diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/execute_tool_scope.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/execute_tool_scope.py
index 656f7ef..f502cee 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/execute_tool_scope.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/execute_tool_scope.py
@@ -30,6 +30,7 @@ def start(
         agent_details: AgentDetails,
         tenant_details: TenantDetails,
         request: Request | None = None,
+        parent_id: str | None = None,
     ) -> "ExecuteToolScope":
         """Creates and starts a new scope for tool execution tracing.
 
@@ -38,11 +39,13 @@ def start(
             agent_details: The details of the agent making the call
             tenant_details: The details of the tenant
             request: Optional request details for additional context
+            parent_id: Optional parent Activity ID used to link this span to an upstream
+                operation
 
         Returns:
             A new ExecuteToolScope instance
         """
-        return ExecuteToolScope(details, agent_details, tenant_details, request)
+        return ExecuteToolScope(details, agent_details, tenant_details, request, parent_id)
 
     def __init__(
         self,
@@ -50,6 +53,7 @@ def __init__(
         agent_details: AgentDetails,
         tenant_details: TenantDetails,
         request: Request | None = None,
+        parent_id: str | None = None,
     ):
         """Initialize the tool execution scope.
 
@@ -58,6 +62,8 @@ def __init__(
             agent_details: The details of the agent making the call
             tenant_details: The details of the tenant
             request: Optional request details for additional context
+            parent_id: Optional parent Activity ID used to link this span to an upstream
+                operation
         """
         super().__init__(
             kind="Internal",
@@ -65,6 +71,7 @@ def __init__(
             activity_name=f"{EXECUTE_TOOL_OPERATION_NAME} {details.tool_name}",
             agent_details=agent_details,
             tenant_details=tenant_details,
+            parent_id=parent_id,
         )
 
         # Extract details using deconstruction-like approach
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/inference_scope.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/inference_scope.py
index f3e11bd..79294ea 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/inference_scope.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/inference_scope.py
@@ -34,6 +34,7 @@ def start(
         agent_details: AgentDetails,
         tenant_details: TenantDetails,
         request: Request | None = None,
+        parent_id: str | None = None,
     ) -> "InferenceScope":
         """Creates and starts a new scope for inference tracing.
 
@@ -42,11 +43,13 @@ def start(
             agent_details: The details of the agent making the call
             tenant_details: The details of the tenant
             request: Optional request details for additional context
+            parent_id: Optional parent Activity ID used to link this span to an upstream
+                operation
 
         Returns:
             A new InferenceScope instance
         """
-        return InferenceScope(details, agent_details, tenant_details, request)
+        return InferenceScope(details, agent_details, tenant_details, request, parent_id)
 
     def __init__(
         self,
@@ -54,6 +57,7 @@ def __init__(
         agent_details: AgentDetails,
         tenant_details: TenantDetails,
         request: Request | None = None,
+        parent_id: str | None = None,
     ):
         """Initialize the inference scope.
 
@@ -62,6 +66,8 @@ def __init__(
             agent_details: The details of the agent making the call
             tenant_details: The details of the tenant
             request: Optional request details for additional context
+            parent_id: Optional parent Activity ID used to link this span to an upstream
+                operation
         """
 
         super().__init__(
@@ -70,6 +76,7 @@ def __init__(
             activity_name=f"{details.operationName.value} {details.model}",
             agent_details=agent_details,
             tenant_details=tenant_details,
+            parent_id=parent_id,
         )
 
         if request:
diff --git a/tests/observability/core/test_execute_tool_scope.py b/tests/observability/core/test_execute_tool_scope.py
index 187ee26..82f073d 100644
--- a/tests/observability/core/test_execute_tool_scope.py
+++ b/tests/observability/core/test_execute_tool_scope.py
@@ -131,6 +131,32 @@ def test_request_metadata_set_on_span(self):
             request.source_metadata.description,
         )
 
+    def test_execute_tool_scope_with_parent_id(self):
+        """Test ExecuteToolScope uses parent_id to link span to parent context."""
+        parent_trace_id = "1234567890abcdef1234567890abcdef"
+        parent_span_id = "abcdefabcdef1234"
+        parent_id = f"00-{parent_trace_id}-{parent_span_id}-01"
+
+        with ExecuteToolScope.start(
+            self.tool_details, self.agent_details, self.tenant_details, parent_id=parent_id
+        ):
+            pass
+
+        finished_spans = self.span_exporter.get_finished_spans()
+        self.assertTrue(finished_spans, "Expected at least one span to be created")
+
+        span = finished_spans[-1]
+
+        # Verify span inherits parent's trace_id
+        span_trace_id = f"{span.context.trace_id:032x}"
+        self.assertEqual(span_trace_id, parent_trace_id)
+
+        # Verify span's parent_span_id matches
+        self.assertIsNotNone(span.parent, "Expected span to have a parent")
+        self.assertTrue(hasattr(span.parent, "span_id"), "Expected parent to have span_id")
+        span_parent_id = f"{span.parent.span_id:016x}"
+        self.assertEqual(span_parent_id, parent_span_id)
+
 
 if __name__ == "__main__":
     # Run pytest only on the current file
diff --git a/tests/observability/core/test_inference_scope.py b/tests/observability/core/test_inference_scope.py
index 01eef83..adf935b 100644
--- a/tests/observability/core/test_inference_scope.py
+++ b/tests/observability/core/test_inference_scope.py
@@ -340,6 +340,38 @@ def test_record_thought_process(self):
             # Should not raise an exception
             self.assertTrue(hasattr(scope, "record_thought_process"))
 
+    def test_inference_scope_with_parent_id(self):
+        """Test InferenceScope uses parent_id to link span to parent context."""
+        details = InferenceCallDetails(
+            operationName=InferenceOperationType.CHAT,
+            model="gpt-4",
+            providerName="openai",
+        )
+
+        parent_trace_id = "1234567890abcdef1234567890abcdef"
+        parent_span_id = "abcdefabcdef1234"
+        parent_id = f"00-{parent_trace_id}-{parent_span_id}-01"
+
+        with InferenceScope.start(
+            details, self.agent_details, self.tenant_details, parent_id=parent_id
+        ):
+            pass
+
+        finished_spans = self.span_exporter.get_finished_spans()
+        self.assertTrue(finished_spans, "Expected at least one span to be created")
+
+        span = finished_spans[-1]
+
+        # Verify span inherits parent's trace_id
+        span_trace_id = f"{span.context.trace_id:032x}"
+        self.assertEqual(span_trace_id, parent_trace_id)
+
+        # Verify span's parent_span_id matches
+        self.assertIsNotNone(span.parent, "Expected span to have a parent")
+        self.assertTrue(hasattr(span.parent, "span_id"), "Expected parent to have span_id")
+        span_parent_id = f"{span.parent.span_id:016x}"
+        self.assertEqual(span_parent_id, parent_span_id)
+
 
 if __name__ == "__main__":
     # Run pytest only on the current file