diff --git a/go.mod b/go.mod
index 6226191..e6e8bed 100644
--- a/go.mod
+++ b/go.mod
@@ -9,7 +9,9 @@ require (
 	github.com/go-logr/logr v1.4.2
 	github.com/go-logr/zapr v1.3.0
 	github.com/google/go-cmp v0.6.0
+	github.com/grpc-ecosystem/go-grpc-middleware/providers/prometheus v1.1.0
 	github.com/pkg/errors v0.9.1
+	github.com/prometheus/client_golang v1.19.1
 	go.uber.org/zap v1.27.0
 	google.golang.org/grpc v1.67.0
 	google.golang.org/grpc/cmd/protoc-gen-go-grpc v1.5.1
@@ -35,9 +37,11 @@ require (
 	github.com/Microsoft/go-winio v0.6.2 // indirect
 	github.com/Microsoft/hcsshim v0.12.6 // indirect
 	github.com/antlr4-go/antlr/v4 v4.13.1 // indirect
+	github.com/beorn7/perks v1.0.1 // indirect
 	github.com/bufbuild/protocompile v0.14.1 // indirect
 	github.com/bufbuild/protoplugin v0.0.0-20240911180120-7bb73e41a54a // indirect
 	github.com/bufbuild/protovalidate-go v0.6.5 // indirect
+	github.com/cespare/xxhash/v2 v2.3.0 // indirect
 	github.com/containerd/cgroups/v3 v3.0.3 // indirect
 	github.com/containerd/containerd v1.7.22 // indirect
 	github.com/containerd/continuity v0.4.3 // indirect
@@ -80,6 +84,7 @@ require (
 	github.com/google/gofuzz v1.2.0 // indirect
 	github.com/google/pprof v0.0.0-20240910150728-a0b0bb1d4134 // indirect
 	github.com/google/uuid v1.6.0 // indirect
+	github.com/grpc-ecosystem/go-grpc-middleware/v2 v2.1.0 // indirect
 	github.com/inconshreveable/mousetrap v1.1.0 // indirect
 	github.com/jdx/go-netrc v1.0.0 // indirect
 	github.com/josharian/intern v1.0.0 // indirect
@@ -109,6 +114,9 @@ require (
 	github.com/opencontainers/runtime-spec v1.2.0 // indirect
 	github.com/pkg/browser v0.0.0-20240102092130-5ac0b6a4141c // indirect
 	github.com/pkg/profile v1.7.0 // indirect
+	github.com/prometheus/client_model v0.6.1 // indirect
+	github.com/prometheus/common v0.55.0 // indirect
+	github.com/prometheus/procfs v0.15.1 // indirect
 	github.com/quic-go/qpack v0.5.1 // indirect
 	github.com/quic-go/quic-go v0.48.2 // indirect
 	github.com/rs/cors v1.11.1 // indirect
diff --git a/go.sum b/go.sum
index 0c3f359..4dfb3dc 100644
--- a/go.sum
+++ b/go.sum
@@ -192,6 +192,10 @@ github.com/google/pprof v0.0.0-20240910150728-a0b0bb1d4134/go.mod h1:vavhavw2zAx
 github.com/google/uuid v1.1.2/go.mod h1:TIyPZe4MgqvfeYDBFedMoGGpEw/LqOeaOT+nhxU+yHo=
 github.com/google/uuid v1.6.0 h1:NIvaJDMOsjHA8n1jAhLSgzrAzy1Hgr+hNrb57e+94F0=
 github.com/google/uuid v1.6.0/go.mod h1:TIyPZe4MgqvfeYDBFedMoGGpEw/LqOeaOT+nhxU+yHo=
+github.com/grpc-ecosystem/go-grpc-middleware/providers/prometheus v1.1.0 h1:QGLs/O40yoNK9vmy4rhUGBVyMf1lISBGtXRpsu/Qu/o=
+github.com/grpc-ecosystem/go-grpc-middleware/providers/prometheus v1.1.0/go.mod h1:hM2alZsMUni80N33RBe6J0e423LB+odMj7d3EMP9l20=
+github.com/grpc-ecosystem/go-grpc-middleware/v2 v2.1.0 h1:pRhl55Yx1eC7BZ1N+BBWwnKaMyD8uC+34TLdndZMAKk=
+github.com/grpc-ecosystem/go-grpc-middleware/v2 v2.1.0/go.mod h1:XKMd7iuf/RGPSMJ/U4HP0zS2Z9Fh8Ps9a+6X26m/tmI=
 github.com/grpc-ecosystem/grpc-gateway v1.16.0 h1:gmcG1KaJ57LophUzW0Hy8NmPhnMZb4M0+kPpLofRdBo=
 github.com/grpc-ecosystem/grpc-gateway/v2 v2.20.0 h1:bkypFPDjIYGfCYD5mRBvpqxfYX1YCS1PXdKYWi8FsN0=
 github.com/grpc-ecosystem/grpc-gateway/v2 v2.20.0/go.mod h1:P+Lt/0by1T8bfcF3z737NnSbmxQAppXMRziHUxPOC8k=
diff --git a/sdk.go b/sdk.go
index c7b5078..d122f22 100644
--- a/sdk.go
+++ b/sdk.go
@@ -22,10 +22,15 @@ import (
 	"crypto/tls"
 	"crypto/x509"
 	"net"
+	"net/http"
 	"os"
 	"path/filepath"
+	"time"
 
