Record live and negative Tempo e2e runs in the execution log

Co-Authored-By: Claude <noreply@anthropic.com>
Add Tempo-gated e2e test for OTel tracing
2026-08-24 12:39:05 +02:00 · 2026-08-24 12:31:41 +02:00 · 2026-08-24 12:25:30 +02:00 · 2026-08-24 11:30:27 +02:00 · 2026-08-24 11:09:48 +02:00 · 2026-08-24 11:07:13 +02:00
44 changed files with 2968 additions and 73 deletions
--- a/.claude/settings.json
+++ b/.claude/settings.json
@@ -83,7 +83,17 @@
      "Bash(kubectl -n egress-proxies-operator-system get pods -o wide)",
      "Bash(kubectl -n egress-proxies-operator-system get deploy egress-proxies-operator-controller-manager -o jsonpath='{.spec.template.spec.containers[0].args}')",
      "Bash(kubectl -n egress-proxies-operator-system logs deploy/egress-proxies-operator-controller-manager)",
-      "Bash(python3 -c \"import json; d=json.load\\(open\\('docs/deploy/sa_key.json'\\)\\); print\\(d.get\\('type'\\), d.get\\('client_email'\\)\\)\")"
+      "Bash(python3 -c \"import json; d=json.load\\(open\\('docs/deploy/sa_key.json'\\)\\); print\\(d.get\\('type'\\), d.get\\('client_email'\\)\\)\")",
+      "Bash(tea pr *)",
+      "Bash(git worktree *)",
+      "Bash(python3 -c \"import yaml; yaml.safe_load\\(open\\('.gitea/workflows/build.yaml'\\)\\); print\\('YAML OK'\\)\")",
+      "Bash(ruby -ryaml -e \"YAML.load_file\\('.gitea/workflows/build.yaml'\\); puts 'YAML OK'\")",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator status --short --branch)",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator log --oneline -1)",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator tag 0.01)",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator push origin 0.01)",
+      "Bash(chmod +x docs/demo/run-demo.sh)",
+      "Bash(bash -n docs/demo/run-demo.sh)"
    ],
    "additionalDirectories": [
      "/Users/jan.novak/srv/go/egress-proxies-operator/.claude",
--- a/3
+++ b/3
@@ -90,7 +90,8 @@ setup-test-e2e: ## Set up a Kind cluster for e2e tests if it does not exist

 .PHONY: test-e2e
 test-e2e: setup-test-e2e manifests generate fmt vet ## Run the e2e tests. Expected an isolated environment using Kind.
-	KIND=$(KIND) KIND_CLUSTER=$(KIND_CLUSTER) go test -tags=e2e ./test/e2e/ -v -ginkgo.v
+	KIND=$(KIND) KIND_CLUSTER=$(KIND_CLUSTER) TEMPO_URL=$(TEMPO_URL) OTLP_ENDPOINT=$(OTLP_ENDPOINT) \
+		go test -tags=e2e ./test/e2e/ -v -ginkgo.v -timeout 30m
 	$(MAKE) cleanup-test-e2e

 .PHONY: cleanup-test-e2e
--- a/README.md
+++ b/README.md
@@ -136,6 +136,81 @@ Cloud-init from a Secret: the Secret **must** carry the label
 labelled Secrets, so an unlabelled one is invisible (the Proxy reports
 `CloudInitError`). Rotating the Secret's content triggers VM replacement.

+## Providers
+
+`Managed` proxies are provisioned by a provider — a small compute backend
+behind one minimal interface. Providers are configured in the
+`--providers-config` YAML file as **named instances**: `spec.provider` on a
+Proxy refers to an entry's `name`, not its `type`, so `gcp-eu` and `gcp-us`
+can be two differently-configured instances of the same `gcp` type (see
+[config/samples/providers-config.yaml](config/samples/providers-config.yaml)).
+
+### Implemented providers
+
+| Type | Creates | Per-instance config | Notes |
+| --- | --- | --- | --- |
+| `kubernetes` | A real Squid pod (`ubuntu/squid:6.6-24.04_edge` by default) in the same cluster the operator runs in | `image` (optional) | Needs no cloud account — local dev, CI, and the kind quickstart. Pods share the cluster's egress IP, so it exercises the full lifecycle but not distinct egress paths. |
+| `gcp` | A Compute Engine VM with an ephemeral external IP | `project` (required), `network`, `networkTag`, `diskSizeGb` | The real egress fleet. Deliberately uses only four API calls (Insert / Get / Delete / AggregatedList), all fire-and-forget: `Create` returns as soon as the operation is submitted and the reconciler discovers progress by polling `Get`. Auth is Application Default Credentials — workload identity in-cluster, `gcloud` ADC locally; no key-file plumbing. |
+
+### Adding a provider
+
+A new backend (Hetzner, AWS, ...) is four pieces; the contract lives in
+[internal/provider/provider.go](internal/provider/provider.go):
+
+1. **Implement the 4-method `Provider` interface** in a new
+   `internal/provider/<type>/` package:
+   - `Create` submits and returns — it never blocks until the VM runs, and
+     must be idempotent keyed on `req.Name` (a deterministic name derived
+     from the Proxy's UID), so a repeat call after a crash finds the
+     existing instance instead of duplicating it.
+   - `Get` returns `provider.ErrNotFound` as a *normal* outcome — the
+     reconciler branches on it for replacement and adoption, so don't
+     treat it as exceptional.
+   - `Delete` is idempotent: deleting an already-gone instance is not an
+     error.
+   - `ListByTag` returns every instance the operator ever tagged, for
+     orphan GC.
+2. **Tag every created resource** with `LabelManaged=true` and
+   `LabelUID=<Proxy UID>`, and report `CreatedAt` — orphan GC relies on
+   all three to find owned resources and skip in-flight creates.
+3. **Classify every returned error** with `provider.Wrap` into the
+   four-sentinel taxonomy in
+   [internal/provider/errors.go](internal/provider/errors.go)
+   (`ErrNotFound` / `ErrQuotaExceeded` / `ErrTransient` / `ErrPermanent`)
+   — the reconciler decides retry, slow backoff, or latching `Failed`
+   purely from that classification, never from provider-specific types.
+4. **Wire it up**: add a type-specific config block in
+   [internal/provider/config.go](internal/provider/config.go), and
+   register the constructor in the builtins map in
+   [cmd/main.go](cmd/main.go) (`"<type>": <pkg>.New`). The registry
+   ([internal/provider/registry](internal/provider/registry/registry.go))
+   handles named instances, and the metrics wrapper is applied
+   automatically.
+
+Test against a fake API seam rather than the real cloud — see the
+`instancesAPI` seam in
+[internal/provider/gcp/gcp.go](internal/provider/gcp/gcp.go) for the
+pattern.
+
+## Tracing
+
+OpenTelemetry tracing is built in but **off by default** — the operator
+only exports spans when pointed at an OTLP receiver:
+
+```bash
+# In config/manager/manager.yaml (commented-out block is already there):
+#   OTEL_EXPORTER_OTLP_ENDPOINT=http://jaeger-collector.observability:4318
+# Local dev: print spans to stdout instead
+OTEL_TRACES_EXPORTER=console go run ./cmd --providers-config hack/providers-dev.yaml
+```
+
+Every reconcile, discovery API request, and GC sweep becomes a trace, with
+child spans for provider and Kubernetes API calls; log lines inside a traced
+operation carry matching `traceID`/`spanID` fields (point Grafana/Loki
+derived fields at `traceID`). Sampling and endpoints follow the standard
+`OTEL_*` env vars; `--trace-health-probes` additionally traces each health
+probe (high volume). Details in `docs/architecture.md` §10.
+
 ## Caveats — read these two

 **Changing a proxy changes its IP.** Proxies are immutable cattle: editing
--- a/cmd/main.go
+++ b/cmd/main.go
@@ -42,6 +42,7 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/cache"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/healthz"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
 	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 	ctrlmetrics "sigs.k8s.io/controller-runtime/pkg/metrics"
 	"sigs.k8s.io/controller-runtime/pkg/metrics/filters"
@@ -58,6 +59,7 @@ import (
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider/gcp"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider/kubernetes"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider/registry"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/version"
 	// +kubebuilder:scaffold:imports
 )
@@ -93,6 +95,7 @@ func main() {
 	var leaseCooldown, maxLeaseTTL time.Duration
 	var showVersion bool
 	var gcpWireFullPayloads bool
+	var traceHealthProbes bool

 	flag.StringVar(&metricsAddr, "metrics-bind-address", "0", "The address the metrics endpoint binds to. "+
 		"Use :8443 for HTTPS or :8080 for HTTP, or leave as 0 to disable the metrics service.")
@@ -133,6 +136,9 @@ func main() {
 		"Print the commit the binary was built from and exit.")
 	flag.BoolVar(&gcpWireFullPayloads, "gcp-wire-log-full-payloads", false,
 		"Log GCP V(5) wire payloads verbatim instead of eliding fields larger than 1KiB.")
+	flag.BoolVar(&traceHealthProbes, "trace-health-probes", false,
+		"Emit one trace span per health probe. Off by default: probes run about "+
+			"once per second per proxy and would dominate trace volume.")

 	opts := zap.Options{
 		Development: true,
@@ -148,6 +154,17 @@ func main() {
 	ctrl.SetLogger(zap.New(zap.UseFlagOptions(&opts)))
 	setupLog.Info("Starting egress-proxies-operator",
 		"commit", version.Resolve(), "goVersion", goruntime.Version())
+
+	// Off (no-op spans, unchanged logs) unless OTEL_* env opts in; see
+	// internal/tracing. Shutdown is called explicitly after mgr.Start
+	// returns — the os.Exit paths below skip defers.
+	tracingShutdown, err := tracing.Setup(logf.IntoContext(context.Background(), setupLog),
+		"egress-proxies-operator", version.Resolve())
+	if err != nil {
+		setupLog.Error(err, "Failed to set up tracing")
+		os.Exit(1)
+	}
+
 	ctx := ctrl.SetupSignalHandler()

 	// Providers load first and fail fast: a manager that comes up without
@@ -162,7 +179,11 @@ func main() {
 		os.Exit(1)
 	}
 	providers, err := registry.Build(ctx, cfg, map[string]registry.Constructor{
-		"kubernetes": kubernetes.New,
+		"kubernetes": func(ctx context.Context, pc provider.ProviderConfig) (provider.Provider, error) {
+			// The kubernetes provider builds its own uncached client;
+			// wrap its transport so its API calls join the caller's trace.
+			return kubernetes.NewWithTransportWrapper(ctx, pc, tracing.RestConfigWrapper())
+		},
 		"gcp": func(ctx context.Context, pc provider.ProviderConfig) (provider.Provider, error) {
 			return gcp.NewWithWireOptions(ctx, pc, gcp.WireLogOptions{FullPayloads: gcpWireFullPayloads})
 		},
@@ -173,7 +194,8 @@ func main() {
 	}
 	m := metrics.New()
 	for name, p := range providers {
-		providers[name] = provider.WithMetrics(name, p, m)
+		// Tracing outermost: the span covers the metrics recording too.
+		providers[name] = provider.WithTracing(name, provider.WithMetrics(name, p, m))
 	}

 	// if the enable-http2 flag is false (the default), http/2 should be disabled
@@ -236,7 +258,9 @@ func main() {
 		cacheOpts.DefaultNamespaces = map[string]cache.Config{proxyNamespace: {}}
 	}

-	mgr, err := ctrl.NewManager(ctrl.GetConfigOrDie(), ctrl.Options{
+	restCfg := ctrl.GetConfigOrDie()
+	restCfg.Wrap(tracing.RestConfigWrapper())
+	mgr, err := ctrl.NewManager(restCfg, ctrl.Options{
 		Scheme:                 scheme,
 		Metrics:                metricsServerOptions,
 		HealthProbeBindAddress: probeAddr,
@@ -258,6 +282,7 @@ func main() {
 	engine := health.NewEngine(mgr.GetClient())
 	engine.Workers = healthWorkers
 	engine.Metrics = m
+	engine.TraceProbes = traceHealthProbes
 	if err := mgr.Add(engine); err != nil {
 		setupLog.Error(err, "Failed to add health engine")
 		os.Exit(1)
@@ -323,8 +348,19 @@ func main() {
 	}

 	setupLog.Info("Starting manager")
-	if err := mgr.Start(ctx); err != nil {
-		setupLog.Error(err, "Failed to run manager")
+	startErr := mgr.Start(ctx)
+
+	// Flush pending spans on the way out, error path included. Fresh
+	// context: the signal ctx is already cancelled by the time Start
+	// returns.
+	shutdownCtx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	if err := tracingShutdown(shutdownCtx); err != nil {
+		setupLog.Error(err, "Failed to flush traces on shutdown")
+	}
+	cancel()
+
+	if startErr != nil {
+		setupLog.Error(startErr, "Failed to run manager")
 		os.Exit(1)
 	}
 }
--- a/config/manager/manager.yaml
+++ b/config/manager/manager.yaml
@@ -64,6 +64,8 @@ spec:
          - --leader-elect
          - --health-probe-bind-address=:8081
          - --providers-config=/etc/proxy-operator/providers.yaml
+          # Add --trace-health-probes to emit one span per health probe
+          # (high volume: ~1/s per proxy).
        env:
          # Bearer token for the discovery API. Optional: without the
          # Secret the API serves unauthenticated (with a loud warning).
@@ -76,6 +78,33 @@ spec:
                name: discovery-token
                key: token
                optional: true
+          # --- OpenTelemetry tracing ---
+          # Tracing is OFF until OTEL_EXPORTER_OTLP_ENDPOINT (or
+          # OTEL_TRACES_EXPORTER) is set; without it the operator runs
+          # exactly as before. The downward-API vars must stay listed
+          # before OTEL_RESOURCE_ATTRIBUTES: $(VAR) expansion only sees
+          # earlier-listed vars.
+          - name: POD_NAME
+            valueFrom:
+              fieldRef:
+                fieldPath: metadata.name
+          - name: POD_NAMESPACE
+            valueFrom:
+              fieldRef:
+                fieldPath: metadata.namespace
+          - name: OTEL_SERVICE_NAME
+            value: egress-proxies-operator
+          - name: OTEL_RESOURCE_ATTRIBUTES
+            value: k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE)
+          # Point at an OTLP receiver (Tempo, Jaeger, otel-collector) to
+          # enable tracing; http/protobuf (4318) is the default protocol,
+          # set OTEL_EXPORTER_OTLP_PROTOCOL=grpc for 4317.
+          # - name: OTEL_EXPORTER_OTLP_ENDPOINT
+          #   value: http://jaeger-collector.observability:4318
+          # - name: OTEL_TRACES_SAMPLER
+          #   value: parentbased_traceidratio
+          # - name: OTEL_TRACES_SAMPLER_ARG
+          #   value: "0.1"
        image: controller:latest
        name: manager
        ports:
--- a/docs/api.md
+++ b/docs/api.md
@@ -27,7 +27,13 @@ kubectl -n egress-proxies-operator-system port-forward \
  svc/egress-proxies-operator-controller-manager-discovery-service 8090:8090 &
 ```

-All examples below assume `localhost:8090` via that port-forward.
+Set `BASE_URL` to wherever you reach the API; all examples below use it:
+
+```sh
+export BASE_URL=localhost:8090   # via the port-forward above
+# or, from inside the cluster:
+# export BASE_URL=http://egress-proxies-operator-controller-manager-discovery-service.egress-proxies-operator-system.svc.cluster.local:8090
+```

 ## Authentication

@@ -46,7 +52,7 @@ Send the token on every request:

 ```sh
 export TOKEN=<the token>
-curl -s -H "Authorization: Bearer $TOKEN" localhost:8090/v1/proxies | jq
+curl -s -H "Authorization: Bearer $TOKEN" "$BASE_URL/v1/proxies" | jq
 ```

 A missing or wrong token gets `401 {"error":"unauthorized",...}`.
@@ -86,7 +92,7 @@ The shipped Deployment passes none of these flags, so the defaults apply.
 Liveness check. Unauthenticated, always `200` with body `ok`.

 ```sh
-curl -s localhost:8090/healthz
+curl -s "$BASE_URL/healthz"
 ```

 ### `GET /v1/proxies` — list proxies
@@ -101,13 +107,13 @@ Query parameters (all optional):
 List everything:

 ```sh
-curl -s localhost:8090/v1/proxies | jq
+curl -s "$BASE_URL/v1/proxies" | jq
 ```

 List healthy proxies in a given geo:

 ```sh
-curl -s 'localhost:8090/v1/proxies?healthy=true&attr.geo=eu' | jq
+curl -s "$BASE_URL/v1/proxies?healthy=true&attr.geo=eu" | jq
 ```

 Response — `200`, proxies sorted by `id`, an empty match is `200` with
@@ -168,7 +174,7 @@ Request body (every field optional; `{}` is valid):
 | `target` | none | The site you intend to crawl; enables per-target cooldowns (see below) |

 ```sh
-curl -s -XPOST localhost:8090/v1/leases \
+curl -s -XPOST "$BASE_URL/v1/leases" \
  -d '{"selector":{"geo":"eu"},"ttlSeconds":300,"target":"example.com"}' | jq
 ```

@@ -228,7 +234,7 @@ Frees the lease's capacity slot immediately. Idempotent: always `204`,
 including for unknown or already-expired lease IDs.

 ```sh
-curl -si -XDELETE localhost:8090/v1/leases/P3X6HHQTPCM5UTGVGE3B5UPS3A
+curl -si -XDELETE "$BASE_URL/v1/leases/P3X6HHQTPCM5UTGVGE3B5UPS3A"
 ```

 ### `POST /v1/leases/{id}/report` — report an outcome
@@ -248,7 +254,7 @@ Request body:
 | `target` | optional | Which site produced the result; falls back to the lease's `target`, then to global |

 ```sh
-curl -si -XPOST localhost:8090/v1/leases/P3X6HHQTPCM5UTGVGE3B5UPS3A/report \
+curl -si -XPOST "$BASE_URL/v1/leases/P3X6HHQTPCM5UTGVGE3B5UPS3A/report" \
  -d '{"result":"rate_limited","target":"example.com"}'
 ```

@@ -287,7 +293,7 @@ Cooldowns are keyed by **(proxy, target)**:

 ```sh
 # 1. Acquire a lease for crawling example.com through an EU proxy
-LEASE=$(curl -s -XPOST localhost:8090/v1/leases \
+LEASE=$(curl -s -XPOST "$BASE_URL/v1/leases" \
  -H "Authorization: Bearer $TOKEN" \
  -d '{"selector":{"geo":"eu"},"ttlSeconds":600,"target":"example.com"}')
 LEASE_ID=$(echo "$LEASE" | jq -r .leaseID)
@@ -298,12 +304,12 @@ curl -x "http://$PROXY" https://example.com/some/page

 # 3. Got a 429? Report it — example.com-bound leases will avoid this
 #    proxy for the next 15 minutes
-curl -s -XPOST "localhost:8090/v1/leases/$LEASE_ID/report" \
+curl -s -XPOST "$BASE_URL/v1/leases/$LEASE_ID/report" \
  -H "Authorization: Bearer $TOKEN" \
  -d '{"result":"rate_limited","target":"example.com"}'

