diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py
index 6c3befd..68acc38 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py
@@ -1,12 +1,14 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
 
+import os
 import logging
 import threading
 from collections.abc import Callable
 from typing import Any, Optional
 
 from opentelemetry import trace
+from opentelemetry.exporter.otlp.proto.http.trace_exporter import OTLPSpanExporter
 from opentelemetry.sdk.resources import SERVICE_NAME, SERVICE_NAMESPACE, Resource
 from opentelemetry.sdk.trace import TracerProvider
 from opentelemetry.sdk.trace.export import ConsoleSpanExporter
@@ -161,10 +163,11 @@ def _configure_internal(
                 use_s2s_endpoint=exporter_options.use_s2s_endpoint,
                 suppress_invoke_agent_input=suppress_invoke_agent_input,
             )
+
         else:
             exporter = ConsoleSpanExporter()
             self._logger.warning(
-                "is_agent365_exporter_enabled() not enabled or token_resolver not set.Falling back to console exporter."
+                "is_agent365_exporter_enabled() not enabled or token_resolver not set. Falling back to console exporter."
             )
 
         # Add span processors
@@ -181,6 +184,13 @@ def _configure_internal(
         self._span_processors["batch"] = batch_processor
         self._span_processors["agent"] = agent_processor
 
+        if os.environ.get("ENABLE_OTLP_EXPORTER", "").lower() == "true":
+            # The OTLPSpanExporter is auto configured from the environment variables
+            otlp_exporter = OTLPSpanExporter()
+            tracer_provider.add_span_processor(
+                _EnrichingBatchSpanProcessor(otlp_exporter, **batch_processor_kwargs)
+            )
+
         # Configure logging if logger_name is provided
         if logger_name:
             target_logger = logging.getLogger(logger_name)
diff --git a/tests/observability/core/test_agent365.py b/tests/observability/core/test_agent365.py
index 358b935..f8c4869 100644
--- a/tests/observability/core/test_agent365.py
+++ b/tests/observability/core/test_agent365.py
@@ -201,6 +201,42 @@ def test_configure_uses_existing_tracer_provider(self, mock_get_provider, mock_i
                 self.assertIn("_EnrichingBatchSpanProcessor", processor_types)
                 self.assertIn("SpanProcessor", processor_types)
 
+    @patch("microsoft_agents_a365.observability.core.config.OTLPSpanExporter")
+    @patch(
+        "microsoft_agents_a365.observability.core.config.is_agent365_exporter_enabled",
+        return_value=False,
+    )
+    @patch.dict("os.environ", {"ENABLE_OTLP_EXPORTER": "true"}, clear=True)
+    def test_otlp_exporter_initialized_when_env_var_set(self, mock_is_enabled, mock_otlp_exporter):
+        """Test that OTLPSpanExporter is initialized when ENABLE_OTLP_EXPORTER is set."""
+
+        result = configure(
+            service_name="test-service",
+            service_namespace="test-namespace",
+        )
+
+        self.assertTrue(result, "configure() should return True")
+        mock_otlp_exporter.assert_called_once()
+
+    @patch("microsoft_agents_a365.observability.core.config.OTLPSpanExporter")
+    @patch(
+        "microsoft_agents_a365.observability.core.config.is_agent365_exporter_enabled",
+        return_value=False,
+    )
+    @patch.dict("os.environ", {}, clear=True)
+    def test_otlp_exporter_not_initialized_when_env_var_not_set(
+        self, mock_is_enabled, mock_otlp_exporter
+    ):
+        """Test that OTLPSpanExporter is NOT initialized when ENABLE_OTLP_EXPORTER is not set."""
+
+        result = configure(
+            service_name="test-service",
+            service_namespace="test-namespace",
+        )
+
+        self.assertTrue(result, "configure() should return True")
+        mock_otlp_exporter.assert_not_called()
+
 
 if __name__ == "__main__":
     unittest.main()