diff --git a/go.mod b/go.mod
index 47f40199..54addadc 100644
--- a/go.mod
+++ b/go.mod
@@ -30,9 +30,17 @@ require (
 	github.com/zclconf/go-cty v1.13.2
 	github.com/zclconf/go-cty-debug v0.0.0-20191215020915-b22d67c1ba0b
 	go.bobheadxi.dev/gobenchdata v1.3.1
+	go.opentelemetry.io/otel/trace v1.16.0
 	golang.org/x/tools v0.11.0
 )
 
+require (
+	github.com/felixge/httpsnoop v1.0.3 // indirect
+	github.com/go-logr/logr v1.2.4 // indirect
+	github.com/go-logr/stdr v1.2.2 // indirect
+	go.opentelemetry.io/otel/metric v1.16.0 // indirect
+)
+
 require (
 	github.com/Masterminds/goutils v1.1.1 // indirect
 	github.com/Masterminds/semver/v3 v3.2.1 // indirect
@@ -86,6 +94,9 @@ require (
 	github.com/stretchr/objx v0.5.0 // indirect
 	github.com/subosito/gotenv v1.4.2 // indirect
 	go.bobheadxi.dev/streamline v1.2.1 // indirect
+	go.opentelemetry.io/contrib/instrumentation/net/http/httptrace/otelhttptrace v0.42.0
+	go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.42.0
+	go.opentelemetry.io/otel v1.16.0
 	golang.org/x/crypto v0.11.0 // indirect
 	golang.org/x/mod v0.12.0 // indirect
 	golang.org/x/net v0.12.0 // indirect
diff --git a/go.sum b/go.sum
index 528cea3f..cef7c4ef 100644
--- a/go.sum
+++ b/go.sum
@@ -102,6 +102,8 @@ github.com/envoyproxy/protoc-gen-validate v0.1.0/go.mod h1:iSmxcyjqTsJpI2R4NaDN7
 github.com/fatih/color v1.7.0/go.mod h1:Zm6kSWBoL9eyXnKyktHP6abPY2pDugNf5KwzbycvMj4=
 github.com/fatih/color v1.15.0 h1:kOqh6YHBtK8aywxGerMG2Eq3H6Qgoqeo13Bk2Mv/nBs=
 github.com/fatih/color v1.15.0/go.mod h1:0h5ZqXfHYED7Bhv2ZJamyIOUej9KtShiJESRwBDUSsw=
+github.com/felixge/httpsnoop v1.0.3 h1:s/nj+GCswXYzN5v2DpNMuMQYe+0DDwt5WVCU6CWBdXk=
+github.com/felixge/httpsnoop v1.0.3/go.mod h1:m8KPJKqk1gH5J9DgRY2ASl2lWCfGKXixSwevea8zH2U=
 github.com/fortytw2/leaktest v1.3.0 h1:u8491cBMTQ8ft8aeV+adlcytMZylmA5nnwwkRZjI8vw=
 github.com/frankban/quicktest v1.14.4 h1:g2rn0vABPOOXmZUj+vbmUp0lPoXEMuhTpIluN0XL9UY=
 github.com/fsnotify/fsnotify v1.6.0 h1:n+5WquG0fcWoWp6xPWfHdbskMCQaFnG6PfBrh1Ky4HY=
@@ -112,6 +114,11 @@ github.com/go-git/go-git/v5 v5.6.1 h1:q4ZRqQl4pR/ZJHc1L5CFjGA1a10u76aV1iC+nh+bHs
 github.com/go-gl/glfw v0.0.0-20190409004039-e6da0acd62b1/go.mod h1:vR7hzQXu2zJy9AVAgeJqvqgH9Q5CA+iKCZ2gyEVpxRU=
 github.com/go-gl/glfw/v3.3/glfw v0.0.0-20191125211704-12ad95a8df72/go.mod h1:tQ2UAYgL5IevRw8kRxooKSPJfGvJ9fJQFa0TUsXzTg8=
 github.com/go-gl/glfw/v3.3/glfw v0.0.0-20200222043503-6f7a984d4dc4/go.mod h1:tQ2UAYgL5IevRw8kRxooKSPJfGvJ9fJQFa0TUsXzTg8=
+github.com/go-logr/logr v1.2.2/go.mod h1:jdQByPbusPIv2/zmleS9BjJVeZ6kBagPoEUsqbVz/1A=
+github.com/go-logr/logr v1.2.4 h1:g01GSCwiDw2xSZfjJ2/T9M+S6pFdcNtFYsp+Y43HYDQ=
+github.com/go-logr/logr v1.2.4/go.mod h1:jdQByPbusPIv2/zmleS9BjJVeZ6kBagPoEUsqbVz/1A=
+github.com/go-logr/stdr v1.2.2 h1:hSWxHoqTgW2S2qGc0LTAI563KZ5YKYRhT3MFKZMbjag=
+github.com/go-logr/stdr v1.2.2/go.mod h1:mMo/vtBO5dYbehREoey6XUKy/eSumjCCveDpRre4VKE=
 github.com/go-test/deep v1.0.3 h1:ZrJSEWsXzPOxaZnFteGEfooLba+ju3FYIbOrS+rQd68=
 github.com/godbus/dbus/v5 v5.0.4/go.mod h1:xhWf0FNVPg57R7Z0UbKHbJfkEywrmjJnf7w5xrFpKfA=
 github.com/golang/glog v0.0.0-20160126235308-23def4e6c14b/go.mod h1:SBH7ygxi8pfUlaOkMMuAQtPIUF8ecWP5IEl/CR7VP2Q=
@@ -362,6 +369,16 @@ go.opencensus.io v0.22.2/go.mod h1:yxeiOL68Rb0Xd1ddK5vPZ/oVn4vY4Ynel7k9FzqtOIw=
 go.opencensus.io v0.22.3/go.mod h1:yxeiOL68Rb0Xd1ddK5vPZ/oVn4vY4Ynel7k9FzqtOIw=
 go.opencensus.io v0.22.4/go.mod h1:yxeiOL68Rb0Xd1ddK5vPZ/oVn4vY4Ynel7k9FzqtOIw=
 go.opencensus.io v0.22.5/go.mod h1:5pWMHQbX5EPX2/62yrJeAkowc+lfs/XD7Uxpq3pI6kk=
+go.opentelemetry.io/contrib/instrumentation/net/http/httptrace/otelhttptrace v0.42.0 h1:0vzgiFDsCh/jxRCR1xcRrtMoeCu2itXz/PsXst5P8rI=
+go.opentelemetry.io/contrib/instrumentation/net/http/httptrace/otelhttptrace v0.42.0/go.mod h1:y0vOY2OKFMOTvwxKfurStPayUUKGHlNeVqNneHmFXr0=
+go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.42.0 h1:pginetY7+onl4qN1vl0xW/V/v6OBZ0vVdH+esuJgvmM=
+go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.42.0/go.mod h1:XiYsayHc36K3EByOO6nbAXnAWbrUxdjUROCEeeROOH8=
+go.opentelemetry.io/otel v1.16.0 h1:Z7GVAX/UkAXPKsy94IU+i6thsQS4nb7LviLpnaNeW8s=
+go.opentelemetry.io/otel v1.16.0/go.mod h1:vl0h9NUa1D5s1nv3A5vZOYWn8av4K8Ml6JDeHrT/bx4=
+go.opentelemetry.io/otel/metric v1.16.0 h1:RbrpwVG1Hfv85LgnZ7+txXioPDoh6EdbZHo26Q3hqOo=
+go.opentelemetry.io/otel/metric v1.16.0/go.mod h1:QE47cpOmkwipPiefDwo2wDzwJrlfxxNYodqc4xnGCo4=
+go.opentelemetry.io/otel/trace v1.16.0 h1:8JRpaObFoW0pxuVPapkgH8UhHQj+bJW8jJsCZEu5MQs=
+go.opentelemetry.io/otel/trace v1.16.0/go.mod h1:Yt9vYq1SdNz3xdjZZK7wcXv1qv2pwLkqr2QVwea0ef0=
 golang.org/x/crypto v0.0.0-20190308221718-c2843e01d9a2/go.mod h1:djNgcEr1/C05ACkg1iLfiJU5Ep61QUkGW8qpdssI0+w=
 golang.org/x/crypto v0.0.0-20190510104115-cbcb75029529/go.mod h1:yigFU9vqHzYiE8UmvKecakEJjdnWj3jj499lnFckfCI=
 golang.org/x/crypto v0.0.0-20190605123033-f99c8df09eb5/go.mod h1:yigFU9vqHzYiE8UmvKecakEJjdnWj3jj499lnFckfCI=
diff --git a/internal/cmd/inspect_module_command.go b/internal/cmd/inspect_module_command.go
index 066b2ee7..918cc533 100644
--- a/internal/cmd/inspect_module_command.go
+++ b/internal/cmd/inspect_module_command.go
@@ -126,7 +126,7 @@ func (c *InspectModuleCommand) inspect(rootPath string) error {
 		c.logger, os.Interrupt, syscall.SIGTERM)
 	defer cancel()
 
-	err = ss.WalkerPaths.EnqueueDir(dir)
+	err = ss.WalkerPaths.EnqueueDir(ctx, dir)
 	if err != nil {
 		return err
 	}
diff --git a/internal/cmd/serve_command.go b/internal/cmd/serve_command.go
index 2f601b01..e42c58df 100644
--- a/internal/cmd/serve_command.go
+++ b/internal/cmd/serve_command.go
@@ -21,6 +21,10 @@ import (
 	"github.com/hashicorp/terraform-ls/internal/logging"
 	"github.com/hashicorp/terraform-ls/internal/pathtpl"
 	"github.com/mitchellh/cli"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/attribute"
+	semconv "go.opentelemetry.io/otel/semconv/v1.20.0"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type ServeCommand struct {
@@ -108,6 +112,26 @@ func (c *ServeCommand) Run(args []string) int {
 		ctx = algolia.WithCredentials(ctx, c.AlgoliaAppID, c.AlgoliaAPIKey)
 	}
 
+	var err error
+	shutdownFunc := func(context.Context) error { return nil }
+
+	// TODO: Currently unused until we decide how/where to export data
+	tp := trace.NewNoopTracerProvider()
+	otel.SetTracerProvider(tp)
+
+	if err != nil {
+		c.Ui.Error(fmt.Sprintf("Failed to init telemetry: %s", err))
+		return 1
+	}
+	defer func() {
+		ctx := context.Background()
+		err := shutdownFunc(ctx)
+		if err != nil {
+			logger.Printf("failed to shutdown telemetry: %s", err)
+			return
+		}
+	}()
+
 	srv := langserver.NewLangServer(ctx, handlers.NewSession)
 	srv.SetLogger(logger)
 
@@ -120,7 +144,7 @@ func (c *ServeCommand) Run(args []string) int {
 		return 0
 	}
 
-	err := srv.StartAndWait(os.Stdin, os.Stdout)
+	err = srv.StartAndWait(os.Stdin, os.Stdout)
 	if err != nil {
 		c.Ui.Error(fmt.Sprintf("Failed to start server: %s", err))
 		return 1
@@ -129,6 +153,17 @@ func (c *ServeCommand) Run(args []string) int {
 	return 0
 }
 