 # 4. Done early? Release the slot (otherwise the TTL frees it)
-curl -s -XDELETE "localhost:8090/v1/leases/$LEASE_ID" \
+curl -s -XDELETE "$BASE_URL/v1/leases/$LEASE_ID" \
  -H "Authorization: Bearer $TOKEN"
 ```

--- a/docs/architecture.md
+++ b/docs/architecture.md
@@ -300,6 +300,45 @@ Each consuming package defines its own small recorder interface
 `metrics.Metrics` satisfies all of them structurally, so no package other
 than `cmd/main.go` imports the metrics package.

+### 10. Tracing (`internal/tracing/`)
+
+OpenTelemetry tracing, integrated with — not replacing — the logr/zap
+logging. Everything hangs off standard `OTEL_*` env vars: with no
+`OTEL_EXPORTER_OTLP_ENDPOINT` / `OTEL_TRACES_EXPORTER` set, no SDK is
+installed, spans are no-ops, and logs are byte-for-byte what they were.
+`OTEL_SDK_DISABLED=true` and `OTEL_TRACES_EXPORTER=none` force it off;
+`console` prints spans to stdout for local dev; sampling follows
+`OTEL_TRACES_SAMPLER(_ARG)`.
+
+Span topology — each unit of work is a new trace (watch events carry no
+incoming trace context):
+
+- `Reconcile Proxy` (root, via a `reconcile.Reconciler` decorator) →
+  `reconcile.managed` / `reconcile.replaceInstance` / `reconcile.delete`,
+  plus `status.patch` from the deferred flush. `reconcileExternal` does no
+  I/O and is unspanned.
+- `provider.create|get|delete|list` (client spans, `provider.WithTracing`
+  decorator wired outermost around `WithMetrics`); the GCP SDK's own
+  otelhttp transport contributes HTTP child spans automatically.
+- Kubernetes API calls become client child spans via a wrapped
+  `rest.Config` transport — gated on an existing parent span, so informer
+  list/watch long-polls and leader-election renewals never create root
+  spans. The kube-apiserver ignores incoming `traceparent` by design;
+  these spans are leaves.
+- Discovery API: one server span per request (named from the route
+  pattern), incoming W3C `traceparent` honored so clients' traces continue
+  into the operator; `/healthz` excluded.
+- `gc.sweep` per GC pass; `health.probe` per probe **only** with
+  `--trace-health-probes` (default off — probes run ~1/s per proxy).
+
+Log correlation: logr sinks never see a context, so trace IDs ride on the
+logger — `tracing.Start` re-derives the ctx logger from a captured base
+with `traceID`/`spanID` values (lowerCamel, matching `reconcileID`;
+Grafana/Loki derived-field regexes must match `traceID`, not `trace_id`).
+Re-deriving from the base rather than layering keeps zap from emitting
+duplicate keys on nested spans. GCP V(5) wire logs get the same keys from
+the slog handler's ctx.
+
 ## Decisions

 Judgment calls the spec left open, and deliberate deviations — recorded so
@@ -404,3 +443,24 @@ they read as choices, not accidents. Chronological by build step.
  logger to everything running under the manager — fighting that would
  mean two logging systems in one process. Noted as a deviation rather
  than silently ignored.
+- **Tracing is env-gated, not flag-gated:** it activates only when
+  `OTEL_EXPORTER_OTLP_ENDPOINT` / `OTEL_TRACES_EXPORTER` is set (user
+  decision). No collector configured means no SDK installed, no-op spans,
+  unchanged logs — the safe default for every existing deployment. The
+  one flag is `--trace-health-probes`, off by default, because probes at
+  ~1/s per proxy would dominate trace volume.
+- **Trace keys are `traceID`/`spanID`**, lowerCamel like `reconcileID` and
+  `providerID`, deliberately not the `trace_id` many Grafana derived-field
+  examples assume — configure the derived-field regex accordingly. logr
+  sinks can't read ctx, so the IDs ride on the ctx logger, re-derived from
+  a captured base per span so zap never emits duplicate keys.
+- **Probe→reconcile trace links are not attempted:** the health engine's
+  `GenericEvent` carries only namespace/name (no ctx), and the workqueue
+  coalesces events, so any link would be a guess. A health-triggered
+  reconcile starts a fresh trace; the probe that caused it is findable via
+  its own (opt-in) span and shared proxy attributes.
+- **No `traceparent` toward probe targets:** probe transports stay
+  uninstrumented so trace headers can never leak through a proxy to
+  external sites. The kube-apiserver ignores incoming `traceparent` by
+  design (public endpoint), so k8s client spans are leaves — in-process
+  traces, not cross-process ones.
--- a/docs/demo/create-gcp-proxies.sh
+++ b/docs/demo/create-gcp-proxies.sh
@@ -0,0 +1,94 @@
+#!/bin/bash
+# Demo: create N Managed proxies backed by the gcp provider, named
+# proxy-gcp-demo-1 .. proxy-gcp-demo-N, each in a randomly picked EU zone
+# so the fleet gets egress IPs from different locations.
+#
+# Usage:
+#   ./create-gcp-proxies.sh <count>
+#
+# Optional environment:
+#   NAMESPACE     namespace to create the proxies in (default: current context)
+#   GCP_PROVIDER  provider NAME from providers.yaml (default: gcp-eu)
+#   ZONES         space-separated zone list to pick from (default: EU zones below)
+set -euo pipefail
+
+if [ $# -ne 1 ] || ! [[ "$1" =~ ^[1-9][0-9]*$ ]]; then
+    echo "usage: $(basename "$0") <count>  (positive integer)" >&2
+    exit 1
+fi
+count="$1"
+provider="${GCP_PROVIDER:-gcp-eu}"
+
+# GCP zones in the EU where e2-micro is generally available. Override with
+# ZONES="zone1 zone2 ..." if your project has quota only in some of them.
+default_zones=(
+    europe-west1-b europe-west1-c europe-west1-d       # Belgium
+    europe-west2-a europe-west2-b europe-west2-c       # London
+    europe-west3-a europe-west3-b europe-west3-c       # Frankfurt
+    europe-west4-a europe-west4-b europe-west4-c       # Netherlands
+    europe-west6-a europe-west6-b europe-west6-c       # Zurich
+    europe-west8-a europe-west8-b europe-west8-c       # Milan
+    europe-west9-a europe-west9-b europe-west9-c       # Paris
+    europe-central2-a europe-central2-b europe-central2-c   # Warsaw
+    europe-north1-a europe-north1-b europe-north1-c    # Finland
+    europe-southwest1-a europe-southwest1-b europe-southwest1-c   # Madrid
+)
+if [ -n "${ZONES:-}" ]; then
+    read -r -a zones <<< "${ZONES}"
+else
+    zones=("${default_zones[@]}")
+fi
+
+if ! command -v kubectl &> /dev/null; then
+    echo "ERROR: kubectl is required but not installed" >&2
+    exit 1
+fi
+
+ns_args=()
+if [ -n "${NAMESPACE:-}" ]; then
+    ns_args=(-n "${NAMESPACE}")
+fi
+
+for i in $(seq 1 "${count}"); do
+    zone="${zones[RANDOM % ${#zones[@]}]}"
+    echo "Creating proxy-gcp-demo-${i} in ${zone} ..."
+    kubectl apply "${ns_args[@]}" -f - << EOF
+apiVersion: crawl.example.com/v1alpha1
+kind: Proxy
+metadata:
+  name: proxy-gcp-demo-${i}
+spec:
+  mode: Managed
+  provider: ${provider}              # must match a provider NAME in providers.yaml
+  placement:
+    zone: ${zone}
+    machineType: e2-micro
+    # debian-cloud images have no cloud-init, so spec.cloudInit (passed as
+    # user-data metadata) would be silently ignored there. Ubuntu images do.
+    image: projects/ubuntu-os-cloud/global/images/family/ubuntu-2404-lts-amd64
+  port: 3128
+  cloudInit:
+    inline: |
+      #cloud-config
+      package_update: true
+      packages:
+        - squid
+      write_files:
+        - path: /etc/squid/conf.d/proxy-operator.conf
+          content: |
+            http_access allow all
+            via off
+            forwarded_for off
+      runcmd:
+        - systemctl restart squid
+  attributes:
+    geo: eu
+    zone: ${zone}
+    purpose: crawl
+EOF
+done
+
+echo ""
+echo "Created ${count} proxies. VMs take a few minutes to provision and pass"
+echo "the health check. Watch them come up with:"
+echo "  kubectl get px ${ns_args[*]:-} -w"
--- a/docs/demo/create-kubernetes-proxies.sh
+++ b/docs/demo/create-kubernetes-proxies.sh
@@ -0,0 +1,48 @@
+#!/bin/bash
+# Demo: create N Managed proxies backed by the kubernetes-pod provider,
+# named proxy-kubernetes-demo-1 .. proxy-kubernetes-demo-N. Pods share the
+# cluster's egress IP — this exercises the full lifecycle, not distinct
+# egress paths (use create-gcp-proxies.sh for that).
+#
+# Usage:
+#   ./create-kubernetes-proxies.sh <count>
+#
+# Optional environment:
+#   NAMESPACE  namespace to create the proxies in (default: current context)
+set -euo pipefail
+
+if [ $# -ne 1 ] || ! [[ "$1" =~ ^[1-9][0-9]*$ ]]; then
+    echo "usage: $(basename "$0") <count>  (positive integer)" >&2
+    exit 1
+fi
+count="$1"
+
+if ! command -v kubectl &> /dev/null; then
+    echo "ERROR: kubectl is required but not installed" >&2
+    exit 1
+fi
+
+ns_args=()
+if [ -n "${NAMESPACE:-}" ]; then
+    ns_args=(-n "${NAMESPACE}")
+fi
+
+for i in $(seq 1 "${count}"); do
+    echo "Creating proxy-kubernetes-demo-${i} ..."
+    kubectl apply "${ns_args[@]}" -f - << EOF
+apiVersion: crawl.example.com/v1alpha1
+kind: Proxy
+metadata:
+  name: proxy-kubernetes-demo-${i}
+spec:
+  mode: Managed
+  provider: kubernetes
+  attributes:
+    geo: local
+    purpose: crawl
+EOF
+done
+
+echo ""
+echo "Created ${count} proxies. Watch them come up with:"
+echo "  kubectl get px ${ns_args[*]:-} -w"
--- a/docs/demo/run-demo.sh
+++ b/docs/demo/run-demo.sh
@@ -0,0 +1,67 @@
+#!/bin/bash
+# Demo driver: opens a tmux session with a 2x2 pane grid:
+#
+#   top-left:     show-egress-ips-table.sh in a 10s loop, run inside the
+#                 netshoot pod against the in-cluster discovery Service
+#   top-right:    watch -n3 kubectl get px
+#   bottom-left:  create-kubernetes-proxies.sh <count>
+#   bottom-right: create-gcp-proxies.sh <count>
+#
+# Usage:
+#   ./run-demo.sh
+#
+# Optional environment:
+#   COUNT         proxies each create script makes (default: 4)
+#   SESSION       tmux session name (default: proxy-demo; an existing
+#                 session with this name is killed and recreated)
+#   NETSHOOT_POD  pod to exec into for the egress-IP loop (default: netshoot)
+#   DEMO_DIR      where the demo scripts live (default: this script's dir)
+set -euo pipefail
+
+COUNT="${COUNT:-4}"
+SESSION="${SESSION:-proxy-demo}"
+NETSHOOT_POD="${NETSHOOT_POD:-netshoot}"
+DEMO_DIR="${DEMO_DIR:-$(cd "$(dirname "$0")" && pwd)}"
+BASE_URL="http://egress-proxies-operator-controller-manager-discovery-service.egress-proxies-operator-system.svc.cluster.local:8090"
+
+for tool in tmux kubectl; do
+    if ! command -v "${tool}" &> /dev/null; then
+        echo "ERROR: ${tool} is required but not installed" >&2
+        exit 1
+    fi
+done
+
+if ! kubectl get pod "${NETSHOOT_POD}" &> /dev/null; then
+    echo "ERROR: pod ${NETSHOOT_POD} not found — start one with:" >&2
+    echo "  kubectl run netshoot --image=nicolaka/netshoot -- sleep infinity" >&2
+    exit 1
+fi
+
+echo "Copying show-egress-ips-table.sh into pod ${NETSHOOT_POD} ..."
+kubectl cp "${DEMO_DIR}/show-egress-ips-table.sh" "${NETSHOOT_POD}:/tmp/show-egress-ips-table.sh"
+
+if tmux has-session -t "${SESSION}" 2> /dev/null; then
+    echo "Killing existing tmux session ${SESSION}"
+    tmux kill-session -t "${SESSION}"
+fi
+
+# 2x2 grid: after these splits pane indexes are 0 top-left, 1 top-right,
+# 2 bottom-left, 3 bottom-right; tiled layout evens them into quarters.
+tmux new-session -d -s "${SESSION}"
+tmux split-window -h -t "${SESSION}:0"
+tmux split-window -v -t "${SESSION}:0.0"
+tmux split-window -v -t "${SESSION}:0.1"
+tmux select-layout -t "${SESSION}:0" tiled
+
+loop_cmd="BASE_URL=${BASE_URL}; while true; do bash /tmp/show-egress-ips-table.sh \"\$BASE_URL\"; echo; sleep 10; done"
+tmux send-keys -t "${SESSION}:0.0" "kubectl exec -it ${NETSHOOT_POD} -- bash -c '${loop_cmd}'" C-m
+tmux send-keys -t "${SESSION}:0.1" "watch -n3 kubectl get px" C-m
+tmux send-keys -t "${SESSION}:0.2" "bash ${DEMO_DIR}/create-kubernetes-proxies.sh ${COUNT}" C-m
+tmux send-keys -t "${SESSION}:0.3" "bash ${DEMO_DIR}/create-gcp-proxies.sh ${COUNT}" C-m
+
+tmux select-pane -t "${SESSION}:0.2"
+if [ -n "${TMUX:-}" ]; then
+    tmux switch-client -t "${SESSION}"
+else
+    tmux attach-session -t "${SESSION}"
+fi
--- a/docs/demo/show-egress-ips-table.sh
+++ b/docs/demo/show-egress-ips-table.sh
@@ -0,0 +1,75 @@
+#!/bin/bash
+# Demo: condensed-table variant of show-egress-ips.sh, made to fit a small
+# tmux pane. One line per proxy: which proxy the request goes through, its
+# endpoint, location (zone/geo attribute), and the egress IP the IP-echo
+# site saw — or unhealthy/FAILED.
+#
+# Usage:
+#   ./show-egress-ips-table.sh <BASE_URL>    e.g. ./show-egress-ips-table.sh localhost:8090
+#
+# Optional environment:
+#   TOKEN        bearer token for the discovery API (see docs/api.md)
+#   IP_ECHO_URL  site that returns the caller's IP as JSON with an "ip" field
+#                (default: https://api.ipify.org?format=json)
+set -euo pipefail
+
+if [ $# -ne 1 ]; then
+    echo "usage: $(basename "$0") <BASE_URL>  (e.g. localhost:8090)" >&2
+    exit 1
+fi
+BASE_URL="$1"
+IP_ECHO_URL="${IP_ECHO_URL:-https://api.ipify.org?format=json}"
+
+for tool in curl jq; do
+    if ! command -v "${tool}" &> /dev/null; then
+        echo "ERROR: ${tool} is required but not installed" >&2
+        exit 1
+    fi
+done
+
+auth_args=()
+if [ -n "${TOKEN:-}" ]; then
+    auth_args=(-H "Authorization: Bearer ${TOKEN}")
+fi
+
+if ! proxies_json=$(curl -sS --fail "${auth_args[@]}" "${BASE_URL}/v1/proxies") \
+    || ! echo "${proxies_json}" | jq -e . > /dev/null 2>&1; then
+    echo "ERROR: could not fetch proxy list from ${BASE_URL}" >&2
+    exit 1
+fi
+
+total=$(echo "${proxies_json}" | jq -r '.count')
+fmt="%-31s %-21s %-21s %s\n"
+
+echo "${total} proxies @ $(date +%H:%M:%S)"
+# shellcheck disable=SC2059
+printf "${fmt}" "PROXY" "ENDPOINT" "LOCATION" "EGRESS-IP"
+
+probed=0
+skipped=0
+failed=0
+while IFS= read -r proxy; do
+    id=$(echo "${proxy}" | jq -r '.id')
+    endpoint=$(echo "${proxy}" | jq -r '"\(.ip):\(.port)"')
+    location=$(echo "${proxy}" | jq -r '.attributes.zone // .attributes.geo // "-"')
+    healthy=$(echo "${proxy}" | jq -r '.healthy')
+
+    if [ "${healthy}" != "true" ]; then
+        # shellcheck disable=SC2059
+        printf "${fmt}" "${id}" "${endpoint}" "${location}" "(unhealthy)"
+        skipped=$((skipped + 1))
+        continue
+    fi
+
+    if response=$(curl -sS --max-time 10 -x "http://${endpoint}" "${IP_ECHO_URL}" 2> /dev/null); then
+        egress=$(echo "${response}" | jq -r '.ip // "?"' 2> /dev/null || echo "?")
+        probed=$((probed + 1))
+    else
+        egress="FAILED"
+        failed=$((failed + 1))
+    fi
+    # shellcheck disable=SC2059
+    printf "${fmt}" "${id}" "${endpoint}" "${location}" "${egress}"
+done < <(echo "${proxies_json}" | jq -c '.proxies[]')
+
+echo "-- ${probed} probed, ${skipped} unhealthy, ${failed} failed --"
--- a/docs/demo/show-egress-ips.sh
+++ b/docs/demo/show-egress-ips.sh
@@ -0,0 +1,74 @@
+#!/bin/bash
+# Demo: list proxies from the discovery API and show the egress IP each
+# healthy one provides, by calling an IP-echo site through it.
+#
+# Usage:
+#   ./show-egress-ips.sh <BASE_URL>          e.g. ./show-egress-ips.sh localhost:8090
+#
+# Optional environment:
+#   TOKEN        bearer token for the discovery API (see docs/api.md)
+#   IP_ECHO_URL  site that returns the caller's IP as JSON
+#                (default: https://api.ipify.org?format=json)
+set -euo pipefail
+
+if [ $# -ne 1 ]; then
+    echo "usage: $(basename "$0") <BASE_URL>  (e.g. localhost:8090)" >&2
+    exit 1
+fi
+BASE_URL="$1"
+IP_ECHO_URL="${IP_ECHO_URL:-https://api.ipify.org?format=json}"
+
+for tool in curl jq; do
+    if ! command -v "${tool}" &> /dev/null; then
+        echo "ERROR: ${tool} is required but not installed" >&2
+        exit 1
+    fi
+done
+
+auth_args=()
+if [ -n "${TOKEN:-}" ]; then
+    auth_args=(-H "Authorization: Bearer ${TOKEN}")
+fi
+
+echo "Fetching proxies from ${BASE_URL}/v1/proxies ..."
+if ! proxies_json=$(curl -sS --fail "${auth_args[@]}" "${BASE_URL}/v1/proxies"); then
+    echo "ERROR: could not fetch proxy list from ${BASE_URL}" >&2
+    exit 1
+fi
+if ! echo "${proxies_json}" | jq -e . > /dev/null; then
+    echo "ERROR: response from ${BASE_URL}/v1/proxies is not valid JSON" >&2
+    exit 1
+fi
+
+total=$(echo "${proxies_json}" | jq -r '.count')
+echo "Found ${total} proxies"
+echo ""
+
+probed=0
+skipped=0
+failed=0
+while IFS= read -r proxy; do
+    id=$(echo "${proxy}" | jq -r '.id')
+    ip=$(echo "${proxy}" | jq -r '.ip')
+    port=$(echo "${proxy}" | jq -r '.port')
+    healthy=$(echo "${proxy}" | jq -r '.healthy')
+
+    if [ "${healthy}" != "true" ]; then
+        echo "--- skipping ${id} (unhealthy) ---"
+        echo ""
+        skipped=$((skipped + 1))
+        continue
+    fi
+
+    echo "=== via ${id} — http://${ip}:${port} ==="
+    if response=$(curl -sS --max-time 10 -x "http://${ip}:${port}" "${IP_ECHO_URL}"); then
+        echo "${response}" | jq . 2> /dev/null || echo "${response}"
+        probed=$((probed + 1))
+    else
+        echo "WARNING: request through ${id} failed" >&2
+        failed=$((failed + 1))
+    fi
+    echo ""
+done < <(echo "${proxies_json}" | jq -c '.proxies[]')
+
+echo "Done: ${total} proxies — ${probed} probed, ${skipped} skipped (unhealthy), ${failed} failed"
--- a/docs/plans-executions/2026-08-11-2220-demo-scripts.md
+++ b/docs/plans-executions/2026-08-11-2220-demo-scripts.md
@@ -0,0 +1,55 @@
+# Execution: Demo scripts
+
+Plan: [2026-08-11-2220-demo-scripts.md](../plans/2026-08-11-2220-demo-scripts.md)
+
+- [x] Step 0 — Branch `feat/demo-scripts` + plan commit
+- [x] Step 1 — `docs/demo/show-egress-ips.sh`
+- [x] Extra (added iteratively, not in the original plan) — proxy-creation scripts
+
+## Step 0 + Step 1
+
+Branched off `main`, committed the plan alone, then wrote
+`docs/demo/show-egress-ips.sh`: takes `BASE_URL` as its argument, lists
+`/v1/proxies` (bearer auth via optional `TOKEN` env), probes each healthy
+proxy with `curl -x http://ip:port` against an IP-echo site
+(`IP_ECHO_URL`, default ipify JSON), banners which proxy each request goes
+through, skips unhealthy ones, and ends with a probed/skipped/failed
