diff --git a/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/ManagedEnvironments.json b/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/ManagedEnvironments.json
index 9feebaa9e899..96e45fb3e39e 100644
--- a/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/ManagedEnvironments.json
+++ b/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/ManagedEnvironments.json
@@ -1058,6 +1058,101 @@
         }
       }
     },
+    "AppInsightsConfiguration": {
+      "description": "Configuration of Application Insights ",
+      "type": "object",
+      "properties": {
+        "connectionString": {
+          "description": "Application Insights connection string",
+          "type": "string"
+        }
+      }
+    },
+    "OpenTelemetryConfiguration": {
+      "description": "Configuration of Open Telemetry",
+      "type": "object",
+      "properties": {
+        "destinationsConfiguration": {
+          "description": "Open telemetry destinations configuration",
+          "$ref": "#/definitions/DestinationsConfiguration"
+        },
+        "tracesConfiguration": {
+          "description": "Open telemetry trace configuration",
+          "$ref": "#/definitions/TracesConfiguration"
+        },
+        "logsConfiguration": {
+          "description": "Open telemetry logs configuration",
+          "$ref": "#/definitions/LogsConfiguration"
+        },
+        "metricsConfiguration": {
+          "description": "Open telemetry metrics configuration",
+          "$ref": "#/definitions/MetricsConfiguration"
+        }
+      }
+    },
+    "DestinationsConfiguration": {
+      "description": "Configuration of Open Telemetry destinations",
+      "type": "object",
+      "properties": {
+        "dataDogConfiguration": {
+          "description": "Open telemetry datadog destination configuration",
+          "$ref": "#/definitions/DataDogConfiguration"
+        }
+      }
+    },
+    "DataDogConfiguration": {
+      "description": "Configuration of datadog ",
+      "type": "object",
+      "properties": {
+        "site": {
+          "description": "The data dog site",
+          "type": "string"
+        },
+        "key": {
+          "description": "The data dog api key",
+          "type": "string"
+        }
+      }
+    },
+    "TracesConfiguration": {
+      "description": "Configuration of Open Telemetry traces",
+      "type": "object",
+      "properties": {
+        "destinations": {
+          "description": "Open telemetry traces destinations",
+          "type": "array",
+          "items": {
+            "type": "string"
+          }
+        }
+      }
+    },
+    "LogsConfiguration": {
+      "description": "Configuration of Open Telemetry logs",
+      "type": "object",
+      "properties": {
+        "destinations": {
+          "description": "Open telemetry logs destinations",
+          "type": "array",
+          "items": {
+            "type": "string"
+          }
+        }
+      }
+    },
+    "MetricsConfiguration": {
+      "description": "Configuration of Open Telemetry metrics",
+      "type": "object",
+      "properties": {
+        "destinations": {
+          "description": "Open telemetry metrics destinations",
+          "type": "array",
+          "items": {
+            "type": "string"
+          }
+        }
+      }
+    },
     "KedaConfiguration": {
       "type": "object",
       "description": "Configuration properties Keda component",
@@ -1207,6 +1302,14 @@
               "$ref": "#/definitions/AppLogsConfiguration",
               "description": "Cluster configuration which enables the log daemon to export\napp logs to a destination. Currently only \"log-analytics\" is\nsupported"
             },
+            "appInsightsConfiguration": {
+              "$ref": "#/definitions/AppInsightsConfiguration",
+              "description": "Environment level Application Insights configuration"
+            },
+            "openTelemetryConfiguration": {
+              "$ref": "#/definitions/OpenTelemetryConfiguration",
+              "description": "Environment Open Telemetry configuration"
+            },
             "zoneRedundant": {
               "description": "Whether or not this Managed Environment is zone-redundant.",