+func (c *ServeCommand) otelResourceAttributes() []attribute.KeyValue {
+	return []attribute.KeyValue{
+		semconv.ServiceName("terraform-ls"),
+		semconv.ServiceVersion(c.Version),
+		attribute.Int("process.pid", os.Getpid()),
+		attribute.Int("runtime.NumCPU", runtime.NumCPU()),
+		attribute.Int("port", c.port),
+		attribute.Int("reqConcurrency", c.reqConcurrency),
+	}
+}
+
 type stopFunc func() error
 
 func writeCpuProfileInto(rawPath string) (stopFunc, error) {
diff --git a/internal/indexer/document_change.go b/internal/indexer/document_change.go
index e5adaef2..741c92fa 100644
--- a/internal/indexer/document_change.go
+++ b/internal/indexer/document_change.go
@@ -13,10 +13,10 @@ import (
 	op "github.com/hashicorp/terraform-ls/internal/terraform/module/operation"
 )
 
-func (idx *Indexer) DocumentChanged(modHandle document.DirHandle) (job.IDs, error) {
+func (idx *Indexer) DocumentChanged(ctx context.Context, modHandle document.DirHandle) (job.IDs, error) {
 	ids := make(job.IDs, 0)
 
-	parseId, err := idx.jobStore.EnqueueJob(job.Job{
+	parseId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseModuleConfiguration(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -29,13 +29,13 @@ func (idx *Indexer) DocumentChanged(modHandle document.DirHandle) (job.IDs, erro
 	}
 	ids = append(ids, parseId)
 
-	modIds, err := idx.decodeModule(modHandle, job.IDs{parseId}, true)
+	modIds, err := idx.decodeModule(ctx, modHandle, job.IDs{parseId}, true)
 	if err != nil {
 		return ids, err
 	}
 	ids = append(ids, modIds...)
 
-	parseVarsId, err := idx.jobStore.EnqueueJob(job.Job{
+	parseVarsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseVariables(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -48,7 +48,7 @@ func (idx *Indexer) DocumentChanged(modHandle document.DirHandle) (job.IDs, erro
 	}
 	ids = append(ids, parseVarsId)
 
-	varsRefsId, err := idx.jobStore.EnqueueJob(job.Job{
+	varsRefsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.DecodeVarsReferences(ctx, idx.modStore, idx.schemaStore, modHandle.Path())
@@ -65,10 +65,10 @@ func (idx *Indexer) DocumentChanged(modHandle document.DirHandle) (job.IDs, erro
 	return ids, nil
 }
 
-func (idx *Indexer) decodeModule(modHandle document.DirHandle, dependsOn job.IDs, ignoreState bool) (job.IDs, error) {
+func (idx *Indexer) decodeModule(ctx context.Context, modHandle document.DirHandle, dependsOn job.IDs, ignoreState bool) (job.IDs, error) {
 	ids := make(job.IDs, 0)
 
-	metaId, err := idx.jobStore.EnqueueJob(job.Job{
+	metaId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.LoadModuleMetadata(ctx, idx.modStore, modHandle.Path())
@@ -82,7 +82,7 @@ func (idx *Indexer) decodeModule(modHandle document.DirHandle, dependsOn job.IDs
 	}
 	ids = append(ids, metaId)
 
-	eSchemaId, err := idx.jobStore.EnqueueJob(job.Job{
+	eSchemaId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.PreloadEmbeddedSchema(ctx, idx.logger, schemas.FS, idx.modStore, idx.schemaStore, modHandle.Path())
@@ -96,7 +96,7 @@ func (idx *Indexer) decodeModule(modHandle document.DirHandle, dependsOn job.IDs
 	}
 	ids = append(ids, eSchemaId)
 
-	refTargetsId, err := idx.jobStore.EnqueueJob(job.Job{
+	refTargetsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.DecodeReferenceTargets(ctx, idx.modStore, idx.schemaStore, modHandle.Path())
@@ -110,7 +110,7 @@ func (idx *Indexer) decodeModule(modHandle document.DirHandle, dependsOn job.IDs
 	}
 	ids = append(ids, refTargetsId)
 
-	refOriginsId, err := idx.jobStore.EnqueueJob(job.Job{
+	refOriginsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.DecodeReferenceOrigins(ctx, idx.modStore, idx.schemaStore, modHandle.Path())
@@ -124,7 +124,7 @@ func (idx *Indexer) decodeModule(modHandle document.DirHandle, dependsOn job.IDs
 	}
 	ids = append(ids, refOriginsId)
 
-	registryId, err := idx.jobStore.EnqueueJob(job.Job{
+	registryId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.GetModuleDataFromRegistry(ctx, idx.registryClient,
diff --git a/internal/indexer/document_open.go b/internal/indexer/document_open.go
index ec6a9550..159c2dde 100644
--- a/internal/indexer/document_open.go
+++ b/internal/indexer/document_open.go
@@ -14,7 +14,7 @@ import (
 	op "github.com/hashicorp/terraform-ls/internal/terraform/module/operation"
 )
 
-func (idx *Indexer) DocumentOpened(modHandle document.DirHandle) (job.IDs, error) {
+func (idx *Indexer) DocumentOpened(ctx context.Context, modHandle document.DirHandle) (job.IDs, error) {
 	mod, err := idx.modStore.ModuleByPath(modHandle.Path())
 	if err != nil {
 		return nil, err
@@ -24,7 +24,7 @@ func (idx *Indexer) DocumentOpened(modHandle document.DirHandle) (job.IDs, error
 	var errs *multierror.Error
 
 	if mod.TerraformVersionState == op.OpStateUnknown {
-		_, err := idx.jobStore.EnqueueJob(job.Job{
+		_, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir: modHandle,
 			Func: func(ctx context.Context) error {
 				ctx = exec.WithExecutorFactory(ctx, idx.tfExecFactory)
@@ -40,7 +40,7 @@ func (idx *Indexer) DocumentOpened(modHandle document.DirHandle) (job.IDs, error
 		// to avoid delays when documents of new modules are open.
 	}
 
-	parseId, err := idx.jobStore.EnqueueJob(job.Job{
+	parseId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseModuleConfiguration(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -53,13 +53,13 @@ func (idx *Indexer) DocumentOpened(modHandle document.DirHandle) (job.IDs, error
 	}
 	ids = append(ids, parseId)
 
-	modIds, err := idx.decodeModule(modHandle, job.IDs{parseId}, true)
+	modIds, err := idx.decodeModule(ctx, modHandle, job.IDs{parseId}, true)
 	if err != nil {
 		return ids, err
 	}
 	ids = append(ids, modIds...)
 
-	parseVarsId, err := idx.jobStore.EnqueueJob(job.Job{
+	parseVarsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseVariables(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -72,7 +72,7 @@ func (idx *Indexer) DocumentOpened(modHandle document.DirHandle) (job.IDs, error
 	}
 	ids = append(ids, parseVarsId)
 
-	varsRefsId, err := idx.jobStore.EnqueueJob(job.Job{
+	varsRefsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.DecodeVarsReferences(ctx, idx.modStore, idx.schemaStore, modHandle.Path())
diff --git a/internal/indexer/module_calls.go b/internal/indexer/module_calls.go
index 5c15987f..e835e0c6 100644
--- a/internal/indexer/module_calls.go
+++ b/internal/indexer/module_calls.go
@@ -15,7 +15,7 @@ import (
 	op "github.com/hashicorp/terraform-ls/internal/terraform/module/operation"
 )
 
-func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ignoreState bool) (job.IDs, error) {
+func (idx *Indexer) decodeInstalledModuleCalls(ctx context.Context, modHandle document.DirHandle, ignoreState bool) (job.IDs, error) {
 	jobIds := make(job.IDs, 0)
 
 	moduleCalls, err := idx.modStore.ModuleCalls(modHandle.Path())
@@ -44,7 +44,7 @@ func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ign
 
 		refCollectionDeps := make(job.IDs, 0)
 
-		parseId, err := idx.jobStore.EnqueueJob(job.Job{
+		parseId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir: mcHandle,
 			Func: func(ctx context.Context) error {
 				return module.ParseModuleConfiguration(ctx, idx.fs, idx.modStore, mcPath)
@@ -61,7 +61,7 @@ func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ign
 
 		var metaId job.ID
 		if parseId != "" {
-			metaId, err = idx.jobStore.EnqueueJob(job.Job{
+			metaId, err = idx.jobStore.EnqueueJob(ctx, job.Job{
 				Dir:  mcHandle,
 				Type: op.OpTypeLoadModuleMetadata.String(),
 				Func: func(ctx context.Context) error {
@@ -77,7 +77,7 @@ func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ign
 				refCollectionDeps = append(refCollectionDeps, metaId)
 			}
 
-			eSchemaId, err := idx.jobStore.EnqueueJob(job.Job{
+			eSchemaId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 				Dir: mcHandle,
 				Func: func(ctx context.Context) error {
 					return module.PreloadEmbeddedSchema(ctx, idx.logger, schemas.FS, idx.modStore, idx.schemaStore, mcPath)
@@ -95,7 +95,7 @@ func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ign
 		}
 
 		if parseId != "" {
-			ids, err := idx.collectReferences(mcHandle, refCollectionDeps, ignoreState)
+			ids, err := idx.collectReferences(ctx, mcHandle, refCollectionDeps, ignoreState)
 			if err != nil {
 				multierror.Append(errs, err)
 			} else {
@@ -103,7 +103,7 @@ func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ign
 			}
 		}
 
-		varsParseId, err := idx.jobStore.EnqueueJob(job.Job{
+		varsParseId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir: mcHandle,
 			Func: func(ctx context.Context) error {
 				return module.ParseVariables(ctx, idx.fs, idx.modStore, mcPath)
@@ -118,7 +118,7 @@ func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ign
 		}
 
 		if varsParseId != "" {
-			varsRefId, err := idx.jobStore.EnqueueJob(job.Job{
+			varsRefId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 				Dir: mcHandle,
 				Func: func(ctx context.Context) error {
 					return module.DecodeVarsReferences(ctx, idx.modStore, idx.schemaStore, mcPath)
@@ -138,12 +138,12 @@ func (idx *Indexer) decodeInstalledModuleCalls(modHandle document.DirHandle, ign
 	return jobIds, errs.ErrorOrNil()
 }
 
-func (idx *Indexer) collectReferences(modHandle document.DirHandle, dependsOn job.IDs, ignoreState bool) (job.IDs, error) {
+func (idx *Indexer) collectReferences(ctx context.Context, modHandle document.DirHandle, dependsOn job.IDs, ignoreState bool) (job.IDs, error) {
 	ids := make(job.IDs, 0)
 
 	var errs *multierror.Error
 
-	id, err := idx.jobStore.EnqueueJob(job.Job{
+	id, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.DecodeReferenceTargets(ctx, idx.modStore, idx.schemaStore, modHandle.Path())
@@ -158,7 +158,7 @@ func (idx *Indexer) collectReferences(modHandle document.DirHandle, dependsOn jo
 		ids = append(ids, id)
 	}
 