+summary. Per user request the script was left uncommitted for iteration
+and no verification beyond `bash -n` was run.
+
+## Extra — create-kubernetes-proxies.sh, create-gcp-proxies.sh
+
+Added on the same branch before the first commit:
+
+- `create-kubernetes-proxies.sh <count>` — creates
+  `proxy-kubernetes-demo-1..N` with the kubernetes provider, spec taken
+  from `config/samples/proxy_kubernetes.yaml`, applied via
+  `kubectl apply -f -` heredocs. Optional `NAMESPACE` env.
+- `create-gcp-proxies.sh <count>` — creates `proxy-gcp-demo-1..N` from the
+  user-supplied gcp-eu manifest (e2-micro, Ubuntu 24.04, Squid
+  cloud-init), each with a zone picked randomly from a hardcoded list of
+  27 EU zones so the fleet gets egress IPs from different locations.
+  Env overrides: `ZONES`, `GCP_PROVIDER` (default `gcp-eu`), `NAMESPACE`.
+
+## Extra — run-demo.sh, show-egress-ips-table.sh
+
+Second round of iterative additions:
+
+- `run-demo.sh` — tmux demo driver: 2x2 tiled grid with the egress-IP
+  table looping every 10s inside a netshoot pod (script `kubectl cp`'d
+  into the pod, `BASE_URL` set to the in-cluster Service FQDN),
+  `watch -n3 kubectl get px`, and both create scripts auto-running with
+  `COUNT` proxies each (default 4). Env knobs: `COUNT`, `SESSION`,
+  `NETSHOOT_POD`, `DEMO_DIR` (defaults to the script's own dir).
+- `show-egress-ips-table.sh` — condensed one-line-per-proxy variant of
+  `show-egress-ips.sh` sized for a tmux pane: PROXY / ENDPOINT /
+  LOCATION (zone→geo attribute fallback) / EGRESS-IP columns, with
+  `(unhealthy)` and `FAILED` inline instead of verbose output. The
+  verbose script stays for standalone use; the demo driver uses the
+  table variant.
+
+Worth noting: beyond the user's sample manifest, the gcp script also
+writes the picked zone into `attributes.zone`, so the discovery API
+exposes each proxy's location and leases can select on it. The zone list
+is static — if a project lacks quota in some region, `ZONES` narrows the
+pool; nothing validates zones against the live project.
--- a/docs/plans-executions/2026-08-24-1025-otel-tracing.md
+++ b/docs/plans-executions/2026-08-24-1025-otel-tracing.md
@@ -0,0 +1,183 @@
+# Execution log: OpenTelemetry tracing integrated with logr/zap logging
+
+Plan: `docs/plans/2026-08-24-1025-otel-tracing.md`
+
+- [x] Step 1 — Dependencies
+- [x] Step 2 — New package `internal/tracing`
+- [x] Step 3 — `provider.WithTracing` decorator
+- [x] Step 4 — `cmd/main.go` wiring
+- [x] Step 5 — Reconciler spans
+- [x] Step 6 — Discovery server
+- [x] Step 7 — GC + health
+- [x] Step 8 — GCP wire-log enrichment
+- [x] Step 9 — Manifests + docs
+
+## Step 1 — Dependencies
+
+Aligned the pre-existing indirect skew (otel core v1.44.0 vs otlptrace exporters
+v1.40.0) and added the new direct deps in one shot:
+
+```bash
+go get go.opentelemetry.io/otel@v1.45.0 \
+  go.opentelemetry.io/otel/sdk@v1.45.0 \
+  go.opentelemetry.io/otel/trace@v1.45.0 \
+  go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc@v1.45.0 \
+  go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp@v1.45.0 \
+  go.opentelemetry.io/otel/exporters/stdout/stdouttrace@v1.45.0 \
+  go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp@v0.70.0
+go mod tidy
+```
+
+MVS side-effects worth recording: `logr v1.4.3→v1.4.4`, `httpsnoop
+v1.0.4→v1.1.0`, `grpc-gateway/v2 v2.27.7→v2.29.0`, `proto/otlp v1.9.0→v1.11.0`,
+plus a `genproto/googleapis/api` pseudo-version bump. Full `make test` passed
+against the bumped graph (`google.golang.org/api v0.292.0` and k8s v0.36
+tolerate otelhttp v0.70.0).
+
+Worth noting: the first `go mod tidy` ran *before* any first-party code
+imported `otlptracehttp`/`stdouttrace`, so it silently dropped those two
+modules again; the Step 2 tidy re-added them. The plan's semconv question
+resolved to `semconv/v1.43.0` — that's what `sdk@v1.45.0/resource/builtin.go`
+imports, so first-party code uses the same version to avoid
+`ErrSchemaURLConflict` in the common path.
+
+## Step 2 — `internal/tracing` package
+
+Landed as planned: `tracing.go` (env-gated `Setup`, hand-rolled exporter
+selection), `logger.go` (`Start`/`StartSpan`/`ContextWithLogger` with the
+base-logger ctx key that prevents duplicate `traceID` zap fields on nested
+spans), `reconciler.go`, `transport.go`, `http.go`, `options.go`; tests for
+all of it (first use of `sdk/trace/tracetest` in the repo).
+
+Two deviations from the plan's letter:
+
+- **k8s transport gating is a custom RoundTripper, not `otelhttp.WithFilter`**
+  (`parentGatedTransport`): requests without a parent span bypass the otel
+  transport entirely, so the no-root-spans-from-informers guarantee doesn't
+  depend on otelhttp filter semantics for transports.
+- **`HTTPMiddleware` must copy the route pattern back.** The logger-injecting
+  inner handler wraps the request via `WithContext` (a shallow copy), so the
+  mux records the matched pattern on the copy while otelhttp's post-routing
+  span rename reads the original. Found by the middleware test (span named
+  `"GET"` instead of `"GET /v1/things/{id}"`); fixed with `r.Pattern =
+  r2.Pattern` after `next.ServeHTTP`.
+
+Also: both the transport and the middleware pass explicit W3C propagators
+instead of relying on the global, so behavior is deterministic under tests
+and when tracing is disabled. `Setup` tests reset the global provider to a
+fresh noop per case — restoring otel's own default delegate triggers a
+"Setting tracer provider to its current value" warning from the SDK.
+
+## Step 3 — `provider.WithTracing`
+
+`internal/provider/tracing.go` mirrors `metrics.go` exactly (same wrap shape,
+same `resultLabel` classification reused as the `provider.result` span
+attribute); tests reuse `staticProvider` from `metrics_test.go`. `ErrNotFound`
+maps to span status Ok as planned — the reconciler polls `Get` to NotFound
+during replacement/deletion, so it's an answer, not a failure.
+
+One small API addition to `internal/tracing` for this: exported
+`tracing.Tracer(opts...)`, since the decorator lives in package `provider`
+and couldn't reach the unexported option resolver. The `cmd/main.go` wiring
+(`WithTracing` outermost around `WithMetrics`) lands with Step 4's commit —
+same file, one commit.
+
+## Step 4 — `cmd/main.go` wiring
+
+As planned: `tracing.Setup` right after `ctrl.SetLogger`; manager rest.Config
+wrapped via `restCfg := ctrl.GetConfigOrDie(); restCfg.Wrap(...)` (the
+previous inline call left nowhere to wrap); providers decorated tracing-
+outermost; explicit trace flush after `mgr.Start` returns on both the error
+and clean paths, with a fresh 10s context since the signal ctx is already
+cancelled by then.
+
+The kubernetes provider grew `NewWithTransportWrapper(ctx, cfg, wrap)` (its
+client is built from its own `ctrl.GetConfig()`, invisible to the manager's
+wrapped config); `New` now delegates with a nil wrapper, so `newWithClient`
+tests stayed untouched, and main registers a closure — the same pattern the
+gcp constructor already used for wire-log options.
+
+Deviation: the plan put `--trace-health-probes` here, but the flag needs the
+`health.Engine.TraceProbes` field that Step 7 introduces — moved there to
+keep every commit compiling.
+
+## Step 5 — Reconciler spans
+
+`SetupWithManager` completes with `tracing.NewReconciler("Proxy", r)`;
+sub-spans `reconcile.managed` / `reconcile.replaceInstance` /
+`reconcile.delete` open at the top of each state machine, and `status.patch`
+opens inside the deferred flush closure so it stays within the root span
+while its error still folds into the recorded result. `reconcileExternal`
+left unspanned as planned (no I/O).
+
+Two small judgment calls: the sub-spans carry no extra attributes — the
+provider decorator already records `provider.id`, and the root span carries
+the object identity, so duplicating them was noise; and `status.patch` is
+emitted every reconcile even when nothing changed (the no-op compare is the
+span's content — a real PATCH shows up as its k8s HTTP child). Tests that
+call `r.Reconcile` directly bypass the wrapper; with no global tracer set
+they see no-op spans, so the existing fake-client and envtest suites run
+unchanged.
+
+## Step 6 — Discovery server
+
+Middleware chain is now recover → tracing (server span + request logger) →
+request-log → body cap → auth; the request-log middleware and the three
+handler error sites log via `logf.FromContext(r.Context())` — which is
+`s.log` enriched with the request's traceID/spanID by the tracing
+middleware, not a different logger (logr sinks can't read ctx at log time,
+so per-request values must ride on the logger instance in the ctx; user
+asked, answered in-session).
+
+Deviation from the plan's letter: `recoverMiddleware` keeps `s.log`. It sits
+*outside* the tracing layer, so its request ctx never has the enriched
+logger — switching it to `FromContext` would silently drop the `"discovery"`
+name and gain nothing.
+
+## Step 7 — GC + health
+
+`gc.sweep` runs in a root span with `gc.providers` / `gc.deleted` counters
+(a failed orphan delete no longer counts as deleted — the loop grew an
+explicit `continue`). The health engine got the deferred `--trace-health-probes`
+flag and `TraceProbes` field; the probe call moved into `runProbe`, which
+wraps it in a `health.probe` client span only when enabled, ending before
+`record` (which stays ctx-free by design). Probe transports remain
+uninstrumented so no traceparent can leak through a proxy to external
+targets. Probe→reconcile span links stay out of scope (GenericEvent carries
+no ctx; the workqueue coalesces events) — recorded in the architecture
+Decisions in Step 9.
+
+## Step 8 — GCP wire-log enrichment
+
+`wireFilterHandler.Handle` clones the record and appends `traceID`/`spanID`
+when the ctx carries a valid span — same keys as the logr enrichment, added
+before the elision pass (both values are well under the 1KiB threshold).
+The new `wirelog_test.go` covers the enrichment, that the JWT/token security
+filter still drops non-wire Debug records even with a span present, and that
+spanless records stay unchanged.
+
+## Step 9 — Manifests, docs, lint
+
+`config/manager/manager.yaml` gained the OTel env block (downward-API
+`POD_NAME`/`POD_NAMESPACE` deliberately listed *before*
+`OTEL_RESOURCE_ATTRIBUTES` — `$(VAR)` expansion only sees earlier vars),
+with the OTLP endpoint and sampler left as commented examples so deployments
+stay tracing-off by default. `docs/architecture.md` got "### 10. Tracing"
+plus five Decisions entries; README got a Tracing section.
+
+`make lint` surfaced 16 new-on-branch issues (checked with
+`golangci-lint run --new-from-rev main`; the other ~43 pre-date this work):
+
+- one gofmt slip, 13 goconst repeats — fixed with `env*`/`exporter*`
+  constants in `internal/tracing/tracing.go` shared by the tests;
+- two logcheck hits ("function takes both a context and a logger"):
+  `Setup` now reads its logger from ctx (`logf.FromContext`, caller seeds
+  via `logf.IntoContext` — the linter's sanctioned pattern), and
+  `ContextWithLogger` carries a justified `//nolint:logcheck`, since being
+  the IntoContext-analogue is its purpose.
+
+Worth noting: pre-existing lint debt (50 goconst etc. on `main`) was left
+untouched — `make lint` still fails overall; only branch-introduced issues
+were cleaned. The lint fixes changed `Setup`'s signature after Step 2/4 had
+landed, so those commits show the two-arg version; this commit is where it
+settles.
--- a/docs/plans-executions/2026-08-24-1224-tracing-e2e.md
+++ b/docs/plans-executions/2026-08-24-1224-tracing-e2e.md
@@ -0,0 +1,68 @@
+# Execution log: e2e test — OTel tracing against real Tempo
+
+Plan: `docs/plans/2026-08-24-1224-tracing-e2e.md`
+
+- [x] Step 1 — `test/e2e/tracing_test.go`
+- [x] Step 2 — Makefile
+- [x] Step 3 — Docs
+
+## Steps 1–3 — spec, Makefile, docs (one commit)
+
+The three steps landed together — the spec is one new file and the other
+two are its wiring. `Describe("OTel tracing", Ordered)` is fully
+self-contained (own ns create → `make install`/`make deploy` → teardown)
+because Ginkgo randomizes top-level container order, so it cannot share the
+Manager Describe's deployment. It reuses the package-level `namespace` /
+`managerImage` and the suite's idioms (`utils.Run`, curl-pod with the
+restricted-PSS overrides JSON, log-substring `Eventually`s).
+
+Judgment calls beyond the plan's letter:
+
+- The squid pre-pull (`docker pull` + `kind load`) is **best effort** — a
+  missing docker binary logs a note and continues rather than failing the
+  spec; the 5m Ready timeout still covers an in-cluster pull.
+- The OTLP preflight pod prints per-attempt HTTP codes and a final
+  `OTLP_OK`/`OTLP_UNREACHABLE` marker; the assertion quotes the pod's
+  output, so an unreachable endpoint names itself in the failure.
+- `kubectl set env` is passed the literal
+  `OTEL_RESOURCE_ATTRIBUTES=...$(POD_NAME)...` string via `exec.Command` —
+  no shell involved, kubectl stores `$()` verbatim, and the in-place update
+  keeps the var after the downward-API vars it references.
+- Tempo helpers are stdlib-only; `/api/traces/<id>` is decoded as
+  OTLP-JSON (`batches[].scopeSpans[].spans[].name`), which is Tempo's
+  actual shape (not Jaeger's).
+
+Verified so far: `go vet -tags=e2e ./...` clean.
+
+## Live run against homelab Tempo
+
+First attempt failed before the suite started — Docker Desktop wasn't
+running (`kind` could not create the cluster), and the failure was masked
+to exit 0 by a `| tail` pipe on the make invocation (no pipefail in that
+shell). Rerun with Docker started first and no pipe:
+
+```bash
+TEMPO_URL=http://192.168.0.30:3200 OTLP_ENDPOINT=http://192.168.0.30:4318 make test-e2e
+```
+
+Result: **SUCCESS — 4/4 specs (Manager smoke + both tracing Its), 219 s**,
+kind cluster auto-deleted. Run id `e2e-1787567624494810000`; the traces are
+findable in Grafana with TraceQL
+`{resource.test.run.id="e2e-1787567624494810000"}`. Both proxies reached
+`Ready` on real squid pods; the create trace carried
+`Reconcile Proxy` / `reconcile.managed` / `provider.create` /
+`status.patch` and the expected resource attrs; the deletion trace carried
+`reconcile.delete` / `provider.delete`.
+
+Worth noting: the OTLP preflight and both Tempo polls succeeded on the
+in-cluster → LAN path (kind on macOS reaches 192.168.0.30 through Docker
+Desktop's NAT), so no extra networking setup is needed on this machine.
+
+The plan's negative verification also ran: with a deliberately wrong
+endpoint (`OTLP_ENDPOINT=http://192.168.0.30:9999`) the tracing spec
+failed in the BeforeAll preflight after ~52 s with
+`OTLP endpoint http://192.168.0.30:9999 is not reachable from inside the
+kind cluster; curl output: OTLP_UNREACHABLE` — a named, fast failure
+instead of a 2-minute opaque search timeout — and teardown still deleted
+the kind cluster (`make cleanup-test-e2e` run explicitly, since a failing
+`go test` skips the Makefile's cleanup step).
--- a/docs/plans/2026-08-11-2220-demo-scripts.md
+++ b/docs/plans/2026-08-11-2220-demo-scripts.md
@@ -0,0 +1,33 @@
+# Plan: Demo script — egress IP check through each healthy proxy
+**Created:** 2026-08-11 22:20
+
+
+## Context
+
+First of a planned series of demo scripts under `docs/demo/`. This one showcases the discovery API end to end without leases: list proxies from `$BASE_URL/v1/proxies`, and for each **healthy** one, call an IP-echo site through it (`curl -x`) to show the egress IP that proxy provides — clearly labeling which proxy each request goes through. The user explicitly asked to start by switching to a new branch. The script will be iterated on: **write it but do not commit it** — the user wants to add things to it before anything is committed.
+
+## Steps
+
+### Step 0 — Branch
+
+Create `feat/demo-scripts` off `main`. Commit only the plan copy (`docs/plans/<timestamp>-demo-scripts.md`, timestamp via `date "+%Y-%m-%d-%H%M"`) per CLAUDE.md — nothing else gets committed this round.
+
+### Step 1 — `docs/demo/show-egress-ips.sh` (new file, executable, left uncommitted)
+
+Style: match [.devcontainer/post-install.sh](.devcontainer/post-install.sh) — `#!/bin/bash`, `set -euo pipefail`, `ERROR:`/`WARNING:` messages, `${VAR}` braces.
+
+Behavior:
+
+1. **Args/env:** `BASE_URL` is `$1` (required; missing → usage text + exit 1, e.g. `usage: show-egress-ips.sh <BASE_URL>  (e.g. localhost:8090)`). Optional env: `TOKEN` (bearer token, same name docs/api.md uses; when set, send `Authorization: Bearer $TOKEN`), `IP_ECHO_URL` (default `https://api.ipify.org?format=json` — returns `{"ip":"..."}`).
+2. **Dependency check:** `command -v curl`, `command -v jq` → `ERROR` + exit 1 if missing.
+3. **Fetch** `"$BASE_URL/v1/proxies"` once (no server-side `healthy` filter — fetch all so unhealthy ones can be shown as skipped, which makes the demo more informative). Fail with a clear error if curl or JSON parsing fails.
+4. **Iterate** proxies with `jq -c '.proxies[]'`; for each, extract `id`, `ip`, `port`, `healthy`:
+   - unhealthy → print `--- skipping <id> (unhealthy) ---`
+   - healthy → print a clear banner naming the proxy before the request, e.g. `=== via <id> — http://<ip>:<port> ===`, then `curl -sS --max-time 10 -x "http://${ip}:${port}" "$IP_ECHO_URL"`; print the JSON response. A failed probe prints `WARNING: request through <id> failed` and continues (guard so `set -e` doesn't kill the loop).
+5. Finish with a one-line summary: N proxies, M probed, K skipped/failed.
+
+Reference for API shapes: [docs/api.md](docs/api.md) (`proxies[].id/ip/port/healthy`; `curl -x http://ip:port` usage is already documented there and in README).
+
+### Deliberately deferred (user will iterate on the script first)
+
+- No commit of the script, no push beyond the plan commit, no MR, no execution summary, no CHANGELOG — all wait until the user says the script (or script set) is ready.
--- a/docs/plans/2026-08-24-1025-otel-tracing.md
+++ b/docs/plans/2026-08-24-1025-otel-tracing.md
