diff --git a/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSPropagatorPipelineHandler.cs b/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSPropagatorPipelineHandler.cs
new file mode 100644
index 0000000000..3f6ade4fd1
--- /dev/null
+++ b/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSPropagatorPipelineHandler.cs
@@ -0,0 +1,68 @@
+// Copyright The OpenTelemetry Authors
+// SPDX-License-Identifier: Apache-2.0
+
+using System;
+using System.Collections.Generic;
+using System.Threading.Tasks;
+using Amazon.Runtime;
+using Amazon.Runtime.Internal;
+using OpenTelemetry.Context.Propagation;
+using OpenTelemetry.Extensions.AWS.Trace;
+
+namespace OpenTelemetry.Instrumentation.AWS.Implementation;
+
+/// <summary>
+/// Uses <see cref="AWSXRayPropagator"/> to inject the current Activity Context and
+/// Baggage into the outgoing AWS SDK Request.
+/// <para />
+/// Must execute after the AWS SDK has marshalled (ie serialized)
+/// the outgoing request object so that it can work with the <see cref="IRequest"/>'s
+/// <see cref="IRequest.Headers"/>.
+/// </summary>
+internal class AWSPropagatorPipelineHandler : PipelineHandler
+{
+    private static readonly AWSXRayPropagator AwsPropagator = new();
+
+    private static readonly Action<IDictionary<string, string>, string, string> Setter = (carrier, name, value) =>
+    {
+        carrier[name] = value;
+    };
+
+    /// <summary>
+    /// Rely on the the <see cref="AWSTracingPipelineHandler.Activity"/> for retrieving the current
+    /// context.
+    /// </summary>
+    private readonly AWSTracingPipelineHandler tracingPipelineHandler;
+
+    public AWSPropagatorPipelineHandler(AWSTracingPipelineHandler tracingPipelineHandler)
+    {
+        this.tracingPipelineHandler = tracingPipelineHandler;
+    }
+
+    public override void InvokeSync(IExecutionContext executionContext)
+    {
+        this.ProcessBeginRequest(executionContext);
+
+        base.InvokeSync(executionContext);
+    }
+
+    public override async Task<T> InvokeAsync<T>(IExecutionContext executionContext)
+    {
+        this.ProcessBeginRequest(executionContext);
+
+        return await base.InvokeAsync<T>(executionContext).ConfigureAwait(false);
+    }
+
+    private void ProcessBeginRequest(IExecutionContext executionContext)
+    {
+        if (this.tracingPipelineHandler.Activity == null)
+        {
+            return;
+        }
+
+        AwsPropagator.Inject(
+            new PropagationContext(this.tracingPipelineHandler.Activity.Context, Baggage.Current),
+            executionContext.RequestContext.Request.Headers,
+            Setter);
+    }
+}
diff --git a/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineCustomizer.cs b/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineCustomizer.cs
index ac03e10452..2a9538bb6c 100644
--- a/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineCustomizer.cs
+++ b/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineCustomizer.cs
@@ -7,6 +7,10 @@
 
 namespace OpenTelemetry.Instrumentation.AWS.Implementation;
 
+/// <summary>
+/// Wires <see cref="AWSTracingPipelineHandler"/> and <see cref="AWSPropagatorPipelineHandler"/>
+/// into the AWS <see cref="RuntimePipeline"/> so they can inject trace headers and wrap sdk calls in spans.
+/// </summary>
 internal class AWSTracingPipelineCustomizer : IRuntimePipelineCustomizer
 {
     private readonly AWSClientInstrumentationOptions options;
@@ -31,6 +35,15 @@ public void Customize(Type serviceClientType, RuntimePipeline pipeline)
             return;
         }
 