-	id, err = idx.jobStore.EnqueueJob(job.Job{
+	id, err = idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.DecodeReferenceOrigins(ctx, idx.modStore, idx.schemaStore, modHandle.Path())
diff --git a/internal/indexer/walker.go b/internal/indexer/walker.go
index bbf42ae5..9c7b077b 100644
--- a/internal/indexer/walker.go
+++ b/internal/indexer/walker.go
@@ -23,7 +23,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 	refCollectionDeps := make(job.IDs, 0)
 	providerVersionDeps := make(job.IDs, 0)
 
-	parseId, err := idx.jobStore.EnqueueJob(job.Job{
+	parseId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseModuleConfiguration(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -40,7 +40,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 
 	var metaId job.ID
 	if parseId != "" {
-		metaId, err = idx.jobStore.EnqueueJob(job.Job{
+		metaId, err = idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir:  modHandle,
 			Type: op.OpTypeLoadModuleMetadata.String(),
 			Func: func(ctx context.Context) error {
@@ -57,7 +57,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 		}
 	}
 
-	parseVarsId, err := idx.jobStore.EnqueueJob(job.Job{
+	parseVarsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseVariables(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -71,7 +71,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 	}
 
 	if parseVarsId != "" {
-		varsRefsId, err := idx.jobStore.EnqueueJob(job.Job{
+		varsRefsId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir: modHandle,
 			Func: func(ctx context.Context) error {
 				return module.DecodeVarsReferences(ctx, idx.modStore, idx.schemaStore, modHandle.Path())
@@ -94,14 +94,14 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 	if dataDir.ModuleManifestPath != "" {
 		// References are collected *after* manifest parsing
 		// so that we reflect any references to submodules.
-		modManifestId, err = idx.jobStore.EnqueueJob(job.Job{
+		modManifestId, err = idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir: modHandle,
 			Func: func(ctx context.Context) error {
 				return module.ParseModuleManifest(ctx, idx.fs, idx.modStore, modHandle.Path())
 			},
 			Type: op.OpTypeParseModuleManifest.String(),
 			Defer: func(ctx context.Context, jobErr error) (job.IDs, error) {
-				return idx.decodeInstalledModuleCalls(modHandle, false)
+				return idx.decodeInstalledModuleCalls(ctx, modHandle, false)
 			},
 		})
 		if err != nil {
@@ -116,7 +116,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 
 	if dataDir.PluginLockFilePath != "" {
 		dependsOn := make(job.IDs, 0)
-		pSchemaVerId, err := idx.jobStore.EnqueueJob(job.Job{
+		pSchemaVerId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir: modHandle,
 			Func: func(ctx context.Context) error {
 				return module.ParseProviderVersions(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -132,7 +132,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 			refCollectionDeps = append(refCollectionDeps, pSchemaVerId)
 		}
 
-		pSchemaId, err := idx.jobStore.EnqueueJob(job.Job{
+		pSchemaId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 			Dir: modHandle,
 			Func: func(ctx context.Context) error {
 				ctx = exec.WithExecutorFactory(ctx, idx.tfExecFactory)
@@ -149,7 +149,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 		}
 	}
 
-	eSchemaId, err := idx.jobStore.EnqueueJob(job.Job{
+	eSchemaId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.PreloadEmbeddedSchema(ctx, idx.logger, schemas.FS, idx.modStore, idx.schemaStore, modHandle.Path())
@@ -168,7 +168,7 @@ func (idx *Indexer) WalkedModule(ctx context.Context, modHandle document.DirHand
 	ids = append(ids, eSchemaId)
 
 	if parseId != "" {
-		rIds, err := idx.collectReferences(modHandle, refCollectionDeps, false)
+		rIds, err := idx.collectReferences(ctx, modHandle, refCollectionDeps, false)
 		if err != nil {
 			errs = multierror.Append(errs, err)
 		} else {
diff --git a/internal/indexer/watcher.go b/internal/indexer/watcher.go
index f9f86c55..6211d39c 100644
--- a/internal/indexer/watcher.go
+++ b/internal/indexer/watcher.go
@@ -17,7 +17,7 @@ import (
 func (idx *Indexer) ModuleManifestChanged(ctx context.Context, modHandle document.DirHandle) (job.IDs, error) {
 	ids := make(job.IDs, 0)
 
-	modManifestId, err := idx.jobStore.EnqueueJob(job.Job{
+	modManifestId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseModuleManifest(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -25,7 +25,7 @@ func (idx *Indexer) ModuleManifestChanged(ctx context.Context, modHandle documen
 		Type:        op.OpTypeParseModuleManifest.String(),
 		IgnoreState: true,
 		Defer: func(ctx context.Context, jobErr error) (job.IDs, error) {
-			return idx.decodeInstalledModuleCalls(modHandle, true)
+			return idx.decodeInstalledModuleCalls(ctx, modHandle, true)
 		},
 	})
 	if err != nil {
@@ -41,7 +41,7 @@ func (idx *Indexer) PluginLockChanged(ctx context.Context, modHandle document.Di
 	dependsOn := make(job.IDs, 0)
 	var errs *multierror.Error
 
-	pSchemaVerId, err := idx.jobStore.EnqueueJob(job.Job{
+	pSchemaVerId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			return module.ParseProviderVersions(ctx, idx.fs, idx.modStore, modHandle.Path())
@@ -56,7 +56,7 @@ func (idx *Indexer) PluginLockChanged(ctx context.Context, modHandle document.Di
 		dependsOn = append(dependsOn, pSchemaVerId)
 	}
 
-	pSchemaId, err := idx.jobStore.EnqueueJob(job.Job{
+	pSchemaId, err := idx.jobStore.EnqueueJob(ctx, job.Job{
 		Dir: modHandle,
 		Func: func(ctx context.Context) error {
 			ctx = exec.WithExecutorFactory(ctx, idx.tfExecFactory)
diff --git a/internal/job/job_id.go b/internal/job/job_id.go
index fca8c64a..5d4e9bb3 100644
--- a/internal/job/job_id.go
+++ b/internal/job/job_id.go
@@ -20,3 +20,13 @@ func (ids IDs) Copy() IDs {
 
 	return newIds
 }
+
+func (ids IDs) StringSlice() []string {
+	stringIds := make([]string, len(ids))
+
+	for i, id := range ids {
+		stringIds[i] = id.String()
+	}
+
+	return stringIds
+}
diff --git a/internal/job/job_store.go b/internal/job/job_store.go
index 0fc02e38..e6a36656 100644
--- a/internal/job/job_store.go
+++ b/internal/job/job_store.go
@@ -8,6 +8,6 @@ import (
 )
 
 type JobStore interface {
-	EnqueueJob(newJob Job) (ID, error)
+	EnqueueJob(ctx context.Context, newJob Job) (ID, error)
 	WaitForJobs(ctx context.Context, ids ...ID) error
 }
diff --git a/internal/langserver/handlers/did_change.go b/internal/langserver/handlers/did_change.go
index d3c628b2..45e7c4e5 100644
--- a/internal/langserver/handlers/did_change.go
+++ b/internal/langserver/handlers/did_change.go
@@ -54,7 +54,7 @@ func (svc *service) TextDocumentDidChange(ctx context.Context, params lsp.DidCha
 		return err
 	}
 
-	jobIds, err := svc.indexer.DocumentChanged(dh.Dir)
+	jobIds, err := svc.indexer.DocumentChanged(ctx, dh.Dir)
 	if err != nil {
 		return err
 	}
diff --git a/internal/langserver/handlers/did_change_watched_files.go b/internal/langserver/handlers/did_change_watched_files.go
index 6758f060..cc9dc8a7 100644
--- a/internal/langserver/handlers/did_change_watched_files.go
+++ b/internal/langserver/handlers/did_change_watched_files.go
@@ -136,7 +136,7 @@ func (svc *service) DidChangeWatchedFiles(ctx context.Context, params lsp.DidCha
 			// if the parent directory exists, we just need to
 			// reparse the module after a file was deleted from it
 			dirHandle := document.DirHandleFromPath(parentDir)
-			jobIds, err := svc.indexer.DocumentChanged(dirHandle)
+			jobIds, err := svc.indexer.DocumentChanged(ctx, dirHandle)
 			if err != nil {
 				svc.logger.Printf("error parsing module (%q deleted): %s", rawURI, err)
 				continue
@@ -161,7 +161,7 @@ func (svc *service) DidChangeWatchedFiles(ctx context.Context, params lsp.DidCha
 				continue
 			}
 
-			jobIds, err := svc.indexer.DocumentChanged(ph.DirHandle)
+			jobIds, err := svc.indexer.DocumentChanged(ctx, ph.DirHandle)
 			if err != nil {
 				svc.logger.Printf("error parsing module (%q changed): %s", rawURI, err)
 				continue
@@ -181,7 +181,7 @@ func (svc *service) DidChangeWatchedFiles(ctx context.Context, params lsp.DidCha
 			}
 
 			if ph.IsDir {
-				err = svc.stateStore.WalkerPaths.EnqueueDir(ph.DirHandle)
+				err = svc.stateStore.WalkerPaths.EnqueueDir(ctx, ph.DirHandle)
 				if err != nil {
 					jrpc2.ServerFromContext(ctx).Notify(ctx, "window/showMessage", &lsp.ShowMessageParams{
 						Type: lsp.Warning,
@@ -191,7 +191,7 @@ func (svc *service) DidChangeWatchedFiles(ctx context.Context, params lsp.DidCha
 					continue
 				}
 			} else {
-				jobIds, err := svc.indexer.DocumentChanged(ph.DirHandle)
+				jobIds, err := svc.indexer.DocumentChanged(ctx, ph.DirHandle)
 				if err != nil {
 					svc.logger.Printf("error parsing module (%q created): %s", rawURI, err)
 					continue
@@ -214,7 +214,7 @@ func (svc *service) indexModuleIfNotExists(ctx context.Context, modHandle docume
 	_, err := svc.modStore.ModuleByPath(modHandle.Path())
 	if err != nil {
 		if state.IsModuleNotFound(err) {
-			err = svc.stateStore.WalkerPaths.EnqueueDir(modHandle)
+			err = svc.stateStore.WalkerPaths.EnqueueDir(ctx, modHandle)
 			if err != nil {
 				return fmt.Errorf("failed to walk module %q: %w", modHandle, err)
 			}
diff --git a/internal/langserver/handlers/did_change_workspace_folders.go b/internal/langserver/handlers/did_change_workspace_folders.go
index 4d8902af..7a4c4eb3 100644
--- a/internal/langserver/handlers/did_change_workspace_folders.go
+++ b/internal/langserver/handlers/did_change_workspace_folders.go
@@ -44,7 +44,7 @@ func (svc *service) DidChangeWorkspaceFolders(ctx context.Context, params lsp.Di
 func (svc *service) indexNewModule(ctx context.Context, modURI string) {
 	modHandle := document.DirHandleFromURI(modURI)
 