@@ -0,0 +1,107 @@
+# Plan: OpenTelemetry tracing integrated with the existing logr/zap logging
+**Created:** 2026-08-24 10:25
+
+## Context
+
+The operator has structured logging (controller-runtime zap → logr, `logf.FromContext(ctx)` everywhere) and Prometheus metrics, but no tracing. A single reconcile fans out into k8s API calls, provider calls (GCP VMs / squid Pods), and status patches; the discovery API serves lease requests; GC and health engines run on tickers. Today correlating one operation across those hops means grepping for `reconcileID` or `providerID`. Goal: proper OTel traces — a new trace per unit of work (reconcile, HTTP request, GC sweep, optionally health probe), child spans for k8s/provider/HTTP calls — **and every log line inside a traced operation enriched with the trace context**, without disturbing the existing logr/zap system.
+
+User decisions (confirmed):
+- **Enablement:** auto from standard `OTEL_*` env vars — no collector configured ⇒ tracing fully off, zero new flags for the common case.
+- **Health probes:** not traced by default; new `--trace-health-probes` flag enables one root span per probe.
+- **Backend:** none exists yet — verification uses the console exporter and a throwaway Jaeger all-in-one in kind; manifests ship commented-out OTLP env examples.
+
+## Key design facts (verified, non-obvious)
+
+- **logr can't read ctx:** `logr.LogSink` never sees `context.Context`, so trace IDs cannot be added inside the zap sink. They must be attached as `WithValues` at span-creation points via `logf.IntoContext`. zap does **not** dedupe repeated keys, so enrichment must happen exactly once per ctx chain (see `tracing.Start` below).
+- Log keys: **`traceID` / `spanID`** (lowerCamel matches `reconcileID`/`providerID` house style; note in docs that Grafana/Loki derived-field regexes must match `traceID`, not the `trace_id` default).
+- **GCP calls trace themselves:** `google.golang.org/api/transport/http` already wraps its transport in `otelhttp.NewTransport` — once a global TracerProvider is set, every Compute call emits an HTTP client span. Do not add HTTP-level spans in the gcp provider; the `provider.*` decorator span becomes their parent.
+- **kube-apiserver ignores incoming `traceparent`** by design; our k8s-API client spans are leaves. Don't promise cross-process traces into the apiserver.
+- The Go SDK does **not** implement `OTEL_SDK_DISABLED` — handle it ourselves.
+- `contrib/exporters/autoexport` drags in metric/log/prometheus exporters (binary + deps on a 128Mi pod) — hand-roll trace-exporter selection (~40 lines) instead.
+- Span events are deprecated (OTel spec, Mar 2026): use `span.SetStatus` + `error.type`-style attributes, not `RecordError`/`AddEvent`.
+- `rest.Config.Wrap` puts our transport innermost (after auth), so spans see the final request — correct; but informer list/watch + leader election run outside any span ⇒ the transport must **filter out requests with no parent span** or every watch becomes a long-lived root span.
+- Manager runnables receive no logger in ctx (only HTTP servers do) — `logf.FromContext` falls back to the global logger there, which is fine; the discovery server must keep seeding from `s.log`.
+
+## Steps
+
+### Step 1 — Dependencies
+
+`go get` (aligning the existing indirect skew: otel core v1.44 / otlptrace v1.40):
+`go.opentelemetry.io/otel@v1.45.0`, `otel/sdk@v1.45.0`, `otel/trace@v1.45.0`,
+`otel/exporters/otlp/otlptrace/otlptracegrpc@v1.45.0`, `.../otlptracehttp@v1.45.0`,
+`otel/exporters/stdout/stdouttrace@v1.45.0`,
+`go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp@v0.70.0`, plus the
+`semconv` version matching the SDK's `resource.Default()` (treat `ErrSchemaURLConflict` from `resource.New` as non-fatal if versions drift).
+`go mod tidy`; full build + `make test` to confirm `google.golang.org/api v0.292.0` / k8s v0.36 tolerate the bump (MVS picks the higher otelhttp).
+
+### Step 2 — New package `internal/tracing`
+
+- **`tracing.go` — `Setup(ctx, log logr.Logger, service, version string) (shutdown func(context.Context) error, err error)`**
+  - Disabled (returns no-op shutdown, installs nothing) when `OTEL_SDK_DISABLED=true`, or when neither `OTEL_TRACES_EXPORTER` nor `OTEL_EXPORTER_OTLP_ENDPOINT`/`OTEL_EXPORTER_OTLP_TRACES_ENDPOINT` is set, or `OTEL_TRACES_EXPORTER=none`. One startup Info line either way stating the effective state/exporter.
+  - Exporter selection (hand-rolled, no autoexport): `OTEL_TRACES_EXPORTER` ∈ `otlp` (default) | `console`; for otlp, `OTEL_EXPORTER_OTLP_(TRACES_)PROTOCOL` ∈ `http/protobuf` (default) | `grpc` → `otlptracehttp` / `otlptracegrpc` (endpoint/TLS/headers via their native env handling).
+  - `sdktrace.NewTracerProvider` with batch processor (`WithMaxQueueSize(512)` — bounded on the 128Mi pod; sampler stays the SDK default so `OTEL_TRACES_SAMPLER(_ARG)` works), resource = `resource.New(WithAttributes(service.name, service.version=commit), WithFromEnv())` with env last so it wins.
+  - Globals: `otel.SetTracerProvider`, `otel.SetTextMapPropagator(TraceContext+Baggage)`, `otel.SetLogger(log.WithName("otel"))`, `otel.SetErrorHandler` → logr at `V(1)` (an unreachable collector errors every few seconds; Error level would spam).
+- **`logger.go` — the one logger-enrichment mechanism** (used by everything; prevents duplicate `traceID` keys):
+  - private ctx key holding the *base* (pre-enrichment) logr.Logger.
+  - `Start(ctx, spanName, opts...) (context.Context, trace.Span)`: starts a span from the global tracer; if the resulting span context is valid, capture base = stored base or `logf.FromContext(ctx)` on first call, then `logf.IntoContext(ctx, base.WithValues("traceID", ..., "spanID", ...))`. Nested `Start` re-derives from base — never stacks. Documented trade-off: `WithValues` pushed via `logf.IntoContext` *between* two `Start` calls is dropped (nothing first-party does that; controller-runtime's `reconcileID` logger is the base and survives).
+  - `ContextWithLogger(ctx, base)` seeds the base explicitly (discovery middleware).
+- **`reconciler.go` — `NewReconciler(kind string, inner reconcile.Reconciler, opts...) reconcile.Reconciler`**: root span `Reconcile <kind>` (SpanKind Internal) via `Start`; attrs `k8s.namespace.name`, `k8s.object.name`, `reconcile.id` (`controller.ReconcileIDFromContext`); on return records `reconcile.requeue_after`, sets Error status from err. `WithTracerProvider` option for tests.
+- **`transport.go` — `RestConfigWrapper() transport.WrapperFunc`**: `otelhttp.NewTransport` with `WithFilter` requiring `trace.SpanContextFromContext(r.Context()).IsValid()` — k8s API spans only under an existing trace (excludes informers, leader election, metrics authn).
+- **`http.go` — `HTTPMiddleware(operation string, base logr.Logger) func(http.Handler) http.Handler`**: `otelhttp.NewHandler` (filter `/healthz`; otelhttp renames the span from `r.Pattern` after routing — no custom naming needed) + inner layer calling `ContextWithLogger`-then-enrich so handler logs carry `traceID`. Accepts incoming `traceparent` (clients continue their traces).
+
+Tests (all with `sdktrace` + `tracetest.NewSpanRecorder` via the `WithTracerProvider` options, parallel; `Setup` env tests use `t.Setenv`, not parallel):
+- `Start`: nested spans → child span recorded; **funcr-captured log line contains `traceID` exactly once** (pattern: `internal/provider/gcp/gcp_test.go:277`); disabled tracer → no `traceID` in logs.
+- `Setup`: table over env combinations (unset→disabled, `none`→disabled, endpoint set→otlp, `console`, `OTEL_SDK_DISABLED`).
+- Reconciler decorator: fake inner returns result/err → span name/attrs/status.
+- Transport filter: request without parent span produces no span.
+- Middleware: `httptest` request → server span named from route pattern; `/healthz` unspanned; handler logger carries `traceID`.
+
+### Step 3 — `provider.WithTracing` decorator
+
+`internal/provider/tracing.go`, mirroring `metrics.go`: `WithTracing(name string, p Provider, opts...) Provider` — one Client span per call (`provider.create|get|delete|list`), attrs `provider.name`, `provider.id` (where present), result class attr from `resultLabel(err)`; status Error only for quota/permanent/transient — `ErrNotFound` stays Ok (expected during deletion polling). Returns the inner error **unmodified**. Uses `tracing.Start` so provider-internal logs (gcp `p.logger(ctx)`) inherit `traceID`. Tests in `internal/provider/tracing_test.go` reusing `staticProvider` from `metrics_test.go:19`.
+
+Wiring in `cmd/main.go:174-177` — tracing outermost: `provider.WithTracing(name, provider.WithMetrics(name, p, m))`.
+
+### Step 4 — `cmd/main.go` wiring
+
+- `tracing.Setup(...)` immediately after `ctrl.SetLogger` (cmd/main.go:148); on error: log + `os.Exit(1)`.
+- Explicit `shutdown(context.WithTimeout(context.Background(), 10*time.Second))` (fresh ctx — signal ctx is already cancelled) after `mgr.Start` returns, on **both** the error path before `os.Exit(1)` and the clean path. Earlier `os.Exit` sites have nothing to flush.
+- `cfg := ctrl.GetConfigOrDie(); cfg.Wrap(tracing.RestConfigWrapper())` before `ctrl.NewManager` (cmd/main.go:239).
+- kubernetes provider: add `kubernetes.NewWithTransportWrapper(ctx, cfg, wrap transport.WrapperFunc)` beside `New` (internal/provider/kubernetes/kubernetes.go:42) and register a closure in main's constructor map (same pattern as gcp at cmd/main.go:166) passing `tracing.RestConfigWrapper()` — keeps `internal/tracing` out of provider packages and `newWithClient` tests untouched.
+- New flag `--trace-health-probes` (default false) → `engine.TraceProbes`.
+
+### Step 5 — Reconciler spans
+
+- `SetupWithManager` (proxy_controller.go:412): `b.Complete(tracing.NewReconciler("Proxy", r))`.
+- Sub-spans via `tracing.Start`: `reconcile.managed` (:116), `reconcile.replaceInstance` (:226), `reconcile.delete` (:254), and `status.patch` opened **inside the deferred flush closure** (:98-104, runs within the root span; its error already folds into `err`). `reconcileExternal` stays unspanned — no I/O, pure noise.
+- Useful attrs where cheap: phase transitions, `providerID`.
+
+### Step 6 — Discovery server
+
+- `handler()` (internal/discovery/server.go:151-156): chain becomes recover → `tracing.HTTPMiddleware("discovery", s.log)` → log → maxBytes → auth (otelhttp must stay outside `maxBytesMiddleware`).
+- Handlers and `logMiddleware`/`recoverMiddleware` switch `s.log` → `logf.FromContext(r.Context())` (handlers.go:85, :141, :234; server.go:163, :191) so request logs carry `traceID`. `s.log` remains for startup lines.
+- k8s `List` calls in handlers already use `r.Context()` → child spans appear via the wrapped rest transport.
+
+### Step 7 — GC + health
+
+- `gc.Sweeper.sweep` (internal/gc/gc.go:83): wrap in root span `gc.sweep` via `tracing.Start` (before the `.WithName("orphan-gc")` derivation so it inherits), attrs: providers swept, orphans deleted. Provider/k8s child spans come free from Steps 3/4.
+- `health.Engine`: new field `TraceProbes bool`. In the worker loop (engine.go:158) when enabled: root span `health.probe` (SpanKind Client) around `probeFn`, attrs proxy key/ok/latency/error class, ended before `record` (which stays ctx-free). No transport wrap and no propagation — never inject `traceparent` toward external targets through the proxies. Probe→reconcile span links are **out of scope**: `GenericEvent` (engine.go:330) carries no ctx and the workqueue coalesces events; documented in architecture Decisions.
+- Lease store sweep: not traced (in-memory only).
+
+### Step 8 — GCP wire-log enrichment
+
+`wireFilterHandler.Handle` (internal/provider/gcp/wirelog.go:46) receives the real request ctx from the SDK's slog calls: append `traceID`/`spanID` attrs when `trace.SpanContextFromContext(ctx)` is valid — V(5) wire logs become correlatable with the `provider.*` span. Add `wirelog_test.go` case.
+
+### Step 9 — Manifests + docs
+
+- `config/manager/manager.yaml` env (after `DISCOVERY_TOKEN`): `POD_NAME`/`POD_NAMESPACE` via downward API **first**, then `OTEL_SERVICE_NAME`, `OTEL_RESOURCE_ATTRIBUTES: k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE)` ($(VAR) expansion only sees earlier vars); commented-out `OTEL_EXPORTER_OTLP_ENDPOINT` + `OTEL_TRACES_SAMPLER` examples with a "tracing is off until an endpoint is set" comment. Note `--trace-health-probes` beside the args list.
+- `docs/architecture.md`: new "### 10. Tracing" section after Metrics (:281) — span topology, enablement, `traceID` log-key choice; Decisions entries (:303): env-gated enablement, probes off by default, no probe→reconcile links (why), `traceID` naming vs Grafana defaults, no traceparent into apiserver.
+- README ops note; CHANGELOG entry (dated via `date`) once the user confirms it works.
+- Run `make lint` (CI has no lint step; `lll`/`revive` will hit new files).
+
+## Verification
+
+1. `make test` (unit, includes all new `tracetest` assertions) and `make lint`.
+2. Console smoke: `OTEL_TRACES_EXPORTER=console go run ./cmd --providers-config hack/providers-dev.yaml ...` against kind — create a Proxy, confirm (a) `Reconcile Proxy` span JSON on stdout with nested `provider.create` + k8s PATCH spans, (b) the reconcile log lines carry the same `traceID` as the span, (c) no spans from informer watches or leader election.
+3. End-to-end in kind: deploy Jaeger all-in-one (`jaegertracing/all-in-one`, OTLP 4318), set `OTEL_EXPORTER_OTLP_ENDPOINT=http://jaeger:4318` on the manager Deployment; exercise a reconcile + a `POST /v1/leases` (with and without a client `traceparent`) + wait one GC interval; in the Jaeger UI: reconcile trace shows provider+k8s children; lease trace shows route-named server span with k8s child; grep manager logs for a `traceID` and resolve it in Jaeger.
+4. Negative: run with no `OTEL_*` env — startup line says tracing disabled, no export-error spam, logs unchanged (no `traceID` keys).
--- a/docs/plans/2026-08-24-1224-tracing-e2e.md
+++ b/docs/plans/2026-08-24-1224-tracing-e2e.md
@@ -0,0 +1,150 @@
+# Plan: e2e test — OTel tracing against real Tempo
+**Created:** 2026-08-24 12:24
+
+## Context
+
+The tracing feature (MR #4, branch `feat/otel-tracing`) is covered by unit
+tests with an in-memory span recorder, but nothing proves the full pipeline:
+operator in a real cluster → OTLP export → Tempo ingest → queryable traces
+with the documented span topology. The homelab Tempo lives at
+`http://192.168.0.30:3200` (query API — verified live from this host:
+`/api/echo`, TraceQL `GET /api/search?q=…`, `GET /api/traces/<id>`), with
+OTLP ingest on `:4318` (HTTP, verified 200) and `:4317` (gRPC, open). User
+decisions: **Go Ginkgo e2e test** (not a shell script), **structural
+assertions** (span tree, not just trace-exists), flow per the user's sketch:
+deploy operator in kind with tracing on → create kubernetes-provider proxies
+→ delete them → shut down — with traces tagged for easy discovery per test
+run. This work continues on `feat/otel-tracing`; MR #4 stays the vehicle.
+
+## Design decisions (from review, with evidence)
+
+- **Proxy CRs go in the `default` namespace, not the operator namespace.**
+  The squid pods the kubernetes provider creates carry no securityContext
+  (internal/provider/kubernetes/pod.go:33-49) and are created in the CR's
+  namespace; the operator ns is labeled `pod-security enforce=restricted`
+  (test/e2e/e2e_test.go:61-62) and would reject them. Pod RBAC is
+  cluster-scoped (config/rbac/role.yaml:10), so `default` works. All
+  kubectl calls use explicit `-n`.
+- **Anchor assertions on `provider.create`, not the root-span search.** A
+  `name="Reconcile Proxy"` hit may be the finalizer-add or a drift
+  reconcile (no provider call inside). TraceQL matches span names anywhere
+  in a trace, so search `{resource.test.run.id="<runID>" && name="provider.create"}`,
+  fetch *that* traceID, then assert companion span names.
+- **Run identification with zero code changes:** OTel resource attribute
+  `test.run.id=<runID>` via `OTEL_RESOURCE_ATTRIBUTES` (env wins —
+  `resource.WithFromEnv()` merges last, internal/tracing/tracing.go). Tempo
+  vParquet searches arbitrary resource attrs without config; fallback query
+  documented: `{resource.service.name="egress-proxies-operator" && name="provider.create"}`
+  + start/end window (Unix **seconds**).
+- **OTLP preflight from inside the cluster:** host-reachability of
+  192.168.0.30 doesn't prove pod-reachability from kind on macOS, and
+  export failures log only at V(1) (invisible) — without a preflight, a
+  broken path is a 2-minute opaque timeout. Reuse the suite's curl-pod
+  pattern (e2e_test.go:218-248, incl. the restricted-PSS overrides JSON)
+  to POST to `<OTLP_ENDPOINT>/v1/traces` and fail fast.
+- **No homelab defaults baked into the Makefile.** The spec Skips unless
+  `TEMPO_URL`/`OTLP_ENDPOINT` are set (otherwise everyone without that LAN
+  host inherits a 2-minute failure). The copy-pasteable invocation lives in
+  docs/testing.md.
+- **Ginkgo ordering:** top-level container order is randomized, so the
+  tracing Describe is fully self-contained (own ns create → make install →
+  make deploy → teardown), same shape as the Manager Describe. `kubectl
+  delete ns` blocks until termination, so no create/delete race between
+  the two Describes.
+
+## Steps
+
+### Step 1 — `test/e2e/tracing_test.go` (new; `//go:build e2e`, package e2e)
+
+`Describe("OTel tracing", Ordered)`:
+
+- **BeforeAll:**
+  1. Read `TEMPO_URL` + `OTLP_ENDPOINT`; `Skip("TEMPO_URL/OTLP_ENDPOINT not set")` when empty.
+  2. `runID := "e2e-" + strconv.FormatInt(time.Now().UnixNano(), 10)`;
+     print it to `GinkgoWriter` so the run is findable in Grafana by hand.
+  3. Create operator ns + restricted-PSS label; `make install`;
+     `make deploy IMG=<managerImage>` (same commands as e2e_test.go:54-75,
+     via `utils.Run`).
+  4. Pre-pull the proxy image to kill the biggest flake source:
+     `docker pull ubuntu/squid:6.6-24.04_edge` + `kind load docker-image`
