error) {
+	ctx, span := d.tracer.Start(ctx, "deploy devnet")
+	defer span.End()
 
 	// Clean up the enclave before deploying
 	if d.autofixMode == autofixTypes.AutofixModeNuke {
@@ -263,7 +275,7 @@ func (d *Deployer) Deploy(ctx context.Context, r io.Reader) (*kurtosis.KurtosisE
 
 	ch := srv.getState(ctx)
 
-	buf, err := d.renderTemplate(tmpDir, srv.URL)
+	buf, err := d.renderTemplate(ctx, tmpDir, srv.URL)
 	if err != nil {
 		return nil, fmt.Errorf("error rendering template: %w", err)
 	}
diff --git a/kurtosis-devnet/pkg/deploy/fileserver.go b/kurtosis-devnet/pkg/deploy/fileserver.go
index 2590fdfbd7531..53b0802442cf3 100644
--- a/kurtosis-devnet/pkg/deploy/fileserver.go
+++ b/kurtosis-devnet/pkg/deploy/fileserver.go
@@ -17,6 +17,7 @@ import (
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/util"
 	"github.com/spf13/afero"
+	"go.opentelemetry.io/otel"
 )
 
 const FILESERVER_PACKAGE = "fileserver"
@@ -34,6 +35,9 @@ func (f *FileServer) URL(path ...string) string {
 }
 
 func (f *FileServer) Deploy(ctx context.Context, sourceDir string, stateCh <-chan *fileserverState) (retErr error) {
+	ctx, span := otel.Tracer("fileserver").Start(ctx, "deploy fileserver")
+	defer span.End()
+
 	if f.fs == nil {
 		f.fs = afero.NewOsFs()
 	}
diff --git a/kurtosis-devnet/pkg/deploy/prestate.go b/kurtosis-devnet/pkg/deploy/prestate.go
index 3789a99e22987..d6c7a823a6c98 100644
--- a/kurtosis-devnet/pkg/deploy/prestate.go
+++ b/kurtosis-devnet/pkg/deploy/prestate.go
@@ -1,6 +1,7 @@
 package deploy
 
 import (
+	"context"
 	"encoding/json"
 	"fmt"
 	"log"
@@ -25,7 +26,7 @@ type localPrestateHolder struct {
 	urlBuilder func(path ...string) string
 }
 
-func (h *localPrestateHolder) GetPrestateInfo() (*PrestateInfo, error) {
+func (h *localPrestateHolder) GetPrestateInfo(ctx context.Context) (*PrestateInfo, error) {
 	if h.info != nil {
 		return h.info, nil
 	}
@@ -59,7 +60,7 @@ func (h *localPrestateHolder) GetPrestateInfo() (*PrestateInfo, error) {
 	}
 
 	// Build all prestate files directly in the target directory
-	if err := h.builder.Build(buildDir); err != nil {
+	if err := h.builder.Build(ctx, buildDir); err != nil {
 		return nil, fmt.Errorf("failed to build prestates: %w", err)
 	}
 
diff --git a/kurtosis-devnet/pkg/deploy/prestate_test.go b/kurtosis-devnet/pkg/deploy/prestate_test.go
index 0a25da55e4b9a..3525531547aa4 100644
--- a/kurtosis-devnet/pkg/deploy/prestate_test.go
+++ b/kurtosis-devnet/pkg/deploy/prestate_test.go
@@ -2,6 +2,7 @@ package deploy
 
 import (
 	"bytes"
+	"context"
 	"os"
 	"path/filepath"
 	"strings"
@@ -56,7 +57,7 @@ _prestate-build target:
 
 			buildWg := &sync.WaitGroup{}
 			// Create template context with just the prestate function
-			tmplCtx := tmpl.NewTemplateContext(templater.localPrestateOption(buildWg))
+			tmplCtx := tmpl.NewTemplateContext(templater.localPrestateOption(context.Background(), buildWg))
 
