diff --git a/src/Instrumentation/PDO/ignore-by-php-version.neon.php b/src/Instrumentation/PDO/ignore-by-php-version.neon.php
new file mode 100644
index 000000000..56e3bedb2
--- /dev/null
+++ b/src/Instrumentation/PDO/ignore-by-php-version.neon.php
@@ -0,0 +1,25 @@
+<?php
+
+declare(strict_types=1);
+
+$ignoreErrors = [];
+
+if (version_compare(PHP_VERSION, '8.4', '<')) {
+    $ignoreErrors = [
+        '#Call to an undefined static method PDO::connect\(\)#',
+        '#PHPDoc tag @var for variable \$db contains unknown class PDO\\\\Sqlite#',
+        '#Call to method createFunction\(\) on an unknown class PDO\\\\Sqlite#',
+        '#Call to method exec\(\) on an unknown class PDO\\\\Sqlite#',
+        '#Call to method query\(\) on an unknown class PDO\\\\Sqlite#',
+    ];
+} elseif (version_compare(PHP_VERSION, '8.4', '>=')) {
+    $ignoreErrors = [
+        '#Call to an undefined method Pdo\\\\Sqlite::createFunction\(\)#',
+    ];
+}
+
+return [
+    'parameters' => [
+        'ignoreErrors' => $ignoreErrors,
+    ],
+];
diff --git a/src/Instrumentation/PDO/phpstan.neon.dist b/src/Instrumentation/PDO/phpstan.neon.dist
index ed94c13da..0a1ee924d 100644
--- a/src/Instrumentation/PDO/phpstan.neon.dist
+++ b/src/Instrumentation/PDO/phpstan.neon.dist
@@ -1,5 +1,6 @@
 includes:
     - vendor/phpstan/phpstan-phpunit/extension.neon
+    - ignore-by-php-version.neon.php
 
 parameters:
     tmpDir: var/cache/phpstan
diff --git a/src/Instrumentation/PDO/src/PDOInstrumentation.php b/src/Instrumentation/PDO/src/PDOInstrumentation.php
index c27a338a5..d4d9574cb 100644
--- a/src/Instrumentation/PDO/src/PDOInstrumentation.php
+++ b/src/Instrumentation/PDO/src/PDOInstrumentation.php
@@ -31,6 +31,52 @@ public static function register(): void
         );
         $pdoTracker = new PDOTracker();
 
+        // Hook for the new PDO::connect static method
+        if (method_exists(PDO::class, 'connect')) {
+            hook(
+                PDO::class,
+                'connect',
+                pre: static function (
+                    $object,
+                    array $params,
+                    string $class,
+                    string $function,
+                    ?string $filename,
+                    ?int $lineno,
+                ) use ($instrumentation) {
+                    /** @psalm-suppress ArgumentTypeCoercion */
+                    $builder = self::makeBuilder($instrumentation, 'PDO::connect', $function, $class, $filename, $lineno)
+                        ->setSpanKind(SpanKind::KIND_CLIENT);
+
+                    $parent = Context::getCurrent();
+                    $span = $builder->startSpan();
+                    Context::storage()->attach($span->storeInContext($parent));
+                },
+                post: static function (
+                    $object,
+                    array $params,
+                    $result,
+                    ?Throwable $exception,
+                ) use ($pdoTracker) {
+                    $scope = Context::storage()->scope();
+                    if (!$scope) {
+                        return;
+                    }
+                    $span = Span::fromContext($scope->context());
+
+                    $dsn = $params[0] ?? '';
+
+                    // guard against PDO::connect returning a string
+                    if ($result instanceof PDO) {
+                        $attributes = $pdoTracker->trackPdoAttributes($result, $dsn);
+                        $span->setAttributes($attributes);
+                    }
+
+                    self::end($exception);
+                }
+            );
+        }
+
         hook(
             PDO::class,
             '__construct',
@@ -38,12 +84,6 @@ public static function register(): void
                 /** @psalm-suppress ArgumentTypeCoercion */
                 $builder = self::makeBuilder($instrumentation, 'PDO::__construct', $function, $class, $filename, $lineno)
                     ->setSpanKind(SpanKind::KIND_CLIENT);
-                if ($class === PDO::class) {
-                    //@todo split params[0] into host + port, replace deprecated trace attribute
-                    $builder
