diff --git a/examples/dataset/.gitignore b/examples/dataset/.gitignore
new file mode 100644
index 0000000..97a20fd
--- /dev/null
+++ b/examples/dataset/.gitignore
@@ -0,0 +1,39 @@
+# Python
+__pycache__/
+*.py[cod]
+*$py.class
+*.so
+.Python
+
+# Virtual environments
+venv/
+env/
+ENV/
+
+# Hatch
+.hatch/
+
+# Environment files - NEVER commit actual secrets!
+.envrc
+.envrc.local
+.env
+.env.local
+
+# IDEs
+.vscode/
+.idea/
+*.swp
+*.swo
+*~
+
+# OS
+.DS_Store
+Thumbs.db
+
+# Logs
+*.log
+
+# Testing
+.pytest_cache/
+.coverage
+htmlcov/
diff --git a/examples/dataset_api_example.py b/examples/dataset/dataset_api_example.py
similarity index 99%
rename from examples/dataset_api_example.py
rename to examples/dataset/dataset_api_example.py
index a0d4f5e..964f893 100644
--- a/examples/dataset_api_example.py
+++ b/examples/dataset/dataset_api_example.py
@@ -27,8 +27,8 @@
     UnauthorizedError,
 )
 
-# Add parent directory to path to import basalt
-project_root = Path(__file__).parent.parent
+# Add repo root to path to import basalt
+project_root = Path(__file__).resolve().parents[2]
 sys.path.insert(0, str(project_root))
 
 os.environ["BASALT_BUILD"] = "development"
diff --git a/examples/dataset_sdk_demo.ipynb b/examples/dataset/dataset_sdk_demo.ipynb
similarity index 100%
rename from examples/dataset_sdk_demo.ipynb
rename to examples/dataset/dataset_sdk_demo.ipynb
diff --git a/examples/dataset/pyproject.toml b/examples/dataset/pyproject.toml
new file mode 100644
index 0000000..d5d16fa
--- /dev/null
+++ b/examples/dataset/pyproject.toml
@@ -0,0 +1,20 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "basalt-dataset-example"
+version = "0.1.0"
+description = "Dataset API examples for Basalt"
+readme = "README.md"
+requires-python = ">=3.10"
+dependencies = []
+
+[tool.hatch.envs.default]
+detached = true
+dependencies = [
+    "httpx>=0.25.0",
+]
+
+[tool.hatch.envs.default.scripts]
+run = "python dataset_api_example.py"
diff --git a/examples/dataset/run.sh b/examples/dataset/run.sh
new file mode 100755
index 0000000..b4479da
--- /dev/null
+++ b/examples/dataset/run.sh
@@ -0,0 +1,39 @@
+#!/usr/bin/env bash
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+NC='\033[0m' # No Color
+
+# Check if direnv is loaded
+if [ -z "$BASALT_API_KEY" ]; then
+    echo -e "${RED}Error: Environment not loaded.${NC}"
+    echo "Please run: ${YELLOW}direnv allow${NC}"
+    echo "Then edit .envrc with your Basalt API key"
+    exit 1
+fi
+
+echo -e "${GREEN}Environment loaded successfully${NC}"
+echo "BASALT_ENVIRONMENT: $BASALT_ENVIRONMENT"
+echo "BASALT_SERVICE_NAME: $BASALT_SERVICE_NAME"
+echo ""
+
+# Change to the script directory
+cd "$(dirname "$0")"
+
+# Check if hatch environment exists
+if ! hatch env show default &>/dev/null; then
+    echo -e "${YELLOW}Creating hatch environment...${NC}"
+    hatch env create
+fi
+
+# Install basalt-py from parent directory
+echo -e "${YELLOW}Installing basalt-py from parent directory...${NC}"
+hatch run pip install -q -e ../..
+
+echo -e "${GREEN}Running dataset example...${NC}"
+echo ""
+
+hatch run run
diff --git a/examples/gemini_simple/.gitignore b/examples/gemini_simple/.gitignore
new file mode 100644
index 0000000..97a20fd
--- /dev/null
+++ b/examples/gemini_simple/.gitignore
@@ -0,0 +1,39 @@
+# Python
+__pycache__/
+*.py[cod]
+*$py.class
+*.so
+.Python
+
+# Virtual environments
+venv/
+env/
+ENV/
+
+# Hatch
+.hatch/
+
+# Environment files - NEVER commit actual secrets!
