diff --git a/src/instana/options.py b/src/instana/options.py
index f63ed9c7..d12c5213 100644
--- a/src/instana/options.py
+++ b/src/instana/options.py
@@ -115,6 +115,11 @@ def set_trace_configurations(self) -> None:
                 "trace_correlation", True
             )
 
+        if "INSTANA_ASYNCIO_TASK_CONTEXT_PROPAGATION" in os.environ:
+            config["asyncio_task_context_propagation"]["enabled"] = is_truthy(
+                os.environ["INSTANA_ASYNCIO_TASK_CONTEXT_PROPAGATION"]
+            )
+
         self.set_disable_trace_configurations()
         self.set_stack_trace_configurations()
         self.set_span_filter_configurations()
diff --git a/tests/test_options.py b/tests/test_options.py
index d0004e09..f92e85db 100644
--- a/tests/test_options.py
+++ b/tests/test_options.py
@@ -842,6 +842,23 @@ def test_tracing_filter_environment_variables(self) -> None:
             ],
         }
 
+    def test_asyncio_task_context_propagation_default(self) -> None:
+        """INSTANA_ASYNCIO_TASK_CONTEXT_PROPAGATION is False by default."""
+        self.base_options = BaseOptions()
+        assert config["asyncio_task_context_propagation"]["enabled"] is False
+
+    @patch.dict(os.environ, {"INSTANA_ASYNCIO_TASK_CONTEXT_PROPAGATION": "true"})
+    def test_asyncio_task_context_propagation_enabled_via_env(self) -> None:
+        """INSTANA_ASYNCIO_TASK_CONTEXT_PROPAGATION=true enables the flag."""
+        self.base_options = BaseOptions()
+        assert config["asyncio_task_context_propagation"]["enabled"] is True
+
+    @patch.dict(os.environ, {"INSTANA_ASYNCIO_TASK_CONTEXT_PROPAGATION": "false"})
+    def test_asyncio_task_context_propagation_disabled_via_env(self) -> None:
+        """INSTANA_ASYNCIO_TASK_CONTEXT_PROPAGATION=false keeps the flag disabled."""
+        self.base_options = BaseOptions()
+        assert config["asyncio_task_context_propagation"]["enabled"] is False
+
 
 class TestStandardOptions:
     @pytest.fixture(autouse=True)