diff --git a/examples/otel.py b/examples/otel.py
new file mode 100644
index 0000000000..3f37e6e502
--- /dev/null
+++ b/examples/otel.py
@@ -0,0 +1,65 @@
+import os
+import openai
+import dotenv
+from opentelemetry import trace
+from opentelemetry.sdk.trace import TracerProvider
+from opentelemetry.sdk.trace.export import BatchSpanProcessor
+from azure.monitor.opentelemetry.exporter import AzureMonitorTraceExporter
+
+dotenv.load_dotenv()
+
+trace.set_tracer_provider(TracerProvider())
+tracer = trace.get_tracer(__name__)
+
+exporter = AzureMonitorTraceExporter(
+    connection_string=os.environ["APPLICATIONINSIGHTS_CONNECTION_STRING"]
+)
+span_processor = BatchSpanProcessor(exporter)
+trace.get_tracer_provider().add_span_processor(span_processor)
+
+client = openai.AzureOpenAI()
+
+messages = [
+    {"role": "system", "content": "Don't make assumptions about what values to plug into tools. Ask for clarification if a user request is ambiguous."},
+    {"role": "user", "content": "What's the weather like today in Seattle?"}
+]
+tools = [
+    {
+        "type": "function",
+        "function": {
+            "name": "get_current_weather",
+            "description": "Get the current weather in a given location",
+            "parameters": {
+                "type": "object",
+                "properties": {
+                "location": {
+                    "type": "string",
+                    "description": "The city and state, e.g. San Francisco, CA",
+                },
+                "unit": {"type": "string", "enum": ["celsius", "fahrenheit"]},
+                },
+                "required": ["location"],
+            },
+        }
+    }
+]
+
+completion = client.chat.completions.create(
+    model="gpt-4",
+    messages=messages,
+    tools=tools,
+    tool_choice="auto",
+)
+messages.append(completion.choices[0].message)
+messages.append(
+    {
+        "role": "tool",
+        "tool_call_id": completion.choices[0].message.tool_calls[0].id,
+        "content": "{\"temperature\": \"22\", \"unit\": \"celsius\", \"description\": \"Sunny\"}"
+    }
+)
+tool_completion = client.chat.completions.create(
+    model="gpt-4",
+    messages=messages,
+    tools=tools,
+)
diff --git a/pyproject.toml b/pyproject.toml
index 11ab55cbe9..4e90339de8 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -38,6 +38,7 @@ classifiers = [
 
 [project.optional-dependencies]
 datalib = ["numpy >= 1", "pandas >= 1.2.3", "pandas-stubs >= 1.1.0.11"]
+tracing = ["opentelemetry-sdk", "wrapt"]
 