+	grpcprometheus "github.com/grpc-ecosystem/go-grpc-middleware/providers/prometheus"
 	"github.com/pkg/errors"
+	"github.com/prometheus/client_golang/prometheus"
+	"github.com/prometheus/client_golang/prometheus/promhttp"
 	"google.golang.org/grpc"
 	"google.golang.org/grpc/credentials"
 	ginsecure "google.golang.org/grpc/credentials/insecure"
@@ -43,6 +48,7 @@ const (
 	DefaultNetwork        = "tcp"
 	DefaultAddress        = ":9443"
 	DefaultMaxRecvMsgSize = 1024 * 1024 * 4
+	DefaultMetricsAddress = ":8080"
 )
 
 // ServeOptions configure how a Function is served.
@@ -52,6 +58,11 @@ type ServeOptions struct {
 	MaxRecvMsgSize int
 	Credentials    credentials.TransportCredentials
 	HealthServer   healthgrpc.HealthServer
+
+	// Metrics options
+	MetricsAddress    string
+	MetricsRegistry   *prometheus.Registry
+	UnaryInterceptors []grpc.UnaryServerInterceptor
 }
 
 // A ServeOption configures how a Function is served.
@@ -143,13 +154,35 @@ func WithHealthServer(srv healthgrpc.HealthServer) ServeOption {
 	}
 }
 
+// WithMetricsServer configures the metrics server address and starts an HTTP server
+// to expose Prometheus metrics on /metrics endpoint. If address is non-empty,
+// metrics collection is automatically enabled.
+func WithMetricsServer(address string) ServeOption {
+	return func(o *ServeOptions) error {
+		o.MetricsAddress = address
+		return nil
+	}
+}
+
+// WithMetricsRegistry configures a custom Prometheus registry for metrics.
+// Note: Metrics collection is enabled only when MetricsAddress is non-empty.
+func WithMetricsRegistry(registry *prometheus.Registry) ServeOption {
+	return func(o *ServeOptions) error {
+		o.MetricsRegistry = registry
+		return nil
+	}
+}
+
 // Serve the supplied Function by creating a gRPC server and listening for
 // RunFunctionRequests. Blocks until the server returns an error.
 func Serve(fn v1.FunctionRunnerServiceServer, o ...ServeOption) error {
+	//nolint:forcetypeassert // prometheus.DefaultRegisterer is always *prometheus.Registry
 	so := &ServeOptions{
-		Network:        DefaultNetwork,
-		Address:        DefaultAddress,
-		MaxRecvMsgSize: DefaultMaxRecvMsgSize,
+		Network:         DefaultNetwork,
+		Address:         DefaultAddress,
+		MaxRecvMsgSize:  DefaultMaxRecvMsgSize,
+		MetricsAddress:  DefaultMetricsAddress,
+		MetricsRegistry: prometheus.DefaultRegisterer.(*prometheus.Registry), // Use default registry
 	}
 
 	for _, fn := range o {
@@ -167,7 +200,29 @@ func Serve(fn v1.FunctionRunnerServiceServer, o ...ServeOption) error {
 		return errors.Wrapf(err, "cannot listen for %s connections at address %q", so.Network, so.Address)
 	}
 