-	err := svc.stateStore.WalkerPaths.EnqueueDir(modHandle)
+	err := svc.stateStore.WalkerPaths.EnqueueDir(ctx, modHandle)
 	if err != nil {
 		jrpc2.ServerFromContext(ctx).Notify(ctx, "window/showMessage", &lsp.ShowMessageParams{
 			Type: lsp.Warning,
diff --git a/internal/langserver/handlers/did_open.go b/internal/langserver/handlers/did_open.go
index 4997a89c..eab80a76 100644
--- a/internal/langserver/handlers/did_open.go
+++ b/internal/langserver/handlers/did_open.go
@@ -59,13 +59,13 @@ func (svc *service) TextDocumentDidOpen(ctx context.Context, params lsp.DidOpenT
 	// (originally parsed) content on the disk
 	// TODO: Do this only if we can verify the file differs?
 	modHandle := document.DirHandleFromPath(mod.Path)
-	jobIds, err := svc.indexer.DocumentOpened(modHandle)
+	jobIds, err := svc.indexer.DocumentOpened(ctx, modHandle)
 	if err != nil {
 		return err
 	}
 
 	if svc.singleFileMode {
-		err = svc.stateStore.WalkerPaths.EnqueueDir(modHandle)
+		err = svc.stateStore.WalkerPaths.EnqueueDir(ctx, modHandle)
 		if err != nil {
 			return err
 		}
diff --git a/internal/langserver/handlers/initialize.go b/internal/langserver/handlers/initialize.go
index 8a65be78..669059ed 100644
--- a/internal/langserver/handlers/initialize.go
+++ b/internal/langserver/handlers/initialize.go
@@ -308,7 +308,7 @@ func (svc *service) setupWalker(ctx context.Context, params lsp.InitializeParams
 		ignoredPaths = append(ignoredPaths, modPath)
 	}
 
-	err = svc.stateStore.WalkerPaths.EnqueueDir(root)
+	err = svc.stateStore.WalkerPaths.EnqueueDir(ctx, root)
 	if err != nil {
 		return err
 	}
@@ -326,7 +326,7 @@ func (svc *service) setupWalker(ctx context.Context, params lsp.InitializeParams
 
 			modPath := document.DirHandleFromURI(folder.URI)
 
-			err := svc.stateStore.WalkerPaths.EnqueueDir(modPath)
+			err := svc.stateStore.WalkerPaths.EnqueueDir(ctx, modPath)
 			if err != nil {
 				jrpc2.ServerFromContext(ctx).Notify(ctx, "window/showMessage", &lsp.ShowMessageParams{
 					Type: lsp.Warning,
diff --git a/internal/langserver/handlers/service.go b/internal/langserver/handlers/service.go
index 4709f465..2d11df84 100644
--- a/internal/langserver/handlers/service.go
+++ b/internal/langserver/handlers/service.go
@@ -34,6 +34,11 @@ import (
 	"github.com/hashicorp/terraform-ls/internal/terraform/discovery"
 	"github.com/hashicorp/terraform-ls/internal/terraform/exec"
 	"github.com/hashicorp/terraform-ls/internal/walker"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	semconv "go.opentelemetry.io/otel/semconv/v1.4.0"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type service struct {
@@ -584,13 +589,52 @@ func convertMap(m map[string]rpch.Func) rpch.Map {
 }
 
 const requestCancelled jrpc2.Code = -32800
+const tracerName = "github.com/hashicorp/terraform-ls/internal/langserver/handlers"
 
 // handle calls a jrpc2.Func compatible function
 func handle(ctx context.Context, req *jrpc2.Request, fn interface{}) (interface{}, error) {
+	attrs := []attribute.KeyValue{
+		{
+			Key:   semconv.RPCMethodKey,
+			Value: attribute.StringValue(req.Method()),
+		},
+		{
+			Key:   semconv.RPCJsonrpcRequestIDKey,
+			Value: attribute.StringValue(req.ID()),
+		},
+	}
+
+	// We could capture all parameters here but for now we just
+	// opportunistically track the most important ones only.
+	type p struct {
+		URI     string `json:"uri,omitempty"`
+		RootURI string `json:"rootUri,omitempty"`
+	}
+	params := p{}
+	err := req.UnmarshalParams(&params)
+	if err == nil {
+		attrs = append(attrs, attribute.KeyValue{
+			Key:   attribute.Key("URI"),
+			Value: attribute.StringValue(string(params.URI)),
+		})
+	}
+
+	tracer := otel.Tracer(tracerName)
+	ctx, span := tracer.Start(ctx, "rpc:"+req.Method(),
+		trace.WithAttributes(attrs...))
+	defer span.End()
+
 	result, err := rpch.New(fn)(ctx, req)
 	if ctx.Err() != nil && errors.Is(ctx.Err(), context.Canceled) {
 		err = fmt.Errorf("%w: %s", requestCancelled.Err(), err)
 	}
+	if err != nil {
+		span.RecordError(err)
+		span.SetStatus(codes.Error, "request failed")
+	} else {
+		span.SetStatus(codes.Ok, "ok")
+	}
+
 	return result, err
 }
 
diff --git a/internal/langserver/langserver.go b/internal/langserver/langserver.go
index 79c26f53..bc98f0cb 100644
--- a/internal/langserver/langserver.go
+++ b/internal/langserver/langserver.go
@@ -17,6 +17,7 @@ import (
 	"github.com/creachadair/jrpc2/channel"
 	"github.com/creachadair/jrpc2/server"
 	"github.com/hashicorp/terraform-ls/internal/langserver/session"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type langServer struct {
@@ -37,6 +38,10 @@ func NewLangServer(srvCtx context.Context, sf session.SessionFactory) *langServe
 	opts := &jrpc2.ServerOptions{
 		AllowPush:   true,
 		Concurrency: concurrency,
+		NewContext: func() context.Context {
+			spanCtx := trace.SpanContextFromContext(srvCtx)
+			return trace.ContextWithSpanContext(context.Background(), spanCtx)
+		},
 	}
 
 	return &langServer{
diff --git a/internal/registry/module.go b/internal/registry/module.go
index 059a7858..3bfa8a54 100644
--- a/internal/registry/module.go
+++ b/internal/registry/module.go
@@ -9,11 +9,15 @@ import (
 	"fmt"
 	"io/ioutil"
 	"net/http"
+	"net/http/httptrace"
 	"sort"
 
-	"github.com/hashicorp/go-cleanhttp"
 	"github.com/hashicorp/go-version"
 	tfaddr "github.com/hashicorp/terraform-registry-address"
+	"go.opentelemetry.io/contrib/instrumentation/net/http/httptrace/otelhttptrace"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type ModuleResponse struct {
@@ -61,6 +65,8 @@ func (rce ClientError) Error() string {
 }
 
 func (c Client) GetModuleData(ctx context.Context, addr tfaddr.Module, cons version.Constraints) (*ModuleResponse, error) {
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "registry:GetModuleData")
+	defer span.End()
 	var response ModuleResponse
 
 	v, err := c.GetMatchingModuleVersion(ctx, addr, cons)
@@ -68,8 +74,7 @@ func (c Client) GetModuleData(ctx context.Context, addr tfaddr.Module, cons vers
 		return nil, err
 	}
 
-	client := cleanhttp.DefaultClient()
-	client.Timeout = defaultTimeout
+	ctx = httptrace.WithClientTrace(ctx, otelhttptrace.NewClientTrace(ctx, otelhttptrace.WithoutSubSpans()))
 
 	url := fmt.Sprintf("%s/v1/modules/%s/%s/%s/%s", c.BaseURL,
 		addr.Package.Namespace,
@@ -82,7 +87,7 @@ func (c Client) GetModuleData(ctx context.Context, addr tfaddr.Module, cons vers
 		return nil, err
 	}
 
-	resp, err := client.Do(req)
+	resp, err := c.httpClient.Do(req)
 	if err != nil {
 		return nil, err
 	}
@@ -106,6 +111,8 @@ func (c Client) GetModuleData(ctx context.Context, addr tfaddr.Module, cons vers
 }
 
 func (c Client) GetMatchingModuleVersion(ctx context.Context, addr tfaddr.Module, con version.Constraints) (*version.Version, error) {
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "registry:GetMatchingModuleVersion")
+	defer span.End()
 	foundVersions, err := c.GetModuleVersions(ctx, addr)
 	if err != nil {
 		return nil, err
@@ -121,20 +128,22 @@ func (c Client) GetMatchingModuleVersion(ctx context.Context, addr tfaddr.Module
 }
 
 func (c Client) GetModuleVersions(ctx context.Context, addr tfaddr.Module) (version.Collection, error) {
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "registry:GetModuleVersions")
+	defer span.End()
+
 	url := fmt.Sprintf("%s/v1/modules/%s/%s/%s/versions", c.BaseURL,
 		addr.Package.Namespace,
 		addr.Package.Name,
 		addr.Package.TargetSystem)
 
-	client := cleanhttp.DefaultClient()
-	client.Timeout = defaultTimeout
+	ctx = httptrace.WithClientTrace(ctx, otelhttptrace.NewClientTrace(ctx, otelhttptrace.WithoutSubSpans()))
 
 	req, err := http.NewRequestWithContext(ctx, "GET", url, nil)
 	if err != nil {
 		return nil, err
 	}
 
-	resp, err := client.Do(req)
+	resp, err := c.httpClient.Do(req)
 	if err != nil {
 		return nil, err
 	}
@@ -149,11 +158,13 @@ func (c Client) GetModuleVersions(ctx context.Context, addr tfaddr.Module) (vers
 		return nil, ClientError{StatusCode: resp.StatusCode, Body: string(bodyBytes)}
 	}
 
+	_, decodeSpan := otel.Tracer(tracerName).Start(ctx, "registry:GetModuleVersions:decodeJson")
 	var response ModuleVersionsResponse
 	err = json.NewDecoder(resp.Body).Decode(&response)
 	if err != nil {
 		return nil, err
 	}
+	decodeSpan.End()
 
 	var foundVersions version.Collection
 	for _, module := range response.Modules {
@@ -164,6 +175,11 @@ func (c Client) GetModuleVersions(ctx context.Context, addr tfaddr.Module) (vers
 			}
 		}
 	}
+	span.AddEvent("registry:foundModuleVersions",
+		trace.WithAttributes(attribute.KeyValue{
+			Key:   attribute.Key("moduleVersionCount"),
+			Value: attribute.IntValue(len(foundVersions)),
+		}))
 
 	sort.Sort(sort.Reverse(foundVersions))
 
diff --git a/internal/registry/registry.go b/internal/registry/registry.go
index 9818ee8c..cdd38f10 100644
--- a/internal/registry/registry.go
+++ b/internal/registry/registry.go
@@ -4,24 +4,35 @@
 package registry
 
 import (
+	"net/http"
 	"time"
+
+	"github.com/hashicorp/go-cleanhttp"
+	"go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp"
 )
 
 const (
 	defaultBaseURL = "https://registry.terraform.io"
 	defaultTimeout = 5 * time.Second
+	tracerName     = "github.com/hashicorp/terraform-ls/internal/registry"
 )
 
 type Client struct {
 	BaseURL          string
 	Timeout          time.Duration
 	ProviderPageSize int
+	httpClient       *http.Client
 }
 
 func NewClient() Client {
+	client := cleanhttp.DefaultClient()
+	client.Timeout = defaultTimeout
+	client.Transport = otelhttp.NewTransport(client.Transport)
+
 	return Client{
 		BaseURL:          defaultBaseURL,
 		Timeout:          defaultTimeout,
 		ProviderPageSize: 100,
+		httpClient:       client,
 	}
 }
diff --git a/internal/scheduler/scheduler.go b/internal/scheduler/scheduler.go
index 1f12753b..99bcd66a 100644
--- a/internal/scheduler/scheduler.go
+++ b/internal/scheduler/scheduler.go
@@ -10,8 +10,14 @@ import (
 	"log"
 
