diff --git a/instrumentation/pg/lib/opentelemetry/instrumentation/pg/constants.rb b/instrumentation/pg/lib/opentelemetry/instrumentation/pg/constants.rb
index d248cbdb0a..88f74ac9f2 100644
--- a/instrumentation/pg/lib/opentelemetry/instrumentation/pg/constants.rb
+++ b/instrumentation/pg/lib/opentelemetry/instrumentation/pg/constants.rb
@@ -94,6 +94,12 @@ module Constants
           async_exec_prepared
           sync_exec_prepared
         ].freeze
+
+        CONNECTION_METHODS = %i[
+          connect
+          open
+          async_connect
+        ].freeze
       end
     end
   end
diff --git a/instrumentation/pg/lib/opentelemetry/instrumentation/pg/instrumentation.rb b/instrumentation/pg/lib/opentelemetry/instrumentation/pg/instrumentation.rb
index 2eeb6ac668..840ddb6fbb 100644
--- a/instrumentation/pg/lib/opentelemetry/instrumentation/pg/instrumentation.rb
+++ b/instrumentation/pg/lib/opentelemetry/instrumentation/pg/instrumentation.rb
@@ -40,6 +40,7 @@ def require_dependencies
 
         def patch_client
           ::PG::Connection.prepend(Patches::Connection)
+          ::PG::Connection.singleton_class.prepend(Patches::Connect)
         end
       end
     end
diff --git a/instrumentation/pg/lib/opentelemetry/instrumentation/pg/patches/connection.rb b/instrumentation/pg/lib/opentelemetry/instrumentation/pg/patches/connection.rb
index d68973d38b..9549b8ec27 100644
--- a/instrumentation/pg/lib/opentelemetry/instrumentation/pg/patches/connection.rb
+++ b/instrumentation/pg/lib/opentelemetry/instrumentation/pg/patches/connection.rb
@@ -12,6 +12,65 @@ module OpenTelemetry
   module Instrumentation
     module PG
       module Patches
+        # Utility methods for setting connection attributes from Connect module
+        module ConnectionHelper
+          module_function
+
+          def set_connection_attributes(span, conn, config)
+            attributes = {
+              'db.system' => 'postgresql',
+              'db.name' => conn.db,
+              'db.user' => conn.user
+            }
+            attributes['peer.service'] = config[:peer_service] if config[:peer_service]
+
+            h = conn.host
+            if h&.start_with?('/')
+              attributes['net.sock.family'] = 'unix'
+              attributes['net.peer.name'] = h
+            else
+              attributes['net.transport'] = 'ip_tcp'
+              attributes['net.peer.name'] = h
+              attributes['net.peer.port'] = conn.port if defined?(::PG::DEF_PGPORT)
+            end
+
+            attributes.merge!(OpenTelemetry::Instrumentation::PG.attributes)
+            attributes.compact!
+
+            span.add_attributes(attributes)
+          end
+        end
+
+        # Module to prepend to PG::Connection singleton class for connection initialization
+        # We override `new` instead of `initialize` because PG::Connection.new is implemented
+        # as a Ruby method that calls the C-level connect_start, bypassing initialize.
+        # We also need to override the aliases (open, connect, async_connect) because they
+        # were aliased before our prepend, so they point to the original method.
+        # See: https://github.com/ged/ruby-pg/blob/master/lib/pg/connection.rb#L870
+        module Connect
+          def new(...)
+            tracer = OpenTelemetry::Instrumentation::PG::Instrumentation.instance.tracer
+            config = OpenTelemetry::Instrumentation::PG::Instrumentation.instance.config
+
+            tracer.in_span('connect', kind: :client) do |span|
+              if block_given?
+                super do |conn|
+                  ConnectionHelper.set_connection_attributes(span, conn, config)
+                  yield conn
+                end
+              else
+                conn = super
+                ConnectionHelper.set_connection_attributes(span, conn, config)
+                conn
+              end
+            end
+          end
+
+          PG::Constants::CONNECTION_METHODS.each do |method|
+            alias_method method, :new
+          end
+        end
+
         # Module to prepend to PG::Connection for instrumentation
         module Connection # rubocop:disable Metrics/ModuleLength
           # Capture the first word (including letters, digits, underscores, & '.', ) that follows common table commands
diff --git a/instrumentation/pg/test/opentelemetry/instrumentation/pg/instrumentation_test.rb b/instrumentation/pg/test/opentelemetry/instrumentation/pg/instrumentation_test.rb
index cc50728e58..f70758d042 100644
--- a/instrumentation/pg/test/opentelemetry/instrumentation/pg/instrumentation_test.rb
+++ b/instrumentation/pg/test/opentelemetry/instrumentation/pg/instrumentation_test.rb
@@ -64,12 +64,103 @@
       _(exporter.finished_spans.size).must_equal 0
     end
 
