diff --git a/Project.toml b/Project.toml
index 1e22fb09ef..b0e43f719d 100644
--- a/Project.toml
+++ b/Project.toml
@@ -17,7 +17,6 @@ KrylovKit = "0b1a1467-8014-51b9-945f-bf0ae24f4b77"
 LinearAlgebra = "37e2e46d-f89d-539d-b4ee-838fcccc9c8e"
 LinearMaps = "7a12625a-238d-50fd-b39a-03d52299707e"
 NDTensors = "23ae76d9-e61a-49c4-8f12-3f1a16adf9cf"
-Observers = "338f10d5-c7f1-4033-a7d1-f9dec39bcaa0"
 PackageCompiler = "9b87118b-4619-50d2-8e1e-99f35a4d4d9d"
 PackageExtensionCompat = "65ce6f38-6b18-4e1d-a461-8949797d7930"
 Pkg = "44cfe95a-1eb2-52ea-b672-e2afdf69b78f"
@@ -35,12 +34,15 @@ Zeros = "bd1ec220-6eb4-527a-9b49-e79c3db6233b"
 ZygoteRules = "700de1a5-db45-46bc-99cf-38207098b444"
 
 [weakdeps]
+Observers = "338f10d5-c7f1-4033-a7d1-f9dec39bcaa0"
 VectorInterface = "409d34a3-91d5-4945-b6ec-7529ddf182d8"
 
 [extensions]
+ITensorsObserversExt = "Observers"
 ITensorsVectorInterfaceExt = "VectorInterface"
 
 [extras]
+Observers = "338f10d5-c7f1-4033-a7d1-f9dec39bcaa0"
 VectorInterface = "409d34a3-91d5-4945-b6ec-7529ddf182d8"
 
 [compat]
diff --git a/ext/ITensorsObserversExt/ITensorsObserversExt.jl b/ext/ITensorsObserversExt/ITensorsObserversExt.jl
new file mode 100644
index 0000000000..32c16e1a09
--- /dev/null
+++ b/ext/ITensorsObserversExt/ITensorsObserversExt.jl
@@ -0,0 +1,11 @@
+module ITensorsObserversExt
+
+using ITensors.ITensorMPS: ITensorMPS
+using Observers: Observers
+using Observers.DataFrames: AbstractDataFrame
+
+function ITensorMPS.update_observer!(observer::AbstractDataFrame; kwargs...)
+  return Observers.update!(observer; kwargs...)
+end
+
+end
diff --git a/src/ITensorMPS/alternating_update.jl b/src/ITensorMPS/alternating_update.jl
index 3770f8b86e..63c62154c6 100644
--- a/src/ITensorMPS/alternating_update.jl
+++ b/src/ITensorMPS/alternating_update.jl
@@ -98,7 +98,7 @@ function alternating_update(
       )
     end
     current_time += time_step
-    update!(step_observer!; psi, sweep, outputlevel, current_time)
+    update_observer!(step_observer!; psi, sweep, outputlevel, current_time)
     if outputlevel >= 1
       print("After sweep ", sweep, ":")
       print(" maxlinkdim=", maxlinkdim(psi))
diff --git a/test/ITensorsObserversExt/Project.toml b/test/ITensorsObserversExt/Project.toml
new file mode 100644
index 0000000000..c279eee897
--- /dev/null
+++ b/test/ITensorsObserversExt/Project.toml
@@ -0,0 +1,3 @@
+[deps]
+ITensors = "9136182c-28ba-11e9-034c-db9fb085ebd5"
+Observers = "338f10d5-c7f1-4033-a7d1-f9dec39bcaa0"
diff --git a/test/ITensorsObserversExt/runtests.jl b/test/ITensorsObserversExt/runtests.jl
new file mode 100644
index 0000000000..5cdd0bdc2a
--- /dev/null
+++ b/test/ITensorsObserversExt/runtests.jl
@@ -0,0 +1,25 @@
+@eval module $(gensym())
+using Test: @test, @testset
+using ITensors.ITensorMPS: update_observer!
+using Observers: observer
+
+@testset "ITensorsObserversExt" begin
+  function iterative_function(niter; observer!, observe_step)
+    for n in 1:niter
+      if iszero(n % observe_step)
+        update_observer!(observer!; iteration=n)
+      end
+    end
+  end
+
+  # Record the iteration
+  iteration(; iteration) = iteration
+
+  obs = observer(iteration)
+  niter = 100
+  iterative_function(niter; (observer!)=obs, observe_step=10)
+
+  @test size(obs) == (10, 1)
+end
+
+end
diff --git a/test/Project.toml b/test/Project.toml
index 3d7da6330d..7d45ec9848 100644
--- a/test/Project.toml
+++ b/test/Project.toml
@@ -10,6 +10,7 @@ JLD2 = "033835bb-8acc-5ee8-8aae-3f567f8a3819"
 KrylovKit = "0b1a1467-8014-51b9-945f-bf0ae24f4b77"
 LinearAlgebra = "37e2e46d-f89d-539d-b4ee-838fcccc9c8e"
 NDTensors = "23ae76d9-e61a-49c4-8f12-3f1a16adf9cf"
+Observers = "338f10d5-c7f1-4033-a7d1-f9dec39bcaa0"
 OptimKit = "77e91f04-9b3b-57a6-a776-40b61faaebe0"
 Pkg = "44cfe95a-1eb2-52ea-b672-e2afdf69b78f"
 QuadGK = "1fd47b50-473d-5c70-9696-f719f8f3bcdc"
diff --git a/test/runtests.jl b/test/runtests.jl
index 332b41a6a0..08fea5beb9 100644
--- a/test/runtests.jl
+++ b/test/runtests.jl
@@ -21,6 +21,7 @@ ITensors.disable_threaded_blocksparse()
       "ContractionSequenceOptimization",
       "ITensorChainRules",
       "ITensorNetworkMaps",
+      "ITensorsObserversExt",
       "ITensorsVectorInterfaceExt",
     ]
     @time for dir in dirs