diff --git a/plugins/node/opentelemetry-instrumentation-aws-lambda/README.md b/plugins/node/opentelemetry-instrumentation-aws-lambda/README.md
index d4e090b46d..8f11edab8b 100644
--- a/plugins/node/opentelemetry-instrumentation-aws-lambda/README.md
+++ b/plugins/node/opentelemetry-instrumentation-aws-lambda/README.md
@@ -50,7 +50,6 @@ In your Lambda function configuration, add or update the `NODE_OPTIONS` environm
 | --- | --- | --- |
 | `requestHook` | `RequestHook` (function) | Hook for adding custom attributes before lambda starts handling the request. Receives params: `span, { event, context }` |
 | `responseHook` | `ResponseHook` (function) | Hook for adding custom attributes before lambda returns the response. Receives params: `span, { err?, res? }` |
-| `disableAwsContextPropagation` | `boolean` | By default, this instrumentation will try to read the context from the `_X_AMZN_TRACE_ID` environment variable set by Lambda, set this to `true` or set the environment variable `OTEL_LAMBDA_DISABLE_AWS_CONTEXT_PROPAGATION=true` to disable this behavior |
 | `eventContextExtractor` | `EventContextExtractor` (function) | Function for providing custom context extractor in order to support different event types that are handled by AWS Lambda (e.g., SQS, CloudWatch, Kinesis, API Gateway). Applied only when `disableAwsContextPropagation` is set to `true`. Receives params: `event, context` |
 
 ### Hooks Usage Example
diff --git a/plugins/node/opentelemetry-instrumentation-aws-lambda/src/instrumentation.ts b/plugins/node/opentelemetry-instrumentation-aws-lambda/src/instrumentation.ts
index 7681ff07d7..e7f54e08c1 100644
--- a/plugins/node/opentelemetry-instrumentation-aws-lambda/src/instrumentation.ts
+++ b/plugins/node/opentelemetry-instrumentation-aws-lambda/src/instrumentation.ts
@@ -59,7 +59,6 @@ import {
 
 import { AwsLambdaInstrumentationConfig, EventContextExtractor } from './types';
 import { VERSION } from './version';
-import { env } from 'process';
 import { LambdaModule } from './internal-types';
 
 const awsPropagator = new AWSXRayPropagator();
@@ -80,17 +79,6 @@ export class AwsLambdaInstrumentation extends InstrumentationBase {
 
   constructor(protected override _config: AwsLambdaInstrumentationConfig = {}) {
     super('@opentelemetry/instrumentation-aws-lambda', VERSION, _config);
-    if (this._config.disableAwsContextPropagation == null) {
-      if (
-        typeof env['OTEL_LAMBDA_DISABLE_AWS_CONTEXT_PROPAGATION'] ===
-          'string' &&
-        env[
-          'OTEL_LAMBDA_DISABLE_AWS_CONTEXT_PROPAGATION'
-        ].toLocaleLowerCase() === 'true'
-      ) {
-        this._config.disableAwsContextPropagation = true;
-      }
-    }
   }
 
   override setConfig(config: AwsLambdaInstrumentationConfig = {}) {
diff --git a/plugins/node/opentelemetry-instrumentation-aws-lambda/test/integrations/lambda-handler.test.ts b/plugins/node/opentelemetry-instrumentation-aws-lambda/test/integrations/lambda-handler.test.ts
index bdfe6f0ae8..4ac23a2482 100644
--- a/plugins/node/opentelemetry-instrumentation-aws-lambda/test/integrations/lambda-handler.test.ts
+++ b/plugins/node/opentelemetry-instrumentation-aws-lambda/test/integrations/lambda-handler.test.ts
@@ -592,80 +592,6 @@ describe('lambda handler', () => {
       assert.strictEqual(span.parentSpanId, undefined);
     });
 
-    it('ignores OTEL_LAMBDA_DISABLE_AWS_CONTEXT_PROPAGATION if `config.disableAwsContextPropagation` is set', async () => {
-      process.env['OTEL_LAMBDA_DISABLE_AWS_CONTEXT_PROPAGATION'] = 'true';
-      process.env[traceContextEnvironmentKey] = sampledAwsHeader;
-      initializeHandler('lambda-test/async.handler', {
-        disableAwsContextPropagation: false,
-      });
-
-      const result = await lambdaRequire('lambda-test/async').handler(
-        'arg',
-        ctx
-      );
-      assert.strictEqual(result, 'ok');
-      const spans = memoryExporter.getFinishedSpans();
-      const [span] = spans;
-      assert.strictEqual(spans.length, 1);
-      assertSpanSuccess(span);
-      assert.strictEqual(
-        span.spanContext().traceId,
-        sampledAwsSpanContext.traceId
-      );
-      assert.strictEqual(span.parentSpanId, sampledAwsSpanContext.spanId);
-    });
-
-    it('ignores sampled lambda context if "disableAwsContextPropagation" config option is true', async () => {
-      process.env[traceContextEnvironmentKey] = sampledAwsHeader;
-      initializeHandler('lambda-test/async.handler', {
-        disableAwsContextPropagation: true,
-      });
-
-      const result = await lambdaRequire('lambda-test/async').handler(
-        'arg',
-        ctx
-      );
-      assert.strictEqual(result, 'ok');
-      const spans = memoryExporter.getFinishedSpans();
-      const [span] = spans;
-      assert.strictEqual(spans.length, 1);
-      assertSpanSuccess(span);
-      assert.notDeepStrictEqual(
-        span.spanContext().traceId,
-        sampledAwsSpanContext.traceId
-      );
-      assert.strictEqual(span.parentSpanId, undefined);
-    });
-
-    it('takes sampled http context over sampled lambda context if "disableAwsContextPropagation" config option is true', async () => {
-      process.env[traceContextEnvironmentKey] = sampledAwsHeader;
-      initializeHandler('lambda-test/async.handler', {
-        disableAwsContextPropagation: true,
-      });
-
-      const proxyEvent = {
-        headers: {
-          traceparent: sampledHttpHeader,
-        },
-      };
-
-      const result = await lambdaRequire('lambda-test/async').handler(
-        proxyEvent,
-        ctx
-      );
-
-      assert.strictEqual(result, 'ok');
-      const spans = memoryExporter.getFinishedSpans();
-      const [span] = spans;
-      assert.strictEqual(spans.length, 1);
-      assertSpanSuccess(span);
-      assert.strictEqual(
-        span.spanContext().traceId,
-        sampledHttpSpanContext.traceId
-      );
-      assert.strictEqual(span.parentSpanId, sampledHttpSpanContext.spanId);
-    });
-
     it('takes sampled custom context over sampled lambda context if "eventContextExtractor" is defined', async () => {
       process.env[traceContextEnvironmentKey] = sampledAwsHeader;
       const customExtractor = (event: any): OtelContext => {