+.envrc
+.envrc.local
+.env
+.env.local
+
+# IDEs
+.vscode/
+.idea/
+*.swp
+*.swo
+*~
+
+# OS
+.DS_Store
+Thumbs.db
+
+# Logs
+*.log
+
+# Testing
+.pytest_cache/
+.coverage
+htmlcov/
diff --git a/examples/gemini_random_data_example.py b/examples/gemini_simple/gemini_random_data_example.py
similarity index 100%
rename from examples/gemini_random_data_example.py
rename to examples/gemini_simple/gemini_random_data_example.py
diff --git a/examples/gemini_simple/pyproject.toml b/examples/gemini_simple/pyproject.toml
new file mode 100644
index 0000000..c708554
--- /dev/null
+++ b/examples/gemini_simple/pyproject.toml
@@ -0,0 +1,22 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "basalt-gemini-simple-example"
+version = "0.1.0"
+description = "Simple Gemini example demonstrating Basalt observability"
+readme = "README.md"
+requires-python = ">=3.10"
+dependencies = []
+
+[tool.hatch.envs.default]
+detached = true
+dependencies = [
+    "google-genai==1.60.0",
+    "httpx>=0.25.0",
+    "opentelemetry-exporter-otlp-proto-grpc~=1.39.1",
+]
+
+[tool.hatch.envs.default.scripts]
+run = "python gemini_random_data_example.py"
diff --git a/examples/gemini_simple/run.sh b/examples/gemini_simple/run.sh
new file mode 100755
index 0000000..b41d2c4
--- /dev/null
+++ b/examples/gemini_simple/run.sh
@@ -0,0 +1,39 @@
+#!/usr/bin/env bash
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+NC='\033[0m' # No Color
+
+# Check if direnv is loaded
+if [ -z "$BASALT_API_KEY" ]; then
+    echo -e "${RED}Error: Environment not loaded.${NC}"
+    echo "Please run: ${YELLOW}direnv allow${NC}"
+    echo "Then edit .envrc with your Basalt API key"
+    exit 1
+fi
+
+echo -e "${GREEN}Environment loaded successfully${NC}"
+echo "BASALT_ENVIRONMENT: $BASALT_ENVIRONMENT"
+echo "BASALT_SERVICE_NAME: $BASALT_SERVICE_NAME"
+echo ""
+
+# Change to the script directory
+cd "$(dirname "$0")"
+
+# Check if hatch environment exists
+if ! hatch env show default &>/dev/null; then
+    echo -e "${YELLOW}Creating hatch environment...${NC}"
+    hatch env create
+fi
+
+# Install basalt-py from parent directory
+echo -e "${YELLOW}Installing basalt-py from parent directory...${NC}"
+hatch run pip install -q -e ../..
+
+echo -e "${GREEN}Running Gemini example...${NC}"
+echo ""
+
+hatch run run
diff --git a/examples/multi_exporter/.gitignore b/examples/multi_exporter/.gitignore
new file mode 100644
index 0000000..97a20fd
--- /dev/null
+++ b/examples/multi_exporter/.gitignore
@@ -0,0 +1,39 @@
+# Python
+__pycache__/
+*.py[cod]
+*$py.class
+*.so
+.Python
+
+# Virtual environments
+venv/
+env/
+ENV/
+
+# Hatch
+.hatch/
+
+# Environment files - NEVER commit actual secrets!
