diff --git a/.devcontainer/Dockerfile.dev b/.devcontainer/Dockerfile.dev
index c0eea6d326..decee711fc 100644
--- a/.devcontainer/Dockerfile.dev
+++ b/.devcontainer/Dockerfile.dev
@@ -22,13 +22,16 @@ ENV GRPC_VERSION=${GRPC_VERSION}
 COPY ci /opt/ci
 
 RUN apt update && apt install -y wget \
-	ninja-build \
-	libcurl4-openssl-dev \
-	clang-tidy \
-	shellcheck
+    ninja-build \
+    llvm-dev \
+    libclang-dev \
+    libcurl4-openssl-dev \
+    clang-tidy \
+    shellcheck
 
 RUN cd /opt/ci && bash setup_cmake.sh
 RUN cd /opt/ci && bash setup_ci_environment.sh
+RUN cd /opt/ci && bash install_iwyu.sh
 RUN cd /opt && bash ci/setup_googletest.sh \
     && bash ci/install_abseil.sh \
     && bash ci/install_protobuf.sh \
diff --git a/.github/workflows/clang-tidy.yaml b/.github/workflows/clang-tidy.yaml
index aec027f64b..93a8cd86d8 100644
--- a/.github/workflows/clang-tidy.yaml
+++ b/.github/workflows/clang-tidy.yaml
@@ -31,7 +31,6 @@ jobs:
           sudo apt update -y
           sudo apt install -y --no-install-recommends --no-install-suggests \
           build-essential \
-          iwyu \
           cmake \
           libssl-dev \
           libcurl4-openssl-dev \
diff --git a/.github/workflows/iwyu.yml b/.github/workflows/iwyu.yml
index f3b180ab45..b55d1c971e 100644
--- a/.github/workflows/iwyu.yml
+++ b/.github/workflows/iwyu.yml
@@ -28,22 +28,23 @@ jobs:
           sudo apt update -y
           sudo apt install -y --no-install-recommends --no-install-suggests \
             build-essential \
-            iwyu \
             ninja-build \
             libssl-dev \
             libcurl4-openssl-dev \
+            libabsl-dev \
             libprotobuf-dev \
+            libgrpc++-dev \
             protobuf-compiler \
+            protobuf-compiler-grpc \
             libgmock-dev \
             libgtest-dev \
-            libbenchmark-dev
+            libbenchmark-dev \
+            llvm-dev \
+            libclang-dev
           sudo ./ci/setup_cmake.sh
-
-
-      - name: setup grpc
+      - name: Install include-what-you-use
         run: |
-          sudo ./ci/setup_grpc.sh
-
+          sudo ./ci/install_iwyu.sh
       - name: Prepare CMake
         run: |
           TOPDIR=`pwd`
@@ -80,11 +81,13 @@ jobs:
       - name: count warnings
         run: |
           set +e
+          echo "include-what-you-use version:"
+          include-what-you-use --version
           cd build
           readonly WARNING_COUNT=`grep -c "include-what-you-use reported diagnostics:" iwyu.log`
           echo "include-what-you-use reported ${WARNING_COUNT} warning(s)"
           # Acceptable limit, to decrease over time down to 0
-          readonly WARNING_LIMIT=0
+          readonly WARNING_LIMIT=122
           # FAIL the build if WARNING_COUNT > WARNING_LIMIT
           if [ $WARNING_COUNT -gt $WARNING_LIMIT ] ; then
             exit 1
diff --git a/ci/install_iwyu.sh b/ci/install_iwyu.sh
new file mode 100755
index 0000000000..c3d5961d66
--- /dev/null
+++ b/ci/install_iwyu.sh
@@ -0,0 +1,31 @@
+#!/bin/bash
+
+# Copyright The OpenTelemetry Authors
+# SPDX-License-Identifier: Apache-2.0
+
+set -e
+
+INSTALL_PREFIX="/usr/local"
+
+LLVM_VERSION=$(llvm-config --version 2>/dev/null | cut -d. -f1)
+
+if [ -z "$LLVM_VERSION" ]; then
+    echo "Error: LLVM not found. Exiting."
+    exit 1
+fi
+
+echo "LLVM_VERSION=$LLVM_VERSION"
+echo "Installing IWYU..."
+
+cd /tmp
+git clone --depth 1 --branch clang_$LLVM_VERSION https://github.com/include-what-you-use/include-what-you-use.git
+cd include-what-you-use
+mkdir -p build
+cd build
+
+cmake -DCMAKE_PREFIX_PATH=/usr/lib/llvm-$LLVM_VERSION -DCMAKE_INSTALL_PREFIX=$INSTALL_PREFIX ..
+make -j$(nproc)
+make install
+
+echo "IWYU install complete. Verifying installation..."
+include-what-you-use --version
diff --git a/ci/setup_ci_environment.sh b/ci/setup_ci_environment.sh
index ed4378e2d6..794f2e490f 100755
--- a/ci/setup_ci_environment.sh
+++ b/ci/setup_ci_environment.sh
@@ -12,5 +12,4 @@ apt-get install --no-install-recommends --no-install-suggests -y \
                 git \
                 valgrind \
                 lcov \
-                iwyu \
                 pkg-config