+     (via `utils.Run`, honoring `KIND`/`KIND_CLUSTER` env like
+     utils.LoadImageToKindClusterWithName).
+  5. OTLP preflight: curl pod POSTing `{}` to `<OTLP_ENDPOINT>/v1/traces`,
+     assert HTTP 200 in its logs (fail message names the endpoint).
+  6. `kubectl set env deployment/egress-proxies-operator-controller-manager
+     -n <ns> OTEL_EXPORTER_OTLP_ENDPOINT=<OTLP_ENDPOINT>
+     "OTEL_RESOURCE_ATTRIBUTES=k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE),test.run.id=<runID>"`
+     — in-place update keeps the var after the downward-API vars ($(VAR)
+     expansion needs that ordering); `exec.Command` means no shell mangling
+     of `$()`. Then `kubectl rollout status`.
+  7. `Eventually`: newest controller pod (sorted by creationTimestamp — a
+     terminating old pod may otherwise be picked) logs contain
+     `"tracing enabled"`.
+- **It "creates proxies and reports reconcile traces":**
+  - Write 2 Proxy manifests (names `proxy-tracing-e2e-1/2`,
+    `provider: kubernetes`, modeled on config/samples/proxy_kubernetes.yaml)
+    to `GinkgoT().TempDir()` (absolute paths — `utils.Run` chdirs the
+    process); `kubectl apply -n default`.
+  - `Eventually` (5m — first squid start) `.status.phase == "Ready"`
+    (confirmed field, api/v1alpha1/proxy_types.go:41).
+  - `Eventually`: Tempo search
+    `{resource.test.run.id="<runID>" && name="provider.create"}` ≥1 hit
+    (BSP flushes every ~5s; 2m default timeout is ample).
+  - Fetch that traceID via `/api/traces/<id>`; assert span names include
+    `Reconcile Proxy`, `reconcile.managed`, `provider.create`,
+    `status.patch`, and resource attr `service.name=egress-proxies-operator`.
+- **It "traces deletion":**
+  - `kubectl delete proxy -n default …`; `Eventually` CRs gone (finalizer
+    → `provider.delete`, DeletionPoll 10s).
+  - `Eventually`: Tempo search finds `provider.delete` for the runID; fetch
+    and assert `reconcile.delete` in the same trace.
+- **AfterAll** (= the sketch's "shut down operator"): delete leftover
+  proxies in `default`; `make undeploy` (SIGTERM → `tracingShutdown`
+  flushes); `make uninstall`; delete operator ns — errors discarded
+  (`_, _ = utils.Run(...)`), mirroring e2e_test.go:79-95.
+- **Tempo client helpers** (same file, stdlib only — the test process runs
+  on the host, which reaches Tempo directly):
+  - `tempoSearch(traceql string)` → `GET {TEMPO_URL}/api/search?q=…&start=…&end=…`
+    (Unix seconds, window = suite start − 5m → now); minimal struct
+    `{Traces []struct{ TraceID string }}`.
+  - `tempoTrace(id string)` → `/api/traces/<id>`, decoded as **OTLP-JSON**
+    (`batches[].scopeSpans[].spans[].name`, resource attrs as
+    `{key, value:{stringValue}}`) — not Jaeger's shape. Helper flattens to
+    a span-name set + resource attr map.
+
+### Step 2 — Makefile
+
+- `test-e2e`: pass `TEMPO_URL`/`OTLP_ENDPOINT` through to `go test` env
+  (no defaults) and add `-timeout 30m` — the suite already runs
+  docker-build + kind-load in BeforeSuite plus 3–5m Eventuallys, and this
+  adds a second full deploy cycle + image pulls; the 10m default will be
+  exceeded on cold caches.
+
+### Step 3 — Docs
+
+- `docs/testing.md` (§ e2e, currently "scaffold… only asserts manager runs
+  and serves metrics"): document the tracing spec, its Skip gate, and the
+  invocation:
+  `TEMPO_URL=http://192.168.0.30:3200 OTLP_ENDPOINT=http://192.168.0.30:4318 make test-e2e`.
+- Execution-log entries per step in `docs/plans-executions/2026-08-24-1224-tracing-e2e.md`.
+- CHANGELOG entry only after the user confirms a green run (house rule).
+
+## Not doing (and why)
+
+- No dedicated flush assertion on shutdown — teardown exercises the flush
+  path, but attributing a specific late span to it is guesswork.
+- No gRPC (4317) variant — http/protobuf is the operator default and the
+  verified path; a variant run is a one-env-var change if ever wanted.
+- No changes to `internal/` — the whole test works through public surface
+  (env vars, kubectl, Tempo API), which is the point of an e2e test.
+
+## Verification
+
+1. `TEMPO_URL=http://192.168.0.30:3200 OTLP_ENDPOINT=http://192.168.0.30:4318 make test-e2e`
+   → tracing spec passes (both Its); without the env vars → spec reports
+   Skipped, remainder of suite unaffected.
+2. In Grafana: TraceQL `{resource.test.run.id="<runID printed in test log>"}`
+   shows the run's traces with the expected tree.
+3. `go vet -tags=e2e ./...` clean (documented routine).
+4. A deliberately wrong `OTLP_ENDPOINT` (e.g. port 9) fails fast in the
+   preflight step with a clear message, not a 2-minute search timeout.
--- a/docs/testing.md
+++ b/docs/testing.md
@@ -92,8 +92,38 @@ compiles only under `-tags=e2e`, manages its own kind cluster
 (`make test-e2e` / `make cleanup-test-e2e`), and has been kept compiling
 (`go vet -tags=e2e ./...` is part of the routine) but is **not part of
 `make test` and was not used for the release verification** — the manual
-kind run below covers strictly more. Treat it as scaffold to grow into if
-CI wants an automated cluster smoke test.
+kind run below covers strictly more.
+
+### The OTel tracing spec (Tempo-gated)
+
+`test/e2e/tracing_test.go` proves the full tracing pipeline against a
+**real Tempo**: deploy in kind with tracing enabled, create two
+kubernetes-provider proxies, delete them, and assert in Tempo that the
+traces exist with the documented span topology (`Reconcile Proxy` →
+`reconcile.managed` / `provider.create` / `status.patch`, and
+`reconcile.delete` / `provider.delete` on the way out).
+
+It **skips unless both env vars are set** (so the rest of the suite runs
+anywhere). Homelab invocation:
+
+```bash
+TEMPO_URL=http://192.168.0.30:3200 \
+OTLP_ENDPOINT=http://192.168.0.30:4318 \
+make test-e2e
+```
+
+Worth knowing:
+
+- Every span of a run carries the resource attribute
+  `test.run.id=e2e-<nanos>` (injected via `OTEL_RESOURCE_ATTRIBUTES`, no
+  code involved); the run ID is printed in the test log, and
+  `{resource.test.run.id="<id>"}` in Grafana shows exactly that run.
+- The spec preflights the OTLP endpoint **from inside the cluster** with a
+  curl pod and fails fast with a clear message if it's unreachable —
+  export failures are otherwise only visible at `-zap-log-level=1`.
+- Proxy CRs are created in `default`, not the operator namespace: the
+  squid pods carry no securityContext and the operator namespace enforces
+  restricted PSS.

 ## The kind verification run (the real end-to-end)

--- a/go.mod
+++ b/go.mod
@@ -4,10 +4,17 @@ go 1.26.0

 require (
 	cloud.google.com/go/compute v1.65.0
-	github.com/go-logr/logr v1.4.3
+	github.com/go-logr/logr v1.4.4
 	github.com/onsi/ginkgo/v2 v2.27.4
 	github.com/onsi/gomega v1.39.0
 	github.com/prometheus/client_golang v1.23.2
+	go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.70.0
+	go.opentelemetry.io/otel v1.45.0
+	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.45.0
+	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp v1.45.0
+	go.opentelemetry.io/otel/exporters/stdout/stdouttrace v1.45.0
+	go.opentelemetry.io/otel/sdk v1.45.0
+	go.opentelemetry.io/otel/trace v1.45.0
 	google.golang.org/api v0.292.0
 	google.golang.org/protobuf v1.36.12-0.20260120151049-f2248ac996af
 	k8s.io/api v0.36.0
@@ -31,7 +38,7 @@ require (
 	github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc // indirect
 	github.com/emicklei/go-restful/v3 v3.13.0 // indirect
 	github.com/evanphx/json-patch/v5 v5.9.11 // indirect
-	github.com/felixge/httpsnoop v1.0.4 // indirect
+	github.com/felixge/httpsnoop v1.1.0 // indirect
 	github.com/fsnotify/fsnotify v1.9.0 // indirect
 	github.com/fxamacker/cbor/v2 v2.9.0 // indirect
 	github.com/go-logr/stdr v1.2.2 // indirect
@@ -48,7 +55,7 @@ require (
 	github.com/google/uuid v1.6.0 // indirect
 	github.com/googleapis/enterprise-certificate-proxy v0.3.19 // indirect
 	github.com/googleapis/gax-go/v2 v2.23.0 // indirect
-	github.com/grpc-ecosystem/grpc-gateway/v2 v2.27.7 // indirect
+	github.com/grpc-ecosystem/grpc-gateway/v2 v2.29.0 // indirect
 	github.com/inconshreveable/mousetrap v1.1.0 // indirect
 	github.com/josharian/intern v1.0.0 // indirect
 	github.com/json-iterator/go v1.1.12 // indirect
@@ -66,14 +73,9 @@ require (
 	github.com/stoewer/go-strcase v1.3.0 // indirect
 	github.com/x448/float16 v0.8.4 // indirect
 	go.opentelemetry.io/auto/sdk v1.2.1 // indirect
-	go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.67.0 // indirect
-	go.opentelemetry.io/otel v1.44.0 // indirect
-	go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.40.0 // indirect
-	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.40.0 // indirect
-	go.opentelemetry.io/otel/metric v1.44.0 // indirect
-	go.opentelemetry.io/otel/sdk v1.44.0 // indirect
-	go.opentelemetry.io/otel/trace v1.44.0 // indirect
-	go.opentelemetry.io/proto/otlp v1.9.0 // indirect
+	go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.45.0 // indirect
+	go.opentelemetry.io/otel/metric v1.45.0 // indirect
+	go.opentelemetry.io/proto/otlp v1.11.0 // indirect
 	go.uber.org/multierr v1.11.0 // indirect
 	go.uber.org/zap v1.27.1 // indirect
 	go.yaml.in/yaml/v2 v2.4.3 // indirect
@@ -91,7 +93,7 @@ require (
 	golang.org/x/tools v0.47.0 // indirect
 	gomodules.xyz/jsonpatch/v2 v2.4.0 // indirect
 	google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7 // indirect
-	google.golang.org/genproto/googleapis/api v0.0.0-20260630182238-925bb5da69e7 // indirect
+	google.golang.org/genproto/googleapis/api v0.0.0-20260803160001-6ac0973c030d // indirect
 	google.golang.org/genproto/googleapis/rpc v0.0.0-20260803160001-6ac0973c030d // indirect
 	google.golang.org/grpc v1.83.0 // indirect
 	gopkg.in/evanphx/json-patch.v4 v4.13.0 // indirect
--- a/go.sum
+++ b/go.sum
@@ -34,8 +34,8 @@ github.com/evanphx/json-patch v0.5.2 h1:xVCHIVMUu1wtM/VkR9jVZ45N3FhZfYMMYGorLCR8
 github.com/evanphx/json-patch v0.5.2/go.mod h1:ZWS5hhDbVDyob71nXKNL0+PWn6ToqBHMikGIFbs31qQ=
 github.com/evanphx/json-patch/v5 v5.9.11 h1:/8HVnzMq13/3x9TPvjG08wUGqBTmZBsCWzjTM0wiaDU=
 github.com/evanphx/json-patch/v5 v5.9.11/go.mod h1:3j+LviiESTElxA4p3EMKAB9HXj3/XEtnUf6OZxqIQTM=
-github.com/felixge/httpsnoop v1.0.4 h1:NFTV2Zj1bL4mc9sqWACXbQFVBBg2W3GPvqp8/ESS2Wg=
-github.com/felixge/httpsnoop v1.0.4/go.mod h1:m8KPJKqk1gH5J9DgRY2ASl2lWCfGKXixSwevea8zH2U=
+github.com/felixge/httpsnoop v1.1.0 h1:3YtUj32ZZkqZtt3sZZsClsymw/QDuVfpNhoA31zeORc=
+github.com/felixge/httpsnoop v1.1.0/go.mod h1:Zqxgdd+1Rkcz8euOqdr7lqgCRJztwr5hp9vDSi5UZCE=
 github.com/fsnotify/fsnotify v1.9.0 h1:2Ml+OJNzbYCTzsxtv8vKSFD9PbJjmhYF14k/jKC7S9k=
 github.com/fsnotify/fsnotify v1.9.0/go.mod h1:8jBTzvmWwFyi3Pb8djgCCO5IBqzKJ/Jwo8TRcHyHii0=
 github.com/fxamacker/cbor/v2 v2.9.0 h1:NpKPmjDBgUfBms6tr6JZkTHtfFGcMKsw3eGcmD/sapM=
@@ -47,8 +47,8 @@ github.com/gkampitakis/go-diff v1.3.2/go.mod h1:LLgOrpqleQe26cte8s36HTWcTmMEur6O
 github.com/gkampitakis/go-snaps v0.5.15 h1:amyJrvM1D33cPHwVrjo9jQxX8g/7E2wYdZ+01KS3zGE=
 github.com/gkampitakis/go-snaps v0.5.15/go.mod h1:HNpx/9GoKisdhw9AFOBT1N7DBs9DiHo/hGheFGBZ+mc=
 github.com/go-logr/logr v1.2.2/go.mod h1:jdQByPbusPIv2/zmleS9BjJVeZ6kBagPoEUsqbVz/1A=
-github.com/go-logr/logr v1.4.3 h1:CjnDlHq8ikf6E492q6eKboGOC0T8CDaOvkHCIg8idEI=
-github.com/go-logr/logr v1.4.3/go.mod h1:9T104GzyrTigFIr8wt5mBrctHMim0Nb2HLGrmQ40KvY=
+github.com/go-logr/logr v1.4.4 h1:tG4xh9yMsRCAiodLVTxyrkzSZ9+o0L1Kg/+cPVcbP/8=
+github.com/go-logr/logr v1.4.4/go.mod h1:9T104GzyrTigFIr8wt5mBrctHMim0Nb2HLGrmQ40KvY=
 github.com/go-logr/stdr v1.2.2 h1:hSWxHoqTgW2S2qGc0LTAI563KZ5YKYRhT3MFKZMbjag=
 github.com/go-logr/stdr v1.2.2/go.mod h1:mMo/vtBO5dYbehREoey6XUKy/eSumjCCveDpRre4VKE=
 github.com/go-logr/zapr v1.3.0 h1:XGdV8XW8zdwFiwOA2Dryh1gj2KRQyOOoNmBy4EplIcQ=
@@ -86,8 +86,8 @@ github.com/googleapis/enterprise-certificate-proxy v0.3.19 h1:mMOE7DN2+p76/EdIrm
 github.com/googleapis/enterprise-certificate-proxy v0.3.19/go.mod h1:rSEsBUemEBZEexP2y6jPp16LUmUbjmSbcPMQizR0o4k=
 github.com/googleapis/gax-go/v2 v2.23.0 h1:Tchl7qkvE7Ip3y+ztvNufYFvkfqTe7NfLTYGIdJRLuE=
 github.com/googleapis/gax-go/v2 v2.23.0/go.mod h1:rBQKOVJCdb8IFEzg+FCwlt1LP/xMDGuqUXhUG+XMXEg=
-github.com/grpc-ecosystem/grpc-gateway/v2 v2.27.7 h1:X+2YciYSxvMQK0UZ7sg45ZVabVZBeBuvMkmuI2V3Fak=
-github.com/grpc-ecosystem/grpc-gateway/v2 v2.27.7/go.mod h1:lW34nIZuQ8UDPdkon5fmfp2l3+ZkQ2me/+oecHYLOII=
+github.com/grpc-ecosystem/grpc-gateway/v2 v2.29.0 h1:5VipnvEpbqr2gA2VbM+nYVbkIF28c5ZQfqCBQ5g2xfk=
+github.com/grpc-ecosystem/grpc-gateway/v2 v2.29.0/go.mod h1:Hyl3n6Twe1hvtd9XUXDec4pTvgMSEixRuQKPTMH2bNs=
 github.com/inconshreveable/mousetrap v1.1.0 h1:wN+x4NVGpMsO7ErUn/mUI3vEoE6Jt13X2s0bqwp9tc8=
 github.com/inconshreveable/mousetrap v1.1.0/go.mod h1:vpF70FUmC8bwa3OWnCshd2FqLfsEA9PFc4w1p2J65bw=
 github.com/josharian/intern v1.0.0 h1:vlS4z54oSdjm0bgjRigI+G1HpF+tI+9rE5LLzOg8HmY=
@@ -170,24 +170,28 @@ github.com/x448/float16 v0.8.4 h1:qLwI1I70+NjRFUR3zs1JPUCgaCXSh3SW62uAKT1mSBM=
 github.com/x448/float16 v0.8.4/go.mod h1:14CWIYCyZA/cWjXOioeEpHeN/83MdbZDRQHoFcYsOfg=
 go.opentelemetry.io/auto/sdk v1.2.1 h1:jXsnJ4Lmnqd11kwkBV2LgLoFMZKizbCi5fNZ/ipaZ64=
 go.opentelemetry.io/auto/sdk v1.2.1/go.mod h1:KRTj+aOaElaLi+wW1kO/DZRXwkF4C5xPbEe3ZiIhN7Y=
-go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.67.0 h1:OyrsyzuttWTSur2qN/Lm0m2a8yqyIjUVBZcxFPuXq2o=
-go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.67.0/go.mod h1:C2NGBr+kAB4bk3xtMXfZ94gqFDtg/GkI7e9zqGh5Beg=
-go.opentelemetry.io/otel v1.44.0 h1:JjwHmHpA4iZ3wBxluu2fbbE7j4kqlE8jXyAyPXH7HqU=
-go.opentelemetry.io/otel v1.44.0/go.mod h1:BMgjTHL9WPRlRjL2oZCBTL4whCGtXch2H4BhOPIAyYc=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.40.0 h1:QKdN8ly8zEMrByybbQgv8cWBcdAarwmIPZ6FThrWXJs=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.40.0/go.mod h1:bTdK1nhqF76qiPoCCdyFIV+N/sRHYXYCTQc+3VCi3MI=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.40.0 h1:DvJDOPmSWQHWywQS6lKL+pb8s3gBLOZUtw4N+mavW1I=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.40.0/go.mod h1:EtekO9DEJb4/jRyN4v4Qjc2yA7AtfCBuz2FynRUWTXs=
-go.opentelemetry.io/otel/metric v1.44.0 h1:1w0gILTcHdr3YI+ixLyjemwrVnsMURbTZFrSYCdDdmc=
-go.opentelemetry.io/otel/metric v1.44.0/go.mod h1:8O7hanEPBNgEMmybD3s2VBKcgWOCsA6tzHBPODAiquo=
-go.opentelemetry.io/otel/sdk v1.44.0 h1:nHYwb9lK+fJPU/dnT6s7W7Z8itMWyqrnVfbheVYrZ58=
-go.opentelemetry.io/otel/sdk v1.44.0/go.mod h1:Osuydd3Se74nqjAKxid74N5eC+jfEqfTegHRnq58oK0=
-go.opentelemetry.io/otel/sdk/metric v1.44.0 h1:3LlKgI+VjbVsjNRFZJZAJ30WjXC5VkNRks6si09iEfI=
-go.opentelemetry.io/otel/sdk/metric v1.44.0/go.mod h1:5B5pMARnXxKhltooO4xUuCBorl65a4EpnTalObqOigA=
-go.opentelemetry.io/otel/trace v1.44.0 h1:jxF5CsGYCe74MCRx2X4g7WsY/VBKRqqpNvXlX/6gtIk=
-go.opentelemetry.io/otel/trace v1.44.0/go.mod h1:oLl1jrMQAVo6v3GAggN+1VH9VIz9iUSvW53sW1Q8PIE=
-go.opentelemetry.io/proto/otlp v1.9.0 h1:l706jCMITVouPOqEnii2fIAuO3IVGBRPV5ICjceRb/A=
-go.opentelemetry.io/proto/otlp v1.9.0/go.mod h1:xE+Cx5E/eEHw+ISFkwPLwCZefwVjY+pqKg1qcK03+/4=
+go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.70.0 h1:LMuyCAyfalSjDyjdC65nK6N0zoTT63+E/u95X0JovZI=
+go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.70.0/go.mod h1:085m8qbm4hgc8rZWGDEa4vmyyo2c3nPxUslYUKUIU04=
+go.opentelemetry.io/otel v1.45.0 h1:pdrWmLHofpubmArBv1LgFSv1Z0Ie/ppdZzu+kUN5EeU=
+go.opentelemetry.io/otel v1.45.0/go.mod h1:XZxIqPapzEYnhNSScF5DIqXhm/rYi0FzCe2XddAwZfQ=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.45.0 h1:QRefszxJmfPdjXUUm3j6iDzY03mTPXMjqErFqQ67vUg=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.45.0/go.mod h1:Tiz03lTBVBrm7eWZBOidzEaYaJa8tjwGUGv6d8mlTyk=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.45.0 h1:fG5MCxGz8+2VtrN/WgqSpJFctVz24gpxj8CxkKmc8Ww=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.45.0/go.mod h1:BmAYTn+3ysbRe+IU2msxmf5Rx3g6DHvex+tWI3LdhYI=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp v1.45.0 h1:QBajQ2SrwQijzHyZbQlPsuIzpl/ll8DY6wPWsajeGcI=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp v1.45.0/go.mod h1:08ZQLjrPLQ6R4kAXvuOvODEer5Yh4CoFvll5qB2BCI8=
+go.opentelemetry.io/otel/exporters/stdout/stdouttrace v1.45.0 h1:lsA/S1bxgdbyFGkTj+3meEdJ6ADVU7QoFstV6MXgE68=
+go.opentelemetry.io/otel/exporters/stdout/stdouttrace v1.45.0/go.mod h1:L7u+MirGoB1bjeLH66+xDykF4RC8C3RN7lIFpBiewUo=
+go.opentelemetry.io/otel/metric v1.45.0 h1:7Eg1uH7CJ5cXv9is6tnBe1FI6rj1nwUdbFypRm3br/M=
+go.opentelemetry.io/otel/metric v1.45.0/go.mod h1:HAPbm1nd3p1PmFH7v2dR+6BjXxw+Lq4a2+pndMAm08s=
+go.opentelemetry.io/otel/sdk v1.45.0 h1:4VVSMgQ83dUgW2aoX5f6JgLvHwIvzcuLnF9lUdCSpCw=
+go.opentelemetry.io/otel/sdk v1.45.0/go.mod h1:Sr40LgXV7DsKMMJMKOhUWOgMWTfAaqvm2kF0g7ilwuA=
+go.opentelemetry.io/otel/sdk/metric v1.45.0 h1:oVFszMfyj1Am6s24Vtc7wBb8BKLcwepJjNEYILuiE3o=
+go.opentelemetry.io/otel/sdk/metric v1.45.0/go.mod h1:vUWUxDZvu1WVRj8JA8S0AdhsPrZoDpA2DdZauIh4mDA=
+go.opentelemetry.io/otel/trace v1.45.0 h1:l/mP6Uv7oNO7/TblbhpbgMidxhq1uO/rPsikOyVhxag=
+go.opentelemetry.io/otel/trace v1.45.0/go.mod h1:qoJJA2xNMnxRrdISU/kLtfUH2wNeQbiv+jhs/CxI8bc=
+go.opentelemetry.io/proto/otlp v1.11.0 h1:5rrYs0Ykyj50sdU/JU0x8etU+LubXWb+gED6TbEdMIk=
+go.opentelemetry.io/proto/otlp v1.11.0/go.mod h1:SmVizdCOAm3XBtG1g1NnOdhW6jtddT72hLMhv8VwA8E=
 go.uber.org/goleak v1.3.0 h1:2K3zAYmnTNqV73imy9J1T3WC+gmCePx2hEGkimedGto=
 go.uber.org/goleak v1.3.0/go.mod h1:CoHD4mav9JJNrW/WLlf7HGZPjdw8EucARQHekz1X6bE=
 go.uber.org/multierr v1.11.0 h1:blXXJkSxSSfBVBlC76pxqeO+LN3aDfLQo+309xJstO0=
@@ -228,8 +232,8 @@ google.golang.org/api v0.292.0 h1:Ewiwo/GTtiaPZSNAZQUcWLh8AYDEoPmIXyJfeoTSMHU=
 google.golang.org/api v0.292.0/go.mod h1:07kjmMnFGm2RQuCza2EZM/5N68G/fVvFb1xKjWqoFA0=
 google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7 h1:XzmzkmB14QhVhgnawEVsOn6OFsnpyxNPRY9QV01dNB0=
 google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7/go.mod h1:L43LFes82YgSonw6iTXTxXUX1OlULt4AQtkik4ULL/I=
-google.golang.org/genproto/googleapis/api v0.0.0-20260630182238-925bb5da69e7 h1:jQ9p21COKWjP3VwuFrNRiiOTMh3mPpN45R7SLrH/HUU=
-google.golang.org/genproto/googleapis/api v0.0.0-20260630182238-925bb5da69e7/go.mod h1:KqHwBx2upmfa1XSi1WuRvC+2VGCLtooKkfmyvRbUmqA=
