diff --git a/src/llama_stack/core/server/server.py b/src/llama_stack/core/server/server.py
index 0d3513980..9a01eb75e 100644
--- a/src/llama_stack/core/server/server.py
+++ b/src/llama_stack/core/server/server.py
@@ -50,8 +50,6 @@ from llama_stack.core.stack import (
     cast_image_name_to_string,
     replace_env_vars,
 )
-from llama_stack.core.telemetry import Telemetry
-from llama_stack.core.telemetry.tracing import CURRENT_TRACE_CONTEXT, setup_logger
 from llama_stack.core.utils.config import redact_sensitive_fields
 from llama_stack.core.utils.config_resolution import Mode, resolve_config_or_distro
 from llama_stack.core.utils.context import preserve_contexts_async_generator
@@ -60,7 +58,6 @@ from llama_stack_api import Api, ConflictError, PaginatedResponse, ResourceNotFo
 
 from .auth import AuthenticationMiddleware
 from .quota import QuotaMiddleware
-from .tracing import TracingMiddleware
 
 REPO_ROOT = Path(__file__).parent.parent.parent.parent
 
@@ -263,7 +260,7 @@ def create_dynamic_typed_route(func: Any, method: str, route: str) -> Callable:
 
             try:
                 if is_streaming:
-                    context_vars = [CURRENT_TRACE_CONTEXT, PROVIDER_DATA_VAR]
+                    context_vars = [PROVIDER_DATA_VAR]
                     if test_context_var is not None:
                         context_vars.append(test_context_var)
                     gen = preserve_contexts_async_generator(sse_generator(func(**kwargs)), context_vars)
@@ -441,9 +438,6 @@ def create_app() -> StackApp:
         if cors_config:
             app.add_middleware(CORSMiddleware, **cors_config.model_dump())
 
-    if config.telemetry.enabled:
-        setup_logger(Telemetry())
-
     # Load external APIs if configured
     external_apis = load_external_apis(config)
     all_routes = get_all_api_routes(external_apis)
@@ -500,9 +494,6 @@ def create_app() -> StackApp:
     app.exception_handler(RequestValidationError)(global_exception_handler)
     app.exception_handler(Exception)(global_exception_handler)
 
-    if config.telemetry.enabled:
-        app.add_middleware(TracingMiddleware, impls=impls, external_apis=external_apis)
-
     return app
 
 
diff --git a/src/llama_stack/core/server/tracing.py b/src/llama_stack/core/server/tracing.py
deleted file mode 100644
index c4901d9b1..000000000
--- a/src/llama_stack/core/server/tracing.py
+++ /dev/null
@@ -1,80 +0,0 @@
-# Copyright (c) Meta Platforms, Inc. and affiliates.
-# All rights reserved.
-#
-# This source code is licensed under the terms described in the LICENSE file in
-# the root directory of this source tree.
-from aiohttp import hdrs
-
-from llama_stack.core.external import ExternalApiSpec
-from llama_stack.core.server.routes import find_matching_route, initialize_route_impls
-from llama_stack.core.telemetry.tracing import end_trace, start_trace
-from llama_stack.log import get_logger
-
-logger = get_logger(name=__name__, category="core::server")
-
-
-class TracingMiddleware:
-    def __init__(self, app, impls, external_apis: dict[str, ExternalApiSpec]):
-        self.app = app
-        self.impls = impls
-        self.external_apis = external_apis
-        # FastAPI built-in paths that should bypass custom routing
-        self.fastapi_paths = ("/docs", "/redoc", "/openapi.json", "/favicon.ico", "/static")
-
-    async def __call__(self, scope, receive, send):
-        if scope.get("type") == "lifespan":
-            return await self.app(scope, receive, send)
-
-        path = scope.get("path", "")
-
-        # Check if the path is a FastAPI built-in path
-        if path.startswith(self.fastapi_paths):
-            # Pass through to FastAPI's built-in handlers
-            logger.debug(f"Bypassing custom routing for FastAPI built-in path: {path}")
-            return await self.app(scope, receive, send)
-
-        if not hasattr(self, "route_impls"):
-            self.route_impls = initialize_route_impls(self.impls, self.external_apis)
-
-        try:
-            _, _, route_path, webmethod = find_matching_route(
-                scope.get("method", hdrs.METH_GET), path, self.route_impls
-            )
-        except ValueError:
-            # If no matching endpoint is found, pass through to FastAPI
-            logger.debug(f"No matching route found for path: {path}, falling back to FastAPI")
-            return await self.app(scope, receive, send)
-
-        # Log deprecation warning if route is deprecated
-        if getattr(webmethod, "deprecated", False):
-            logger.warning(
-                f"DEPRECATED ROUTE USED: {scope.get('method', 'GET')} {path} - "
-                f"This route is deprecated and may be removed in a future version. "
-                f"Please check the docs for the supported version."
-            )
-
-        trace_attributes = {"__location__": "server", "raw_path": path}
-
-        # Extract W3C trace context headers and store as trace attributes
-        headers = dict(scope.get("headers", []))
-        traceparent = headers.get(b"traceparent", b"").decode()
-        if traceparent:
-            trace_attributes["traceparent"] = traceparent
-        tracestate = headers.get(b"tracestate", b"").decode()
-        if tracestate:
-            trace_attributes["tracestate"] = tracestate
-
-        trace_path = webmethod.descriptive_name or route_path
-        trace_context = await start_trace(trace_path, trace_attributes)
-
-        async def send_with_trace_id(message):
-            if message["type"] == "http.response.start":
-                headers = message.get("headers", [])
-                headers.append([b"x-trace-id", str(trace_context.trace_id).encode()])
-                message["headers"] = headers
-            await send(message)
-
-        try:
-            return await self.app(scope, receive, send_with_trace_id)
-        finally:
-            await end_trace()