 [project.urls]
 Homepage = "https://github.com/openai/openai-python"
diff --git a/src/openai/_extras/__init__.py b/src/openai/_extras/__init__.py
index 864dac4171..c231408f90 100644
--- a/src/openai/_extras/__init__.py
+++ b/src/openai/_extras/__init__.py
@@ -1,2 +1,3 @@
 from .numpy_proxy import numpy as numpy, has_numpy as has_numpy
 from .pandas_proxy import pandas as pandas
+from .opentelemetry_proxy import opentelemetry as opentelemetry, has_tracing_enabled as has_tracing_enabled
diff --git a/src/openai/_extras/opentelemetry_proxy.py b/src/openai/_extras/opentelemetry_proxy.py
new file mode 100644
index 0000000000..42f12ac817
--- /dev/null
+++ b/src/openai/_extras/opentelemetry_proxy.py
@@ -0,0 +1,36 @@
+from __future__ import annotations
+
+import os
+from typing import TYPE_CHECKING, Any
+from typing_extensions import override
+
+from .._utils import LazyProxy, coerce_boolean
+from ._common import MissingDependencyError, format_instructions
+
+if TYPE_CHECKING:
+    import opentelemetry.trace as opentelemetry
+
+TRACING_INSTRUCTIONS = format_instructions(library="opentelemetry", extra="tracing")
+
+
+class OpenTelemetryProxy(LazyProxy[Any]):
+    @override
+    def __load__(self) -> Any:
+        try:
+            import opentelemetry.trace
+        except ModuleNotFoundError as err:
+            raise MissingDependencyError(TRACING_INSTRUCTIONS) from err
+
+        return opentelemetry.trace
+
+
+if not TYPE_CHECKING:
+    opentelemetry = OpenTelemetryProxy()
+
+
+
+def has_tracing_enabled() -> bool:
+    tracing = os.getenv("OPENAI_TRACE_ENABLED", "")
+    if coerce_boolean(tracing.lower()):
+        return True
+    return False
diff --git a/src/openai/_tracing.py b/src/openai/_tracing.py
new file mode 100644
index 0000000000..2193dc081b
--- /dev/null
+++ b/src/openai/_tracing.py
@@ -0,0 +1,159 @@
+from __future__ import annotations
+
+import json
+import functools
+from typing import TypeVar, Callable, Any, Generator, Iterator, Union
+from typing_extensions import ParamSpec
+
+from ._extras import opentelemetry as trace, has_tracing_enabled
+from .types.chat import ChatCompletion, ChatCompletionChunk
+from .types.completion import Completion
+from ._streaming import Stream
+
+TracedModels = Union[ChatCompletion, Completion]
+
+_P = ParamSpec("_P")
+_R = TypeVar("_R")
+
+
+def _set_attribute(span: trace.Span, key: str, value: Any) -> None:
+    if value is not None:
+        span.set_attribute(key, value)
+
+
+def _add_request_chat_message_event(span: trace.Span, **kwargs: Any) -> None:
+    for message in kwargs.get("messages", []):
+        try:
+            message = message.to_dict()
+        except AttributeError:
+            pass
+
+        if message.get("role"):
+            name = f"gen_ai.{message.get('role')}.message"
+            span.add_event(
+                name=name,
+                attributes={"event.data": json.dumps(message)}
+            )
+
+
+def _add_request_chat_attributes(span: trace.Span, **kwargs: Any) -> None:
+    _set_attribute(span, "gen_ai.system", "openai")
+    _set_attribute(span, "gen_ai.request.model", kwargs.get("model"))
+    _set_attribute(span, "gen_ai.request.max_tokens", kwargs.get("max_tokens"))
+    _set_attribute(span, "gen_ai.request.temperature", kwargs.get("temperature"))
+    _set_attribute(span, "gen_ai.request.top_p", kwargs.get("top_p"))
+
+
+def _add_response_chat_message_event(span: trace.Span, result: ChatCompletion) -> None:
+    for choice in result.choices:
+        response: dict[str, Any] = {
+            "message.role": choice.message.role,
+            "message.content": choice.message.content,
+            "finish_reason": choice.finish_reason,
+            "index": choice.index,
+        }
+        if choice.message.tool_calls:
+            response["message.tool_calls"] = [tool.to_dict() for tool in choice.message.tool_calls]
+        span.add_event(name="gen_ai.response.message", attributes={"event.data": json.dumps(response)})
+
+
+def _add_response_chat_attributes(span: trace.Span, result: ChatCompletion) -> None:
+    _set_attribute(span, "gen_ai.response.id", result.id)
+    _set_attribute(span, "gen_ai.response.model", result.model)
+    _set_attribute(span, "gen_ai.response.finish_reason", result.choices[0].finish_reason)
+    if hasattr(result, "usage"):
+        _set_attribute(span, "gen_ai.usage.completion_tokens", result.usage.completion_tokens if result.usage else None)