 			// Test template with multiple calls to localPrestate
 			template := `first:
diff --git a/kurtosis-devnet/pkg/deploy/template.go b/kurtosis-devnet/pkg/deploy/template.go
index 692e7699b4bd9..278b0993fb9cd 100644
--- a/kurtosis-devnet/pkg/deploy/template.go
+++ b/kurtosis-devnet/pkg/deploy/template.go
@@ -2,6 +2,7 @@ package deploy
 
 import (
 	"bytes"
+	"context"
 	"encoding/json"
 	"fmt"
 	"log"
@@ -59,7 +60,7 @@ type dockerBuildJob struct {
 	done        chan struct{}
 }
 
-func (f *Templater) localDockerImageOption() tmpl.TemplateContextOptions {
+func (f *Templater) localDockerImageOption(_ context.Context) tmpl.TemplateContextOptions {
 	// Initialize the build jobs map if it's nil
 	if f.buildJobs == nil {
 		f.buildJobs = make(map[string]*dockerBuildJob)
@@ -99,7 +100,7 @@ func (f *Templater) localDockerImageOption() tmpl.TemplateContextOptions {
 	})
 }
 
-func (f *Templater) localContractArtifactsOption(buildWg *sync.WaitGroup) tmpl.TemplateContextOptions {
+func (f *Templater) localContractArtifactsOption(ctx context.Context, buildWg *sync.WaitGroup) tmpl.TemplateContextOptions {
 	contractBuilder := build.NewContractBuilder(
 		build.WithContractBaseDir(f.baseDir),
 		build.WithContractDryRun(f.dryRun),
@@ -115,7 +116,7 @@ func (f *Templater) localContractArtifactsOption(buildWg *sync.WaitGroup) tmpl.T
 			f.contracts.started = true
 			buildWg.Add(1)
 			go func() {
-				url, err := contractBuilder.Build("")
+				url, err := contractBuilder.Build(ctx, "")
 				f.contracts.url = url
 				f.contracts.err = err
 				buildWg.Done()
@@ -126,7 +127,7 @@ func (f *Templater) localContractArtifactsOption(buildWg *sync.WaitGroup) tmpl.T
 	})
 }
 
-func (f *Templater) localPrestateOption(buildWg *sync.WaitGroup) tmpl.TemplateContextOptions {
+func (f *Templater) localPrestateOption(ctx context.Context, buildWg *sync.WaitGroup) tmpl.TemplateContextOptions {
 	holder := &localPrestateHolder{
 		baseDir:  f.baseDir,
 		buildDir: f.buildDir,
@@ -143,7 +144,7 @@ func (f *Templater) localPrestateOption(buildWg *sync.WaitGroup) tmpl.TemplateCo
 			f.prestate.started = true
 			buildWg.Add(1)
 			go func() {
-				info, err := holder.GetPrestateInfo()
+				info, err := holder.GetPrestateInfo(ctx)
 				f.prestate.info = info
 				f.prestate.err = err
 				buildWg.Done()
@@ -163,7 +164,7 @@ func (f *Templater) localPrestateOption(buildWg *sync.WaitGroup) tmpl.TemplateCo
 	})
 }
 
-func (f *Templater) Render() (*bytes.Buffer, error) {
+func (f *Templater) Render(ctx context.Context) (*bytes.Buffer, error) {
 	// Initialize the build jobs map if it's nil
 	if f.buildJobs == nil {
 		f.buildJobs = make(map[string]*dockerBuildJob)
@@ -172,9 +173,9 @@ func (f *Templater) Render() (*bytes.Buffer, error) {
 	buildWg := &sync.WaitGroup{}
 
 	opts := []tmpl.TemplateContextOptions{
-		f.localDockerImageOption(),
-		f.localContractArtifactsOption(buildWg),
-		f.localPrestateOption(buildWg),
+		f.localDockerImageOption(ctx),
+		f.localContractArtifactsOption(ctx, buildWg),
+		f.localPrestateOption(ctx, buildWg),
 		tmpl.WithBaseDir(f.baseDir),
 	}
 