 	"github.com/hashicorp/terraform-ls/internal/job"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
 )
 
+const tracerName = "github.com/hashicorp/terraform-ls/internal/scheduler"
+
 type Scheduler struct {
 	logger      *log.Logger
 	jobStorage  JobStorage
@@ -22,7 +28,7 @@ type Scheduler struct {
 
 type JobStorage interface {
 	job.JobStore
-	AwaitNextJob(ctx context.Context, priority job.JobPriority) (job.ID, job.Job, error)
+	AwaitNextJob(ctx context.Context, priority job.JobPriority) (context.Context, job.ID, job.Job, error)
 	FinishJob(id job.ID, jobErr error, deferredJobIds ...job.ID) error
 }
 
@@ -59,7 +65,7 @@ func (s *Scheduler) Stop() {
 
 func (s *Scheduler) eval(ctx context.Context) {
 	for {
-		id, nextJob, err := s.jobStorage.AwaitNextJob(ctx, s.priority)
+		ctx, id, nextJob, err := s.jobStorage.AwaitNextJob(ctx, s.priority)
 		if err != nil {
 			if errors.Is(err, context.Canceled) {
 				return
@@ -69,9 +75,39 @@ func (s *Scheduler) eval(ctx context.Context) {
 		}
 
 		ctx = job.WithIgnoreState(ctx, nextJob.IgnoreState)
+		jobSpan := trace.SpanFromContext(ctx)
+
+		ctx, span := otel.Tracer(tracerName).Start(ctx, "job-eval:"+nextJob.Type,
+			trace.WithAttributes(attribute.KeyValue{
+				Key:   attribute.Key("JobID"),
+				Value: attribute.StringValue(id.String()),
+			}, attribute.KeyValue{
+				Key:   attribute.Key("JobType"),
+				Value: attribute.StringValue(nextJob.Type),
+			}, attribute.KeyValue{
+				Key:   attribute.Key("Priority"),
+				Value: attribute.IntValue(int(nextJob.Priority)),
+			}, attribute.KeyValue{
+				Key:   attribute.Key("URI"),
+				Value: attribute.StringValue(nextJob.Dir.URI),
+			}))
 
 		jobErr := nextJob.Func(ctx)
 
+		if jobErr != nil {
+			if errors.Is(jobErr, job.StateNotChangedErr{Dir: nextJob.Dir}) {
+				span.SetStatus(codes.Ok, "state not changed")
+			} else {
+				span.RecordError(jobErr)
+				span.SetStatus(codes.Error, "job failed")
+			}
+		} else {
+			span.SetStatus(codes.Ok, "job finished")
+		}
+		span.End()
+		jobSpan.SetStatus(codes.Ok, "ok")
+		jobSpan.End()
+
 		deferredJobIds := make(job.IDs, 0)
 		if nextJob.Defer != nil {
 			deferredJobIds, err = nextJob.Defer(ctx, jobErr)
diff --git a/internal/scheduler/scheduler_test.go b/internal/scheduler/scheduler_test.go
index db8c53f9..8af19981 100644
--- a/internal/scheduler/scheduler_test.go
+++ b/internal/scheduler/scheduler_test.go
@@ -39,7 +39,7 @@ func TestScheduler_withIgnoreExistingState(t *testing.T) {
 	})
 
 	var stateIgnored int64 = 0
-	firstJobId, err := ss.JobStore.EnqueueJob(job.Job{
+	firstJobId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			if job.IgnoreState(ctx) {
 				atomic.AddInt64(&stateIgnored, 1)
@@ -55,7 +55,7 @@ func TestScheduler_withIgnoreExistingState(t *testing.T) {
 	}
 
 	var stateNotIgnored int64 = 0
-	secondJobId, err := ss.JobStore.EnqueueJob(job.Job{
+	secondJobId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			if !job.IgnoreState(ctx) {
 				atomic.AddInt64(&stateNotIgnored, 1)
@@ -108,7 +108,7 @@ func TestScheduler_closedOnly(t *testing.T) {
 		i := i
 		dirPath := filepath.Join(tmpDir, fmt.Sprintf("folder-%d", i))
 
-		newId, err := ss.JobStore.EnqueueJob(job.Job{
+		newId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 			Func: func(c context.Context) error {
 				atomic.AddInt64(&jobsExecuted, 1)
 				return nil
@@ -153,7 +153,8 @@ func TestScheduler_closedAndOpen(t *testing.T) {
 			i := i
 			dirPath := filepath.Join(tmpDir, fmt.Sprintf("folder-x-%d", i))
 
-			newId, err := ss.JobStore.EnqueueJob(job.Job{
+			ctx := context.Background()
+			newId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 				Func: func(c context.Context) error {
 					atomic.AddInt64(&closedJobsExecuted, 1)
 					return nil
@@ -178,7 +179,8 @@ func TestScheduler_closedAndOpen(t *testing.T) {
 			i := i
 			dirPath := filepath.Join(tmpDir, fmt.Sprintf("folder-y-%d", i))
 
-			newId, err := ss.JobStore.EnqueueJob(job.Job{
+			ctx := context.Background()
+			newId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 				Func: func(c context.Context) error {
 					atomic.AddInt64(&openJobsExecuted, 1)
 					return nil
@@ -274,7 +276,7 @@ func BenchmarkScheduler_EnqueueAndWaitForJob_closedOnly(b *testing.B) {
 		i := i
 		dirPath := filepath.Join(tmpDir, fmt.Sprintf("folder-%d", i))
 
-		newId, err := ss.JobStore.EnqueueJob(job.Job{
+		newId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 			Func: func(c context.Context) error {
 				return nil
 			},
@@ -319,7 +321,7 @@ func TestScheduler_defer(t *testing.T) {
 		i := i
 		dirPath := filepath.Join(tmpDir, fmt.Sprintf("folder-%d", i))
 
-		newId, err := ss.JobStore.EnqueueJob(job.Job{
+		newId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 			Func: func(c context.Context) error {
 				atomic.AddInt64(&jobsExecuted, 1)
 				return nil
@@ -330,7 +332,7 @@ func TestScheduler_defer(t *testing.T) {
 				ids := make(job.IDs, 0)
 				je := ss.JobStore
 
-				id1, err := je.EnqueueJob(job.Job{
+				id1, err := je.EnqueueJob(ctx, job.Job{
 					Dir:  document.DirHandleFromPath(dirPath),
 					Type: "test-1",
 					Func: func(c context.Context) error {
@@ -344,7 +346,7 @@ func TestScheduler_defer(t *testing.T) {
 				}
 				ids = append(ids, id1)
 
-				id2, err := je.EnqueueJob(job.Job{
+				id2, err := je.EnqueueJob(ctx, job.Job{
 					Dir:  document.DirHandleFromPath(dirPath),
 					Type: "test-2",
 					Func: func(c context.Context) error {
@@ -405,7 +407,7 @@ func TestScheduler_dependsOn(t *testing.T) {
 
 	dirPath := filepath.Join(tmpDir, "test-folder")
 
-	id0, err := ss.JobStore.EnqueueJob(job.Job{
+	id0, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(c context.Context) error {
 			time.Sleep(20 * time.Millisecond)
 			executedJobs = append(executedJobs, "test-0")
@@ -419,7 +421,7 @@ func TestScheduler_dependsOn(t *testing.T) {
 	}
 	ids = append(ids, id0)
 
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Dir:  document.DirHandleFromPath(dirPath),
 		Type: "test-1",
 		Func: func(c context.Context) error {
@@ -434,7 +436,7 @@ func TestScheduler_dependsOn(t *testing.T) {
 	}
 	ids = append(ids, id1)
 
-	id2, err := ss.JobStore.EnqueueJob(job.Job{
+	id2, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Dir:  document.DirHandleFromPath(dirPath),
 		Type: "test-2",
 		Func: func(c context.Context) error {
diff --git a/internal/state/jobs.go b/internal/state/jobs.go
index 655d6245..3e3a5c1b 100644
--- a/internal/state/jobs.go
+++ b/internal/state/jobs.go
@@ -10,10 +10,15 @@ import (
 	"log"
 	"sync"
 	"sync/atomic"
+	"time"
 
 	"github.com/hashicorp/go-memdb"
 	"github.com/hashicorp/terraform-ls/internal/document"
 	"github.com/hashicorp/terraform-ls/internal/job"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type JobStore struct {
@@ -38,9 +43,20 @@ type ScheduledJob struct {
 	// DeferredJobIDs contains IDs of any deferred jobs
 	// set when job finishes (State = StateDone)
 	DeferredJobIDs job.IDs
+
+	// EnqueueTime tracks time when the job was originally put into the queue
+	EnqueueTime time.Time
+	// TraceSpan represents a tracing span for the entire job lifecycle
+	// (from queuing to finishing execution).
+	TraceSpan trace.Span
 }
 
 func (sj *ScheduledJob) Copy() *ScheduledJob {
+	// This may be an awkward way to copy the Span
+	// but the upstream doesn't seem to offer any better way.
+	newCtx := trace.ContextWithSpan(context.Background(), sj.TraceSpan)
+	traceSpan := trace.SpanFromContext(newCtx)
+
 	return &ScheduledJob{
 		ID:             sj.ID,
 		Job:            sj.Job.Copy(),
@@ -48,6 +64,8 @@ func (sj *ScheduledJob) Copy() *ScheduledJob {
 		State:          sj.State,
 		JobErr:         sj.JobErr,
 		DeferredJobIDs: sj.DeferredJobIDs.Copy(),
+		EnqueueTime:    sj.EnqueueTime,
+		TraceSpan:      traceSpan,
 	}
 }
 
@@ -60,7 +78,7 @@ const (
 	StateDone
 )
 
-func (js *JobStore) EnqueueJob(newJob job.Job) (job.ID, error) {
+func (js *JobStore) EnqueueJob(ctx context.Context, newJob job.Job) (job.ID, error) {
 	txn := js.db.Txn(true)
 	defer txn.Abort()
 