+google.golang.org/genproto/googleapis/api v0.0.0-20260803160001-6ac0973c030d h1:FarXi840EJWSHYTN3ERkADbPWjl307+FGrA22KAVjjc=
+google.golang.org/genproto/googleapis/api v0.0.0-20260803160001-6ac0973c030d/go.mod h1:K/+WGbmBY7aNW1HDw1fJnKYo10i0DkAX6pows00dLig=
 google.golang.org/genproto/googleapis/rpc v0.0.0-20260803160001-6ac0973c030d h1:IL4hdHzcUv2l/gcg98/Rj3FbtE6axwqslOW8SW0C+S0=
 google.golang.org/genproto/googleapis/rpc v0.0.0-20260803160001-6ac0973c030d/go.mod h1:4Hqkh8ycfw05ld/3BWL7rJOSfebL2Q+DVDeRgYgxUU8=
 google.golang.org/grpc v1.83.0 h1:JeNZEKJFbQxArAMl+hiytHauacDNqJUllNfmIMmpqnQ=
--- a/internal/controller/proxy_controller.go
+++ b/internal/controller/proxy_controller.go
@@ -41,6 +41,7 @@ import (
 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/health"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )

 // HealthSnapshotter provides the current probe verdict for a proxy. The
@@ -96,9 +97,14 @@ func (r *ProxyReconciler) Reconcile(ctx context.Context, req ctrl.Request) (res
 	}
 	base := p.DeepCopy()
 	defer func() {
+		// Runs inside the root reconcile span (this defer fires before the
+		// tracing.NewReconciler wrapper sees the return), and its error is
+		// folded into err, which that wrapper records.
+		pctx, span := tracing.Start(ctx, "status.patch")
+		defer span.End()
 		// NotFound is expected when this reconcile just removed the last
 		// finalizer and the object is already gone.
-		if perr := r.patchStatusIfChanged(ctx, base, &p); perr != nil && !apierrors.IsNotFound(perr) {
+		if perr := r.patchStatusIfChanged(pctx, base, &p); perr != nil && !apierrors.IsNotFound(perr) {
 			err = errors.Join(err, perr)
 		}
 	}()
@@ -114,6 +120,8 @@ func (r *ProxyReconciler) Reconcile(ctx context.Context, req ctrl.Request) (res
 }

 func (r *ProxyReconciler) reconcileManaged(ctx context.Context, p *crawlv1alpha1.Proxy) (ctrl.Result, error) {
+	ctx, span := tracing.Start(ctx, "reconcile.managed")
+	defer span.End()
 	log := logf.FromContext(ctx)

 	if controllerutil.AddFinalizer(p, crawlv1alpha1.FinalizerName) {
@@ -224,6 +232,8 @@ func (r *ProxyReconciler) reconcileManaged(ctx context.Context, p *crawlv1alpha1
 // exists" — hence: delete, poll to NotFound, only then advance the hash and
 // let the create branch run.
 func (r *ProxyReconciler) replaceInstance(ctx context.Context, p *crawlv1alpha1.Proxy, prov provider.Provider, hash string) (ctrl.Result, error) {
+	ctx, span := tracing.Start(ctx, "reconcile.replaceInstance")
+	defer span.End()
 	_, err := prov.Get(ctx, p.Status.ProviderID)
 	if provider.Class(err) == provider.ErrNotFound {
 		// Old instance is gone. The Update inside setSpecHash refreshes p
@@ -252,6 +262,8 @@ func (r *ProxyReconciler) replaceInstance(ctx context.Context, p *crawlv1alpha1.
 }

 func (r *ProxyReconciler) reconcileDelete(ctx context.Context, p *crawlv1alpha1.Proxy) (ctrl.Result, error) {
+	ctx, span := tracing.Start(ctx, "reconcile.delete")
+	defer span.End()
 	if !controllerutil.ContainsFinalizer(p, crawlv1alpha1.FinalizerName) {
 		return ctrl.Result{}, nil
 	}
@@ -409,7 +421,10 @@ func (r *ProxyReconciler) SetupWithManager(mgr ctrl.Manager) error {
 	if r.HealthEvents != nil {
 		b = b.WatchesRawSource(source.Channel(r.HealthEvents, &handler.EnqueueRequestForObject{}))
 	}
-	return b.Complete(r)
+	// Root span per reconcile; sub-reconcilers and the status flush hang
+	// their spans off it. Tests calling r.Reconcile directly bypass the
+	// wrapper and see no-op spans — the global tracer is never set there.
+	return b.Complete(tracing.NewReconciler("Proxy", r))
 }

 func (r *ProxyReconciler) applyDefaults() {
--- a/internal/discovery/handlers.go
+++ b/internal/discovery/handlers.go
@@ -11,6 +11,7 @@ import (

 	apimeta "k8s.io/apimachinery/pkg/api/meta"
 	"sigs.k8s.io/controller-runtime/pkg/client"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"

 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/lease"
@@ -82,7 +83,10 @@ func (s *Server) handleListProxies(w http.ResponseWriter, r *http.Request) {

 	var list crawlv1alpha1.ProxyList
 	if err := s.Reader.List(r.Context(), &list); err != nil {
-		s.log.Error(err, "listing proxies")
+		// The ctx logger is s.log enriched with this request's
+		// traceID/spanID by the tracing middleware (logr sinks can't read
+		// ctx at log time, so per-request values ride on the logger).
+		logf.FromContext(r.Context()).Error(err, "listing proxies")
 		writeError(w, http.StatusInternalServerError, "internal", "listing proxies failed")
 		return
 	}
@@ -138,7 +142,7 @@ func (s *Server) handleAcquireLease(w http.ResponseWriter, r *http.Request) {

 	var list crawlv1alpha1.ProxyList
 	if err := s.Reader.List(r.Context(), &list); err != nil {
-		s.log.Error(err, "listing proxies for lease")
+		logf.FromContext(r.Context()).Error(err, "listing proxies for lease")
 		writeError(w, http.StatusInternalServerError, "internal", "listing proxies failed")
 		return
 	}
@@ -231,7 +235,7 @@ func (s *Server) handleReportLease(w http.ResponseWriter, r *http.Request) {
 			writeError(w, http.StatusNotFound, "unknown_lease", "no such lease")
 			return
 		}
-		s.log.Error(err, "reporting lease", "leaseID", r.PathValue("id"))
+		logf.FromContext(r.Context()).Error(err, "reporting lease", "leaseID", r.PathValue("id"))
 		writeError(w, http.StatusInternalServerError, "internal", "report failed")
 		return
 	}
--- a/internal/discovery/server.go
+++ b/internal/discovery/server.go
@@ -20,6 +20,7 @@ import (
 	logf "sigs.k8s.io/controller-runtime/pkg/log"

 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/lease"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )

 // LeaseStore is what the handlers need from a lease backend. Defined here,
@@ -136,7 +137,9 @@ func (s *Server) Start(ctx context.Context) error {
 }

 // handler assembles the mux and the middleware chain, outermost first:
-// recover → request-log → body-size cap → bearer auth.
+// recover → tracing (server span + request logger) → request-log →
+// body-size cap → bearer auth. Everything inside the tracing layer logs via
+// logf.FromContext(r.Context()) and so carries traceID/spanID.
 func (s *Server) handler() http.Handler {
 	mux := http.NewServeMux()
 	mux.HandleFunc("GET /healthz", func(w http.ResponseWriter, _ *http.Request) {
@@ -152,6 +155,7 @@ func (s *Server) handler() http.Handler {
 	h = s.authMiddleware(h)
 	h = maxBytesMiddleware(h)
 	h = s.logMiddleware(h)
+	h = tracing.HTTPMiddleware("discovery", s.log)(h)
 	h = s.recoverMiddleware(h)
 	return h
 }
@@ -188,7 +192,7 @@ func (s *Server) logMiddleware(next http.Handler) http.Handler {
 		rec := &statusRecorder{ResponseWriter: w, status: http.StatusOK}
 		start := time.Now()
 		next.ServeHTTP(rec, r)
-		s.log.Info("request",
+		logf.FromContext(r.Context()).Info("request",
 			"method", r.Method, "path", r.URL.Path,
 			"status", rec.status, "duration", time.Since(start).String())
 	})
--- a/internal/gc/gc.go
+++ b/internal/gc/gc.go
@@ -12,8 +12,11 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	logf "sigs.k8s.io/controller-runtime/pkg/log"

+	"go.opentelemetry.io/otel/attribute"
+
 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )

 // Sweeper is the manager Runnable running the sweep loop.
@@ -81,6 +84,8 @@ func (s *Sweeper) Start(ctx context.Context) error {
 // that deletion, and GC racing it would double-delete. A UID becomes
 // orphan-eligible only once the object is fully gone.
 func (s *Sweeper) sweep(ctx context.Context) {
+	ctx, span := tracing.Start(ctx, "gc.sweep")
+	defer span.End()
 	log := logf.FromContext(ctx).WithName("orphan-gc")

 	var list crawlv1alpha1.ProxyList
@@ -95,6 +100,7 @@ func (s *Sweeper) sweep(ctx context.Context) {
 		live[string(list.Items[i].UID)] = true
 	}

+	deleted := 0
 	for name, prov := range s.Providers {
 		instances, err := prov.ListByTag(ctx)
 		if err != nil {
@@ -119,7 +125,13 @@ func (s *Sweeper) sweep(ctx context.Context) {
 			if err := prov.Delete(ctx, inst.ID); err != nil {
 				log.Error(err, "deleting orphaned instance",
 					"provider", name, "providerID", inst.ID, "uid", inst.UID)
+				continue
+			}
+			deleted++
 		}
 	}
-	}
+	span.SetAttributes(
+		attribute.Int("gc.providers", len(s.Providers)),
+		attribute.Int("gc.deleted", deleted),
+	)
 }
--- a/internal/health/engine.go
+++ b/internal/health/engine.go
@@ -10,6 +10,9 @@ import (
 	"sync"
 	"time"

+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
 	apimeta "k8s.io/apimachinery/pkg/api/meta"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/types"
@@ -18,6 +21,7 @@ import (
 	logf "sigs.k8s.io/controller-runtime/pkg/log"

 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )

 // Snapshot is the engine's current verdict for one proxy, read by the
@@ -99,6 +103,10 @@ type Engine struct {
 	// transition-only by design, so metrics are where high-frequency
 	// signal (true probe recency, every latency sample) lives.
 	Metrics ProbeMetrics
+	// TraceProbes emits one root span per probe (--trace-health-probes).
+	// Off by default: probes run about once per second per proxy and would
+	// dominate trace volume.
+	TraceProbes bool

 	probeFn func(context.Context, *url.URL, crawlv1alpha1.HealthCheckSpec, *tls.Config) probeResult

@@ -155,8 +163,7 @@ func (e *Engine) Start(ctx context.Context) error {
 				case <-ctx.Done():
 					return
 				case job := <-jobs:
-					res := e.probeFn(ctx, job.proxyURL, job.hc, e.ProbeTLSConfig)
-					e.record(job, res, time.Now())
+					e.record(job, e.runProbe(ctx, job), time.Now())
 				}
 			}
 		})
@@ -264,6 +271,29 @@ func newState(p *crawlv1alpha1.Proxy, now time.Time, interval time.Duration) *st
 	return st
 }

+// runProbe executes one probe, inside its own root span when TraceProbes is
+// on. The span ends before record folds the result (record stays ctx-free),
+// and the probe transport is deliberately uninstrumented — no traceparent
+// must ever leak through a proxy toward external targets.
+func (e *Engine) runProbe(ctx context.Context, job probeJob) probeResult {
+	if !e.TraceProbes {
+		return e.probeFn(ctx, job.proxyURL, job.hc, e.ProbeTLSConfig)
+	}
+	ctx, span := tracing.Start(ctx, "health.probe",
+		trace.WithSpanKind(trace.SpanKindClient),
+		trace.WithAttributes(attribute.String("proxy", job.key.String())))
+	defer span.End()
+	res := e.probeFn(ctx, job.proxyURL, job.hc, e.ProbeTLSConfig)
+	span.SetAttributes(
+		attribute.Bool("probe.ok", res.ok),
+		attribute.Int64("probe.latency_ms", res.latency.Milliseconds()),
+	)
+	if !res.ok {
+		span.SetStatus(codes.Error, res.err.Error())
+	}
+	return res
+}
+
 // record folds one probe result into the proxy's threshold state and emits
 // an event when the result is status-affecting: a first-ever verdict, a
 // threshold-crossing flip, or a material latency change (beyond
--- a/internal/provider/gcp/wirelog.go
+++ b/internal/provider/gcp/wirelog.go
@@ -6,6 +6,7 @@ import (
 	"log/slog"

 	"github.com/go-logr/logr"
+	"go.opentelemetry.io/otel/trace"
 )

 // wireLogMaxFieldBytes is the elision threshold for string fields in wire
@@ -47,6 +48,15 @@ func (h *wireFilterHandler) Handle(ctx context.Context, rec slog.Record) error {
 	if rec.Level <= slog.LevelDebug && rec.Message != "api request" && rec.Message != "api response" {
 		return nil
 	}
+	// The SDK logs with the request ctx, so wire records can carry the
+	// surrounding provider span — the one place slog's ctx-aware handlers
+	// beat logr, and the same keys the logr enrichment uses.
+	if sc := trace.SpanContextFromContext(ctx); sc.IsValid() {
+		rec = rec.Clone()
+		rec.AddAttrs(
+			slog.String("traceID", sc.TraceID().String()),
+			slog.String("spanID", sc.SpanID().String()))
+	}
 	if h.fullPayloads {
 		return h.inner.Handle(ctx, rec)
 	}
--- a/internal/provider/gcp/wirelog_test.go
+++ b/internal/provider/gcp/wirelog_test.go
@@ -0,0 +1,50 @@
+package gcp
+
+import (
+	"context"
+	"strings"
+	"testing"
+
+	"github.com/go-logr/logr/funcr"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+)
+
+func TestWireFilterHandler_addsTraceContext(t *testing.T) {
+	t.Parallel()
+
+	var lines []string
+	base := funcr.New(func(prefix, args string) {
+		lines = append(lines, prefix+" "+args)
+	}, funcr.Options{Verbosity: 5})
+	log := wireLogger(base, WireLogOptions{})
+
+	tp := sdktrace.NewTracerProvider()
+	t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+	ctx, span := tp.Tracer("test").Start(context.Background(), "provider.create")
+	defer span.End()
+
+	log.DebugContext(ctx, "api request", "url", "https://compute.googleapis.com/x")
+	if len(lines) != 1 {
+		t.Fatalf("got %d lines, want 1: %v", len(lines), lines)
+	}
+	traceID := span.SpanContext().TraceID().String()
+	if !strings.Contains(lines[0], "traceID") || !strings.Contains(lines[0], traceID) {
+		t.Errorf("wire record missing trace context %s: %s", traceID, lines[0])
+	}
+
+	// The security filter must still win: non-wire Debug records are
+	// dropped even when a span is present.
+	log.DebugContext(ctx, "token exchange", "assertion", "secret-jwt")
+	if len(lines) != 1 {
+		t.Fatalf("filtered record leaked: %v", lines[1:])
+	}
+
+	// No span in ctx: record passes through without trace keys.
+	log.DebugContext(context.Background(), "api response", "status", 200)
+	if len(lines) != 2 {
+		t.Fatalf("got %d lines, want 2", len(lines))
+	}
+	if strings.Contains(lines[1], "traceID") {
+		t.Errorf("spanless record must not carry traceID: %s", lines[1])
+	}
+}
--- a/internal/provider/kubernetes/kubernetes.go
+++ b/internal/provider/kubernetes/kubernetes.go
@@ -14,6 +14,7 @@ import (
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/types"
 	"k8s.io/client-go/tools/cache"
+	"k8s.io/client-go/transport"
 	ctrl "sigs.k8s.io/controller-runtime"
 	"sigs.k8s.io/controller-runtime/pkg/client"

@@ -39,11 +40,22 @@ type Provider struct {

 // New builds a kubernetes Provider from its config block. Satisfies
 // registry.Constructor.
-func New(_ context.Context, cfg provider.ProviderConfig) (provider.Provider, error) {
+func New(ctx context.Context, cfg provider.ProviderConfig) (provider.Provider, error) {
+	return NewWithTransportWrapper(ctx, cfg, nil)
+}
+
+// NewWithTransportWrapper is New with an optional transport wrapper applied
+// to the provider's own rest.Config (this client is built independently of
+// the manager's, so the composition root must wrap it separately for
+// tracing). A nil wrapper means a plain client.
+func NewWithTransportWrapper(_ context.Context, cfg provider.ProviderConfig, wrap transport.WrapperFunc) (provider.Provider, error) {
 	restCfg, err := ctrl.GetConfig()
 	if err != nil {
 		return nil, fmt.Errorf("kubernetes provider %q: loading kubeconfig: %w", cfg.Name, err)
 	}
+	if wrap != nil {
+		restCfg.Wrap(wrap)
+	}
 	scheme := runtime.NewScheme()
 	if err := corev1.AddToScheme(scheme); err != nil {
 		return nil, fmt.Errorf("kubernetes provider %q: %w", cfg.Name, err)
--- a/internal/provider/metrics.go
+++ b/internal/provider/metrics.go
@@ -50,17 +50,25 @@ func (i *instrumented) record(op string, err error) {
 	i.rec.ProviderRequest(i.name, op, resultLabel(err))
 }

+const (
+	resultOK            = "ok"
+	resultNotFound      = "not_found"
+	resultQuotaExceeded = "quota_exceeded"
+	resultPermanent     = "permanent"
+	resultTransient     = "transient"
+)
+
 func resultLabel(err error) string {
 	switch Class(err) {
 	case nil:
-		return "ok"
+		return resultOK
 	case ErrNotFound:
-		return "not_found"
+		return resultNotFound
 	case ErrQuotaExceeded:
-		return "quota_exceeded"
+		return resultQuotaExceeded
 	case ErrPermanent:
-		return "permanent"
+		return resultPermanent
 	default:
-		return "transient"
+		return resultTransient
 	}
 }
--- a/internal/provider/tracing.go
+++ b/internal/provider/tracing.go
@@ -0,0 +1,80 @@
+package provider
+
+import (
+	"context"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
+
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
+)
+
+// WithTracing wraps a Provider so every call runs in a client span carrying
+// the classified result, mirroring WithMetrics. It goes through
+// tracing.StartSpan, so provider-internal logs (e.g. the gcp provider's
+// context logger) inherit traceID/spanID. Errors pass through unmodified.
+func WithTracing(name string, p Provider, opts ...tracing.Option) Provider {
+	return &traced{name: name, inner: p, tracer: tracing.Tracer(opts...)}
+}
+
+type traced struct {
+	name   string
+	inner  Provider
+	tracer trace.Tracer
+}
+
+func (t *traced) Create(ctx context.Context, req CreateRequest) (string, error) {
+	ctx, span := t.start(ctx, "provider.create")
+	id, err := t.inner.Create(ctx, req)
+	if id != "" {
+		span.SetAttributes(attribute.String("provider.id", id))
+	}
+	t.end(span, err)
+	return id, err
+}
+
+func (t *traced) Get(ctx context.Context, providerID string) (*Instance, error) {
+	ctx, span := t.start(ctx, "provider.get")
+	span.SetAttributes(attribute.String("provider.id", providerID))
+	inst, err := t.inner.Get(ctx, providerID)
+	t.end(span, err)
+	return inst, err
+}
+
+func (t *traced) Delete(ctx context.Context, providerID string) error {
+	ctx, span := t.start(ctx, "provider.delete")
+	span.SetAttributes(attribute.String("provider.id", providerID))
+	err := t.inner.Delete(ctx, providerID)
+	t.end(span, err)
+	return err
+}
+
+func (t *traced) ListByTag(ctx context.Context) ([]Instance, error) {
+	ctx, span := t.start(ctx, "provider.list")
+	instances, err := t.inner.ListByTag(ctx)
+	span.SetAttributes(attribute.Int("provider.instances", len(instances)))
+	t.end(span, err)
+	return instances, err
+}
+
+func (t *traced) start(ctx context.Context, op string) (context.Context, trace.Span) {
+	return tracing.StartSpan(ctx, t.tracer, op,
+		trace.WithSpanKind(trace.SpanKindClient),
+		trace.WithAttributes(attribute.String("provider.name", t.name)))
+}
+
+// end records the taxonomy class and closes the span. ErrNotFound stays Ok:
+// the reconciler polls Get to NotFound during replacement/deletion, so it is
+// an expected answer, not a failure — same reasoning as resultLabel's