+    describe 'connection initialization' do
+      it 'creates a connect span when establishing a connection' do
+        conn = PG::Connection.open(
+          host: host,
+          port: port,
+          user: user,
+          dbname: dbname,
+          password: password
+        )
+        conn.close
+
+        _(exporter.finished_spans.size).must_equal 1
+        connect_span = exporter.finished_spans.first
+        _(connect_span.name).must_equal 'connect'
+        _(connect_span.kind).must_equal :client
+        _(connect_span.attributes['db.system']).must_equal 'postgresql'
+        _(connect_span.attributes['db.name']).must_equal dbname
+        _(connect_span.attributes['db.user']).must_equal user
+        _(connect_span.attributes['net.peer.name']).must_equal host
+        _(connect_span.attributes['net.transport']).must_equal 'ip_tcp'
+      end
+
+      it 'creates a connect span using PG::Connection.new' do
+        conn = PG::Connection.new(
+          host: host,
+          port: port,
+          user: user,
+          dbname: dbname,
+          password: password
+        )
+        conn.close
+
+        connect_span = exporter.finished_spans.first
+        _(connect_span.name).must_equal 'connect'
+        _(connect_span.kind).must_equal :client
+        _(connect_span.attributes['db.system']).must_equal 'postgresql'
+        _(connect_span.attributes['db.name']).must_equal dbname
+      end
+
+      it 'creates a connect span using PG.connect' do
+        conn = PG.connect(
+          host: host,
+          port: port,
+          user: user,
+          dbname: dbname,
+          password: password
+        )
+        conn.close
+
+        connect_span = exporter.finished_spans.first
+        _(connect_span.name).must_equal 'connect'
+        _(connect_span.kind).must_equal :client
+        _(connect_span.attributes['db.system']).must_equal 'postgresql'
+      end
+
+      it 'accepts peer service name from config for connection' do
+        instrumentation.instance_variable_set(:@installed, false)
+        instrumentation.install(peer_service: 'readonly:postgres')
+
+        conn = PG::Connection.open(
+          host: host,
+          port: port,
+          user: user,
+          dbname: dbname,
+          password: password
+        )
+        conn.close
+
+        connect_span = exporter.finished_spans.first
+        _(connect_span.attributes['peer.service']).must_equal 'readonly:postgres'
+      end
+
+      it 'records connection errors' do
+        expect do
+          PG::Connection.open(
+            host: host,
+            port: port,
+            user: 'invalid_user',
+            dbname: dbname,
+            password: 'wrong_password'
+          )
+        end.must_raise PG::ConnectionBad
+
+        connect_span = exporter.finished_spans.first
+        _(connect_span.name).must_equal 'connect'
+        _(connect_span.status.code).must_equal OpenTelemetry::Trace::Status::ERROR
+        _(connect_span.events.first.name).must_equal 'exception'
+        _(connect_span.events.first.attributes['exception.type']).must_equal 'PG::ConnectionBad'
+      end
+    end
+
     it 'accepts peer service name from config' do
       instrumentation.instance_variable_set(:@installed, false)
       instrumentation.install(peer_service: 'readonly:postgres')
       client.query('SELECT 1')
 
-      _(span.attributes['peer.service']).must_equal 'readonly:postgres'
+      _(last_span.attributes['peer.service']).must_equal 'readonly:postgres'
     end
 
     describe '.attributes' do
@@ -100,12 +191,12 @@
           client.prepare('foo', 'SELECT 1')
         end
 