@@ -231,7 +232,7 @@ func (f *Templater) Render() (*bytes.Buffer, error) {
 			go func(j *dockerBuildJob) {
 				defer buildWg.Done()
 				log.Printf("Starting build for %s (tag: %s)", j.projectName, j.imageTag)
-				j.result, j.err = dockerBuilder.Build(j.projectName, j.imageTag)
+				j.result, j.err = dockerBuilder.Build(ctx, j.projectName, j.imageTag)
 				close(j.done) // Mark this job as done
 			}(job)
 		}
diff --git a/kurtosis-devnet/pkg/deploy/template_test.go b/kurtosis-devnet/pkg/deploy/template_test.go
index 2b3281da61f3b..04df915bf06a6 100644
--- a/kurtosis-devnet/pkg/deploy/template_test.go
+++ b/kurtosis-devnet/pkg/deploy/template_test.go
@@ -1,6 +1,7 @@
 package deploy
 
 import (
+	"context"
 	"os"
 	"path/filepath"
 	"strings"
@@ -48,7 +49,7 @@ artifacts: {{localContractArtifacts "l1"}}`
 		},
 	}
 
-	buf, err := templater.Render()
+	buf, err := templater.Render(context.Background())
 	require.NoError(t, err)
 
 	// Verify template rendering
@@ -103,7 +104,7 @@ prestateHash: {{ (localPrestate).Hashes.prestate_mt64 }}`
 		},
 	}
 
-	buf, err := templater.Render()
+	buf, err := templater.Render(context.Background())
 	require.NoError(t, err)
 
 	// --- Assertions ---
@@ -164,7 +165,7 @@ func TestLocalPrestateOption(t *testing.T) {
 	buildWg := &sync.WaitGroup{}
 
 	// Get the localPrestate option
-	option := templater.localPrestateOption(buildWg)
+	option := templater.localPrestateOption(context.Background(), buildWg)
 
 	// Create a template context with the option
 	ctx := tmpl.NewTemplateContext(option)
@@ -221,7 +222,7 @@ func TestLocalContractArtifactsOption(t *testing.T) {
 	}
 	buildWg := &sync.WaitGroup{}
 	// Get the localContractArtifacts option
-	option := templater.localContractArtifactsOption(buildWg)
+	option := templater.localContractArtifactsOption(context.Background(), buildWg)
 
 	// Create a template context with the option
 	ctx := tmpl.NewTemplateContext(option)
diff --git a/kurtosis-devnet/pkg/kurtosis/api/enclave/enclave.go b/kurtosis-devnet/pkg/kurtosis/api/enclave/enclave.go
index 40c1f4572361a..92df86a43b3c8 100644
--- a/kurtosis-devnet/pkg/kurtosis/api/enclave/enclave.go
+++ b/kurtosis-devnet/pkg/kurtosis/api/enclave/enclave.go
@@ -7,6 +7,8 @@ import (
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/api/interfaces"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/api/wrappers"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/util"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/trace"
 )
 
 // DockerManager defines the interface for Docker operations
@@ -24,6 +26,7 @@ func (d *DefaultDockerManager) DestroyDockerResources(ctx context.Context, encla
 type KurtosisEnclaveManager struct {
 	kurtosisCtx interfaces.KurtosisContextInterface
 	dockerMgr   DockerManager
+	tracer      trace.Tracer
 }
 
 type KurtosisEnclaveManagerOptions func(*KurtosisEnclaveManager)
@@ -41,7 +44,9 @@ func WithDockerManager(dockerMgr DockerManager) KurtosisEnclaveManagerOptions {
 }
 
 func NewKurtosisEnclaveManager(opts ...KurtosisEnclaveManagerOptions) (*KurtosisEnclaveManager, error) {
-	manager := &KurtosisEnclaveManager{}
+	manager := &KurtosisEnclaveManager{
+		tracer: otel.Tracer("enclave-manager"),
+	}
 
 	for _, opt := range opts {
 		opt(manager)
@@ -58,6 +63,9 @@ func NewKurtosisEnclaveManager(opts ...KurtosisEnclaveManagerOptions) (*Kurtosis
 }
 
 func (mgr *KurtosisEnclaveManager) GetEnclave(ctx context.Context, enclave string) (interfaces.EnclaveContext, error) {
+	ctx, span := mgr.tracer.Start(ctx, "get enclave")
+	defer span.End()
+
 	// Try to get existing enclave first
 	enclaveCtx, err := mgr.kurtosisCtx.GetEnclave(ctx, enclave)
 	if err != nil {
@@ -77,6 +85,9 @@ func (mgr *KurtosisEnclaveManager) GetEnclave(ctx context.Context, enclave strin
 