+// distinct "not_found" bucket.
+func (t *traced) end(span trace.Span, err error) {
+	span.SetAttributes(attribute.String("provider.result", resultLabel(err)))
+	switch Class(err) {
+	case nil, ErrNotFound:
+		span.SetStatus(codes.Ok, "")
+	default:
+		span.SetStatus(codes.Error, err.Error())
+	}
+	span.End()
+}
--- a/internal/provider/tracing_test.go
+++ b/internal/provider/tracing_test.go
@@ -0,0 +1,118 @@
+package provider
+
+import (
+	"context"
+	"errors"
+	"slices"
+	"testing"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"go.opentelemetry.io/otel/trace"
+
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
+)
+
+func TestWithTracing_spanPerCall(t *testing.T) {
+	t.Parallel()
+
+	tests := []struct {
+		name       string
+		inner      *staticProvider
+		call       func(p Provider) error
+		wantSpan   string
+		wantStatus codes.Code
+		wantResult string
+		wantAttr   attribute.KeyValue
+	}{
+		{
+			name:       "successful create",
+			inner:      &staticProvider{},
+			call:       func(p Provider) error { _, err := p.Create(context.Background(), CreateRequest{}); return err },
+			wantSpan:   "provider.create",
+			wantStatus: codes.Ok,
+			wantResult: resultOK,
+			wantAttr:   attribute.String("provider.id", "id-1"),
+		},
+		{
+			name:       "get NotFound is not a span error",
+			inner:      &staticProvider{getErr: Wrap(ErrNotFound, "get", "x", "id-1", nil)},
+			call:       func(p Provider) error { _, err := p.Get(context.Background(), "id-1"); return err },
+			wantSpan:   "provider.get",
+			wantStatus: codes.Ok,
+			wantResult: resultNotFound,
+			wantAttr:   attribute.String("provider.id", "id-1"),
+		},
+		{
+			name:       "delete transient error",
+			inner:      &staticProvider{deleteErr: Wrap(ErrTransient, "delete", "x", "id-1", errors.New("503"))},
+			call:       func(p Provider) error { return p.Delete(context.Background(), "id-1") },
+			wantSpan:   "provider.delete",
+			wantStatus: codes.Error,
+			wantResult: resultTransient,
+			wantAttr:   attribute.String("provider.id", "id-1"),
+		},
+		{
+			name:       "quota exceeded create",
+			inner:      &staticProvider{createErr: Wrap(ErrQuotaExceeded, "create", "x", "", nil)},
+			call:       func(p Provider) error { _, err := p.Create(context.Background(), CreateRequest{}); return err },
+			wantSpan:   "provider.create",
+			wantStatus: codes.Error,
+			wantResult: resultQuotaExceeded,
+			wantAttr:   attribute.String("provider.name", "x"),
+		},
+		{
+			name:       "list records instance count",
+			inner:      &staticProvider{},
+			call:       func(p Provider) error { _, err := p.ListByTag(context.Background()); return err },
+			wantSpan:   "provider.list",
+			wantStatus: codes.Ok,
+			wantResult: resultOK,
+			wantAttr:   attribute.Int("provider.instances", 0),
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			sr := tracetest.NewSpanRecorder()
+			tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+			t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+			p := WithTracing("x", tc.inner, tracing.WithTracerProvider(tp))
+			err := tc.call(p)
+
+			wantErr := errors.Join(tc.inner.createErr, tc.inner.getErr, tc.inner.deleteErr, tc.inner.listErr)
+			if (wantErr == nil) != (err == nil) {
+				t.Fatalf("decorator changed the error: got %v", err)
+			}
+
+			ended := sr.Ended()
+			if len(ended) != 1 {
+				t.Fatalf("got %d spans, want 1", len(ended))
+			}
+			span := ended[0]
+			if span.Name() != tc.wantSpan {
+				t.Errorf("span name = %q, want %q", span.Name(), tc.wantSpan)
+			}
+			if span.SpanKind() != trace.SpanKindClient {
+				t.Errorf("span kind = %v, want client", span.SpanKind())
+			}
+			if span.Status().Code != tc.wantStatus {
+				t.Errorf("status = %v, want %v", span.Status().Code, tc.wantStatus)
+			}
+			attrs := span.Attributes()
+			hasAttr := func(want attribute.KeyValue) bool {
+				return slices.Contains(attrs, want)
+			}
+			if !hasAttr(attribute.String("provider.result", tc.wantResult)) {
+				t.Errorf("provider.result %q missing in %v", tc.wantResult, attrs)
+			}
+			if !hasAttr(tc.wantAttr) {
+				t.Errorf("attribute %v missing in %v", tc.wantAttr, attrs)
+			}
+		})
+	}
+}
--- a/internal/tracing/http.go
+++ b/internal/tracing/http.go
@@ -0,0 +1,41 @@
+package tracing
+
+import (
+	"net/http"
+
+	"github.com/go-logr/logr"
+	"go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp"
+	"go.opentelemetry.io/otel/propagation"
+)
+
+// HTTPMiddleware returns middleware that opens a server span per request
+// (named from the mux route pattern once routing has happened) and hands
+// handlers a request context whose logf.FromContext logger is base enriched
+// with the trace context. Incoming W3C traceparent headers are honored, so
+// clients see their own trace continue into the operator. /healthz is never
+// traced. With tracing disabled the middleware degrades to injecting base
+// unenriched — handlers can rely on logf.FromContext either way.
+func HTTPMiddleware(operation string, base logr.Logger, opts ...Option) func(http.Handler) http.Handler {
+	o := newOptions(opts)
+	return func(next http.Handler) http.Handler {
+		inner := http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+			r2 := r.WithContext(ContextWithLogger(r.Context(), base))
+			next.ServeHTTP(w, r2)
+			// WithContext copies the request, so the mux recorded the matched
+			// route on r2; surface it to otelhttp, which renames the span
+			// from r.Pattern after the handler returns.
+			r.Pattern = r2.Pattern
+		})
+		otelOpts := []otelhttp.Option{
+			otelhttp.WithFilter(func(r *http.Request) bool { return r.URL.Path != "/healthz" }),
+			// Explicit propagators: deterministic regardless of whether the
+			// global propagator has been installed (tests, disabled tracing).
+			otelhttp.WithPropagators(propagation.NewCompositeTextMapPropagator(
+				propagation.TraceContext{}, propagation.Baggage{})),
+		}
+		if o.tp != nil {
+			otelOpts = append(otelOpts, otelhttp.WithTracerProvider(o.tp))
+		}
+		return otelhttp.NewHandler(inner, operation, otelOpts...)
+	}
+}
--- a/internal/tracing/http_test.go
+++ b/internal/tracing/http_test.go
@@ -0,0 +1,82 @@
+package tracing
+
+import (
+	"context"
+	"net/http"
+	"net/http/httptest"
+	"strings"
+	"testing"
+
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+const sampleTraceparent = "00-4bf92f3577b34da6a3ce929d0e0e4736-00f067aa0ba902b7-01"
+
+func TestHTTPMiddleware(t *testing.T) {
+	t.Parallel()
+
+	newServer := func(lines *[]string, tp *sdktrace.TracerProvider) http.Handler {
+		mux := http.NewServeMux()
+		handler := func(w http.ResponseWriter, r *http.Request) {
+			logf.FromContext(r.Context()).Info("handling")
+			w.WriteHeader(http.StatusOK)
+		}
+		mux.HandleFunc("GET /healthz", handler)
+		mux.HandleFunc("GET /v1/things/{id}", handler)
+		return HTTPMiddleware("discovery", captureLogger(lines), WithTracerProvider(tp))(mux)
+	}
+
+	t.Run("route span, enriched handler logs, traceparent continuation", func(t *testing.T) {
+		t.Parallel()
+		sr := tracetest.NewSpanRecorder()
+		tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+		t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+		var lines []string
+		rec := httptest.NewRecorder()
+		req := httptest.NewRequest(http.MethodGet, "/v1/things/42", nil)
+		req.Header.Set("traceparent", sampleTraceparent)
+		newServer(&lines, tp).ServeHTTP(rec, req)
+
+		ended := sr.Ended()
+		if len(ended) != 1 {
+			t.Fatalf("got %d spans, want 1", len(ended))
+		}
+		if got := ended[0].Name(); got != "GET /v1/things/{id}" {
+			t.Errorf("span name = %q, want route pattern", got)
+		}
+		wantTrace := "4bf92f3577b34da6a3ce929d0e0e4736"
+		if got := ended[0].SpanContext().TraceID().String(); got != wantTrace {
+			t.Errorf("span traceID = %s, want continuation of client trace %s", got, wantTrace)
+		}
+		if len(lines) != 1 {
+			t.Fatalf("got %d log lines, want 1: %v", len(lines), lines)
+		}
+		if n := strings.Count(lines[0], `"traceID"`); n != 1 {
+			t.Errorf("traceID appears %d times, want 1: %s", n, lines[0])
+		}
+		if !strings.Contains(lines[0], wantTrace) {
+			t.Errorf("handler log missing traceID %s: %s", wantTrace, lines[0])
+		}
+	})
+
+	t.Run("healthz is not traced but still gets a logger", func(t *testing.T) {
+		t.Parallel()
+		sr := tracetest.NewSpanRecorder()
+		tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+		t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+		var lines []string
+		rec := httptest.NewRecorder()
+		newServer(&lines, tp).ServeHTTP(rec, httptest.NewRequest(http.MethodGet, "/healthz", nil))
+
+		if len(sr.Ended()) != 0 {
+			t.Fatalf("healthz produced %d spans, want 0", len(sr.Ended()))
+		}
+		if len(lines) != 1 || strings.Contains(lines[0], "traceID") {
+			t.Fatalf("want one unenriched log line, got %v", lines)
+		}
+	})
+}
--- a/internal/tracing/logger.go
+++ b/internal/tracing/logger.go
@@ -0,0 +1,65 @@
+package tracing
+
+import (
+	"context"
+
+	"github.com/go-logr/logr"
+	"go.opentelemetry.io/otel/trace"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+// baseLoggerKey stores the pre-enrichment logger. logr sinks never see a
+// context, so trace IDs must ride on the logger as WithValues — and zap does
+// not dedupe repeated keys, so each nested span must re-derive from the same
+// base instead of stacking traceID/spanID onto an already-enriched logger.
+type baseLoggerKey struct{}
+
+// Start begins a span from the global tracer and returns a context whose
+// logf.FromContext logger carries the span's traceID/spanID. With tracing
+// disabled the span is a no-op with an invalid span context and the logger
+// is left untouched.
+//
+// Trade-off, documented: values pushed via logf.IntoContext *between* two
+// Start calls are dropped by the inner Start's re-derivation. Nothing
+// first-party does that; controller-runtime's per-reconcile logger
+// (reconcileID etc.) is captured as the base and survives.
+func Start(ctx context.Context, name string, opts ...trace.SpanStartOption) (context.Context, trace.Span) {
+	return StartSpan(ctx, newOptions(nil).tracer(), name, opts...)
+}
+
+// StartSpan is Start with an explicit tracer, for decorators that carry
+// their own (test-injected) TracerProvider.
+func StartSpan(ctx context.Context, tracer trace.Tracer, name string, opts ...trace.SpanStartOption) (context.Context, trace.Span) {
+	ctx, span := tracer.Start(ctx, name, opts...)
+	sc := span.SpanContext()
+	if !sc.IsValid() {
+		return ctx, span
+	}
+	base, ok := ctx.Value(baseLoggerKey{}).(logr.Logger)
+	if !ok {
+		base = logf.FromContext(ctx)
+		ctx = context.WithValue(ctx, baseLoggerKey{}, base)
+	}
+	return logf.IntoContext(ctx, withSpanValues(base, sc)), span
+}
+
+// ContextWithLogger seeds ctx with base as both the current logger and the
+// base for span enrichment. If ctx already carries a valid span (the HTTP
+// middleware calls this inside the otelhttp handler), the logger is
+// enriched immediately.
+//
+//nolint:logcheck // IntoContext-analogue: taking ctx and the logger to seed it with is the point.
+func ContextWithLogger(ctx context.Context, base logr.Logger) context.Context {
+	ctx = context.WithValue(ctx, baseLoggerKey{}, base)
+	if sc := trace.SpanContextFromContext(ctx); sc.IsValid() {
+		return logf.IntoContext(ctx, withSpanValues(base, sc))
+	}
+	return logf.IntoContext(ctx, base)
+}
+
+// withSpanValues uses lowerCamel keys to match the house style
+// (reconcileID, providerID); Grafana/Loki derived fields must match
+// "traceID", not the trace_id default.
+func withSpanValues(base logr.Logger, sc trace.SpanContext) logr.Logger {
+	return base.WithValues("traceID", sc.TraceID().String(), "spanID", sc.SpanID().String())
+}
--- a/internal/tracing/logger_test.go
+++ b/internal/tracing/logger_test.go
@@ -0,0 +1,136 @@
+package tracing
+
+import (
+	"context"
+	"strings"
+	"testing"
+
+	"github.com/go-logr/logr"
+	"github.com/go-logr/logr/funcr"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"go.opentelemetry.io/otel/trace"
+	"go.opentelemetry.io/otel/trace/noop"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+// captureLogger records every emitted line so tests can assert on the
+// rendered key/value output — the only place duplicate zap-style keys
+// would show up.
+func captureLogger(lines *[]string) logr.Logger {
+	return funcr.New(func(prefix, args string) {
+		*lines = append(*lines, prefix+" "+args)
+	}, funcr.Options{})
+}
+
+func recordingTracer(t *testing.T) (trace.Tracer, *tracetest.SpanRecorder) {
+	t.Helper()
+	sr := tracetest.NewSpanRecorder()
+	tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+	t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+	return tp.Tracer("test"), sr
+}
+
+func TestStartSpan_enrichesLoggerOncePerNesting(t *testing.T) {
+	t.Parallel()
+	tracer, sr := recordingTracer(t)
+
+	var lines []string
+	ctx := logf.IntoContext(context.Background(), captureLogger(&lines))
+
+	ctx1, span1 := StartSpan(ctx, tracer, "outer")
+	logf.FromContext(ctx1).Info("outer work")
+
+	ctx2, span2 := StartSpan(ctx1, tracer, "inner")
+	logf.FromContext(ctx2).Info("inner work")
+
+	span2.End()
+	span1.End()
+
+	if len(lines) != 2 {
+		t.Fatalf("got %d log lines, want 2: %v", len(lines), lines)
+	}
+	traceID := span1.SpanContext().TraceID().String()
+	for i, want := range []string{span1.SpanContext().SpanID().String(), span2.SpanContext().SpanID().String()} {
+		if n := strings.Count(lines[i], `"traceID"`); n != 1 {
+			t.Errorf("line %d: traceID appears %d times, want exactly 1: %s", i, n, lines[i])
+		}
+		if n := strings.Count(lines[i], `"spanID"`); n != 1 {
+			t.Errorf("line %d: spanID appears %d times, want exactly 1: %s", i, n, lines[i])
+		}
+		if !strings.Contains(lines[i], traceID) {
+			t.Errorf("line %d: missing traceID %s: %s", i, traceID, lines[i])
+		}
+		if !strings.Contains(lines[i], want) {
+			t.Errorf("line %d: missing spanID %s: %s", i, want, lines[i])
+		}
+	}
+
+	ended := sr.Ended()
+	if len(ended) != 2 {
+		t.Fatalf("got %d spans, want 2", len(ended))
+	}
+	// Ended in LIFO order: inner first.
+	if got := ended[0].Parent().SpanID(); got != span1.SpanContext().SpanID() {
+		t.Errorf("inner span parent = %s, want %s", got, span1.SpanContext().SpanID())
+	}
+}
+
+func TestStartSpan_noopTracerLeavesLoggerUntouched(t *testing.T) {
+	t.Parallel()
+
+	var lines []string
+	ctx := logf.IntoContext(context.Background(), captureLogger(&lines))
+
+	ctx, span := StartSpan(ctx, noop.NewTracerProvider().Tracer("test"), "op")
+	defer span.End()
+	logf.FromContext(ctx).Info("work")
+
+	if len(lines) != 1 {
+		t.Fatalf("got %d log lines, want 1", len(lines))
+	}
+	if strings.Contains(lines[0], "traceID") {
+		t.Errorf("disabled tracing must not add traceID: %s", lines[0])
+	}
+}
+
+func TestContextWithLogger(t *testing.T) {
+	t.Parallel()
+	tracer, _ := recordingTracer(t)
+
+	t.Run("no span injects base as-is", func(t *testing.T) {
+		t.Parallel()
+		var lines []string
+		ctx := ContextWithLogger(context.Background(), captureLogger(&lines))
+		logf.FromContext(ctx).Info("plain")
+		if len(lines) != 1 || strings.Contains(lines[0], "traceID") {
+			t.Fatalf("want one line without traceID, got %v", lines)
+		}
+	})
+
+	t.Run("existing span enriches immediately and nested Start does not stack", func(t *testing.T) {
+		t.Parallel()
+		var lines []string
+		ctx, outer := tracer.Start(context.Background(), "server")
+		defer outer.End()
+
+		ctx = ContextWithLogger(ctx, captureLogger(&lines))
+		logf.FromContext(ctx).Info("handler")
+
+		ctx, inner := StartSpan(ctx, tracer, "child")
+		defer inner.End()
+		logf.FromContext(ctx).Info("nested")
+
+		if len(lines) != 2 {
+			t.Fatalf("got %d lines, want 2: %v", len(lines), lines)
+		}
+		for i, line := range lines {
+			if n := strings.Count(line, `"traceID"`); n != 1 {
+				t.Errorf("line %d: traceID appears %d times, want 1: %s", i, n, line)
+			}
+		}
+		if !strings.Contains(lines[1], inner.SpanContext().SpanID().String()) {
+			t.Errorf("nested line should carry the child spanID: %s", lines[1])
+		}
+	})
+}
--- a/internal/tracing/options.go
+++ b/internal/tracing/options.go
@@ -0,0 +1,48 @@
+package tracing
+
+import (
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/trace"
+)
+
+// tracerName is the instrumentation scope for every span this module emits.
+const tracerName = "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator"
+
+type options struct {
+	tp trace.TracerProvider
+}
+
+// Option configures the tracing decorators. The zero configuration uses the
+// global TracerProvider installed by Setup; tests inject their own recorder
+// via WithTracerProvider so they can run in parallel without touching
+// process-global state.
+type Option func(*options)
+
+// WithTracerProvider overrides the global TracerProvider.
+func WithTracerProvider(tp trace.TracerProvider) Option {
+	return func(o *options) { o.tp = tp }
+}
+
+func newOptions(opts []Option) options {
+	var o options
+	for _, opt := range opts {
+		opt(&o)
+	}
+	return o
+}
+
+// Tracer resolves a tracer from the given options, for decorators outside
+// this package (provider.WithTracing).
+func Tracer(opts ...Option) trace.Tracer {
+	return newOptions(opts).tracer()
+}
+
+// tracer resolves the configured tracer. The global path goes through
+// otel.Tracer, which delegates to whatever provider Setup installs later —
+// construction order between decorators and Setup does not matter.
+func (o options) tracer() trace.Tracer {
+	if o.tp != nil {
+		return o.tp.Tracer(tracerName)
+	}
+	return otel.Tracer(tracerName)
+}
--- a/internal/tracing/reconciler.go
+++ b/internal/tracing/reconciler.go
@@ -0,0 +1,52 @@
+package tracing
+
+import (
+	"context"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
+	"sigs.k8s.io/controller-runtime/pkg/controller"
+	"sigs.k8s.io/controller-runtime/pkg/reconcile"
+)
+
+// NewReconciler wraps inner so every reconcile runs in a root span named
+// "Reconcile <kind>" and every log line under it carries the trace context.