               "type": "boolean",
diff --git a/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/examples/ManagedEnvironments_CreateOrUpdate.json b/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/examples/ManagedEnvironments_CreateOrUpdate.json
index 1f46f87248ea..4ede1e3b8f96 100644
--- a/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/examples/ManagedEnvironments_CreateOrUpdate.json
+++ b/specification/app/resource-manager/Microsoft.App/preview/2023-05-02-preview/examples/ManagedEnvironments_CreateOrUpdate.json
@@ -14,6 +14,32 @@
             "sharedKey": "string"
           }
         },
+        "appInsightsConfiguration": {
+          "connectionString": "InstrumentationKey=00000000-0000-0000-0000-000000000000;IngestionEndpoint=https://eastus-8.in.applicationinsights.azure.com/;LiveEndpoint=https://eastus.livediagnostics.monitor.azure.com/"
+        },
+        "openTelemetryConfiguration": {
+          "destinationsConfiguration": {
+            "dataDogConfiguration": {
+              "site": "string",
+              "key": "000000000000000000000000"
+            }
+          },
+          "tracesConfiguration": {
+            "destinations": [
+              "appInsights"
+            ]
+          },
+          "logsConfiguration": {
+            "destinations": [
+              "appInsights"
+            ]
+          },
+          "metricsConfiguration": {
+            "destinations": [
+              "dataDog"
+            ]
+          }
+        },
         "zoneRedundant": true,
         "vnetConfiguration": {
           "infrastructureSubnetId": "/subscriptions/34adfa4f-cedf-4dc0-ba29-b6d1a69ab345/resourceGroups/RGName/providers/Microsoft.Network/virtualNetworks/VNetName/subnets/subnetName1"
@@ -72,6 +98,29 @@
               "customerId": "string"
             }
           },
+          "openTelemetryConfiguration": {
+            "destinationsConfiguration": {
+              "dataDogConfiguration": {
+                "site": "datadoghq.com",
+                "key": null
+              }
+            },
+            "tracesConfiguration": {
+              "destinations": [
+                "appInsights"
+              ]
+            },
+            "logsConfiguration": {
+              "destinations": [
+                "appInsights"
+              ]
+            },
+            "metricsConfiguration": {
+              "destinations": [
+                "dataDog"
+              ]
+            }
+          },
           "zoneRedundant": true,
           "vnetConfiguration": {
             "infrastructureSubnetId": "/subscriptions/34adfa4f-cedf-4dc0-ba29-b6d1a69ab345/resourceGroups/RGName/providers/Microsoft.Network/virtualNetworks/VNetName/subnets/subnetName1"
@@ -108,6 +157,7 @@
               "workloadProfileType": "Consumption"
             }
           ],
+          "appInsightsConfiguration": null,
           "infrastructureResourceGroup": "capp-svc-testcontainerenv-eastus",
           "peerAuthentication": {
             "mtls": {
@@ -133,6 +183,29 @@
               "customerId": "string"
             }
           },
+          "openTelemetryConfiguration": {
+            "destinationsConfiguration": {
+              "dataDogConfiguration": {
+                "site": "datadoghq.com",
+                "key": null
+              }
+            },
+            "tracesConfiguration": {
+              "destinations": [
+                "appInsights"
+              ]
+            },
+            "logsConfiguration": {
+              "destinations": [
+                "appInsights"
+              ]
+            },
+            "metricsConfiguration": {
+              "destinations": [
+                "dataDog"
+              ]
+            }
+          },
           "zoneRedundant": true,
           "vnetConfiguration": {
             "infrastructureSubnetId": "/subscriptions/34adfa4f-cedf-4dc0-ba29-b6d1a69ab345/resourceGroups/RGName/providers/Microsoft.Network/virtualNetworks/VNetName/subnets/subnetName1"
@@ -169,6 +242,7 @@
               "workloadProfileType": "Consumption"
             }
           ],
+          "appInsightsConfiguration": null,
           "infrastructureResourceGroup": "capp-svc-testcontainerenv-eastus",
           "peerAuthentication": {
             "mtls": {