Azure · singankit · May 4, 2026 · May 4, 2026 · May 4, 2026 · May 5, 2026
@@ -24,6 +24,9 @@
 
 _ENV_FOUNDRY_AGENT_NAME = "FOUNDRY_AGENT_NAME"
 _ENV_FOUNDRY_AGENT_VERSION = "FOUNDRY_AGENT_VERSION"
+_ENV_FOUNDRY_AGENT_INSTANCE_CLIENT_ID = "FOUNDRY_AGENT_INSTANCE_CLIENT_ID"
+_ENV_FOUNDRY_AGENT_BLUEPRINT_CLIENT_ID = "FOUNDRY_AGENT_BLUEPRINT_CLIENT_ID"
+_ENV_FOUNDRY_AGENT_TENANT_ID = "FOUNDRY_AGENT_TENANT_ID"
 _ENV_FOUNDRY_HOSTING_ENVIRONMENT = "FOUNDRY_HOSTING_ENVIRONMENT"
 _ENV_FOUNDRY_PROJECT_ENDPOINT = "FOUNDRY_PROJECT_ENDPOINT"
 _ENV_FOUNDRY_PROJECT_ARM_ID = "FOUNDRY_PROJECT_ARM_ID"
@@ -283,6 +286,46 @@ def resolve_agent_version() -> str:
     return os.environ.get(_ENV_FOUNDRY_AGENT_VERSION, "")
 
 
+def resolve_agent_id() -> str:
+    """Resolve the agent ID.
+
+    Resolution order:
+    1. ``FOUNDRY_AGENT_INSTANCE_CLIENT_ID`` environment variable.
+    2. ``<agent_name>:<agent_version>`` if both are set.
+    3. ``<agent_name>`` if only name is set.
+    4. Empty string if nothing is available.
+
+    :return: The resolved agent ID, or an empty string if not determinable.
+    :rtype: str
+    """
+    agent_id = os.environ.get(_ENV_FOUNDRY_AGENT_INSTANCE_CLIENT_ID, "")
+    if agent_id:
+        return agent_id
+    agent_name = os.environ.get(_ENV_FOUNDRY_AGENT_NAME, "")
+    agent_version = os.environ.get(_ENV_FOUNDRY_AGENT_VERSION, "")
+    if agent_name and agent_version:
+        return f"{agent_name}:{agent_version}"
+    return agent_name
+
+
+def resolve_agent_blueprint_id() -> str:
+    """Resolve the agent blueprint client ID from the ``FOUNDRY_AGENT_BLUEPRINT_CLIENT_ID`` environment variable.
+
+    :return: The agent blueprint client ID, or an empty string if not set.
+    :rtype: str
+    """
+    return os.environ.get(_ENV_FOUNDRY_AGENT_BLUEPRINT_CLIENT_ID, "")
+
+
+def resolve_agent_tenant_id() -> str:
+    """Resolve the agent tenant ID from the ``FOUNDRY_AGENT_TENANT_ID`` environment variable.
+
+    :return: The agent tenant ID, or an empty string if not set.
+    :rtype: str
+    """
+    return os.environ.get(_ENV_FOUNDRY_AGENT_TENANT_ID, "")
+
+
 def resolve_project_id() -> str:
     """Resolve the Foundry project ARM resource ID from the ``FOUNDRY_PROJECT_ARM_ID`` environment variable.
 

