diff --git a/README.md b/README.md
index b63f340..be8f710 100644
--- a/README.md
+++ b/README.md
@@ -70,6 +70,7 @@ The below property names can be changed in the following ways
 | authorization.api.client.id        | AUTHORIZATION_API_CLIENT_ID        |                                                  | The ID value of the authorization server API client                                                                   |
 | authorization.api.client.secret    | AUTHORIZATION_API_CLIENT_SECRET    |                                                  | The secret value of the authorization server API client                                                               |
 | authorization.swagger.ui.client.id | AUTHORIZATION_SWAGGER_UI_CLIENT_ID |                                                  | The ID value of the authorization server swagger-ui client                                                            |
+| otel.exporter.otlp.endpoint        | OTEL_EXPORTER_OTLP_ENDPOINT        | http://localhost:4317                            | URL of the OTEL collector                                                                                             |
 
 ## Run Application
 
@@ -136,4 +137,14 @@ All configuration parameters can be passed as environment variables to the conta
 
 We also deliver a jar for each release and can be found in the asests list of each
 release [here](https://github.com/eclipse-xpanse/terraform-boot/releases).
-The jar can be started as mentioned in the same way we do for local development. 
\ No newline at end of file
+The jar can be started as mentioned in the same way we do for local development.
+
+### Observability
+
+`terraform-boot` provides an option to enable observability using [openTelemetry](https://opentelemetry.io/). This can
+be enabled by starting the runtime with profile `opentelemetry`.
+
+By enabling this profile, the application forwards metrics, traces and logs to the `otel-collector`.
+
+By default, the application sends all telemetry data to `http://localhost:4317` and this can be changed by updating the
+value of `otel.exporter.otlp.endpoint` configuration property.
\ No newline at end of file
diff --git a/pom.xml b/pom.xml
index 8d34529..446a870 100644
--- a/pom.xml
+++ b/pom.xml
@@ -25,7 +25,18 @@
 		<logbook.version>3.5.0</logbook.version>
 		<nimbusds.oidc.sdk.version>10.7</nimbusds.oidc.sdk.version>
 		<lombok.version>1.18.30</lombok.version>
+		<opentelemetry.version>1.32.0</opentelemetry.version>
 	</properties>
+	<dependencyManagement>
+		<dependencies>
+			<dependency>
+			<groupId>io.opentelemetry</groupId>
+			<artifactId>opentelemetry-bom</artifactId>
+			<version>${opentelemetry.version}</version>
+			<type>pom</type>
+		</dependency>
+		</dependencies>
+	</dependencyManagement>
 	<dependencies>
 		<dependency>
 			<groupId>org.springframework.boot</groupId>
@@ -79,6 +90,11 @@
 			<artifactId>oauth2-oidc-sdk</artifactId>
 			<version>${nimbusds.oidc.sdk.version}</version>
 		</dependency>
+		<dependency>
+			<groupId>io.opentelemetry.instrumentation</groupId>
+			<artifactId>opentelemetry-spring-boot-starter</artifactId>
+			<version>${opentelemetry.version}-alpha</version>
+		</dependency>
 	</dependencies>
 
 	<build>
diff --git a/src/main/java/org/eclipse/xpanse/terraform/boot/observability/OpenTelemetryConfiguration.java b/src/main/java/org/eclipse/xpanse/terraform/boot/observability/OpenTelemetryConfiguration.java
new file mode 100644
index 0000000..9e777d1
--- /dev/null
+++ b/src/main/java/org/eclipse/xpanse/terraform/boot/observability/OpenTelemetryConfiguration.java
@@ -0,0 +1,30 @@
+/*
+ * SPDX-License-Identifier: Apache-2.0
+ * SPDX-FileCopyrightText: Huawei Inc.
+ */
+
+package org.eclipse.xpanse.terraform.boot.observability;
+
+import org.springframework.boot.autoconfigure.condition.ConditionalOnMissingBean;
+import org.springframework.context.annotation.Bean;
+import org.springframework.context.annotation.Configuration;
+import org.springframework.context.annotation.Primary;
+import org.springframework.core.DefaultParameterNameDiscoverer;
+import org.springframework.core.ParameterNameDiscoverer;
+
+/**
+ * Configuration to workaround issues with ParameterNameDiscoverer bean which is instantiated by
+ * multiple libraries. Hence, this class defines a primary bean which will solve the duplicate
+ * bean exception.
+ */
+@Configuration
+public class OpenTelemetryConfiguration {
+
+    @Bean
+    @ConditionalOnMissingBean
+    @Primary
+    ParameterNameDiscoverer parameterNameDiscoverer() {
+        return new DefaultParameterNameDiscoverer();
+    }
+
+}
diff --git a/src/main/resources/application-opentelemetry.properties b/src/main/resources/application-opentelemetry.properties
new file mode 100644
index 0000000..61942eb
--- /dev/null
+++ b/src/main/resources/application-opentelemetry.properties
@@ -0,0 +1,7 @@
+#
+# SPDX-License-Identifier: Apache-2.0
+# SPDX-FileCopyrightText: Huawei Inc.
+#
+#
+otel.exporter.otlp.endpoint=http://localhost:4317
+otel.exporter.otlp.enabled=true
diff --git a/src/main/resources/application.properties b/src/main/resources/application.properties
index b61af01..32521fb 100644
--- a/src/main/resources/application.properties
+++ b/src/main/resources/application.properties
@@ -2,6 +2,7 @@
 # SPDX-License-Identifier: Apache-2.0
 # SPDX-FileCopyrightText: Huawei Inc.
 #
+spring.application.name=terraform-boot
 server.port=9090
 app.version=@project.version@
 spring.banner.location=classpath:banner.txt
@@ -9,4 +10,6 @@ http.logging.enabled=true
 http.logging.exclude.uri=/v3/**,/swagger-ui/**,/favicon.ico,/h2-console/**
 log.terraform.stdout.stderr=false
 terraform.binary.location=
-terraform.log.level=INFO
\ No newline at end of file
+terraform.log.level=INFO
+otel.exporter.otlp.enabled=false
+terraform.root.module.directory=
\ No newline at end of file
diff --git a/src/main/resources/logback.xml b/src/main/resources/logback.xml
index 365bf32..671af4b 100644
--- a/src/main/resources/logback.xml
+++ b/src/main/resources/logback.xml
@@ -15,6 +15,16 @@
       </Pattern>
     </encoder>
   </appender>
+  <springProfile name="opentelemetry">
+    <appender name="OpenTelemetry" class="io.opentelemetry.instrumentation.logback.appender.v1_0.OpenTelemetryAppender">
+    </appender>
+    <logger additivity="false" level="info" name="org.eclipse.xpanse">
+      <appender-ref ref="OpenTelemetry"/>
+    </logger>
+    <root level="error">
+      <appender-ref ref="OpenTelemetry"/>
+    </root>
+  </springProfile>
 
   <logger additivity="false" level="info" name="org.eclipse.xpanse">
     <appender-ref ref="Console"/>