+        _set_attribute(span, "gen_ai.usage.prompt_tokens", result.usage.prompt_tokens if result.usage else None)
+
+
+def _traceable_stream(stream_obj: Stream[ChatCompletionChunk], span: trace.Span) -> Generator[ChatCompletionChunk, None, None]:
+    try:
+        accumulate: dict[str, Any] = {"role": ""}
+        for chunk in stream_obj:
+            for item in chunk.choices:
+                if item.finish_reason:
+                    accumulate["finish_reason"] = item.finish_reason
+                if item.index:
+                    accumulate["index"] = item.index
+                if item.delta.role:
+                    accumulate["role"] = item.delta.role
+                if item.delta.content:
+                    accumulate.setdefault("content", "")
+                    accumulate["content"] += item.delta.content
+                if item.delta.tool_calls:
+                    accumulate.setdefault("tool_calls", [])
+                    for tool_call in item.delta.tool_calls:
+                        if tool_call.id:
+                            accumulate["tool_calls"].append({"id": tool_call.id, "type": "", "function": {"name": "", "arguments": ""}})
+                        if tool_call.type:
+                            accumulate["tool_calls"][-1]["type"] = tool_call.type
+                        if tool_call.function and tool_call.function.name:
+                            accumulate["tool_calls"][-1]["function"]["name"] = tool_call.function.name
+                        if tool_call.function and tool_call.function.arguments:
+                            accumulate["tool_calls"][-1]["function"]["arguments"] += tool_call.function.arguments
+            yield chunk
+
+        span.add_event(name="gen_ai.response.message", attributes={"event.data": json.dumps(accumulate)})
+        _add_response_chat_attributes(span, chunk)
+
+    finally:
+        span.end()
+
+
+def _wrapped_stream(stream_obj: Stream[ChatCompletionChunk], span: trace.Span) -> Stream[ChatCompletionChunk]:
+    import wrapt
+
+    class StreamWrapper(wrapt.ObjectProxy):
+        def __iter__(self) -> Iterator[ChatCompletionChunk]:
+            return _traceable_stream(stream_obj, span)
+
+    return StreamWrapper(stream_obj)
+
+
+def _add_request_span_attributes(span: trace.Span, span_name: str, kwargs: Any) -> None:
+    if span_name.startswith("chat.completions.create"):
+        _add_request_chat_attributes(span, **kwargs)
+        _add_request_chat_message_event(span, **kwargs)
+    # TODO add more models here
+
+
+def _add_response_span_attributes(span: trace.Span, result: TracedModels) -> None:
+    if result.object == "chat.completion":
+        _add_response_chat_attributes(span, result)
+        _add_response_chat_message_event(span, result)
+    # TODO add more models here
+
+
+def traceable(
+    *, span_name: str
+) -> Callable[[Callable[_P, _R]], Callable[_P, _R]]:
+    if has_tracing_enabled():
+        tracer = trace.get_tracer(__name__)
+
+    def wrapper(func: Callable[_P, _R]) -> Callable[_P, _R]:
+        @functools.wraps(func)
+        def inner(*args: _P.args, **kwargs: _P.kwargs) -> _R:
+            if not has_tracing_enabled():
+                return func(*args, **kwargs)
+
+            span = tracer.start_span(span_name, kind=trace.SpanKind.CLIENT)
+            try:
+                _add_request_span_attributes(span, span_name, kwargs)
+
+                result = func(*args, **kwargs)
+
+                if hasattr(result, "__stream__"):
+                    return _wrapped_stream(result, span)
+
+                _add_response_span_attributes(span, result)
+
+            except Exception:
+                span.end()
+                raise
+
+            span.end()
+            return result
+
+        return inner
+
+    return wrapper
diff --git a/src/openai/resources/chat/completions.py b/src/openai/resources/chat/completions.py
index 3b070b716e..8501218521 100644
--- a/src/openai/resources/chat/completions.py
+++ b/src/openai/resources/chat/completions.py
@@ -30,6 +30,7 @@
 from ..._base_client import (
     make_request_options,
 )
+from ..._tracing import traceable
 
 __all__ = ["Completions", "AsyncCompletions"]
 
@@ -547,6 +548,7 @@ def create(
         """
         ...
 
+    @traceable(span_name="chat.completions.create")
     @required_args(["messages", "model"], ["messages", "model", "stream"])
     def create(
         self,