-        _(span.attributes['db.name']).must_equal 'pg'
-        _(span.attributes['db.statement']).must_equal 'foobar'
-        _(span.attributes['db.operation']).must_equal 'PREPARE FOR SELECT 1'
-        _(span.attributes['db.postgresql.prepared_statement_name']).must_equal 'bar'
-        _(span.attributes['net.peer.ip']).must_equal '192.168.0.1'
-        _(span.attributes['peer.service']).must_equal 'example:custom'
+        _(last_span.attributes['db.name']).must_equal 'pg'
+        _(last_span.attributes['db.statement']).must_equal 'foobar'
+        _(last_span.attributes['db.operation']).must_equal 'PREPARE FOR SELECT 1'
+        _(last_span.attributes['db.postgresql.prepared_statement_name']).must_equal 'bar'
+        _(last_span.attributes['net.peer.ip']).must_equal '192.168.0.1'
+        _(last_span.attributes['peer.service']).must_equal 'example:custom'
       end
     end
 
@@ -113,13 +204,13 @@
       it "after request (with method: #{method})" do
         client.send(method, 'SELECT 1')
 
-        _(span.name).must_equal 'SELECT postgres'
-        _(span.attributes['db.system']).must_equal 'postgresql'
-        _(span.attributes['db.name']).must_equal 'postgres'
-        _(span.attributes['db.statement']).must_equal 'SELECT 1'
-        _(span.attributes['db.operation']).must_equal 'SELECT'
-        _(span.attributes['net.peer.name']).must_equal host.to_s
-        _(span.attributes['net.peer.port']).must_equal port.to_i
+        _(last_span.name).must_equal 'SELECT postgres'
+        _(last_span.attributes['db.system']).must_equal 'postgresql'
+        _(last_span.attributes['db.name']).must_equal 'postgres'
+        _(last_span.attributes['db.statement']).must_equal 'SELECT 1'
+        _(last_span.attributes['db.operation']).must_equal 'SELECT'
+        _(last_span.attributes['net.peer.name']).must_equal host.to_s
+        _(last_span.attributes['net.peer.port']).must_equal port.to_i
       end
     end
 
@@ -127,13 +218,13 @@
       it "after request (with method: #{method}) " do
         client.send(method, 'SELECT $1 AS a', [1])
 
-        _(span.name).must_equal 'SELECT postgres'
-        _(span.attributes['db.system']).must_equal 'postgresql'
-        _(span.attributes['db.name']).must_equal 'postgres'
-        _(span.attributes['db.statement']).must_equal 'SELECT $1 AS a'
-        _(span.attributes['db.operation']).must_equal 'SELECT'
-        _(span.attributes['net.peer.name']).must_equal host.to_s
-        _(span.attributes['net.peer.port']).must_equal port.to_i
+        _(last_span.name).must_equal 'SELECT postgres'
+        _(last_span.attributes['db.system']).must_equal 'postgresql'
+        _(last_span.attributes['db.name']).must_equal 'postgres'
+        _(last_span.attributes['db.statement']).must_equal 'SELECT $1 AS a'
+        _(last_span.attributes['db.operation']).must_equal 'SELECT'
+        _(last_span.attributes['net.peer.name']).must_equal host.to_s
+        _(last_span.attributes['net.peer.port']).must_equal port.to_i
       end
     end
 
@@ -141,14 +232,14 @@
       it "after preparing a statement (with method: #{method})" do
         client.send(method, 'foo', 'SELECT $1 AS a')
 