-	srv := grpc.NewServer(grpc.MaxRecvMsgSize(so.MaxRecvMsgSize), grpc.Creds(so.Credentials))
+	// Create server options
+	serverOpts := []grpc.ServerOption{
+		grpc.MaxRecvMsgSize(so.MaxRecvMsgSize),
+		grpc.Creds(so.Credentials),
+	}
+
+	// Build interceptors based on options
+	var interceptors []grpc.UnaryServerInterceptor
+	var metrics *grpcprometheus.ServerMetrics
+
+	// Add metrics interceptor if metrics address is provided
+	if so.MetricsAddress != "" {
+		// Use Prometheus metrics
+		metrics = grpcprometheus.NewServerMetrics()
+
+		// Apply metrics interceptor and custom interceptors
+		interceptors = append(interceptors, metrics.UnaryServerInterceptor())
+		interceptors = append(interceptors, so.UnaryInterceptors...)
+		serverOpts = append(serverOpts, grpc.ChainUnaryInterceptor(interceptors...))
+		// Register the metrics with the registry
+		so.MetricsRegistry.MustRegister(metrics)
+	}
+	srv := grpc.NewServer(serverOpts...)
 	reflection.Register(srv)
 	v1.RegisterFunctionRunnerServiceServer(srv, fn)
 	v1beta1.RegisterFunctionRunnerServiceServer(srv, ServeBeta(fn))
@@ -176,6 +231,27 @@ func Serve(fn v1.FunctionRunnerServiceServer, o ...ServeOption) error {
 		healthgrpc.RegisterHealthServer(srv, so.HealthServer)
 	}
 
+	// Start metrics server if address is provided
+	if so.MetricsAddress != "" {
+		// Initialize metrics for the gRPC server
+		if metrics != nil {
+			metrics.InitializeMetrics(srv)
+		}
+		// Use the registry for metrics handler
+		handler := promhttp.HandlerFor(so.MetricsRegistry, promhttp.HandlerOpts{})
+
+		metricsServer := &http.Server{
+			Addr:              so.MetricsAddress,
+			Handler:           handler,
+			ReadHeaderTimeout: 30 * time.Second,
+		}
+
+		// Start metrics server in a goroutine
+		go func() {
+			_ = metricsServer.ListenAndServe() // Ignore errors
+		}()
+	}
+
 	return errors.Wrap(srv.Serve(lis), "cannot serve mTLS gRPC connections")
 }
 
diff --git a/sdk_test.go b/sdk_test.go
index 3bc900b..4c351bc 100644
--- a/sdk_test.go
+++ b/sdk_test.go
@@ -19,10 +19,18 @@ package function
 import (
 	"context"
 	"fmt"
+	"io"
+	"net"
+	"net/http"
+	"strings"
 	"testing"
+	"time"
 
 	"github.com/google/go-cmp/cmp"
 	"github.com/google/go-cmp/cmp/cmpopts"
+	"github.com/prometheus/client_golang/prometheus"
+	"google.golang.org/grpc"
+	"google.golang.org/grpc/credentials/insecure"
 	"google.golang.org/protobuf/encoding/protojson"
 	"google.golang.org/protobuf/testing/protocmp"
 