-                        ->setAttribute(TraceAttributes::SERVER_ADDRESS, $params[0] ?? 'unknown')
-                        ->setAttribute(TraceAttributes::SERVER_PORT, $params[0] ?? null);
-                }
                 $parent = Context::getCurrent();
                 $span = $builder->startSpan();
                 Context::storage()->attach($span->storeInContext($parent));
@@ -213,9 +253,10 @@ public static function register(): void
                 if ($spanContext = $pdoTracker->getSpanForPreparedStatement($statement)) {
                     $builder->addLink($spanContext);
                 }
+                $parent = Context::getCurrent();
                 $span = $builder->startSpan();
 
-                Context::storage()->attach($span->storeInContext(Context::getCurrent()));
+                Context::storage()->attach($span->storeInContext($parent));
             },
             post: static function (PDOStatement $statement, array $params, mixed $retval, ?Throwable $exception) {
                 self::end($exception);
@@ -240,9 +281,9 @@ public static function register(): void
                 if ($spanContext = $pdoTracker->getSpanForPreparedStatement($statement)) {
                     $builder->addLink($spanContext);
                 }
+                $parent = Context::getCurrent();
                 $span = $builder->startSpan();
-
-                Context::storage()->attach($span->storeInContext(Context::getCurrent()));
+                Context::storage()->attach($span->storeInContext($parent));
             },
             post: static function (PDOStatement $statement, array $params, mixed $retval, ?Throwable $exception) {
                 self::end($exception);
diff --git a/src/Instrumentation/PDO/src/PDOTracker.php b/src/Instrumentation/PDO/src/PDOTracker.php
index acfa9cb8f..4753a0baa 100644
--- a/src/Instrumentation/PDO/src/PDOTracker.php
+++ b/src/Instrumentation/PDO/src/PDOTracker.php
@@ -151,6 +151,29 @@ private static function extractAttributesFromDSN(string $dsn): array
             return $attributes;
         }
 
+        // SQL Server format handling
+        if (str_starts_with($dsn, 'sqlsrv:')) {
+            if (preg_match('/Server=([^,;]+)(?:,([0-9]+))?/', $dsn, $serverMatches)) {
+                $server = $serverMatches[1];
+                if ($server !== '') {
+                    $attributes[TraceAttributes::SERVER_ADDRESS] = $server;
+                }
+
+                if (isset($serverMatches[2]) && $serverMatches[2] !== '') {
+                    $attributes[TraceAttributes::SERVER_PORT] = (int) $serverMatches[2];
+                }
+            }
+
+            if (preg_match('/Database=([^;]*)/', $dsn, $dbMatches)) {
+                $dbname = $dbMatches[1];
+                if ($dbname !== '') {
+                    $attributes[TraceAttributes::DB_NAMESPACE] = $dbname;
+                }
+            }
+
+            return $attributes;
+        }
+
         //deprecated, no replacement at this time
         /*if (preg_match('/user=([^;]*)/', $dsn, $matches)) {
             $user = $matches[1];
@@ -158,12 +181,34 @@ private static function extractAttributesFromDSN(string $dsn): array
                 $attributes[TraceAttributes::DB_USER] = $user;
             }
         }*/
+
+        // Extract host information
         if (preg_match('/host=([^;]*)/', $dsn, $matches)) {
             $host = $matches[1];
             if ($host !== '') {
                 $attributes[TraceAttributes::SERVER_ADDRESS] = $host;
             }
+        } elseif (preg_match('/mysql:([^;:]+)/', $dsn, $hostMatches)) {
+            $host = $hostMatches[1];
+            if ($host !== '' && $host !== 'dbname') {
+                $attributes[TraceAttributes::SERVER_ADDRESS] = $host;
+            }
         }
+
+        // Extract port information
+        if (preg_match('/port=([0-9]+)/', $dsn, $portMatches)) {
+            $port = (int) $portMatches[1];
+            $attributes[TraceAttributes::SERVER_PORT] = $port;
+        } elseif (preg_match('/[.0-9]+:([0-9]+)/', $dsn, $portMatches)) {
+            // This pattern matches IP:PORT format like 127.0.0.1:3308