-        _(span.name).must_equal 'PREPARE postgres'
-        _(span.attributes['db.system']).must_equal 'postgresql'
-        _(span.attributes['db.name']).must_equal 'postgres'
-        _(span.attributes['db.statement']).must_equal 'SELECT $1 AS a'
-        _(span.attributes['db.operation']).must_equal 'PREPARE'
-        _(span.attributes['db.postgresql.prepared_statement_name']).must_equal 'foo'
-        _(span.attributes['net.peer.name']).must_equal host.to_s
-        _(span.attributes['net.peer.port']).must_equal port.to_i
+        _(last_span.name).must_equal 'PREPARE postgres'
+        _(last_span.attributes['db.system']).must_equal 'postgresql'
+        _(last_span.attributes['db.name']).must_equal 'postgres'
+        _(last_span.attributes['db.statement']).must_equal 'SELECT $1 AS a'
+        _(last_span.attributes['db.operation']).must_equal 'PREPARE'
+        _(last_span.attributes['db.postgresql.prepared_statement_name']).must_equal 'foo'
+        _(last_span.attributes['net.peer.name']).must_equal host.to_s
+        _(last_span.attributes['net.peer.port']).must_equal port.to_i
       end
     end
 
@@ -172,26 +263,26 @@
       it "after request using Arel (with method: #{method})" do
         client.send(method, Arel.sql('SELECT 1'))
 
-        _(span.name).must_equal 'SELECT postgres'
-        _(span.attributes['db.system']).must_equal 'postgresql'
-        _(span.attributes['db.name']).must_equal 'postgres'
-        _(span.attributes['db.statement']).must_equal 'SELECT 1'
-        _(span.attributes['db.operation']).must_equal 'SELECT'
-        _(span.attributes['net.peer.name']).must_equal host.to_s
-        _(span.attributes['net.peer.port']).must_equal port.to_i
+        _(last_span.name).must_equal 'SELECT postgres'
+        _(last_span.attributes['db.system']).must_equal 'postgresql'
+        _(last_span.attributes['db.name']).must_equal 'postgres'
+        _(last_span.attributes['db.statement']).must_equal 'SELECT 1'
+        _(last_span.attributes['db.operation']).must_equal 'SELECT'
+        _(last_span.attributes['net.peer.name']).must_equal host.to_s
+        _(last_span.attributes['net.peer.port']).must_equal port.to_i
       end
     end
 
     it 'ignores prepend comment to extract operation' do
       client.query('/* comment */ SELECT 1')
 
-      _(span.name).must_equal 'SELECT postgres'
-      _(span.attributes['db.system']).must_equal 'postgresql'
-      _(span.attributes['db.name']).must_equal 'postgres'
-      _(span.attributes['db.statement']).must_equal '/* comment */ SELECT 1'
-      _(span.attributes['db.operation']).must_equal 'SELECT'
-      _(span.attributes['net.peer.name']).must_equal host.to_s
-      _(span.attributes['net.peer.port']).must_equal port.to_i
+      _(last_span.name).must_equal 'SELECT postgres'
+      _(last_span.attributes['db.system']).must_equal 'postgresql'
+      _(last_span.attributes['db.name']).must_equal 'postgres'
+      _(last_span.attributes['db.statement']).must_equal '/* comment */ SELECT 1'
+      _(last_span.attributes['db.operation']).must_equal 'SELECT'
+      _(last_span.attributes['net.peer.name']).must_equal host.to_s
+      _(last_span.attributes['net.peer.port']).must_equal port.to_i
     end
 
     it 'only caches 50 prepared statement names' do
@@ -214,21 +305,21 @@
         client.exec('SELECT INVALID')
       end.must_raise PG::UndefinedColumn
 
-      _(span.name).must_equal 'SELECT postgres'
-      _(span.attributes['db.system']).must_equal 'postgresql'
-      _(span.attributes['db.name']).must_equal 'postgres'
-      _(span.attributes['db.statement']).must_equal 'SELECT INVALID'
-      _(span.attributes['db.operation']).must_equal 'SELECT'
-      _(span.attributes['net.peer.name']).must_equal host.to_s
-      _(span.attributes['net.peer.port']).must_equal port.to_i
+      _(last_span.name).must_equal 'SELECT postgres'
+      _(last_span.attributes['db.system']).must_equal 'postgresql'
+      _(last_span.attributes['db.name']).must_equal 'postgres'
+      _(last_span.attributes['db.statement']).must_equal 'SELECT INVALID'
+      _(last_span.attributes['db.operation']).must_equal 'SELECT'
+      _(last_span.attributes['net.peer.name']).must_equal host.to_s
+      _(last_span.attributes['net.peer.port']).must_equal port.to_i
 