@@ -19,6 +19,7 @@ class Constants:
     # Tracing
     APPLICATIONINSIGHTS_CONNECTION_STRING = "APPLICATIONINSIGHTS_CONNECTION_STRING"
     OTEL_EXPORTER_OTLP_ENDPOINT = "OTEL_EXPORTER_OTLP_ENDPOINT"
+    FOUNDRY_AGENT365_TRACING_ENABLED = "FOUNDRY_AGENT365_TRACING_ENABLED"
 
     # SSE keep-alive
     SSE_KEEPALIVE_INTERVAL = "SSE_KEEPALIVE_INTERVAL"

@@ -53,6 +53,8 @@
 _ATTR_GEN_AI_SYSTEM = "gen_ai.system"
 _ATTR_GEN_AI_PROVIDER_NAME = "gen_ai.provider.name"
 _ATTR_GEN_AI_AGENT_ID = "gen_ai.agent.id"
+_ATTR_GEN_AI_AGENT_BLUEPRINT_ID = "gen_ai.agent.blueprint.id"
+_ATTR_GEN_AI_AGENT_TENANT_ID = "microsoft.tenant.id"
 _ATTR_GEN_AI_AGENT_NAME = "gen_ai.agent.name"
 _ATTR_GEN_AI_AGENT_VERSION = "gen_ai.agent.version"
 _ATTR_GEN_AI_RESPONSE_ID = "gen_ai.response.id"
@@ -156,18 +158,16 @@ def _configure_tracing(connection_string: Optional[str] = None) -> None:
     agent_name = _config.resolve_agent_name() or None
     agent_version = _config.resolve_agent_version() or None
     project_id = _config.resolve_project_id() or None
-
-    if agent_name and agent_version:
-        agent_id = f"{agent_name}:{agent_version}"
-    elif agent_name:
-        agent_id = agent_name
-    else:
-        agent_id = None
+    agent_id = _config.resolve_agent_id() or None
+    agent_blueprint_id = _config.resolve_agent_blueprint_id() or None
+    agent_tenant_id = _config.resolve_agent_tenant_id() or None
 
     span_processors = [
         _FoundryEnrichmentSpanProcessor(
             agent_name=agent_name, agent_version=agent_version,
             agent_id=agent_id, project_id=project_id,
+            agent_blueprint_id=agent_blueprint_id,
+            agent_tenant_id=agent_tenant_id,
         ),
     ]
     log_record_processors = [_BaggageLogRecordProcessor()]  # type: ignore[list-item]
@@ -217,6 +217,16 @@ def _setup_distro_export(
         kwargs["enable_azure_monitor"] = True
         kwargs["azure_monitor_connection_string"] = connection_string
 
+    # A365 tracing export — enabled only in hosted environments.
+    if (
+        os.environ.get("FOUNDRY_HOSTING_ENVIRONMENT", "")
+        and os.environ.get("FOUNDRY_AGENT365_TRACING_ENABLED", "").lower() in ("true", "1")
+    ):
+        kwargs["enable_a365"] = True
+        kwargs["a365_use_s2s_endpoint"] = True
+        kwargs["a365_enable_observability_exporter"] = True
+        kwargs["a365_observability_scope_override"] = "api://9b975845-388f-4429-889e-eab1ef63949c/.default"
+
     use_microsoft_opentelemetry(**kwargs)
 
 
@@ -460,15 +470,20 @@ class _FoundryEnrichmentSpanProcessor:
 
     def __init__(
         self,
+        *,
         agent_name: Optional[str] = None,
         agent_version: Optional[str] = None,
         agent_id: Optional[str] = None,
         project_id: Optional[str] = None,
+        agent_blueprint_id: Optional[str] = None,
+        agent_tenant_id: Optional[str] = None,
     ) -> None:
         self.agent_name = agent_name
         self.agent_version = agent_version
         self.agent_id = agent_id
         self.project_id = project_id
+        self.agent_blueprint_id = agent_blueprint_id
+        self.agent_tenant_id = agent_tenant_id
 
     def on_start(self, span: Any, parent_context: Any = None) -> None:
         if self.project_id:
@@ -504,6 +519,10 @@ def _on_ending(self, span: Any) -> None:
                 attrs[_ATTR_GEN_AI_AGENT_VERSION] = self.agent_version
             if self.agent_id:
                 attrs[_ATTR_GEN_AI_AGENT_ID] = self.agent_id
+            if self.agent_blueprint_id:
+                attrs[_ATTR_GEN_AI_AGENT_BLUEPRINT_ID] = self.agent_blueprint_id
+            if self.agent_tenant_id:
+                attrs[_ATTR_GEN_AI_AGENT_TENANT_ID] = self.agent_tenant_id
         except Exception:  # pylint: disable=broad-exception-caught
             logger.debug("Failed to enrich span attributes in _on_ending", exc_info=True)
 