 // cleanupEnclave handles the common cleanup logic for both stopped and empty enclaves
 func (mgr *KurtosisEnclaveManager) cleanupEnclave(ctx context.Context, enclave string) error {
+	ctx, span := mgr.tracer.Start(ctx, "cleanup enclave")
+	defer span.End()
+
 	// Remove the enclave
 	err := mgr.kurtosisCtx.DestroyEnclave(ctx, enclave)
 	if err != nil {
@@ -103,6 +114,9 @@ func (mgr *KurtosisEnclaveManager) cleanupEnclave(ctx context.Context, enclave s
 }
 
 func (mgr *KurtosisEnclaveManager) Autofix(ctx context.Context, enclave string) error {
+	ctx, span := mgr.tracer.Start(ctx, "autofix enclave")
+	defer span.End()
+
 	fmt.Printf("Autofixing enclave '%s'\n", enclave)
 	status, err := mgr.kurtosisCtx.GetEnclaveStatus(ctx, enclave)
 	if err != nil {
@@ -125,6 +139,9 @@ func (mgr *KurtosisEnclaveManager) Autofix(ctx context.Context, enclave string)
 }
 
 func (mgr *KurtosisEnclaveManager) Nuke(ctx context.Context) error {
+	ctx, span := mgr.tracer.Start(ctx, "nuke enclaves")
+	defer span.End()
+
 	enclaves, err := mgr.kurtosisCtx.Clean(ctx, true)
 	if err != nil {
 		fmt.Printf("failed to clean enclaves: %v", err)
diff --git a/kurtosis-devnet/pkg/kurtosis/api/run/handlers.go b/kurtosis-devnet/pkg/kurtosis/api/run/handlers.go
index 7ed3dbbbba0d5..3c4c719063e57 100644
--- a/kurtosis-devnet/pkg/kurtosis/api/run/handlers.go
+++ b/kurtosis-devnet/pkg/kurtosis/api/run/handlers.go
@@ -6,6 +6,8 @@ import (
 
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/api/interfaces"
 	"github.com/fatih/color"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/trace"
 )
 
 // Color printers
@@ -63,17 +65,34 @@ func AllHandlers(handlers ...MessageHandler) MessageHandler {
 }
 
 // defaultHandler is the default message handler that provides standard Kurtosis output
-var defaultHandler = FirstMatchHandler(
-	MessageHandlerFunc(handleProgress),
-	MessageHandlerFunc(handleInstruction),
-	MessageHandlerFunc(handleWarning),
-	MessageHandlerFunc(handleInfo),
-	MessageHandlerFunc(handleResult),
-	MessageHandlerFunc(handleError),
-)
+type defaultHandler struct {
+	tracer trace.Tracer
+	span   trace.Span
+}
+
+func newDefaultHandler() *defaultHandler {
+	return &defaultHandler{
+		tracer: otel.Tracer("kurtosis-run"),
+	}
+}
+
+var _ MessageHandler = (*defaultHandler)(nil)
+
+func (h *defaultHandler) Handle(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
+	hdlr := FirstMatchHandler(
+		MessageHandlerFunc(h.handleProgress),
+		MessageHandlerFunc(h.handleInstruction),
+		MessageHandlerFunc(h.handleWarning),
+		MessageHandlerFunc(h.handleInfo),
+		MessageHandlerFunc(h.handleResult),
+		MessageHandlerFunc(h.handleError),
+	)
+
+	return hdlr.Handle(ctx, resp)
+}
 