+            $port = (int) $portMatches[1];
+            $attributes[TraceAttributes::SERVER_PORT] = $port;
+        } elseif (preg_match('/:([0-9]+)/', $dsn, $portMatches)) {
+            $port = (int) $portMatches[1];
+            $attributes[TraceAttributes::SERVER_PORT] = $port;
+        }
+
+        // Extract database name
         if (preg_match('/dbname=([^;]*)/', $dsn, $matches)) {
             $dbname = $matches[1];
             if ($dbname !== '') {
diff --git a/src/Instrumentation/PDO/tests/Integration/PDOInstrumentationTest.php b/src/Instrumentation/PDO/tests/Integration/PDOInstrumentationTest.php
index ba43e304a..7248cec69 100644
--- a/src/Instrumentation/PDO/tests/Integration/PDOInstrumentationTest.php
+++ b/src/Instrumentation/PDO/tests/Integration/PDOInstrumentationTest.php
@@ -6,6 +6,9 @@
 
 use ArrayObject;
 use OpenTelemetry\API\Instrumentation\Configurator;
+use OpenTelemetry\API\Trace\SpanInterface;
+use OpenTelemetry\API\Trace\SpanKind;
+use OpenTelemetry\Context\Context;
 use OpenTelemetry\Context\ScopeInterface;
 use OpenTelemetry\SDK\Trace\ImmutableSpan;
 use OpenTelemetry\SDK\Trace\SpanExporter\InMemoryExporter;
@@ -18,7 +21,7 @@
 class PDOInstrumentationTest extends TestCase
 {
     private ScopeInterface $scope;
-    /** @var ArrayObject<int, ImmutableSpan> */
+    /** @var ArrayObject<array-key, mixed> */
     private ArrayObject $storage;
 
     private function createDB(): PDO
@@ -26,6 +29,16 @@ private function createDB(): PDO
         return new PDO('sqlite::memory:');
     }
 
+    private function createDBWithNewSubclass(): PDO
+    {
+        if (!class_exists('Pdo\Sqlite')) {
+            $this->markTestSkipped('Pdo\Sqlite class is not available in this PHP version');
+        }
+
+        /** @psalm-suppress UndefinedMethod */
+        return PDO::connect('sqlite::memory:');
+    }
+
     private function fillDB():string
     {
         return <<<SQL
@@ -72,6 +85,51 @@ public function test_pdo_construct(): void
         $this->assertEquals('sqlite', $span->getAttributes()->get(TraceAttributes::DB_SYSTEM_NAME));
     }
 
+    /**
+     * @psalm-suppress UndefinedClass
+     * @psalm-suppress InvalidClass
+     */
+    public function test_pdo_sqlite_subclass(): void
+    {
+        // skip if php version is less than 8.4
+        if (version_compare(PHP_VERSION, '8.4', '<')) {
+            $this->markTestSkipped('Pdo\Sqlite class is not available in this PHP version');
+        }
+
+        $this->assertCount(0, $this->storage);
+
+        /**
+         * Need to suppress because of different casing of the class name
+         *
+         * @psalm-suppress UndefinedClass
+         * @psalm-suppress InvalidClass
+         * @var Pdo\Sqlite $db
+         */
+        $db = self::createDBWithNewSubclass();
+        $this->assertCount(1, $this->storage);
+        $span = $this->storage->offsetGet(0);
+        $this->assertSame('PDO::connect', $span->getName());
+        $this->assertEquals('sqlite', $span->getAttributes()->get(TraceAttributes::DB_SYSTEM_NAME));
+
+        // Test that the subclass-specific methods work
+        $db->createFunction('test_function', static fn ($value) => strtoupper($value));
+        
+        // Test that standard PDO operations still work
+        $db->exec($this->fillDB());
+        $span = $this->storage->offsetGet(1);
+        $this->assertSame('PDO::exec', $span->getName());
+        $this->assertEquals('sqlite', $span->getAttributes()->get(TraceAttributes::DB_SYSTEM_NAME));
+        $this->assertCount(2, $this->storage);
+
+        // Test that the custom function works
+        $result = $db->query("SELECT test_function('hello')")->fetchColumn();
+        $this->assertEquals('HELLO', $result);
+        $span = $this->storage->offsetGet(2);
+        $this->assertSame('PDO::query', $span->getName());
+        $this->assertEquals('sqlite', $span->getAttributes()->get(TraceAttributes::DB_SYSTEM_NAME));
+        $this->assertCount(3, $this->storage);
+    }
+
     public function test_constructor_exception(): void
     {
         $this->expectException(\PDOException::class);