@@ -16,6 +16,7 @@
 from typing import Any, Optional
 
 from opentelemetry import baggage as _otel_baggage, context as _otel_context
+from opentelemetry.baggage.propagation import W3CBaggagePropagator
 from starlette.requests import Request
 from starlette.responses import JSONResponse, Response, StreamingResponse
 from starlette.routing import Route
@@ -367,7 +368,14 @@ async def _create_invocation_endpoint(self, request: Request) -> Response:
 
             # Propagate invocation/session IDs as W3C baggage so downstream
             # services receive them automatically via the baggage header.
+            # Extract incoming baggage from request headers (only baggage, not traceparent)
+            # to preserve parent-child span relationships while inheriting caller's baggage entries.
+            _incoming_baggage_ctx = W3CBaggagePropagator().extract(
+                carrier={"baggage": request.headers.get("baggage", "")}
+            )
             ctx = _otel_context.get_current()
+            for _bkey, _bval in _otel_baggage.get_all(context=_incoming_baggage_ctx).items():
+                ctx = _otel_baggage.set_baggage(_bkey, _bval, context=ctx)
             ctx = _otel_baggage.set_baggage(
                 "azure.ai.agentserver.invocation_id", invocation_id, context=ctx,
             )

@@ -4,6 +4,8 @@
         "appinsights",
         "ASGI",
         "autouse",
+        "bkey",
+        "bval",
         "caplog",
         "genai",
         "hypercorn",

@@ -452,6 +452,82 @@ def test_agent_name_only_in_span_name():
     assert "solo-agent" in invoke_spans[0].name
 
 
+# ---------------------------------------------------------------------------
+# Incoming W3C baggage propagation
+# ---------------------------------------------------------------------------
+
+def test_incoming_baggage_merged_into_context():
+    """Incoming W3C baggage header entries are merged into OTel context."""
+    from opentelemetry import baggage as _otel_baggage, context as _otel_context
+    from opentelemetry.sdk.trace import SpanProcessor
+
+    captured_baggage = {}
+
+    class BaggageCaptureProcessor(SpanProcessor):
+        """Captures baggage visible when span starts."""
+        def on_start(self, span, parent_context=None):
+            ctx = parent_context or _otel_context.get_current()
+            captured_baggage.update(_otel_baggage.get_all(context=ctx))
+
+    # Add our capture processor to the module provider
+    _MODULE_PROVIDER.add_span_processor(BaggageCaptureProcessor())
+
+    server = _make_tracing_server()
+    client = TestClient(server)
+    client.post(
+        "/invocations",
+        content=b"test",
+        headers={"baggage": "user.id=test-user-123,custom.key=custom-value"},
+    )
+
+    # Incoming baggage entries should be present
+    assert captured_baggage.get("user.id") == "test-user-123"
+    assert captured_baggage.get("custom.key") == "custom-value"
+
+
+def test_incoming_baggage_does_not_break_span_parenting():
+    """Incoming baggage header does not break parent-child span relationships."""
+    server = _make_tracing_server()
+
+    # Create a traceparent to verify parenting is preserved
+    trace_id_hex = uuid.uuid4().hex
+    span_id_hex = uuid.uuid4().hex[:16]
+    traceparent = f"00-{trace_id_hex}-{span_id_hex}-01"
+
+    client = TestClient(server)
+    client.post(
+        "/invocations",
+        content=b"test",
+        headers={
+            "traceparent": traceparent,
+            "baggage": "user.id=test-user-456",
+        },
+    )
+
+    spans = _get_spans()
+    invoke_spans = [s for s in spans if "invoke_agent" in s.name]
+    assert len(invoke_spans) >= 1
+    span = invoke_spans[0]
+    # The span should still have the same trace ID (parent-child preserved)
+    actual_trace_id = format(span.context.trace_id, "032x")
+    assert actual_trace_id == trace_id_hex
+    # And the parent span ID should match the traceparent
+    actual_parent_id = format(span.parent.span_id, "016x")
+    assert actual_parent_id == span_id_hex
+
+
+def test_incoming_baggage_empty_header():
+    """Empty baggage header does not cause errors."""
+    server = _make_tracing_server()
+    client = TestClient(server)
+    resp = client.post(
+        "/invocations",
+        content=b"test",
+        headers={"baggage": ""},
+    )
+    assert resp.status_code == 200
+
+
 # ---------------------------------------------------------------------------
 # Project endpoint attribute
 # ---------------------------------------------------------------------------