 // handleProgress handles progress info messages
-func handleProgress(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
+func (h *defaultHandler) handleProgress(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
 	if progressInfo := resp.GetProgressInfo(); progressInfo != nil {
 		// ignore progress messages, same as kurtosis run does
 		return true, nil
@@ -82,9 +101,12 @@ func handleProgress(ctx context.Context, resp interfaces.StarlarkResponse) (bool
 }
 
 // handleInstruction handles instruction messages
-func handleInstruction(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
+func (h *defaultHandler) handleInstruction(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
 	if instruction := resp.GetInstruction(); instruction != nil {
 		desc := instruction.GetDescription()
+		_, span := h.tracer.Start(ctx, desc)
+		h.span = span
+
 		fmt.Println(printCyan(desc))
 		return true, nil
 	}
@@ -92,7 +114,7 @@ func handleInstruction(ctx context.Context, resp interfaces.StarlarkResponse) (b
 }
 
 // handleWarning handles warning messages
-func handleWarning(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
+func (h *defaultHandler) handleWarning(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
 	if warning := resp.GetWarning(); warning != nil {
 		fmt.Println(printYellow(warning.GetMessage()))
 		return true, nil
@@ -101,7 +123,7 @@ func handleWarning(ctx context.Context, resp interfaces.StarlarkResponse) (bool,
 }
 
 // handleInfo handles info messages
-func handleInfo(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
+func (h *defaultHandler) handleInfo(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
 	if info := resp.GetInfo(); info != nil {
 		fmt.Println(printBlue(info.GetMessage()))
 		return true, nil
@@ -110,18 +132,21 @@ func handleInfo(ctx context.Context, resp interfaces.StarlarkResponse) (bool, er
 }
 
 // handleResult handles instruction result messages
-func handleResult(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
+func (h *defaultHandler) handleResult(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
 	if result := resp.GetInstructionResult(); result != nil {
 		if result.GetSerializedInstructionResult() != "" {
 			fmt.Printf("%s\n\n", result.GetSerializedInstructionResult())
 		}
+		if h.span != nil {
+			h.span.End()
+		}
 		return true, nil
 	}
 	return false, nil
 }
 
 // handleError handles error messages
-func handleError(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
+func (h *defaultHandler) handleError(ctx context.Context, resp interfaces.StarlarkResponse) (bool, error) {
 	if err := resp.GetError(); err != nil {
 		if interpretErr := err.GetInterpretationError(); interpretErr != nil {
 			return true, fmt.Errorf(printRed("interpretation error: %v"), interpretErr)
diff --git a/kurtosis-devnet/pkg/kurtosis/api/run/handlers_test.go b/kurtosis-devnet/pkg/kurtosis/api/run/handlers_test.go
index 1e9af79d6bbdf..580642d921061 100644
--- a/kurtosis-devnet/pkg/kurtosis/api/run/handlers_test.go
+++ b/kurtosis-devnet/pkg/kurtosis/api/run/handlers_test.go
@@ -12,6 +12,7 @@ import (
 
 func TestHandleProgress(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	tests := []struct {
 		name     string
 		response interfaces.StarlarkResponse
@@ -33,7 +34,7 @@ func TestHandleProgress(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			handled, err := handleProgress(ctx, tt.response)
+			handled, err := d.handleProgress(ctx, tt.response)
 			assert.NoError(t, err)
 			assert.Equal(t, tt.want, handled)
 		})
@@ -42,6 +43,7 @@ func TestHandleProgress(t *testing.T) {
 
 func TestHandleInstruction(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	tests := []struct {
 		name     string
 		response interfaces.StarlarkResponse
@@ -63,7 +65,7 @@ func TestHandleInstruction(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			handled, err := handleInstruction(ctx, tt.response)
+			handled, err := d.handleInstruction(ctx, tt.response)
 			assert.NoError(t, err)
 			assert.Equal(t, tt.want, handled)
 		})
@@ -72,6 +74,7 @@ func TestHandleInstruction(t *testing.T) {
 