-      _(span.status.code).must_equal(
+      _(last_span.status.code).must_equal(
         OpenTelemetry::Trace::Status::ERROR
       )
-      _(span.events.first.name).must_equal 'exception'
-      _(span.events.first.attributes['exception.type']).must_equal 'PG::UndefinedColumn'
-      assert(!span.events.first.attributes['exception.message'].nil?)
-      assert(!span.events.first.attributes['exception.stacktrace'].nil?)
+      _(last_span.events.first.name).must_equal 'exception'
+      _(last_span.events.first.attributes['exception.type']).must_equal 'PG::UndefinedColumn'
+      assert(!last_span.events.first.attributes['exception.message'].nil?)
+      assert(!last_span.events.first.attributes['exception.stacktrace'].nil?)
     end
 
     it 'extracts statement type that begins the query' do
@@ -237,13 +328,13 @@
       explain_sql = "#{explain} #{base_sql}"
       client.exec(explain_sql)
 
-      _(span.name).must_equal 'EXPLAIN postgres'
-      _(span.attributes['db.system']).must_equal 'postgresql'
-      _(span.attributes['db.name']).must_equal 'postgres'
-      _(span.attributes['db.statement']).must_equal explain_sql
-      _(span.attributes['db.operation']).must_equal 'EXPLAIN'
-      _(span.attributes['net.peer.name']).must_equal host.to_s
-      _(span.attributes['net.peer.port']).must_equal port.to_i
+      _(last_span.name).must_equal 'EXPLAIN postgres'
+      _(last_span.attributes['db.system']).must_equal 'postgresql'
+      _(last_span.attributes['db.name']).must_equal 'postgres'
+      _(last_span.attributes['db.statement']).must_equal explain_sql
+      _(last_span.attributes['db.operation']).must_equal 'EXPLAIN'
+      _(last_span.attributes['net.peer.name']).must_equal host.to_s
+      _(last_span.attributes['net.peer.port']).must_equal port.to_i
     end
 
     it 'uses database name as span.name fallback with invalid sql' do
@@ -251,27 +342,27 @@
         client.exec('DESELECT 1')
       end.must_raise PG::SyntaxError
 
-      _(span.name).must_equal 'postgres'
-      _(span.attributes['db.system']).must_equal 'postgresql'
-      _(span.attributes['db.name']).must_equal 'postgres'
-      _(span.attributes['db.statement']).must_equal 'DESELECT 1'
-      _(span.attributes['db.operation']).must_be_nil
-      _(span.attributes['net.peer.name']).must_equal host.to_s
-      _(span.attributes['net.peer.port']).must_equal port.to_i
+      _(last_span.name).must_equal 'postgres'
+      _(last_span.attributes['db.system']).must_equal 'postgresql'
+      _(last_span.attributes['db.name']).must_equal 'postgres'
+      _(last_span.attributes['db.statement']).must_equal 'DESELECT 1'
+      _(last_span.attributes['db.operation']).must_be_nil
+      _(last_span.attributes['net.peer.name']).must_equal host.to_s
+      _(last_span.attributes['net.peer.port']).must_equal port.to_i
 
-      _(span.status.code).must_equal(
+      _(last_span.status.code).must_equal(
         OpenTelemetry::Trace::Status::ERROR
       )
-      _(span.events.first.name).must_equal 'exception'
-      _(span.events.first.attributes['exception.type']).must_equal 'PG::SyntaxError'
-      assert(!span.events.first.attributes['exception.message'].nil?)
-      assert(!span.events.first.attributes['exception.stacktrace'].nil?)
+      _(last_span.events.first.name).must_equal 'exception'
+      _(last_span.events.first.attributes['exception.type']).must_equal 'PG::SyntaxError'
+      assert(!last_span.events.first.attributes['exception.message'].nil?)
+      assert(!last_span.events.first.attributes['exception.stacktrace'].nil?)
     end
 
     it 'extracts table name' do
       client.query('CREATE TABLE test_table (personid int, name VARCHAR(50))')
 
-      _(span.attributes['db.collection.name']).must_equal 'test_table'
+      _(last_span.attributes['db.collection.name']).must_equal 'test_table'
       client.query('DROP TABLE test_table') # Drop table to avoid conflicts
     end
 