@@ -18,14 +18,13 @@
 
 from opentelemetry import baggage as _otel_baggage
 from opentelemetry import context as _otel_context
+from opentelemetry.baggage.propagation import W3CBaggagePropagator
 from starlette.requests import Request
 from starlette.responses import JSONResponse, Response, StreamingResponse
 
 from azure.ai.agentserver.core import (  # pylint: disable=import-error,no-name-in-module
-    detach_context,
     end_span,
     flush_spans,
-    set_current_span,
     trace_stream,
 )
 from azure.ai.agentserver.responses.models._generated import (
@@ -416,15 +415,19 @@ def _wrap_streaming_response(
         # Inner wrap: trace_stream ends the span when iteration completes.
         traced = trace_stream(response.body_iterator, otel_span)
 
-        # Outer wrap: re-attach span as current context during streaming
-        # so child spans are correctly parented.
+        # Outer wrap: re-attach the full context (span + baggage) during streaming
+        # so child spans are correctly parented and baggage is visible to processors.
+        # We capture the context now (while baggage is still attached) rather than
+        # relying on get_current() later when the iterator actually runs.
+        _captured_ctx = _otel_context.get_current()
+
         async def _iter_with_context():  # type: ignore[return]
-            token = set_current_span(otel_span)
+            token = _otel_context.attach(_captured_ctx)
             try:
                 async for chunk in traced:
                     yield chunk
             finally:
-                detach_context(token)
+                _otel_context.detach(token)
 
         response.body_iterator = _iter_with_context()
         return response
@@ -716,7 +719,16 @@ async def handle_create(self, request: Request) -> Response:  # pylint: disable=
             self._safe_set_attrs(otel_span, build_create_otel_attrs(ctx, request_id=request_id, project_id=_project_id))
 
             # Set W3C baggage per spec §7.3
+            # Extract incoming baggage from request headers (only baggage, not traceparent)
+            # to preserve parent-child span relationships while inheriting caller's baggage entries.
+            _incoming_baggage_ctx = W3CBaggagePropagator().extract(
+                carrier={"baggage": request.headers.get("baggage", "")}
+            )
             bag_ctx = _otel_context.get_current()
+            # Merge incoming baggage entries (e.g. user.id) onto current context
+            for _bkey, _bval in _otel_baggage.get_all(context=_incoming_baggage_ctx).items():
+                bag_ctx = _otel_baggage.set_baggage(_bkey, _bval, context=bag_ctx)
+
             bag_ctx = _otel_baggage.set_baggage("azure.ai.agentserver.response_id", response_id, context=bag_ctx)
             bag_ctx = _otel_baggage.set_baggage(
                 "azure.ai.agentserver.conversation_id", ctx.conversation_id or "", context=bag_ctx

@@ -21,7 +21,9 @@
       "JVBE",
       "hdrs",
       "myproj",
-      "myhost"
+      "myhost",
+      "bkey",
+      "bval"
     ],
     "ignorePaths": [
       "*.csv",