+.envrc
+.envrc.local
+.env
+.env.local
+
+# IDEs
+.vscode/
+.idea/
+*.swp
+*.swo
+*~
+
+# OS
+.DS_Store
+Thumbs.db
+
+# Logs
+*.log
+
+# Testing
+.pytest_cache/
+.coverage
+htmlcov/
diff --git a/examples/multi_exporter_example.py b/examples/multi_exporter/multi_exporter_example.py
similarity index 100%
rename from examples/multi_exporter_example.py
rename to examples/multi_exporter/multi_exporter_example.py
diff --git a/examples/multi_exporter/pyproject.toml b/examples/multi_exporter/pyproject.toml
new file mode 100644
index 0000000..a115cd9
--- /dev/null
+++ b/examples/multi_exporter/pyproject.toml
@@ -0,0 +1,21 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "basalt-multi-exporter-example"
+version = "0.1.0"
+description = "Multi-exporter example demonstrating Basalt observability"
+readme = "README.md"
+requires-python = ">=3.10"
+dependencies = []
+
+[tool.hatch.envs.default]
+detached = true
+dependencies = [
+    "opentelemetry-exporter-otlp-proto-grpc~=1.39.1",
+    "opentelemetry-sdk~=1.39.1",
+]
+
+[tool.hatch.envs.default.scripts]
+run = "python multi_exporter_example.py"
diff --git a/examples/multi_exporter/run.sh b/examples/multi_exporter/run.sh
new file mode 100755
index 0000000..17b3db9
--- /dev/null
+++ b/examples/multi_exporter/run.sh
@@ -0,0 +1,39 @@
+#!/usr/bin/env bash
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+NC='\033[0m' # No Color
+
+# Check if direnv is loaded
+if [ -z "$BASALT_API_KEY" ]; then
+    echo -e "${RED}Error: Environment not loaded.${NC}"
+    echo "Please run: ${YELLOW}direnv allow${NC}"
+    echo "Then edit .envrc with your Basalt API key"
+    exit 1
+fi
+
+echo -e "${GREEN}Environment loaded successfully${NC}"
+echo "BASALT_ENVIRONMENT: $BASALT_ENVIRONMENT"
+echo "BASALT_SERVICE_NAME: $BASALT_SERVICE_NAME"
+echo ""
+
+# Change to the script directory
+cd "$(dirname "$0")"
+
+# Check if hatch environment exists
+if ! hatch env show default &>/dev/null; then
+    echo -e "${YELLOW}Creating hatch environment...${NC}"
+    hatch env create
+fi
+
+# Install basalt-py from parent directory
+echo -e "${YELLOW}Installing basalt-py from parent directory...${NC}"
+hatch run pip install -q -e ../..
+
+echo -e "${GREEN}Running multi-exporter example...${NC}"
+echo ""
+
+hatch run run
diff --git a/examples/openai_simple/.gitignore b/examples/openai_simple/.gitignore
new file mode 100644
index 0000000..97a20fd
--- /dev/null
+++ b/examples/openai_simple/.gitignore
@@ -0,0 +1,39 @@
+# Python
+__pycache__/
+*.py[cod]
+*$py.class
+*.so
+.Python
+
+# Virtual environments
+venv/
+env/
+ENV/
+
+# Hatch
+.hatch/
+
+# Environment files - NEVER commit actual secrets!
+.envrc
+.envrc.local
+.env
+.env.local
+
+# IDEs
+.vscode/
+.idea/
+*.swp
+*.swo
+*~
+
+# OS
+.DS_Store
+Thumbs.db
+
+# Logs
+*.log
+
+# Testing
+.pytest_cache/
+.coverage
+htmlcov/
diff --git a/examples/openai_example.py b/examples/openai_simple/openai_example.py
similarity index 100%
rename from examples/openai_example.py
rename to examples/openai_simple/openai_example.py
diff --git a/examples/openai_simple/pyproject.toml b/examples/openai_simple/pyproject.toml
new file mode 100644
index 0000000..e1429a9
--- /dev/null
+++ b/examples/openai_simple/pyproject.toml
@@ -0,0 +1,21 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "basalt-openai-simple-example"
+version = "0.1.0"
+description = "Simple OpenAI example demonstrating Basalt observability"
+readme = "README.md"
+requires-python = ">=3.10"
+dependencies = []
+
+[tool.hatch.envs.default]
+detached = true
+dependencies = [
+    "openai==2.15.0",
+    "opentelemetry-exporter-otlp-proto-grpc~=1.39.1",
+]
+
+[tool.hatch.envs.default.scripts]
+run = "python openai_example.py"
diff --git a/examples/openai_simple/run.sh b/examples/openai_simple/run.sh
new file mode 100755
index 0000000..b0f7feb
--- /dev/null
+++ b/examples/openai_simple/run.sh
@@ -0,0 +1,39 @@
+#!/usr/bin/env bash
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+NC='\033[0m' # No Color
+
+# Check if direnv is loaded
+if [ -z "$BASALT_API_KEY" ]; then
+    echo -e "${RED}Error: Environment not loaded.${NC}"
+    echo "Please run: ${YELLOW}direnv allow${NC}"
+    echo "Then edit .envrc with your Basalt API key"
+    exit 1
+fi
+
+echo -e "${GREEN}Environment loaded successfully${NC}"
+echo "BASALT_ENVIRONMENT: $BASALT_ENVIRONMENT"
+echo "BASALT_SERVICE_NAME: $BASALT_SERVICE_NAME"
+echo ""
+
+# Change to the script directory
+cd "$(dirname "$0")"
+
+# Check if hatch environment exists
+if ! hatch env show default &>/dev/null; then
+    echo -e "${YELLOW}Creating hatch environment...${NC}"
+    hatch env create
+fi
+
+# Install basalt-py from parent directory
+echo -e "${YELLOW}Installing basalt-py from parent directory...${NC}"
+hatch run pip install -q -e ../..
