diff --git a/llama_stack/distribution/library_client.py b/llama_stack/distribution/library_client.py
index 693e2f56c..3a87f0c97 100644
--- a/llama_stack/distribution/library_client.py
+++ b/llama_stack/distribution/library_client.py
@@ -22,6 +22,7 @@ from termcolor import cprint
 
 from llama_stack.distribution.build import print_pip_install_help
 from llama_stack.distribution.configure import parse_and_maybe_upgrade_config
+from llama_stack.distribution.datatypes import Api
 from llama_stack.distribution.resolver import ProviderRegistry
 from llama_stack.distribution.server.endpoints import get_all_api_endpoints
 from llama_stack.distribution.stack import (
@@ -29,6 +30,11 @@ from llama_stack.distribution.stack import (
     get_stack_run_config_from_template,
     replace_env_vars,
 )
+from llama_stack.providers.utils.telemetry.tracing import (
+    end_trace,
+    setup_logger,
+    start_trace,
+)
 
 T = TypeVar("T")
 
@@ -187,6 +193,10 @@ class AsyncLlamaStackAsLibraryClient(AsyncLlamaStackClient):
                 )
             return False
 
+        # Set up telemetry logger similar to server.py
+        if Api.telemetry in self.impls:
+            setup_logger(self.impls[Api.telemetry])
+
         console = Console()
         console.print(f"Using config [blue]{self.config_path_or_template_name}[/blue]:")
         console.print(yaml.dump(self.config.model_dump(), indent=2))
@@ -234,21 +244,29 @@ class AsyncLlamaStackAsLibraryClient(AsyncLlamaStackClient):
             return await self._call_non_streaming(path, "POST", body)
 
     async def _call_non_streaming(self, path: str, method: str, body: dict = None):
-        func = self.endpoint_impls.get(path)
-        if not func:
-            raise ValueError(f"No endpoint found for {path}")
+        await start_trace(path, {"__location__": "library_client"})
+        try:
+            func = self.endpoint_impls.get(path)
+            if not func:
+                raise ValueError(f"No endpoint found for {path}")
 
-        body = self._convert_body(path, body)
-        return await func(**body)
+            body = self._convert_body(path, body)
+            return await func(**body)
+        finally:
+            end_trace()
 
     async def _call_streaming(self, path: str, method: str, body: dict = None):
-        func = self.endpoint_impls.get(path)
-        if not func:
-            raise ValueError(f"No endpoint found for {path}")
+        await start_trace(path, {"__location__": "library_client"})
+        try:
+            func = self.endpoint_impls.get(path)
+            if not func:
+                raise ValueError(f"No endpoint found for {path}")
 
-        body = self._convert_body(path, body)
-        async for chunk in await func(**body):
-            yield chunk
+            body = self._convert_body(path, body)
+            async for chunk in await func(**body):
+                yield chunk
+        finally:
+            end_trace()
 
     def _convert_body(self, path: str, body: Optional[dict] = None) -> dict:
         if not body:
diff --git a/llama_stack/providers/inline/telemetry/meta_reference/sqlite_span_processor.py b/llama_stack/providers/inline/telemetry/meta_reference/sqlite_span_processor.py
index 553dd5000..f8fdbc12f 100644
--- a/llama_stack/providers/inline/telemetry/meta_reference/sqlite_span_processor.py
+++ b/llama_stack/providers/inline/telemetry/meta_reference/sqlite_span_processor.py
@@ -20,6 +20,7 @@ class SQLiteSpanProcessor(SpanProcessor):
         """Initialize the SQLite span processor with a connection string."""
         self.conn_string = conn_string
         self.ttl_days = ttl_days
+        self._shutdown_event = threading.Event()
         self.cleanup_task = None
         self._thread_local = threading.local()
         self._connections: Dict[int, sqlite3.Connection] = {}
@@ -144,9 +145,10 @@ class SQLiteSpanProcessor(SpanProcessor):
         """Run cleanup periodically."""
         import time
 
-        while True:
+        while not self._shutdown_event.is_set():
             time.sleep(3600)  # Sleep for 1 hour
-            self._cleanup_old_data()
+            if not self._shutdown_event.is_set():
+                self._cleanup_old_data()
 
     def on_start(self, span: Span, parent_context=None):
         """Called when a span starts."""
@@ -231,11 +233,23 @@ class SQLiteSpanProcessor(SpanProcessor):
 
     def shutdown(self):
         """Cleanup any resources."""
+        self._shutdown_event.set()
+
+        # Wait for cleanup thread to finish if it exists
+        if self.cleanup_task and self.cleanup_task.is_alive():
+            self.cleanup_task.join(timeout=5.0)
+        current_thread_id = threading.get_ident()
+
         with self._lock:
-            for conn in self._connections.values():
-                if conn:
-                    conn.close()
-            self._connections.clear()
+            # Close all connections from the current thread
+            for thread_id, conn in list(self._connections.items()):
+                if thread_id == current_thread_id:
+                    try:
+                        if conn:
+                            conn.close()
+                        del self._connections[thread_id]
+                    except sqlite3.Error:
+                        pass  # Ignore errors during shutdown
 
     def force_flush(self, timeout_millis=30000):
         """Force export of spans."""