@@ -285,13 +376,13 @@
           client.exec(sql)
         end.must_raise PG::UndefinedTable
 
-        _(span.attributes['db.system']).must_equal 'postgresql'
-        _(span.attributes['db.name']).must_equal 'postgres'
-        _(span.name).must_equal 'SELECT postgres'
-        _(span.attributes['db.statement']).must_equal obfuscated_sql
-        _(span.attributes['db.operation']).must_equal 'SELECT'
-        _(span.attributes['net.peer.name']).must_equal host.to_s
-        _(span.attributes['net.peer.port']).must_equal port.to_i
+        _(last_span.attributes['db.system']).must_equal 'postgresql'
+        _(last_span.attributes['db.name']).must_equal 'postgres'
+        _(last_span.name).must_equal 'SELECT postgres'
+        _(last_span.attributes['db.statement']).must_equal obfuscated_sql
+        _(last_span.attributes['db.operation']).must_equal 'SELECT'
+        _(last_span.attributes['net.peer.name']).must_equal host.to_s
+        _(last_span.attributes['net.peer.port']).must_equal port.to_i
       end
 
       describe 'with obfuscation_limit' do
@@ -304,7 +395,7 @@
             client.exec(sql)
           end.must_raise PG::UndefinedTable
 
-          _(span.attributes['db.statement']).must_equal obfuscated_sql
+          _(last_span.attributes['db.statement']).must_equal obfuscated_sql
         end
       end
     end
@@ -318,14 +409,14 @@
           client.exec(sql)
         end.must_raise PG::UndefinedTable
 
-        _(span.attributes['db.system']).must_equal 'postgresql'
-        _(span.attributes['db.name']).must_equal 'postgres'
-        _(span.name).must_equal 'SELECT postgres'
-        _(span.attributes['db.operation']).must_equal 'SELECT'
-        _(span.attributes['net.peer.name']).must_equal host.to_s
-        _(span.attributes['net.peer.port']).must_equal port.to_i
+        _(last_span.attributes['db.system']).must_equal 'postgresql'
+        _(last_span.attributes['db.name']).must_equal 'postgres'
+        _(last_span.name).must_equal 'SELECT postgres'
+        _(last_span.attributes['db.operation']).must_equal 'SELECT'
+        _(last_span.attributes['net.peer.name']).must_equal host.to_s
+        _(last_span.attributes['net.peer.port']).must_equal port.to_i
 
-        _(span.attributes['db.statement']).must_be_nil
+        _(last_span.attributes['db.statement']).must_be_nil
       end
     end
 
@@ -336,9 +427,19 @@
       it 'sets attributes for the socket directory and family' do
         client.query('SELECT 1')
 
-        _(span.attributes['net.peer.name']).must_match %r{^/}
-        _(span.attributes['net.peer.port']).must_be_nil
-        _(span.attributes['net.sock.family']).must_equal 'unix'
+        _(last_span.attributes['net.peer.name']).must_match %r{^/}
+        _(last_span.attributes['net.peer.port']).must_be_nil
+        _(last_span.attributes['net.sock.family']).must_equal 'unix'
+      end
+
+      it 'sets attributes for the connect span' do
+        client.query('SELECT 1')
+
+        connect_span = exporter.finished_spans.first
+        _(connect_span.name).must_equal 'connect'
+        _(connect_span.attributes['db.system']).must_equal 'postgresql'
+        _(connect_span.attributes['net.sock.family']).must_equal 'unix'
+        _(connect_span.attributes['net.peer.name']).must_match %r{^/}
       end
     end
 
@@ -358,8 +459,8 @@
       it 'sets attributes of the active connection' do
         client.query('SELECT 1')
 
-        _(span.attributes['net.peer.name']).must_equal host
-        _(span.attributes['net.peer.port']).must_equal port.to_i if PG.const_defined?(:DEF_PORT)
+        _(last_span.attributes['net.peer.name']).must_equal host
+        _(last_span.attributes['net.peer.port']).must_equal port.to_i if PG.const_defined?(:DEF_PORT)
       end
     end