+
+echo -e "${GREEN}Running OpenAI example...${NC}"
+echo ""
+
+hatch run run
diff --git a/examples/reproduce_trace_bug/.gitignore b/examples/reproduce_trace_bug/.gitignore
new file mode 100644
index 0000000..97a20fd
--- /dev/null
+++ b/examples/reproduce_trace_bug/.gitignore
@@ -0,0 +1,39 @@
+# Python
+__pycache__/
+*.py[cod]
+*$py.class
+*.so
+.Python
+
+# Virtual environments
+venv/
+env/
+ENV/
+
+# Hatch
+.hatch/
+
+# Environment files - NEVER commit actual secrets!
+.envrc
+.envrc.local
+.env
+.env.local
+
+# IDEs
+.vscode/
+.idea/
+*.swp
+*.swo
+*~
+
+# OS
+.DS_Store
+Thumbs.db
+
+# Logs
+*.log
+
+# Testing
+.pytest_cache/
+.coverage
+htmlcov/
diff --git a/examples/reproduce_trace_bug/pyproject.toml b/examples/reproduce_trace_bug/pyproject.toml
new file mode 100644
index 0000000..e22d90d
--- /dev/null
+++ b/examples/reproduce_trace_bug/pyproject.toml
@@ -0,0 +1,30 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "basalt-trace-bug-microservices"
+version = "0.1.0"
+description = "Repro microservices example for trace context propagation"
+readme = "README.md"
+requires-python = ">=3.10"
+dependencies = []
+
+[tool.hatch.envs.default]
+detached = true
+dependencies = [
+    "fastapi>=0.115.0",
+    "uvicorn>=0.32.0",
+    "httpx>=0.27.0",
+    "python-dotenv>=1.0.0",
+    "google-genai==1.60.0",
+    "opentelemetry-api>=1.39.1",
+    "opentelemetry-sdk>=1.39.1",
+    "opentelemetry-instrumentation-httpx>=0.60b1",
+    "opentelemetry-instrumentation-fastapi>=0.59b0",
+    "opentelemetry.instrumentation.google_generativeai>=0.51.0",
+]
+
+[tool.hatch.envs.default.scripts]
+service-a = "uvicorn service_a:app --host 0.0.0.0 --port 8000"
+service-b = "uvicorn service_b:app --host 0.0.0.0 --port 8001"
diff --git a/examples/reproduce_trace_bug/run.sh b/examples/reproduce_trace_bug/run.sh
new file mode 100755
index 0000000..6449a34
--- /dev/null
+++ b/examples/reproduce_trace_bug/run.sh
@@ -0,0 +1,70 @@
+#!/usr/bin/env bash
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+NC='\033[0m' # No Color
+
+# Check if direnv is loaded
+if [ -z "$BASALT_API_KEY" ]; then
+    echo -e "${RED}Error: Environment not loaded.${NC}"
+    echo "Please run: ${YELLOW}direnv allow${NC}"
+    echo "Then edit .envrc with your Basalt API key"
+    exit 1
+fi
+
+echo -e "${GREEN}Environment loaded successfully${NC}"
+echo "BASALT_ENVIRONMENT: $BASALT_ENVIRONMENT"
+echo "BASALT_SERVICE_NAME: $BASALT_SERVICE_NAME"
+echo ""
+
+# Change to the service directory
+cd "$(dirname "$0")"
+
+# Check if hatch environment exists
+if ! hatch env show default &>/dev/null; then
+    echo -e "${YELLOW}Creating hatch environment...${NC}"
+    hatch env create
+fi
+
+# Install basalt-py from parent directory
+echo -e "${YELLOW}Installing basalt-py from parent directory...${NC}"
+hatch run pip install -q -e ../..