@@ -77,12 +95,36 @@ func (js *JobStore) EnqueueJob(newJob job.Job) (job.ID, error) {
 		}
 	}
 	newJob.DependsOn = dependsOn
+	dirOpen := isDirOpen(txn, newJob.Dir)
+
+	_, jobSpan := otel.Tracer(tracerName).Start(ctx, "job",
+		trace.WithAttributes(attribute.KeyValue{
+			Key:   attribute.Key("JobID"),
+			Value: attribute.StringValue(newJobID.String()),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("JobType"),
+			Value: attribute.StringValue(newJob.Type),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("IsDirOpen"),
+			Value: attribute.BoolValue(dirOpen),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("Priority"),
+			Value: attribute.IntValue(int(newJob.Priority)),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("URI"),
+			Value: attribute.StringValue(newJob.Dir.URI),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("DependsOn"),
+			Value: attribute.StringSliceValue(dependsOn.StringSlice()),
+		}))
 
 	sJob := &ScheduledJob{
-		ID:        newJobID,
-		Job:       newJob,
-		IsDirOpen: isDirOpen(txn, newJob.Dir),
-		State:     StateQueued,
+		ID:          newJobID,
+		Job:         newJob,
+		IsDirOpen:   dirOpen,
+		State:       StateQueued,
+		EnqueueTime: time.Now(),
+		TraceSpan:   jobSpan,
 	}
 
 	err := txn.Insert(js.tableName, sJob)
@@ -139,9 +181,12 @@ func (js *JobStore) DequeueJobsForDir(dir document.DirHandle) error {
 		if err != nil {
 			return err
 		}
+		sJob.TraceSpan.SetStatus(codes.Ok, "job dequeued")
+		sJob.TraceSpan.End()
 	}
 
 	txn.Commit()
+
 	return nil
 }
 
@@ -210,7 +255,7 @@ func (js *JobStore) jobExists(j job.Job, state State) (job.ID, bool, error) {
 	return "", false, nil
 }
 
-func (js *JobStore) AwaitNextJob(ctx context.Context, priority job.JobPriority) (job.ID, job.Job, error) {
+func (js *JobStore) AwaitNextJob(ctx context.Context, priority job.JobPriority) (context.Context, job.ID, job.Job, error) {
 	// Locking is needed if same query is executed in multiple threads,
 	// i.e. this method is called at the same time from different threads, at
 	// which point txn.FirstWatch would return the same job to more than
@@ -230,20 +275,20 @@ func (js *JobStore) AwaitNextJob(ctx context.Context, priority job.JobPriority)
 	return js.awaitNextJob(ctx, priority)
 }
 
-func (js *JobStore) awaitNextJob(ctx context.Context, priority job.JobPriority) (job.ID, job.Job, error) {
+func (js *JobStore) awaitNextJob(ctx context.Context, priority job.JobPriority) (context.Context, job.ID, job.Job, error) {
 	var sJob *ScheduledJob
 	for {
 		txn := js.db.Txn(false)
 		wCh, obj, err := txn.FirstWatch(js.tableName, "priority_dependecies_state", priority, 0, StateQueued)
 		if err != nil {
-			return "", job.Job{}, err
+			return ctx, "", job.Job{}, err
 		}
 
 		if obj == nil {
 			select {
 			case <-wCh:
 			case <-ctx.Done():
-				return "", job.Job{}, ctx.Err()
+				return ctx, "", job.Job{}, ctx.Err()
 			}
 
 			js.logger.Printf("retrying on obj is nil")
@@ -263,14 +308,38 @@ func (js *JobStore) awaitNextJob(ctx context.Context, priority job.JobPriority)
 				js.logger.Printf("retrying next job: %s", err)
 				continue
 			}
-			return "", job.Job{}, err
+			return ctx, "", job.Job{}, err
 		}
 		break
 	}
 
 	js.logger.Printf("JOBS: Dispatching next job %q (scheduler prio: %d, job prio: %d, isDirOpen: %t): %q for %q",
 		sJob.ID, priority, sJob.Priority, sJob.IsDirOpen, sJob.Type, sJob.Dir)
-	return sJob.ID, sJob.Job, nil
+
+	ctx = trace.ContextWithSpan(ctx, sJob.TraceSpan)
+
+	_, span := otel.Tracer(tracerName).Start(ctx, "job-wait",
+		trace.WithTimestamp(sJob.EnqueueTime),
+		trace.WithAttributes(attribute.KeyValue{
+			Key:   attribute.Key("JobID"),
+			Value: attribute.StringValue(sJob.ID.String()),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("JobType"),
+			Value: attribute.StringValue(sJob.Type),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("IsDirOpen"),
+			Value: attribute.BoolValue(sJob.IsDirOpen),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("Priority"),
+			Value: attribute.IntValue(int(sJob.Priority)),
+		}, attribute.KeyValue{
+			Key:   attribute.Key("URI"),
+			Value: attribute.StringValue(sJob.Dir.URI),
+		}),
+	)
+	span.End()
+
+	return ctx, sJob.ID, sJob.Job, nil
 }
 
 func isDirOpen(txn *memdb.Txn, dirHandle document.DirHandle) bool {
diff --git a/internal/state/jobs_test.go b/internal/state/jobs_test.go
index a91059a2..2eb536f8 100644
--- a/internal/state/jobs_test.go
+++ b/internal/state/jobs_test.go
@@ -26,7 +26,8 @@ func TestJobStore_EnqueueJob(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	ctx := context.Background()
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -36,7 +37,7 @@ func TestJobStore_EnqueueJob(t *testing.T) {
 	if err != nil {
 		t.Fatal(err)
 	}
-	id2, err := ss.JobStore.EnqueueJob(job.Job{
+	id2, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -79,7 +80,8 @@ func TestJobStore_EnqueueJob_openDir(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	id, err := ss.JobStore.EnqueueJob(job.Job{
+	ctx := context.Background()
+	id, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -91,10 +93,9 @@ func TestJobStore_EnqueueJob_openDir(t *testing.T) {
 	}
 
 	// verify that job for open dir comes is treated as high priority
-	ctx := context.Background()
 	ctx, cancelFunc := context.WithTimeout(ctx, 250*time.Millisecond)
 	t.Cleanup(cancelFunc)
-	nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	ctx, nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -119,12 +120,13 @@ func BenchmarkJobStore_EnqueueJob_basic(b *testing.B) {
 	}
 
 	tmpDir := b.TempDir()
+	ctx := context.Background()
 
 	for i := 0; i < b.N; i++ {
 		i := i
 		dirPath := filepath.Join(tmpDir, fmt.Sprintf("folder-%d", i))
 
-		_, err := ss.JobStore.EnqueueJob(job.Job{
+		_, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 			Func: func(c context.Context) error {
 				return nil
 			},
@@ -156,12 +158,13 @@ func TestJobStore_EnqueueJob_verify(t *testing.T) {
 	tmpDir := t.TempDir()
 
 	jobCount := 50
+	ctx := context.Background()
 
 	for i := 0; i < jobCount; i++ {
 		i := i
 		dirPath := filepath.Join(tmpDir, fmt.Sprintf("folder-%d", i))
 
-		_, err := ss.JobStore.EnqueueJob(job.Job{
+		_, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 			Func: func(c context.Context) error {
 				return nil
 			},
@@ -213,8 +216,9 @@ func TestJobStore_DequeueJobsForDir(t *testing.T) {
 		t.Fatal(err)
 	}
 
+	ctx := context.Background()
 	firstDir := document.DirHandleFromPath("/test-1")
-	_, err = ss.JobStore.EnqueueJob(job.Job{
+	_, err = ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -224,7 +228,7 @@ func TestJobStore_DequeueJobsForDir(t *testing.T) {
 	if err != nil {
 		t.Fatal(err)
 	}
-	id2, err := ss.JobStore.EnqueueJob(job.Job{
+	id2, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -256,8 +260,9 @@ func TestJobStore_AwaitNextJob_closedOnly(t *testing.T) {
 		t.Fatal(err)
 	}
 
+	ctx := context.Background()
 	firstDir := document.DirHandleFromPath("/test-1")
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -269,7 +274,7 @@ func TestJobStore_AwaitNextJob_closedOnly(t *testing.T) {
 	}
 
 	secondDir := document.DirHandleFromPath("/test-2")
-	_, err = ss.JobStore.EnqueueJob(job.Job{
+	_, err = ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -285,8 +290,7 @@ func TestJobStore_AwaitNextJob_closedOnly(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
-	nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.LowPriority)
+	ctx, nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.LowPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -305,7 +309,7 @@ func TestJobStore_AwaitNextJob_closedOnly(t *testing.T) {
 
 	ctx, cancelFunc := context.WithTimeout(ctx, 250*time.Millisecond)
 	t.Cleanup(cancelFunc)
-	nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.LowPriority)
+	ctx, nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.LowPriority)
 	if err != nil {
 		if !errors.Is(err, context.DeadlineExceeded) {
 			t.Fatalf("%#v", err)
@@ -319,8 +323,9 @@ func TestJobStore_AwaitNextJob_openOnly(t *testing.T) {
 		t.Fatal(err)
 	}
 
+	ctx := context.Background()
 	firstDir := document.DirHandleFromPath("/test-1")
-	_, err = ss.JobStore.EnqueueJob(job.Job{
+	_, err = ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -332,7 +337,7 @@ func TestJobStore_AwaitNextJob_openOnly(t *testing.T) {
 	}
 
 	secondDir := document.DirHandleFromPath("/test-2")
-	id2, err := ss.JobStore.EnqueueJob(job.Job{
+	id2, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -348,8 +353,7 @@ func TestJobStore_AwaitNextJob_openOnly(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
-	nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	ctx, nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -368,7 +372,7 @@ func TestJobStore_AwaitNextJob_openOnly(t *testing.T) {
 
 	ctx, cancelFunc := context.WithTimeout(ctx, 250*time.Millisecond)
 	t.Cleanup(cancelFunc)
-	nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	ctx, nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		if !errors.Is(err, context.DeadlineExceeded) {
 			t.Fatalf("%#v", err)
@@ -382,8 +386,9 @@ func TestJobStore_AwaitNextJob_highPriority(t *testing.T) {
 		t.Fatal(err)
 	}
 
+	ctx := context.Background()
 	firstDir := document.DirHandleFromPath("/test-1")
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -396,7 +401,7 @@ func TestJobStore_AwaitNextJob_highPriority(t *testing.T) {
 	}
 
 	secondDir := document.DirHandleFromPath("/test-2")
-	id2, err := ss.JobStore.EnqueueJob(job.Job{
+	id2, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -412,8 +417,7 @@ func TestJobStore_AwaitNextJob_highPriority(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
-	nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	ctx, nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -430,7 +434,7 @@ func TestJobStore_AwaitNextJob_highPriority(t *testing.T) {
 		t.Fatalf("expected next job dir %q, given: %q", "test-type", j.Type)
 	}
 
-	nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	ctx, nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -449,7 +453,7 @@ func TestJobStore_AwaitNextJob_highPriority(t *testing.T) {
 
 	ctx, cancelFunc := context.WithTimeout(ctx, 250*time.Millisecond)
 	t.Cleanup(cancelFunc)
-	nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	ctx, nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		if !errors.Is(err, context.DeadlineExceeded) {
 			t.Fatalf("%#v", err)
@@ -463,8 +467,9 @@ func TestJobStore_AwaitNextJob_lowPriority(t *testing.T) {
 		t.Fatal(err)
 	}
 