@@ -214,4 +272,74 @@ public function test_encode_db_statement_as_utf8(): void
         $this->assertTrue(mb_check_encoding($span_db_exec->getAttributes()->get(TraceAttributes::DB_QUERY_TEXT), 'UTF-8'));
         $this->assertCount(5, $this->storage);
     }
+
+    public function test_span_hierarchy_with_pdo_operations(): void
+    {
+        $this->assertCount(0, $this->storage);
+
+        // Create a server span
+        $tracerProvider = new TracerProvider(
+            new SimpleSpanProcessor(
+                new InMemoryExporter($this->storage)
+            )
+        );
+        $tracer = $tracerProvider->getTracer('test');
+        /** @var SpanInterface $serverSpan */
+        $serverSpan = $tracer->spanBuilder('HTTP GET /api/users')
+            ->setSpanKind(SpanKind::KIND_SERVER)
+            ->startSpan();
+        
+        // Create scope for server span
+        $serverScope = Context::storage()->attach($serverSpan->storeInContext(Context::getCurrent()));
+
+        // Create an internal span (simulating business logic)
+        /** @var SpanInterface $internalSpan */
+        $internalSpan = $tracer->spanBuilder('processUserData')
+            ->setSpanKind(SpanKind::KIND_INTERNAL)
+            ->startSpan();
+        
+        // Create scope for internal span
+        $internalScope = Context::storage()->attach($internalSpan->storeInContext(Context::getCurrent()));
+
+        // Perform PDO operations within the internal span context
+        $db = self::createDB();
+        $this->assertCount(1, $this->storage); // PDO constructor span
+
+        // Create and populate test table
+        $db->exec($this->fillDB());
+        $this->assertCount(2, $this->storage); // PDO exec span
+
+        // Query data
+        $stmt = $db->prepare('SELECT * FROM technology WHERE name = ?');
+        $this->assertCount(3, $this->storage); // PDO prepare span
+
+        $stmt->execute(['PHP']);
+        $this->assertCount(4, $this->storage); // PDOStatement execute span
+
+        $result = $stmt->fetchAll();
+        $this->assertCount(5, $this->storage); // PDOStatement fetchAll span
+
+        // Verify span hierarchy
+        /** @var ImmutableSpan $pdoSpan */
+        $pdoSpan = $this->storage->offsetGet(0);
+        /** @var ImmutableSpan $execSpan */
+        $execSpan = $this->storage->offsetGet(1);
+        /** @var ImmutableSpan $prepareSpan */
+        $prepareSpan = $this->storage->offsetGet(2);
+        /** @var ImmutableSpan $executeSpan */
+        $executeSpan = $this->storage->offsetGet(3);
+        /** @var ImmutableSpan $fetchAllSpan */
+        $fetchAllSpan = $this->storage->offsetGet(4);
+
+        // All PDO spans should be children of the internal span
+        $this->assertEquals($internalSpan->getContext()->getSpanId(), $pdoSpan->getParentSpanId());
+        $this->assertEquals($internalSpan->getContext()->getSpanId(), $execSpan->getParentSpanId());
+        $this->assertEquals($internalSpan->getContext()->getSpanId(), $prepareSpan->getParentSpanId());
+        $this->assertEquals($internalSpan->getContext()->getSpanId(), $executeSpan->getParentSpanId());
+        $this->assertEquals($internalSpan->getContext()->getSpanId(), $fetchAllSpan->getParentSpanId());
+
+        // Detach scopes
+        $internalScope->detach();
+        $serverScope->detach();
+    }
 }
diff --git a/src/Instrumentation/PDO/tests/Unit/PDOTrackerTest.php b/src/Instrumentation/PDO/tests/Unit/PDOTrackerTest.php
new file mode 100644
index 000000000..5049f2039
--- /dev/null
+++ b/src/Instrumentation/PDO/tests/Unit/PDOTrackerTest.php
@@ -0,0 +1,146 @@
+<?php
+
+declare(strict_types=1);
+
+namespace OpenTelemetry\Tests\Instrumentation\PDO\tests\Unit;
+
+use OpenTelemetry\Contrib\Instrumentation\PDO\PDOTracker;
+use OpenTelemetry\SemConv\TraceAttributes;
+use PHPUnit\Framework\TestCase;
+use ReflectionMethod;
+
+class PDOTrackerTest extends TestCase
+{
+    /**
+     * @dataProvider dsnProvider
+     */
+    public function testExtractAttributesFromDSN(string $dsn, array $expectedAttributes): void
+    {
+        // Use reflection to access the private method
+        $reflectionMethod = new ReflectionMethod(PDOTracker::class, 'extractAttributesFromDSN');