+
+echo -e "${GREEN}Starting services...${NC}"
+echo ""
+
+# Start services in background
+echo -e "${GREEN}Starting Service B on port 8001...${NC}"
+hatch run service-b &
+SERVICE_B_PID=$!
+
+# Wait a moment for Service B to start
+sleep 2
+
+echo -e "${GREEN}Starting Service A on port 8000...${NC}"
+hatch run service-a &
+SERVICE_A_PID=$!
+
+# Wait for services to fully start
+sleep 2
+
+# Trap to cleanup on exit
+trap "echo -e '\n${YELLOW}Shutting down services...${NC}'; kill $SERVICE_A_PID $SERVICE_B_PID 2>/dev/null; exit 0" SIGINT SIGTERM EXIT
+
+echo ""
+echo -e "${GREEN}✓ Services started successfully!${NC}"
+echo ""
+echo "Service A: http://localhost:8000"
+echo "Service B: http://localhost:8001"
+echo ""
+echo -e "${YELLOW}Test the repro:${NC}"
+echo "  curl -X POST http://localhost:8000/call-service-b"
+echo ""
+echo -e "${RED}Press Ctrl+C to stop all services${NC}"
+echo ""
+
+# Wait for processes
+wait
diff --git a/examples/reproduce_trace_bug/service_a.py b/examples/reproduce_trace_bug/service_a.py
new file mode 100644
index 0000000..d437bde
--- /dev/null
+++ b/examples/reproduce_trace_bug/service_a.py
@@ -0,0 +1,95 @@
+"""
+Service A (Caller) - Port 8000
+Makes HTTP call to Service B with trace context propagation.
+"""
+
+import logging
+import os
+from contextlib import asynccontextmanager
+
+import httpx
+from dotenv import load_dotenv
+from fastapi import FastAPI
+from google import genai
+from opentelemetry import trace
+from opentelemetry.instrumentation.fastapi import FastAPIInstrumentor
+from opentelemetry.instrumentation.httpx import HTTPXClientInstrumentor
+
+from basalt import Basalt, TelemetryConfig
+from basalt.observability import start_observe
+
+load_dotenv()
+logging.basicConfig(level=logging.DEBUG)
+logger = logging.getLogger(__name__)
+
+BASALT_API_KEY = os.getenv("BASALT_API_KEY")
+GEMINI_API_KEY = os.getenv("GEMINI_API_KEY")
+
+def build_basalt_client() -> Basalt:
+    telemetry_config = TelemetryConfig(service_name="service-a", trace_content=True,enabled_providers=["google_generativeai"])
+    basalt_client = Basalt(api_key=BASALT_API_KEY, telemetry_config=telemetry_config)
+    return basalt_client
+
+
+@asynccontextmanager
+async def lifespan(app: FastAPI):
+    app.state.basalt_client = build_basalt_client()
+
+    logger.info("Service A started")
+    yield
+    logger.info("Service A shutting down")
+
+
+app = FastAPI(lifespan=lifespan)
+HTTPXClientInstrumentor().instrument()
+FastAPIInstrumentor.instrument_app(app)
+
+
+@app.post("/call-service-b")
+@start_observe(
+    feature_slug="new-test",
+    name="service-a-endpoint",
+    metadata={"service": "service-a"},
+)
+async def call_service_b():
+    """Call Service B and check if trace context is propagated."""
+    current_span = trace.get_current_span()
+    span_ctx = current_span.get_span_context()
+
+    logger.info(
+        "Service A - Before HTTP call: trace_id=%s, span_id=%s, is_valid=%s",
+        format(span_ctx.trace_id, "032x"),
+        format(span_ctx.span_id, "016x"),
+        span_ctx.is_valid,
+    )
+
+    # Simple Gemini call in Service A
+    client = genai.Client(api_key=GEMINI_API_KEY)
+    gemini_response = client.models.generate_content(
+        model="gemini-2.0-flash-lite",
+        contents="Say 'Hello from Service A' in exactly 5 words.",
+    )
+    gemini_text_a = gemini_response.text.strip() if gemini_response.text else None
+    logger.info("Service A - Gemini response: %s", gemini_text_a)
+
+    async with httpx.AsyncClient() as client:
+        response = await client.post("http://localhost:8001/endpoint")
+
+        sent_traceparent = response.request.headers.get("traceparent")
+        logger.info(
+            "Service A - After HTTP call: sent traceparent=%s",
+            sent_traceparent,
+        )
+
+        return {
+            "service_a_trace_id": format(span_ctx.trace_id, "032x"),
+            "service_a_gemini": gemini_text_a,
+            "sent_traceparent": sent_traceparent,
+            "service_b_response": response.json(),
+        }
+
+
+if __name__ == "__main__":
+    import uvicorn
+
+    uvicorn.run(app, host="0.0.0.0", port=8000)
diff --git a/examples/reproduce_trace_bug/service_b.py b/examples/reproduce_trace_bug/service_b.py
new file mode 100644
index 0000000..4378172
--- /dev/null
+++ b/examples/reproduce_trace_bug/service_b.py
@@ -0,0 +1,114 @@
+"""
+Service B (Callee) - Port 8001
+Receives HTTP call from Service A.