+	ctx := context.Background()
 	firstDir := document.DirHandleFromPath("/test-1")
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -476,7 +481,7 @@ func TestJobStore_AwaitNextJob_lowPriority(t *testing.T) {
 	}
 
 	secondDir := document.DirHandleFromPath("/test-2")
-	id2, err := ss.JobStore.EnqueueJob(job.Job{
+	id2, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -497,7 +502,7 @@ func TestJobStore_AwaitNextJob_lowPriority(t *testing.T) {
 
 	ctx, cancelFunc := context.WithTimeout(baseCtx, 250*time.Millisecond)
 	t.Cleanup(cancelFunc)
-	_, _, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	_, _, _, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		if !errors.Is(err, context.DeadlineExceeded) {
 			t.Fatalf("%#v", err)
@@ -506,7 +511,7 @@ func TestJobStore_AwaitNextJob_lowPriority(t *testing.T) {
 		t.Fatal("expected error")
 	}
 
-	nextId, j, err := ss.JobStore.AwaitNextJob(baseCtx, job.LowPriority)
+	_, nextId, j, err := ss.JobStore.AwaitNextJob(baseCtx, job.LowPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -523,7 +528,7 @@ func TestJobStore_AwaitNextJob_lowPriority(t *testing.T) {
 		t.Fatalf("expected next job dir %q, given: %q", "test-type", j.Type)
 	}
 
-	nextId, j, err = ss.JobStore.AwaitNextJob(baseCtx, job.LowPriority)
+	_, nextId, j, err = ss.JobStore.AwaitNextJob(baseCtx, job.LowPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -542,7 +547,7 @@ func TestJobStore_AwaitNextJob_lowPriority(t *testing.T) {
 
 	ctx, cancelFunc = context.WithTimeout(baseCtx, 250*time.Millisecond)
 	t.Cleanup(cancelFunc)
-	nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
+	_, nextId, j, err = ss.JobStore.AwaitNextJob(ctx, job.HighPriority)
 	if err != nil {
 		if !errors.Is(err, context.DeadlineExceeded) {
 			t.Fatalf("%#v", err)
@@ -558,7 +563,8 @@ func TestJobStore_WaitForJobs(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	ctx := context.Background()
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -576,7 +582,6 @@ func TestJobStore_WaitForJobs(t *testing.T) {
 		}
 	}(ss.JobStore)
 
-	ctx := context.Background()
 	err = ss.JobStore.WaitForJobs(ctx, id1)
 	if err != nil {
 		t.Fatal(err)
@@ -599,7 +604,8 @@ func TestJobStore_FinishJob_basic(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	ctx := context.Background()
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -609,7 +615,7 @@ func TestJobStore_FinishJob_basic(t *testing.T) {
 	if err != nil {
 		t.Fatal(err)
 	}
-	id2, err := ss.JobStore.EnqueueJob(job.Job{
+	id2, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -645,7 +651,7 @@ func TestJobStore_FinishJob_defer(t *testing.T) {
 		ids := make(job.IDs, 0)
 		jobStore := ss.JobStore
 
-		id, err := jobStore.EnqueueJob(job.Job{
+		id, err := jobStore.EnqueueJob(ctx, job.Job{
 			Func: func(ctx context.Context) error {
 				return nil
 			},
@@ -659,7 +665,8 @@ func TestJobStore_FinishJob_defer(t *testing.T) {
 		return ids, err
 	}
 
-	id1, err := ss.JobStore.EnqueueJob(job.Job{
+	ctx := context.Background()
+	id1, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -671,7 +678,6 @@ func TestJobStore_FinishJob_defer(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
 	// execute deferred func, which is what scheduler would do
 	deferredIds, err := defer1Func(ctx, nil)
 	if err != nil {
@@ -712,7 +718,8 @@ func TestJobStore_FinishJob_dependsOn(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	parentId, err := ss.JobStore.EnqueueJob(job.Job{
+	ctx := context.Background()
+	parentId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -723,7 +730,7 @@ func TestJobStore_FinishJob_dependsOn(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	childId, err := ss.JobStore.EnqueueJob(job.Job{
+	childId, err := ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -760,7 +767,7 @@ func TestJobStore_FinishJob_dependsOn(t *testing.T) {
 
 	ctx, cancelFunc := context.WithTimeout(context.Background(), 1*time.Second)
 	t.Cleanup(cancelFunc)
-	nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.LowPriority)
+	_, nextId, j, err := ss.JobStore.AwaitNextJob(ctx, job.LowPriority)
 	if err != nil {
 		t.Fatal(err)
 	}
diff --git a/internal/state/module_changes_test.go b/internal/state/module_changes_test.go
index 3f71a3d0..76eeec32 100644
--- a/internal/state/module_changes_test.go
+++ b/internal/state/module_changes_test.go
@@ -95,7 +95,8 @@ func TestModuleChanges_AwaitNextChangeBatch_maxTimespan(t *testing.T) {
 	modPath := t.TempDir()
 	modHandle := document.DirHandleFromPath(modPath)
 
-	_, err = ss.JobStore.EnqueueJob(job.Job{
+	ctx := context.Background()
+	_, err = ss.JobStore.EnqueueJob(ctx, job.Job{
 		Func: func(ctx context.Context) error {
 			return nil
 		},
@@ -113,7 +114,7 @@ func TestModuleChanges_AwaitNextChangeBatch_maxTimespan(t *testing.T) {
 
 	// confirm the method gets cancelled with pending job
 	// and less than maximum timespan to wait
-	ctx, cancelFunc := context.WithTimeout(context.Background(), 100*time.Millisecond)
+	ctx, cancelFunc := context.WithTimeout(ctx, 100*time.Millisecond)
 	defer cancelFunc()
 
 	_, err = ss.Modules.AwaitNextChangeBatch(ctx)
diff --git a/internal/state/state.go b/internal/state/state.go
index 4f6a5a8d..ac45f5e3 100644
--- a/internal/state/state.go
+++ b/internal/state/state.go
@@ -27,6 +27,8 @@ const (
 	providerIdsTableName    = "provider_ids"
 	walkerPathsTableName    = "walker_paths"
 	registryModuleTableName = "registry_module"
+
+	tracerName = "github.com/hashicorp/terraform-ls/internal/state"
 )
 
 var dbSchema = &memdb.DBSchema{
diff --git a/internal/state/walker_paths.go b/internal/state/walker_paths.go
index 46f0c76c..5dd4f782 100644
--- a/internal/state/walker_paths.go
+++ b/internal/state/walker_paths.go
@@ -12,6 +12,7 @@ import (
 
 	"github.com/hashicorp/go-memdb"
 	"github.com/hashicorp/terraform-ls/internal/document"
+	"go.opentelemetry.io/otel/trace"
 )
 
 type WalkerPathStore struct {
@@ -24,9 +25,13 @@ type WalkerPathStore struct {
 }
 
 type WalkerPath struct {
-	Dir       document.DirHandle
-	IsDirOpen bool
-	State     PathState
+	Dir            document.DirHandle
+	IsDirOpen      bool
+	State          PathState
+	EnqueueContext trace.SpanContext
+}
+
+type PathContext struct {
 }
 
 //go:generate go run golang.org/x/tools/cmd/stringer -type=PathState -output=path_state_string.go
@@ -38,9 +43,15 @@ const (
 )
 
 func (wp *WalkerPath) Copy() *WalkerPath {
+	// This may be an awkward way to copy the SpanContext
+	// but the upstream doesn't seem to offer any better way.
+	newCtx := trace.ContextWithSpanContext(context.Background(), wp.EnqueueContext)
+	spanContext := trace.SpanContextFromContext(newCtx)
+
 	return &WalkerPath{
-		Dir:       wp.Dir,
-		IsDirOpen: wp.IsDirOpen,
+		Dir:            wp.Dir,
+		IsDirOpen:      wp.IsDirOpen,
+		EnqueueContext: spanContext,
 	}
 }
 
@@ -49,12 +60,12 @@ type PathAwaiter struct {
 	openDir bool
 }
 
-func (pa *PathAwaiter) AwaitNextDir(ctx context.Context) (document.DirHandle, error) {
+func (pa *PathAwaiter) AwaitNextDir(ctx context.Context) (context.Context, document.DirHandle, error) {
 	wp, err := pa.wps.AwaitNextDir(ctx, pa.openDir)
 	if err != nil {
-		return document.DirHandle{}, err
+		return ctx, document.DirHandle{}, err
 	}
-	return wp.Dir, nil
+	return trace.ContextWithSpanContext(ctx, wp.EnqueueContext), wp.Dir, nil
 }
 
 func (pa *PathAwaiter) RemoveDir(dir document.DirHandle) error {
@@ -68,7 +79,7 @@ func NewPathAwaiter(wps *WalkerPathStore, openDir bool) *PathAwaiter {
 	}
 }
 
-func (wps *WalkerPathStore) EnqueueDir(dir document.DirHandle) error {
+func (wps *WalkerPathStore) EnqueueDir(ctx context.Context, dir document.DirHandle) error {
 	txn := wps.db.Txn(true)
 	defer txn.Abort()
 
@@ -82,9 +93,10 @@ func (wps *WalkerPathStore) EnqueueDir(dir document.DirHandle) error {
 	}
 
 	err = txn.Insert(wps.tableName, &WalkerPath{
-		Dir:       dir,
-		IsDirOpen: false,
-		State:     PathStateQueued,
+		Dir:            dir,
+		IsDirOpen:      false,
+		State:          PathStateQueued,
+		EnqueueContext: trace.SpanContextFromContext(ctx),
 	})
 	if err != nil {
 		return err
diff --git a/internal/state/walker_paths_test.go b/internal/state/walker_paths_test.go
index 29a7ae48..b69934ab 100644
--- a/internal/state/walker_paths_test.go
+++ b/internal/state/walker_paths_test.go
@@ -21,12 +21,12 @@ func TestWalkerPathStore_EnqueueDir(t *testing.T) {
 	tmpDir := t.TempDir()
 	dirHandle := document.DirHandleFromPath(tmpDir)
 
-	err = ss.WalkerPaths.EnqueueDir(dirHandle)
+	ctx := context.Background()
+	err = ss.WalkerPaths.EnqueueDir(ctx, dirHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
 	wp, err := ss.WalkerPaths.AwaitNextDir(ctx, false)
 	if err != nil {
 		t.Fatal(err)
@@ -46,14 +46,15 @@ func TestWalkerPathStore_DequeueDir_queued(t *testing.T) {
 	}
 
 	tmpDir := t.TempDir()
+	ctx := context.Background()
 
 	alphaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "alpha"))
-	err = ss.WalkerPaths.EnqueueDir(alphaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, alphaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
 	betaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "beta"))
-	err = ss.WalkerPaths.EnqueueDir(betaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, betaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -63,7 +64,7 @@ func TestWalkerPathStore_DequeueDir_queued(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	ctx, cancelFunc := context.WithTimeout(context.Background(), 10*time.Millisecond)
+	ctx, cancelFunc := context.WithTimeout(ctx, 10*time.Millisecond)
 	defer cancelFunc()
 
 	wp, err := ss.WalkerPaths.AwaitNextDir(ctx, false)
@@ -95,14 +96,15 @@ func TestWalkerPathStore_DequeueDir_notQueued(t *testing.T) {
 	}
 
 	tmpDir := t.TempDir()
+	ctx := context.Background()
 
 	dirHandle := document.DirHandleFromPath(tmpDir)
-	err = ss.WalkerPaths.EnqueueDir(dirHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, dirHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
 
