diff --git a/src/llama_stack/core/resolver.py b/src/llama_stack/core/resolver.py
index 805d260fc..8bf371fed 100644
--- a/src/llama_stack/core/resolver.py
+++ b/src/llama_stack/core/resolver.py
@@ -397,6 +397,18 @@ async def instantiate_provider(
     impl.__provider_spec__ = provider_spec
     impl.__provider_config__ = config
 
+    # Apply tracing if telemetry is enabled and any base class has __marked_for_tracing__ marker
+    if run_config.telemetry.enabled:
+        traced_classes = [
+            base for base in reversed(impl.__class__.__mro__) if getattr(base, "__marked_for_tracing__", False)
+        ]
+
+        if traced_classes:
+            from llama_stack.core.telemetry.trace_protocol import trace_protocol
+
+            for cls in traced_classes:
+                trace_protocol(cls)
+
     protocols = api_protocol_map_for_compliance_check(run_config)
     additional_protocols = additional_protocols_map()
     # TODO: check compliance for special tool groups
diff --git a/src/llama_stack/core/routers/__init__.py b/src/llama_stack/core/routers/__init__.py
index 81944dae0..729d1c9ea 100644
--- a/src/llama_stack/core/routers/__init__.py
+++ b/src/llama_stack/core/routers/__init__.py
@@ -46,17 +46,6 @@ async def get_routing_table_impl(
 
     impl = api_to_tables[api.value](impls_by_provider_id, dist_registry, policy)
 
-    # Apply tracing to routing table if any base class has __marked_for_tracing__ marker
-    # (Tracing will be no-op if telemetry is disabled)
-    traced_classes = [
-        base for base in reversed(impl.__class__.__mro__) if getattr(base, "__marked_for_tracing__", False)
-    ]
-    if traced_classes:
-        from llama_stack.core.telemetry.trace_protocol import trace_protocol
-
-        for cls in traced_classes:
-            trace_protocol(cls)
-
     await impl.initialize()
     return impl
 
@@ -105,17 +94,5 @@ async def get_auto_router_impl(
 
     impl = api_to_routers[api.value](routing_table, **api_to_dep_impl)
 
-    # Apply tracing to router implementation BEFORE initialize() if telemetry is enabled
-    # Apply to all classes in MRO that have __marked_for_tracing__ marker to ensure inherited methods are wrapped
-    if run_config.telemetry.enabled:
-        traced_classes = [
-            base for base in reversed(impl.__class__.__mro__) if getattr(base, "__marked_for_tracing__", False)
-        ]
-        if traced_classes:
-            from llama_stack.core.telemetry.trace_protocol import trace_protocol
-
-            for cls in traced_classes:
-                trace_protocol(cls)
-
     await impl.initialize()
     return impl