+Demonstrates that @start_observe creates a NEW trace instead of continuing the parent.
+"""
+
+import logging
+import os
+from contextlib import asynccontextmanager
+
+from dotenv import load_dotenv
+from fastapi import FastAPI, Request
+from google import genai
+from opentelemetry import trace
+from opentelemetry.instrumentation.fastapi import FastAPIInstrumentor
+
+from basalt import Basalt
+from basalt.observability import start_observe
+
+load_dotenv()
+logging.basicConfig(level=logging.DEBUG)
+logger = logging.getLogger(__name__)
+
+BASALT_API_KEY = os.getenv("BASALT_API_KEY")
+GEMINI_API_KEY = os.getenv("GEMINI_API_KEY")
+
+def build_basalt_client()-> Basalt:
+    basalt_client = Basalt(api_key=BASALT_API_KEY)
+    return basalt_client
+
+
+@asynccontextmanager
+async def lifespan(app: FastAPI):
+    app.state.basalt_client = build_basalt_client()
+    logger.info("Service B started")
+    yield
+    logger.info("Service B shutting down")
+
+
+app = FastAPI(lifespan=lifespan)
+FastAPIInstrumentor.instrument_app(app)
+
+
+@app.post("/endpoint")
+@start_observe(
+    feature_slug="new-test",
+    name="service-b-endpoint",
+    metadata={"service": "service-b"},
+)
+async def endpoint(request: Request):
+    """
+    Endpoint that receives the call from Service A.
+
+    BUG: Even though traceparent header is received, @start_observe creates
+    a NEW trace instead of continuing the parent trace.
+    """
+    # Log incoming headers
+    traceparent = request.headers.get("traceparent")
+    tracestate = request.headers.get("tracestate")
+    logger.info(
+        "Service B - Incoming headers: traceparent=%s, tracestate=%s",
+        traceparent,
+        tracestate,
+    )
+
+    # Log current OTel context (set by @start_observe)
+    current_span = trace.get_current_span()
+    span_ctx = current_span.get_span_context()
+    logger.info(
+        "Service B - Current OTel context: trace_id=%s, span_id=%s, is_valid=%s",
+        format(span_ctx.trace_id, "032x"),
+        format(span_ctx.span_id, "016x"),
+        span_ctx.is_valid,
+    )
+
+    # Parse the incoming traceparent to compare
+    incoming_trace_id = None
+    if traceparent:
+        parts = traceparent.split("-")
+        if len(parts) >= 2:
+            incoming_trace_id = parts[1]
+
+    current_trace_id = format(span_ctx.trace_id, "032x")
+    traces_match = incoming_trace_id == current_trace_id
+
+    logger.info(
+        "Service B - Trace comparison: incoming=%s, current=%s, MATCH=%s",
+        incoming_trace_id,
+        current_trace_id,
+        traces_match,
+    )
+
+    # Simple Gemini call in Service B
+    client = genai.Client(api_key=GEMINI_API_KEY)
+    gemini_response = client.models.generate_content(
+        model="gemini-2.0-flash-lite",
+        contents="Say 'Hello from Service B' in exactly 5 words.",
+    )
+    gemini_text_b = gemini_response.text.strip() if gemini_response.text else None
+    logger.info("Service B - Gemini response: %s", gemini_text_b)
+
+    return {
+        "incoming_traceparent": traceparent,
+        "service_b_trace_id": current_trace_id,
+        "service_b_gemini": gemini_text_b,
+        "traces_match": traces_match,
+        "bug_reproduced": not traces_match,
+    }
+
+
+if __name__ == "__main__":
+    import uvicorn
+
+    uvicorn.run(app, host="0.0.0.0", port=8001)