 func TestHandleWarning(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	tests := []struct {
 		name     string
 		response interfaces.StarlarkResponse
@@ -93,7 +96,7 @@ func TestHandleWarning(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			handled, err := handleWarning(ctx, tt.response)
+			handled, err := d.handleWarning(ctx, tt.response)
 			assert.NoError(t, err)
 			assert.Equal(t, tt.want, handled)
 		})
@@ -102,6 +105,7 @@ func TestHandleWarning(t *testing.T) {
 
 func TestHandleInfo(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	tests := []struct {
 		name     string
 		response interfaces.StarlarkResponse
@@ -123,7 +127,7 @@ func TestHandleInfo(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			handled, err := handleInfo(ctx, tt.response)
+			handled, err := d.handleInfo(ctx, tt.response)
 			assert.NoError(t, err)
 			assert.Equal(t, tt.want, handled)
 		})
@@ -132,6 +136,7 @@ func TestHandleInfo(t *testing.T) {
 
 func TestHandleResult(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	tests := []struct {
 		name     string
 		response interfaces.StarlarkResponse
@@ -162,7 +167,7 @@ func TestHandleResult(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			handled, err := handleResult(ctx, tt.response)
+			handled, err := d.handleResult(ctx, tt.response)
 			assert.NoError(t, err)
 			assert.Equal(t, tt.want, handled)
 		})
@@ -171,6 +176,7 @@ func TestHandleResult(t *testing.T) {
 
 func TestHandleError(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	testErr := fmt.Errorf("test error")
 	tests := []struct {
 		name      string
@@ -211,7 +217,7 @@ func TestHandleError(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			handled, err := handleError(ctx, tt.response)
+			handled, err := d.handleError(ctx, tt.response)
 			if tt.wantError {
 				assert.Error(t, err)
 			} else {
@@ -224,6 +230,7 @@ func TestHandleError(t *testing.T) {
 
 func TestFirstMatchHandler(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	testErr := fmt.Errorf("test error")
 	tests := []struct {
 		name      string
@@ -235,8 +242,8 @@ func TestFirstMatchHandler(t *testing.T) {
 		{
 			name: "first handler matches",
 			handlers: []MessageHandler{
-				MessageHandlerFunc(handleInfo),
-				MessageHandlerFunc(handleWarning),
+				MessageHandlerFunc(d.handleInfo),
+				MessageHandlerFunc(d.handleWarning),
 			},
 			response: &fake.StarlarkResponse{
 				Info: "test info",
@@ -246,8 +253,8 @@ func TestFirstMatchHandler(t *testing.T) {
 		{
 			name: "second handler matches",
 			handlers: []MessageHandler{
-				MessageHandlerFunc(handleInfo),
-				MessageHandlerFunc(handleWarning),
+				MessageHandlerFunc(d.handleInfo),
+				MessageHandlerFunc(d.handleWarning),
 			},
 			response: &fake.StarlarkResponse{
 				Warning: "test warning",
@@ -257,8 +264,8 @@ func TestFirstMatchHandler(t *testing.T) {
 		{
 			name: "no handlers match",
 			handlers: []MessageHandler{
-				MessageHandlerFunc(handleInfo),
-				MessageHandlerFunc(handleWarning),
+				MessageHandlerFunc(d.handleInfo),
+				MessageHandlerFunc(d.handleWarning),
 			},
 			response: &fake.StarlarkResponse{
 				Result: "test result", HasResult: true,
@@ -268,7 +275,7 @@ func TestFirstMatchHandler(t *testing.T) {
 		{
 			name: "handler returns error",
 			handlers: []MessageHandler{
-				MessageHandlerFunc(handleError),
+				MessageHandlerFunc(d.handleError),
 			},
 			response: &fake.StarlarkResponse{
 				Err: &fake.StarlarkError{InterpretationErr: testErr},
@@ -294,6 +301,7 @@ func TestFirstMatchHandler(t *testing.T) {
 