-        pipeline.AddHandlerBefore<Marshaller>(new AWSTracingPipelineHandler(this.options));
+        var tracingPipelineHandler = new AWSTracingPipelineHandler(this.options);
+        var propagatingPipelineHandler = new AWSPropagatorPipelineHandler(tracingPipelineHandler);
+
+        // AWSTracingPipelineHandler must execute early in the AWS SDK pipeline
+        // in order to manipulate outgoing requests objects before they are marshalled (ie serialized).
+        pipeline.AddHandlerBefore<Marshaller>(tracingPipelineHandler);
+
+        // AWSPropagatorPipelineHandler executes after the AWS SDK has marshalled (ie serialized)
+        // the outgoing request object so that it can work with the request's Headers
+        pipeline.AddHandlerBefore<RetryHandler>(propagatingPipelineHandler);
     }
 }
diff --git a/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineHandler.cs b/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineHandler.cs
index 2383c9f8ba..fe4dfc3636 100644
--- a/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineHandler.cs
+++ b/src/OpenTelemetry.Instrumentation.AWS/Implementation/AWSTracingPipelineHandler.cs
@@ -2,28 +2,27 @@
 // SPDX-License-Identifier: Apache-2.0
 
 using System;
-using System.Collections.Generic;
 using System.Diagnostics;
 using System.Threading.Tasks;
 using Amazon.Runtime;
 using Amazon.Runtime.Internal;
 using Amazon.Util;
 using OpenTelemetry.Context.Propagation;
-using OpenTelemetry.Extensions.AWS.Trace;
 using OpenTelemetry.Trace;
 
 namespace OpenTelemetry.Instrumentation.AWS.Implementation;
 
+/// <summary>
+/// Wraps the outgoing AWS SDK Request in a Span and adds additional AWS specific Tags.
+/// Depending on the target AWS Service, additional request specific information may be injected as well.
+/// <para />
+/// This <see cref="PipelineHandler"/> must execute early in the AWS SDK pipeline
+/// in order to manipulate outgoing requests objects before they are marshalled (ie serialized).
+/// </summary>
 internal sealed class AWSTracingPipelineHandler : PipelineHandler
 {
     internal const string ActivitySourceName = "Amazon.AWS.AWSClientInstrumentation";
 
-    private static readonly AWSXRayPropagator AwsPropagator = new();
-    private static readonly Action<IDictionary<string, string>, string, string> Setter = (carrier, name, value) =>
-    {
-        carrier[name] = value;
-    };
-
     private static readonly ActivitySource AWSSDKActivitySource = new(ActivitySourceName);
 
     private readonly AWSClientInstrumentationOptions options;
@@ -33,27 +32,29 @@ public AWSTracingPipelineHandler(AWSClientInstrumentationOptions options)
         this.options = options;
     }
 
+    public Activity? Activity { get; private set; }
+
     public override void InvokeSync(IExecutionContext executionContext)
     {
-        var activity = this.ProcessBeginRequest(executionContext);
+        this.Activity = this.ProcessBeginRequest(executionContext);
         try
         {
             base.InvokeSync(executionContext);
         }
         catch (Exception ex)
         {
-            if (activity != null)
+            if (this.Activity != null)
             {
-                ProcessException(activity, ex);
+                ProcessException(this.Activity, ex);
             }
 
             throw;
         }
         finally
         {
-            if (activity != null)
+            if (this.Activity != null)
             {
-                ProcessEndRequest(executionContext, activity);
+                ProcessEndRequest(executionContext, this.Activity);
             }
         }
     }
@@ -62,25 +63,25 @@ public override async Task<T> InvokeAsync<T>(IExecutionContext executionContext)
     {
         T? ret = null;
 
-        var activity = this.ProcessBeginRequest(executionContext);
+        this.Activity = this.ProcessBeginRequest(executionContext);
         try
         {
             ret = await base.InvokeAsync<T>(executionContext).ConfigureAwait(false);
         }
         catch (Exception ex)
         {
-            if (activity != null)
+            if (this.Activity != null)
             {
-                ProcessException(activity, ex);
+                ProcessException(this.Activity, ex);
             }
 
             throw;
         }
         finally
         {
-            if (activity != null)
+            if (this.Activity != null)
             {
-                ProcessEndRequest(executionContext, activity);
+                ProcessEndRequest(executionContext, this.Activity);
             }
         }
 
@@ -241,8 +242,6 @@ private static string FetchRequestId(IRequestContext requestContext, IResponseCo
             AddRequestSpecificInformation(activity, requestContext, service);
         }
 
-        AwsPropagator.Inject(new PropagationContext(activity.Context, Baggage.Current), requestContext.Request.Headers, Setter);
-
         return activity;
     }
 }