diff --git a/exporter/datadogexporter/translate_traces.go b/exporter/datadogexporter/translate_traces.go
index 2ca687049334..5b0e76940d05 100644
--- a/exporter/datadogexporter/translate_traces.go
+++ b/exporter/datadogexporter/translate_traces.go
@@ -203,6 +203,11 @@ func spanToDatadogSpan(s pdata.Span,
 		}
 	}
 
+	// peer.service should always be prioritized for service names when set because it is what the user decided.
+	if peerService, ok := tags[conventions.AttributePeerService]; ok {
+		serviceName = peerService
+	}
+
 	normalizedServiceName := utils.NormalizeServiceName(serviceName)
 
 	//  canonical resource attribute version should override others if it exists
diff --git a/exporter/datadogexporter/translate_traces_test.go b/exporter/datadogexporter/translate_traces_test.go
index 3f2de77794ff..8432221357d7 100644
--- a/exporter/datadogexporter/translate_traces_test.go
+++ b/exporter/datadogexporter/translate_traces_test.go
@@ -645,6 +645,80 @@ func TestTracesTranslationInvalidService(t *testing.T) {
 	assert.Equal(t, "alt-service", datadogPayloadStartWithInvalidService.Traces[0].Spans[0].Service)
 }
 
+// ensure that the datadog span uses the peer.name instead service.name when provided
+func TestTracesTranslationServicePeerName(t *testing.T) {
+	hostname := "testhostname"
+	calculator := newSublayerCalculator()
+
+	// generate mock trace, span and parent span ids
+	mockTraceID := [16]byte{0x00, 0x01, 0x02, 0x03, 0x04, 0x05, 0x06, 0x07, 0x08, 0x09, 0x0A, 0x0B, 0x0C, 0x0D, 0x0E, 0x0F}
+	mockSpanID := [8]byte{0xF1, 0xF2, 0xF3, 0xF4, 0xF5, 0xF6, 0xF7, 0xF8}
+	mockParentSpanID := [8]byte{0xEF, 0xEE, 0xED, 0xEC, 0xEB, 0xEA, 0xE9, 0xE8}
+	mockEndTime := time.Now().Round(time.Second)
+
+	// create mock resource span data
+	// set shouldError and resourceServiceandEnv to false to test defaut behavior
+	rs := NewResourceSpansData(mockTraceID, mockSpanID, mockParentSpanID, pdata.StatusCodeUnset, false, mockEndTime)
+
+	span := rs.InstrumentationLibrarySpans().At(0).Spans().At(0)
+	span.Attributes().InsertString(conventions.AttributePeerService, "my_peer_service_name")
+
+	// translate mocks to datadog traces
+	datadogPayload := resourceSpansToDatadogSpans(rs, calculator, hostname, &config.Config{})
+	// ensure we return the correct type
+	assert.IsType(t, pb.TracePayload{}, datadogPayload)
+
+	// ensure hostname arg is respected
+	assert.Equal(t, hostname, datadogPayload.HostName)
+	assert.Equal(t, 1, len(datadogPayload.Traces))
+
+	// ensure trace id gets translated to uint64 correctly
+	assert.Equal(t, decodeAPMTraceID(mockTraceID), datadogPayload.Traces[0].TraceID)
+
+	// ensure the correct number of spans are expected
+	assert.Equal(t, 1, len(datadogPayload.Traces[0].Spans))
+
+	// ensure span's trace id matches payload trace id
+	assert.Equal(t, datadogPayload.Traces[0].TraceID, datadogPayload.Traces[0].Spans[0].TraceID)
+
+	// ensure span's spanId and parentSpanId are set correctly
+	assert.Equal(t, decodeAPMSpanID(mockSpanID), datadogPayload.Traces[0].Spans[0].SpanID)
+	assert.Equal(t, decodeAPMSpanID(mockParentSpanID), datadogPayload.Traces[0].Spans[0].ParentID)
+
+	// ensure that span.resource defaults to otlp span.name
+	assert.Equal(t, "End-To-End Here", datadogPayload.Traces[0].Spans[0].Resource)
+
+	// ensure that span.name defaults to string representing instrumentation library if present
+	assert.Equal(t, strings.ToLower(fmt.Sprintf("%s.%s", datadogPayload.Traces[0].Spans[0].Meta[conventions.InstrumentationLibraryName], strings.TrimPrefix(pdata.SpanKindSERVER.String(), "SPAN_KIND_"))), datadogPayload.Traces[0].Spans[0].Name)
+
+	// ensure that span.type is based on otlp span.kind
+	assert.Equal(t, "web", datadogPayload.Traces[0].Spans[0].Type)
+
+	// ensure that span.meta and span.metrics pick up attibutes, instrumentation ibrary and resource attribs
+	assert.Equal(t, 11, len(datadogPayload.Traces[0].Spans[0].Meta))
+	assert.Equal(t, 1, len(datadogPayload.Traces[0].Spans[0].Metrics))
+
+	// ensure that span error is based on otlp span status
+	assert.Equal(t, int32(0), datadogPayload.Traces[0].Spans[0].Error)
+
+	// ensure that span meta also inccludes correctly sets resource attributes
+	assert.Equal(t, "kube-system", datadogPayload.Traces[0].Spans[0].Meta["namespace"])
+
+	// ensure that span service name gives resource service.name priority
+	assert.Equal(t, "my_peer_service_name", datadogPayload.Traces[0].Spans[0].Service)
+
+	// ensure a duration and start time are calculated
+	assert.NotNil(t, datadogPayload.Traces[0].Spans[0].Start)
+	assert.NotNil(t, datadogPayload.Traces[0].Spans[0].Duration)
+
+	pdataMockEndTime := pdata.TimestampFromTime(mockEndTime)
+	pdataMockStartTime := pdata.TimestampFromTime(mockEndTime.Add(-90 * time.Second))
+	mockEventsString := fmt.Sprintf("[{\"attributes\":{},\"name\":\"start\",\"time\":%d},{\"attributes\":{\"flag\":false},\"name\":\"end\",\"time\":%d}]", pdataMockStartTime, pdataMockEndTime)
+
+	// ensure that events tag is set if span events exist and contains structured json fields
+	assert.Equal(t, mockEventsString, datadogPayload.Traces[0].Spans[0].Meta["events"])
+}
+
 // ensure that datadog span resource naming uses http method+route when available
 func TestSpanResourceTranslation(t *testing.T) {
 	span := pdata.NewSpan()