@@ -187,3 +195,177 @@ type MockFunctionServer struct {
 func (s *MockFunctionServer) RunFunction(context.Context, *v1.RunFunctionRequest) (*v1.RunFunctionResponse, error) {
 	return s.rsp, s.err
 }
+
+// TestMetricsServer_WithCustomRegistryAndCustomPort verifies that metrics server starts on custom port with custom registry as input.
+func TestMetricsServer_WithCustomRegistryAndCustomPort(t *testing.T) {
+	// Create mock server
+	mockServer := &MockFunctionServer{
+		rsp: &v1.RunFunctionResponse{
+			Meta: &v1.ResponseMeta{Tag: "traffic-test"},
+		},
+	}
+
+	// Get ports
+	grpcPort := getAvailablePort(t)
+	metricsPort := getAvailablePort(t)
+
+	// Start server
+	serverDone := make(chan error, 1)
+	go func() {
+		err := Serve(mockServer,
+			Listen("tcp", fmt.Sprintf(":%d", grpcPort)),
+			Insecure(true),
+			WithMetricsServer(fmt.Sprintf(":%d", metricsPort)),
+			WithMetricsRegistry(prometheus.NewRegistry()),
+		)
+		serverDone <- err
+	}()
+
+	// Wait for server to start
+	time.Sleep(3 * time.Second)
+
+	t.Run("MetricsServerTest On CustomPort With CustomRegistry", func(t *testing.T) {
+		conn, err := grpc.NewClient(fmt.Sprintf("localhost:%d", grpcPort),
+			grpc.WithTransportCredentials(insecure.NewCredentials()))
+		if err != nil {
+			t.Fatalf("Failed to connect: %v", err)
+		}
+		defer conn.Close()
+
+		client := v1.NewFunctionRunnerServiceClient(conn)
+
+		// Make the request
+		req1 := &v1.RunFunctionRequest{
+			Meta: &v1.RequestMeta{Tag: "request-test"},
+		}
+
+		_, err = client.RunFunction(context.Background(), req1)
+		if err != nil {
+			t.Errorf("request failed: %v", err)
+		}
+		// Wait for metrics to be collected
+		time.Sleep(2 * time.Second)
+
+		// Verify metrics endpoint has our custom metrics
+		metricsURL := fmt.Sprintf("http://localhost:%d/metrics", metricsPort)
+		req, err := http.NewRequestWithContext(context.Background(), http.MethodGet, metricsURL, nil)
+		if err != nil {
+			t.Fatalf("Failed to create request: %v", err)
+		}
+		resp, err := http.DefaultClient.Do(req)
+		if err != nil {
+			t.Fatalf("Failed to get metrics: %v", err)
+		}
+		defer resp.Body.Close()
+
+		body, err := io.ReadAll(resp.Body)
+		if err != nil {
+			t.Fatalf("Failed to read metrics: %v", err)
+		}
+
+		metricsContent := string(body)
+
+		// Verify Prometheus format is working
+		if !strings.Contains(metricsContent, "# HELP") {
+			t.Error("Expected Prometheus format")
+		}
+
+		// Verify gRPC metrics are present
+		if !strings.Contains(metricsContent, "grpc_server_started_total") {
+			t.Error("Expected grpc_server_started_total metric to be present")
+		}
+	})
+}
+
+// TestMetricsServer_WithDefaultRegistryAndDefaultPort verifies that metrics server starts by default on :8080 with default registry with no input.
+func TestMetricsServer_WithDefaultRegistryAndDefaultPort(t *testing.T) {
+	// Create mock server
+	mockServer := &MockFunctionServer{
+		rsp: &v1.RunFunctionResponse{
+			Meta: &v1.ResponseMeta{Tag: "default-metrics-test"},
+		},
+	}
+
+	// Get ports
+	grpcPort := getAvailablePort(t)
+	// Should use default metrics port 8080
+	metricsPort := 8080
+
+	serverDone := make(chan error, 1)
+	go func() {
+		err := Serve(mockServer,
+			Listen("tcp", fmt.Sprintf(":%d", grpcPort)),
+			Insecure(true),
+		)
+		serverDone <- err
+	}()
+
+	// Wait for server to start
+	time.Sleep(3 * time.Second)
+
+	t.Run("MetricsServerTest On DefaultPort With DefaultRegisrty", func(t *testing.T) {
+		// Test gRPC connection
+		conn, err := grpc.NewClient(fmt.Sprintf("localhost:%d", grpcPort),
+			grpc.WithTransportCredentials(insecure.NewCredentials()))
+		if err != nil {
+			t.Fatalf("Failed to connect: %v", err)
+		}
+		defer conn.Close()
+
+		client := v1.NewFunctionRunnerServiceClient(conn)
+
+		// Make the request
+		req := &v1.RunFunctionRequest{
+			Meta: &v1.RequestMeta{Tag: "default-metrics-test"},
+		}
+
+		_, err = client.RunFunction(context.Background(), req)
+		if err != nil {
+			t.Errorf("Request failed: %v", err)
+		}
+
+		// Wait for metrics to be collected
+		time.Sleep(2 * time.Second)
+
+		// Verify metrics endpoint is accessible
+		metricsURL := fmt.Sprintf("http://localhost:%d/metrics", metricsPort)
+		httpReq, err := http.NewRequestWithContext(context.Background(), http.MethodGet, metricsURL, nil)
+		if err != nil {
+			t.Fatalf("Failed to create request: %v", err)
+		}
+		resp, err := http.DefaultClient.Do(httpReq)
+		if err != nil {
+			t.Fatalf("Failed to get metrics: %v", err)
+		}
+		defer resp.Body.Close()
+
+		body, err := io.ReadAll(resp.Body)
+		if err != nil {
+			t.Fatalf("Failed to read metrics: %v", err)
+		}
+
+		metricsContent := string(body)
+
+		// Verify metrics are present
+		if !strings.Contains(metricsContent, "# HELP") {
+			t.Error("Expected Prometheus format")
+		}
+
+		// Verify gRPC metrics are present
+		if !strings.Contains(metricsContent, "grpc_server_started_total") {
+			t.Error("Expected grpc_server_started_total metric to be present")
+		}
+	})
+}
+
+// Helper function to get an available port.
+func getAvailablePort(t *testing.T) int {
+	t.Helper()
+
+	listener, err := net.Listen("tcp", ":0")
+	if err != nil {
+		t.Fatalf("Failed to get available port: %v", err)
+	}
+	defer listener.Close()
+	return listener.Addr().(*net.TCPAddr).Port
+}