 func TestAllHandlers(t *testing.T) {
 	ctx := context.Background()
+	d := newDefaultHandler()
 	testErr := fmt.Errorf("test error")
 	tests := []struct {
 		name      string
@@ -318,8 +326,8 @@ func TestAllHandlers(t *testing.T) {
 		{
 			name: "some handlers match",
 			handlers: []MessageHandler{
-				MessageHandlerFunc(handleInfo),
-				MessageHandlerFunc(handleWarning),
+				MessageHandlerFunc(d.handleInfo),
+				MessageHandlerFunc(d.handleWarning),
 			},
 			response: &fake.StarlarkResponse{
 				Info: "test info",
@@ -329,8 +337,8 @@ func TestAllHandlers(t *testing.T) {
 		{
 			name: "no handlers match",
 			handlers: []MessageHandler{
-				MessageHandlerFunc(handleInfo),
-				MessageHandlerFunc(handleWarning),
+				MessageHandlerFunc(d.handleInfo),
+				MessageHandlerFunc(d.handleWarning),
 			},
 			response: &fake.StarlarkResponse{
 				Result: "test result", HasResult: true,
@@ -340,8 +348,8 @@ func TestAllHandlers(t *testing.T) {
 		{
 			name: "handler returns error",
 			handlers: []MessageHandler{
-				MessageHandlerFunc(handleInfo),
-				MessageHandlerFunc(handleError),
+				MessageHandlerFunc(d.handleInfo),
+				MessageHandlerFunc(d.handleError),
 			},
 			response: &fake.StarlarkResponse{
 				Err: &fake.StarlarkError{InterpretationErr: testErr},
diff --git a/kurtosis-devnet/pkg/kurtosis/api/run/kurtosis_run.go b/kurtosis-devnet/pkg/kurtosis/api/run/kurtosis_run.go
index a1361a34a79c1..bd317e9b6f7ad 100644
--- a/kurtosis-devnet/pkg/kurtosis/api/run/kurtosis_run.go
+++ b/kurtosis-devnet/pkg/kurtosis/api/run/kurtosis_run.go
@@ -11,6 +11,8 @@ import (
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/api/interfaces"
 	"github.com/ethereum-optimism/optimism/kurtosis-devnet/pkg/kurtosis/api/wrappers"
 	"github.com/kurtosis-tech/kurtosis/api/golang/core/lib/starlark_run_config"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type KurtosisRunner struct {
@@ -18,6 +20,7 @@ type KurtosisRunner struct {
 	enclave     string
 	kurtosisCtx interfaces.KurtosisContextInterface
 	runHandlers []MessageHandler
+	tracer      trace.Tracer
 }
 
 type KurtosisRunnerOptions func(*KurtosisRunner)
@@ -47,7 +50,9 @@ func WithKurtosisRunnerRunHandlers(runHandlers ...MessageHandler) KurtosisRunner
 }
 
 func NewKurtosisRunner(opts ...KurtosisRunnerOptions) (*KurtosisRunner, error) {
-	r := &KurtosisRunner{}
+	r := &KurtosisRunner{
+		tracer: otel.Tracer("kurtosis-run"),
+	}
 	for _, opt := range opts {
 		opt(r)
 	}
@@ -63,6 +68,9 @@ func NewKurtosisRunner(opts ...KurtosisRunnerOptions) (*KurtosisRunner, error) {
 }
 
 func (r *KurtosisRunner) Run(ctx context.Context, packageName string, args io.Reader) error {
+	ctx, span := r.tracer.Start(ctx, fmt.Sprintf("run package %s", packageName))
+	defer span.End()
+
 	if r.dryRun {
 		fmt.Printf("Dry run mode enabled, would run kurtosis package %s in enclave %s\n",
 			packageName, r.enclave)
@@ -112,7 +120,7 @@ func (r *KurtosisRunner) Run(ctx context.Context, packageName string, args io.Re
 	runFinishedHandler := makeRunFinishedHandler(&isRunSuccessful)
 
 	// Combine custom handlers with default handler and run finished handler
-	handler := AllHandlers(append(r.runHandlers, defaultHandler, runFinishedHandler)...)
+	handler := AllHandlers(append(r.runHandlers, newDefaultHandler(), runFinishedHandler)...)
 
 	// Process the output stream
 	for responseLine := range stream {