+        $reflectionMethod->setAccessible(true);
+
+        $result = $reflectionMethod->invoke(null, $dsn);
+
+        foreach ($expectedAttributes as $key => $value) {
+            $this->assertArrayHasKey($key, $result);
+            $this->assertSame($value, $result[$key]);
+        }
+    }
+
+    /**
+     * Data provider for testExtractAttributesFromDSN
+     *
+     * @return array<string, array{string, array<string, mixed>}>
+     */
+    public function dsnProvider(): array
+    {
+        return [
+            'standard format with host and port' => [
+                'mysql:host=localhost;port=3306;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'localhost',
+                    TraceAttributes::SERVER_PORT => 3306,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'format with host but no port' => [
+                'mysql:host=localhost;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'localhost',
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'format with port but using alternative format' => [
+                'mysql:localhost:3306;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'localhost',
+                    TraceAttributes::SERVER_PORT => 3306,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'format with neither host parameter nor port parameter' => [
+                'mysql:localhost;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'localhost',
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'format with IP address as host' => [
+                'mysql:host=127.0.0.1;port=3306;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => '127.0.0.1',
+                    TraceAttributes::SERVER_PORT => 3306,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'format with domain name as host' => [
+                'mysql:host=example.com;port=3306;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'example.com',
+                    TraceAttributes::SERVER_PORT => 3306,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'PostgreSQL format' => [
+                'pgsql:host=localhost;port=5432;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'localhost',
+                    TraceAttributes::SERVER_PORT => 5432,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'SQLite format' => [
+                'sqlite:/path/to/database.sqlite',
+                [
+                    TraceAttributes::DB_SYSTEM_NAME => 'sqlite',
+                    TraceAttributes::DB_NAMESPACE => '/path/to/database.sqlite',
+                ],
+            ],
+            'SQLite in-memory format' => [
+                'sqlite::memory:',
+                [
+                    TraceAttributes::DB_SYSTEM_NAME => 'sqlite',
+                    TraceAttributes::DB_NAMESPACE => 'memory',
+                ],
+            ],
+            'Oracle format' => [
+                'oci:host=localhost;port=1521;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'localhost',
+                    TraceAttributes::SERVER_PORT => 1521,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'SQL Server format' => [
+                'sqlsrv:Server=localhost,1433;Database=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => 'localhost',
+                    TraceAttributes::SERVER_PORT => 1433,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'MySQL format with host in DSN prefix' => [
+                'mysql:dbname=test;charset=utf8',
+                [
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'MySQL format with host in DSN prefix and port' => [
+                'mysql:dbname=test;port=3307;charset=utf8',
+                [
+                    TraceAttributes::SERVER_PORT => 3307,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+            'MySQL format with host in DSN prefix and colon port' => [
+                'mysql:127.0.0.1:3308;dbname=test',
+                [
+                    TraceAttributes::SERVER_ADDRESS => '127.0.0.1',
+                    TraceAttributes::SERVER_PORT => 3308,
+                    TraceAttributes::DB_NAMESPACE => 'test',
+                ],
+            ],
+        ];
+    }
+}