-	ctx, cancelFunc := context.WithTimeout(context.Background(), 10*time.Millisecond)
+	ctx, cancelFunc := context.WithTimeout(ctx, 10*time.Millisecond)
 	defer cancelFunc()
 
 	_, err = ss.WalkerPaths.AwaitNextDir(ctx, false)
@@ -123,14 +125,15 @@ func TestWalkerPathStore_RemoveDir(t *testing.T) {
 	}
 
 	tmpDir := t.TempDir()
+	ctx := context.Background()
 
 	alphaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "alpha"))
-	err = ss.WalkerPaths.EnqueueDir(alphaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, alphaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
 	betaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "beta"))
-	err = ss.WalkerPaths.EnqueueDir(betaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, betaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -140,8 +143,6 @@ func TestWalkerPathStore_RemoveDir(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
-
 	wp, err := ss.WalkerPaths.AwaitNextDir(ctx, false)
 	if err != nil {
 		t.Fatal(err)
@@ -179,9 +180,10 @@ func TestWalkerPathStore_AwaitNextDir_openOnly(t *testing.T) {
 	}
 
 	tmpDir := t.TempDir()
+	ctx := context.Background()
 
 	alphaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "alpha"))
-	err = ss.WalkerPaths.EnqueueDir(alphaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, alphaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -192,12 +194,11 @@ func TestWalkerPathStore_AwaitNextDir_openOnly(t *testing.T) {
 	}
 
 	betaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "beta"))
-	err = ss.WalkerPaths.EnqueueDir(betaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, betaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
 	wp, err := ss.WalkerPaths.AwaitNextDir(ctx, true)
 	if err != nil {
 		t.Fatal(err)
@@ -230,14 +231,15 @@ func TestWalkerPathStore_WaitForDirs(t *testing.T) {
 	}
 
 	tmpDir := t.TempDir()
+	ctx := context.Background()
 
 	alphaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "alpha"))
-	err = ss.WalkerPaths.EnqueueDir(alphaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, alphaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
 	betaHandle := document.DirHandleFromPath(filepath.Join(tmpDir, "beta"))
-	err = ss.WalkerPaths.EnqueueDir(betaHandle)
+	err = ss.WalkerPaths.EnqueueDir(ctx, betaHandle)
 	if err != nil {
 		t.Fatal(err)
 	}
diff --git a/internal/terraform/exec/exec.go b/internal/terraform/exec/exec.go
index cff7497f..1ce1151a 100644
--- a/internal/terraform/exec/exec.go
+++ b/internal/terraform/exec/exec.go
@@ -15,10 +15,16 @@ import (
 	"github.com/hashicorp/terraform-exec/tfexec"
 	tfjson "github.com/hashicorp/terraform-json"
 	"github.com/hashicorp/terraform-ls/internal/logging"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
 )
 
 var defaultExecTimeout = 30 * time.Second
 
+const tracerName = "github.com/hashicorp/terraform-ls/internal/terraform/exec"
+
 type ctxKey string
 
 type Executor struct {
@@ -71,6 +77,15 @@ func (e *Executor) contextfulError(ctx context.Context, method string, err error
 	return e.enrichCtxErr(method, err)
 }
 
+func (e *Executor) setSpanStatus(span trace.Span, err error) {
+	if err != nil {
+		span.RecordError(err)
+		span.SetStatus(codes.Error, "execution returned error")
+		return
+	}
+	span.SetStatus(codes.Ok, "execution successful")
+}
+
 func (e *Executor) enrichCtxErr(method string, err error) error {
 	if err == nil {
 		return nil
@@ -99,8 +114,13 @@ func (e *Executor) Init(ctx context.Context, opts ...tfexec.InitOption) error {
 	if err != nil {
 		return err
 	}
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "terraform-exec:Init")
+	defer span.End()
+
+	err = e.tf.Init(ctx, opts...)
+	e.setSpanStatus(span, err)
 
-	return e.contextfulError(ctx, "Init", e.tf.Init(ctx, opts...))
+	return e.contextfulError(ctx, "Init", err)
 }
 
 func (e *Executor) Get(ctx context.Context, opts ...tfexec.GetCmdOption) error {
@@ -110,8 +130,13 @@ func (e *Executor) Get(ctx context.Context, opts ...tfexec.GetCmdOption) error {
 	if err != nil {
 		return err
 	}
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "terraform-exec:Get")
+	defer span.End()
+
+	err = e.tf.Get(ctx, opts...)
+	e.setSpanStatus(span, err)
 
-	return e.contextfulError(ctx, "Get", e.tf.Get(ctx, opts...))
+	return e.contextfulError(ctx, "Get", err)
 }
 
 func (e *Executor) Format(ctx context.Context, input []byte) ([]byte, error) {
@@ -122,10 +147,18 @@ func (e *Executor) Format(ctx context.Context, input []byte) ([]byte, error) {
 		return nil, err
 	}
 
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "terraform-exec:Format",
+		trace.WithAttributes(attribute.KeyValue{
+			Key:   attribute.Key("stdinLength"),
+			Value: attribute.IntValue(len(input)),
+		}))
+	defer span.End()
+
 	br := bytes.NewReader(input)
 	buf := bytes.NewBuffer([]byte{})
 
 	err = e.tf.Format(ctx, br, buf)
+	e.setSpanStatus(span, err)
 
 	return buf.Bytes(), e.contextfulError(ctx, "Format", err)
 }
@@ -138,7 +171,11 @@ func (e *Executor) Validate(ctx context.Context) ([]tfjson.Diagnostic, error) {
 		return []tfjson.Diagnostic{}, err
 	}
 
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "terraform-exec:Validate")
+	defer span.End()
+
 	validation, err := e.tf.Validate(ctx)
+	e.setSpanStatus(span, err)
 	if err != nil {
 		return []tfjson.Diagnostic{}, e.contextfulError(ctx, "Validate", err)
 	}
@@ -154,7 +191,12 @@ func (e *Executor) Version(ctx context.Context) (*version.Version, map[string]*v
 		return nil, nil, err
 	}
 
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "terraform-exec:Version")
+	defer span.End()
+
 	ver, pv, err := e.tf.Version(ctx, true)
+	e.setSpanStatus(span, err)
+
 	return ver, pv, e.contextfulError(ctx, "Version", err)
 }
 
@@ -166,6 +208,11 @@ func (e *Executor) ProviderSchemas(ctx context.Context) (*tfjson.ProviderSchemas
 		return nil, err
 	}
 
+	ctx, span := otel.Tracer(tracerName).Start(ctx, "terraform-exec:ProviderSchemas")
+	defer span.End()
+
 	ps, err := e.tf.ProvidersSchema(ctx)
+	e.setSpanStatus(span, err)
+
 	return ps, e.contextfulError(ctx, "ProviderSchemas", err)
 }
diff --git a/internal/walker/walker.go b/internal/walker/walker.go
index 2e3e0bc6..dc3cfa3c 100644
--- a/internal/walker/walker.go
+++ b/internal/walker/walker.go
@@ -15,6 +15,10 @@ import (
 	"github.com/hashicorp/terraform-ls/internal/document"
 	"github.com/hashicorp/terraform-ls/internal/job"
 	"github.com/hashicorp/terraform-ls/internal/terraform/ast"
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
 )
 
 var (
@@ -54,7 +58,7 @@ type Walker struct {
 type WalkFunc func(ctx context.Context, modHandle document.DirHandle) (job.IDs, error)
 
 type PathStore interface {
-	AwaitNextDir(ctx context.Context) (document.DirHandle, error)
+	AwaitNextDir(ctx context.Context) (context.Context, document.DirHandle, error)
 	RemoveDir(dir document.DirHandle) error
 }
 
@@ -62,6 +66,8 @@ type ModuleStore interface {
 	AddIfNotExists(dir string) error
 }
 
+const tracerName = "github.com/hashicorp/terraform-ls/internal/walker"
+
 func NewWalker(fs fs.ReadDirFS, pathStore PathStore, modStore ModuleStore, walkFunc WalkFunc) *Walker {
 	return &Walker{
 		fs:                    fs,
@@ -105,7 +111,7 @@ func (w *Walker) StartWalking(ctx context.Context) error {
 
 	go func() {
 		for {
-			nextDir, err := w.pathStore.AwaitNextDir(ctx)
+			pathCtx, nextDir, err := w.pathStore.AwaitNextDir(ctx)
 			if err != nil {
 				if errors.Is(err, context.Canceled) {
 					return
@@ -115,19 +121,38 @@ func (w *Walker) StartWalking(ctx context.Context) error {
 				return
 			}
 
+			spanCtx := trace.SpanContextFromContext(pathCtx)
+
+			ctx = trace.ContextWithSpanContext(ctx, spanCtx)
+
+			tracer := otel.Tracer(tracerName)
+			ctx, span := tracer.Start(ctx, "walk-path", trace.WithAttributes(attribute.KeyValue{
+				Key:   attribute.Key("URI"),
+				Value: attribute.StringValue(nextDir.URI),
+			}))
+
 			err = w.walk(ctx, nextDir)
 			if err != nil {
 				w.logger.Printf("walker: walking through %q failed: %s", nextDir, err)
 				w.collectError(err)
+				span.RecordError(err)
+				span.SetStatus(codes.Error, "walking failed")
+				span.End()
 				continue
 			}
+			span.SetStatus(codes.Ok, "walking finished")
+			span.End()
 
 			err = w.pathStore.RemoveDir(nextDir)
 			if err != nil {
 				w.logger.Printf("walker: removing dir %q from queue failed: %s", nextDir, err)
 				w.collectError(err)
+				span.RecordError(err)
+				span.SetStatus(codes.Error, "walking failed")
+				span.End()
 				continue
 			}
+
 			w.logger.Printf("walker: walking through %q finished", nextDir)
 
 			select {
diff --git a/internal/walker/walker_test.go b/internal/walker/walker_test.go
index 2e88c88d..f6d9b245 100644
--- a/internal/walker/walker_test.go
+++ b/internal/walker/walker_test.go
@@ -49,12 +49,12 @@ func TestWalker_basic(t *testing.T) {
 	}
 	dir := document.DirHandleFromPath(root)
 
-	err = ss.WalkerPaths.EnqueueDir(dir)
+	ctx := context.Background()
+	err = ss.WalkerPaths.EnqueueDir(ctx, dir)
 	if err != nil {
 		t.Fatal(err)
 	}
 
-	ctx := context.Background()
 	err = w.StartWalking(ctx)
 	if err != nil {
 		t.Fatal(err)
@@ -395,7 +395,7 @@ func TestWalker_complexModules(t *testing.T) {
 			w.Collector = NewWalkerCollector()
 			w.SetLogger(testLogger())
 			dir := document.DirHandleFromPath(tc.root)
-			err = ss.WalkerPaths.EnqueueDir(dir)
+			err = ss.WalkerPaths.EnqueueDir(ctx, dir)
 			if err != nil {
 				t.Fatal(err)
 			}