+// Reconciles are triggered by watch events with no incoming trace to
+// continue, so each one starts a new trace.
+func NewReconciler(kind string, inner reconcile.Reconciler, opts ...Option) reconcile.Reconciler {
+	return &tracedReconciler{
+		spanName: "Reconcile " + kind,
+		inner:    inner,
+		tracer:   newOptions(opts).tracer(),
+	}
+}
+
+type tracedReconciler struct {
+	spanName string
+	inner    reconcile.Reconciler
+	tracer   trace.Tracer
+}
+
+func (t *tracedReconciler) Reconcile(ctx context.Context, req reconcile.Request) (reconcile.Result, error) {
+	ctx, span := StartSpan(ctx, t.tracer, t.spanName,
+		trace.WithAttributes(
+			attribute.String("k8s.namespace.name", req.Namespace),
+			attribute.String("k8s.object.name", req.Name),
+		))
+	defer span.End()
+	if id := controller.ReconcileIDFromContext(ctx); id != "" {
+		span.SetAttributes(attribute.String("reconcile.id", string(id)))
+	}
+
+	res, err := t.inner.Reconcile(ctx, req)
+	if err != nil {
+		span.SetStatus(codes.Error, err.Error())
+		return res, err
+	}
+	span.SetStatus(codes.Ok, "")
+	if res.RequeueAfter > 0 {
+		span.SetAttributes(attribute.Int64("reconcile.requeue_after_ms", res.RequeueAfter.Milliseconds()))
+	}
+	return res, nil
+}
--- a/internal/tracing/reconciler_test.go
+++ b/internal/tracing/reconciler_test.go
@@ -0,0 +1,86 @@
+package tracing
+
+import (
+	"context"
+	"errors"
+	"testing"
+	"time"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"k8s.io/apimachinery/pkg/types"
+	"sigs.k8s.io/controller-runtime/pkg/reconcile"
+)
+
+type fakeReconciler struct {
+	res reconcile.Result
+	err error
+}
+
+func (f *fakeReconciler) Reconcile(context.Context, reconcile.Request) (reconcile.Result, error) {
+	return f.res, f.err
+}
+
+func TestNewReconciler_spanPerReconcile(t *testing.T) {
+	t.Parallel()
+
+	req := reconcile.Request{NamespacedName: types.NamespacedName{Namespace: "default", Name: "p1"}}
+
+	tests := []struct {
+		name       string
+		inner      *fakeReconciler
+		wantStatus codes.Code
+		wantAttr   attribute.KeyValue
+	}{
+		{
+			name:       "success records requeue",
+			inner:      &fakeReconciler{res: reconcile.Result{RequeueAfter: 10 * time.Second}},
+			wantStatus: codes.Ok,
+			wantAttr:   attribute.Int64("reconcile.requeue_after_ms", 10_000),
+		},
+		{
+			name:       "error sets error status",
+			inner:      &fakeReconciler{err: errors.New("boom")},
+			wantStatus: codes.Error,
+			wantAttr:   attribute.String("k8s.object.name", "p1"),
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			sr := tracetest.NewSpanRecorder()
+			tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+			t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+			r := NewReconciler("Proxy", tc.inner, WithTracerProvider(tp))
+			res, err := r.Reconcile(context.Background(), req)
+			if res != tc.inner.res || !errors.Is(err, tc.inner.err) {
+				t.Fatalf("decorator changed the result: (%v, %v)", res, err)
+			}
+
+			ended := sr.Ended()
+			if len(ended) != 1 {
+				t.Fatalf("got %d spans, want 1", len(ended))
+			}
+			span := ended[0]
+			if span.Name() != "Reconcile Proxy" {
+				t.Errorf("span name = %q, want %q", span.Name(), "Reconcile Proxy")
+			}
+			if span.Status().Code != tc.wantStatus {
+				t.Errorf("status = %v, want %v", span.Status().Code, tc.wantStatus)
+			}
+			found := false
+			for _, a := range span.Attributes() {
+				if a == tc.wantAttr {
+					found = true
+				}
+			}
+			if !found {
+				t.Errorf("attribute %v missing in %v", tc.wantAttr, span.Attributes())
+			}
+		})
+	}
+}
--- a/internal/tracing/tracing.go
+++ b/internal/tracing/tracing.go
@@ -0,0 +1,157 @@
+// Package tracing wires OpenTelemetry tracing into the operator: SDK setup
+// gated on standard OTEL_* environment variables, span helpers that keep the
+// logr/zap logging enriched with trace context, and decorators for the
+// reconciler, providers, HTTP server, and Kubernetes API transport.
+package tracing
+
+import (
+	"context"
+	"fmt"
+	"os"
+	"strings"
+
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc"
+	"go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp"
+	"go.opentelemetry.io/otel/exporters/stdout/stdouttrace"
+	"go.opentelemetry.io/otel/propagation"
+	"go.opentelemetry.io/otel/sdk/resource"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	semconv "go.opentelemetry.io/otel/semconv/v1.43.0"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+const (
+	envSDKDisabled        = "OTEL_SDK_DISABLED"
+	envTracesExporter     = "OTEL_TRACES_EXPORTER"
+	envOTLPEndpoint       = "OTEL_EXPORTER_OTLP_ENDPOINT"
+	envOTLPTracesEndpoint = "OTEL_EXPORTER_OTLP_TRACES_ENDPOINT"
+	envOTLPProtocol       = "OTEL_EXPORTER_OTLP_PROTOCOL"
+	envOTLPTracesProtocol = "OTEL_EXPORTER_OTLP_TRACES_PROTOCOL"
+
+	exporterOTLP    = "otlp"
+	exporterConsole = "console"
+	exporterNone    = "none"
+)
+
+// maxQueueSize bounds the batch processor's span buffer; the default 2048
+// is oversized for this process (3 concurrent reconciles, tickers) and the
+// manager pod runs with a 128Mi memory limit.
+const maxQueueSize = 512
+
+// Setup initializes the global tracing pipeline from OTEL_* environment
+// variables and returns a shutdown func that flushes pending spans.
+//
+// Tracing stays fully off — no exporter, no global provider, spans are
+// no-ops, logs carry no traceID — unless the environment opts in by setting
+// OTEL_TRACES_EXPORTER or an OTLP endpoint. OTEL_SDK_DISABLED=true and
+// OTEL_TRACES_EXPORTER=none force it off (the Go SDK does not implement
+// OTEL_SDK_DISABLED itself). Sampling, endpoints, TLS, and headers follow
+// the standard SDK/exporter env vars (OTEL_TRACES_SAMPLER, OTEL_EXPORTER_OTLP_*).
+//
+// Setup logs via the logger in ctx (logf.FromContext) rather than a
+// parameter — the caller seeds it with logf.IntoContext.
+func Setup(ctx context.Context, service, version string) (func(context.Context) error, error) {
+	log := logf.FromContext(ctx)
+	noop := func(context.Context) error { return nil }
+
+	exporterEnv := strings.ToLower(strings.TrimSpace(os.Getenv(envTracesExporter)))
+	endpointSet := os.Getenv(envOTLPEndpoint) != "" ||
+		os.Getenv(envOTLPTracesEndpoint) != ""
+	sdkDisabled := strings.EqualFold(strings.TrimSpace(os.Getenv(envSDKDisabled)), "true")
+
+	if sdkDisabled || exporterEnv == exporterNone || (exporterEnv == "" && !endpointSet) {
+		log.Info("tracing disabled",
+			"reason", disabledReason(sdkDisabled, exporterEnv))
+		return noop, nil
+	}
+
+	exp, expName, err := newExporter(ctx, exporterEnv)
+	if err != nil {
+		return noop, fmt.Errorf("tracing setup: %w", err)
+	}
+
+	res, err := buildResource(ctx, service, version)
+	if err != nil {
+		if res == nil {
+			return noop, fmt.Errorf("tracing setup: building resource: %w", err)
+		}
+		// Schema-URL conflicts between semconv versions still yield a usable
+		// merged resource; keep it rather than losing tracing over metadata.
+		log.V(1).Info("tracing resource merge conflict; continuing", "err", err.Error())
+	}
+
+	tp := sdktrace.NewTracerProvider(
+		sdktrace.WithBatcher(exp, sdktrace.WithMaxQueueSize(maxQueueSize)),
+		sdktrace.WithResource(res),
+	)
+	otel.SetTracerProvider(tp)
+	otel.SetTextMapPropagator(propagation.NewCompositeTextMapPropagator(
+		propagation.TraceContext{}, propagation.Baggage{}))
+	otelLog := log.WithName("otel")
+	otel.SetLogger(otelLog)
+	// V(1), not Error: an unreachable collector fails every export cycle and
+	// would otherwise spam the error log every few seconds.
+	otel.SetErrorHandler(otel.ErrorHandlerFunc(func(err error) {
+		otelLog.V(1).Info("otel error", "err", err.Error())
+	}))
+
+	log.Info("tracing enabled", "exporter", expName, "service", service)
+	return tp.Shutdown, nil
+}
+
+func disabledReason(sdkDisabled bool, exporterEnv string) string {
+	switch {
+	case sdkDisabled:
+		return "OTEL_SDK_DISABLED=true"
+	case exporterEnv == exporterNone:
+		return "OTEL_TRACES_EXPORTER=none"
+	default:
+		return "no OTEL_TRACES_EXPORTER or OTLP endpoint configured"
+	}
+}
+
+// newExporter hand-rolls the OTEL_TRACES_EXPORTER / OTEL_EXPORTER_OTLP_*
+// protocol selection instead of pulling in contrib's autoexport, which drags
+// metric/log/prometheus exporters into a trace-only binary.
+func newExporter(ctx context.Context, kind string) (sdktrace.SpanExporter, string, error) {
+	switch kind {
+	case "", exporterOTLP:
+		proto := strings.ToLower(strings.TrimSpace(os.Getenv(envOTLPTracesProtocol)))
+		if proto == "" {
+			proto = strings.ToLower(strings.TrimSpace(os.Getenv(envOTLPProtocol)))
+		}
+		switch proto {
+		case "", "http/protobuf":
+			exp, err := otlptracehttp.New(ctx)
+			return exp, "otlp/http", err
+		case "grpc":
+			exp, err := otlptracegrpc.New(ctx)
+			return exp, "otlp/grpc", err
+		default:
+			return nil, "", fmt.Errorf("unsupported OTLP protocol %q (supported: http/protobuf, grpc)", proto)
+		}
+	case exporterConsole:
+		exp, err := stdouttrace.New()
+		return exp, exporterConsole, err
+	default:
+		return nil, "", fmt.Errorf("unsupported OTEL_TRACES_EXPORTER %q (supported: otlp, console, none)", kind)
+	}
+}
+
+// buildResource layers defaults < service identity < environment, so
+// OTEL_SERVICE_NAME / OTEL_RESOURCE_ATTRIBUTES always win.
+func buildResource(ctx context.Context, service, version string) (*resource.Resource, error) {
+	base, err := resource.Merge(resource.Default(), resource.NewWithAttributes(semconv.SchemaURL,
+		semconv.ServiceName(service),
+		semconv.ServiceVersion(version),
+	))
+	if err != nil {
+		return base, err
+	}
+	env, err := resource.New(ctx, resource.WithFromEnv())
+	if err != nil {
+		return base, err
+	}
+	return resource.Merge(base, env)
+}
--- a/internal/tracing/tracing_test.go
+++ b/internal/tracing/tracing_test.go
@@ -0,0 +1,130 @@
+package tracing
+
+import (
+	"context"
+	"testing"
+	"time"
+
+	"go.opentelemetry.io/otel"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/trace/noop"
+)
+
+const testOTLPEndpoint = "http://localhost:4318"
+
+// clearOTelEnv pins every env var Setup reads, so developer shells with
+// OTEL_* set can't change test outcomes. Not parallel-safe by design
+// (t.Setenv forbids t.Parallel).
+func clearOTelEnv(t *testing.T) {
+	t.Helper()
+	for _, k := range []string{
+		envSDKDisabled,
+		envTracesExporter,
+		envOTLPEndpoint,
+		envOTLPTracesEndpoint,
+		envOTLPProtocol,
+		envOTLPTracesProtocol,
+	} {
+		t.Setenv(k, "")
+	}
+}
+
+func TestSetup_envGating(t *testing.T) {
+	tests := []struct {
+		name        string
+		env         map[string]string
+		wantEnabled bool
+		wantErr     bool
+	}{
+		{name: "no env means disabled", env: nil, wantEnabled: false},
+		{
+			name:        "endpoint enables otlp",
+			env:         map[string]string{envOTLPEndpoint: testOTLPEndpoint},
+			wantEnabled: true,
+		},
+		{
+			name:        "traces endpoint enables otlp",
+			env:         map[string]string{envOTLPTracesEndpoint: testOTLPEndpoint},
+			wantEnabled: true,
+		},
+		{
+			name:        "explicit console exporter",
+			env:         map[string]string{envTracesExporter: exporterConsole},
+			wantEnabled: true,
+		},
+		{
+			name:        "grpc protocol",
+			env:         map[string]string{envTracesExporter: exporterOTLP, envOTLPProtocol: "grpc"},
+			wantEnabled: true,
+		},
+		{
+			name: "exporter none wins over endpoint",
+			env: map[string]string{
+				envTracesExporter: exporterNone,
+				envOTLPEndpoint:   testOTLPEndpoint,
+			},
+			wantEnabled: false,
+		},
+		{
+			name: "OTEL_SDK_DISABLED wins over everything",
+			env: map[string]string{
+				envSDKDisabled:  "true",
+				envOTLPEndpoint: testOTLPEndpoint,
+			},
+			wantEnabled: false,
+		},
+		{
+			name:    "unsupported exporter errors",
+			env:     map[string]string{envTracesExporter: "jaeger"},
+			wantErr: true,
+		},
+		{
+			name: "unsupported protocol errors",
+			env: map[string]string{
+				envTracesExporter: exporterOTLP,
+				envOTLPProtocol:   "http/json",
+			},
+			wantErr: true,
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			clearOTelEnv(t)
+			for k, v := range tc.env {
+				t.Setenv(k, v)
+			}
+			// Fresh noop global per case: disabled paths must leave it
+			// untouched, and resetting avoids leaking one case's SDK
+			// provider into the next (or warning-prone restores of the
+			// process-default delegate).
+			before := noop.NewTracerProvider()
+			otel.SetTracerProvider(before)
+
+			shutdown, err := Setup(context.Background(), "test-svc", "abc123")
+			if tc.wantErr {
+				if err == nil {
+					t.Fatal("want error, got nil")
+				}
+				return
+			}
+			if err != nil {
+				t.Fatalf("Setup: %v", err)
+			}
+
+			_, isSDK := otel.GetTracerProvider().(*sdktrace.TracerProvider)
+			if isSDK != tc.wantEnabled {
+				t.Errorf("global provider is SDK = %v, want %v", isSDK, tc.wantEnabled)
+			}
+			if tc.wantEnabled && otel.GetTracerProvider() == before {
+				t.Error("enabled Setup must install a new global provider")
+			}
+
+			ctx, cancel := context.WithTimeout(context.Background(), 2*time.Second)
+			defer cancel()
+			if err := shutdown(ctx); err != nil {
+				t.Errorf("shutdown: %v", err)
+			}
+		})
+	}
+}
--- a/internal/tracing/transport.go
+++ b/internal/tracing/transport.go
@@ -0,0 +1,51 @@
+package tracing
+
+import (
+	"net/http"
+
+	"go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp"
+	"go.opentelemetry.io/otel/propagation"
+	"go.opentelemetry.io/otel/trace"
+	"k8s.io/client-go/transport"
+)
+
+// RestConfigWrapper returns a rest.Config.Wrap-compatible wrapper that adds
+// a client span to every Kubernetes API request already running inside a
+// trace. Requests with no parent span pass through untouched: informer
+// list/watch long-polls, leader-election renewals, and metrics authn would
+// otherwise each become meaningless (and in the watch case, minutes-long)
+// root spans. client-go applies Wrap innermost, so the span sees the final
+// authenticated request.
+func RestConfigWrapper(opts ...Option) transport.WrapperFunc {
+	o := newOptions(opts)
+	return func(rt http.RoundTripper) http.RoundTripper {
+		otelOpts := []otelhttp.Option{
+			// Explicit propagators: deterministic regardless of global
+			// state. The apiserver ignores incoming traceparent (by
+			// design), so injection is harmless there.
+			otelhttp.WithPropagators(propagation.NewCompositeTextMapPropagator(
+				propagation.TraceContext{}, propagation.Baggage{})),
+		}
+		if o.tp != nil {
+			otelOpts = append(otelOpts, otelhttp.WithTracerProvider(o.tp))
+		}
+		return &parentGatedTransport{
+			traced: otelhttp.NewTransport(rt, otelOpts...),
+			plain:  rt,
+		}
+	}
+}
+
+// parentGatedTransport enforces the parent-span requirement itself rather
+// than relying on otelhttp filter semantics for transports.
+type parentGatedTransport struct {
+	traced http.RoundTripper
+	plain  http.RoundTripper
+}
+
+func (t *parentGatedTransport) RoundTrip(r *http.Request) (*http.Response, error) {
+	if trace.SpanContextFromContext(r.Context()).IsValid() {
+		return t.traced.RoundTrip(r)
+	}
+	return t.plain.RoundTrip(r)
+}
--- a/internal/tracing/transport_test.go
+++ b/internal/tracing/transport_test.go
@@ -0,0 +1,73 @@
+package tracing
+
+import (
+	"context"
+	"io"
+	"net/http"
+	"net/http/httptest"
+	"testing"
+
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"go.opentelemetry.io/otel/trace"
+)
+
+func TestRestConfigWrapper_parentGated(t *testing.T) {
+	t.Parallel()
+
+	var gotTraceparent string
+	srv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		gotTraceparent = r.Header.Get("traceparent")
+		w.WriteHeader(http.StatusOK)
+	}))
+	t.Cleanup(srv.Close)
+
+	sr := tracetest.NewSpanRecorder()
+	tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+	t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+	rt := RestConfigWrapper(WithTracerProvider(tp))(http.DefaultTransport)
+	do := func(ctx context.Context) {
+		t.Helper()
+		req, err := http.NewRequestWithContext(ctx, http.MethodGet, srv.URL, nil)
+		if err != nil {
+			t.Fatal(err)
+		}
+		resp, err := rt.RoundTrip(req)
+		if err != nil {
+			t.Fatal(err)
+		}
+		_, _ = io.Copy(io.Discard, resp.Body)
+		_ = resp.Body.Close()
+	}
+
+	// No parent span: informer watches, leader election. Must not trace.
+	do(context.Background())
+	if len(sr.Ended()) != 0 {
+		t.Fatalf("request without parent span produced %d spans, want 0", len(sr.Ended()))
+	}
+	if gotTraceparent != "" {
+		t.Fatalf("request without parent span injected traceparent %q", gotTraceparent)
+	}
+
+	// Under a parent span: one client child span, traceparent injected.
+	ctx, parent := tp.Tracer("test").Start(context.Background(), "reconcile")
+	do(ctx)
+	parent.End()
+
+	var client sdktrace.ReadOnlySpan
+	for _, s := range sr.Ended() {
+		if s.SpanKind() == trace.SpanKindClient {
+			client = s
+		}
+	}
+	if client == nil {
+		t.Fatalf("no client span recorded, got %d spans", len(sr.Ended()))
+	}
+	if got := client.Parent().SpanID(); got != parent.SpanContext().SpanID() {
+		t.Errorf("client span parent = %s, want %s", got, parent.SpanContext().SpanID())
+	}
+	if gotTraceparent == "" {
+		t.Error("traceparent header not injected under a parent span")
+	}
+}
--- a/test/e2e/tracing_test.go
+++ b/test/e2e/tracing_test.go
@@ -0,0 +1,424 @@
+//go:build e2e
+// +build e2e
+
+/*
+Copyright 2026.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package e2e
+
+import (
+	"context"
+	"encoding/json"
+	"fmt"
+	"io"
+	"net/http"
+	"net/url"
+	"os"
+	"os/exec"
+	"path/filepath"
+	"strconv"
+	"strings"
+	"time"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/test/utils"
+)
+
+// The tracing e2e proves the full pipeline against a real Tempo: operator in
+// kind → OTLP export → Tempo ingest → traces queryable with the documented
+// span topology. It is gated on TEMPO_URL (Tempo query API, e.g.
+// http://192.168.0.30:3200) and OTLP_ENDPOINT (OTLP HTTP ingest, e.g.
+// http://192.168.0.30:4318) and skips when either is unset, so the rest of
+// the suite runs anywhere.
+//
+// Every span of a run carries the resource attribute test.run.id=<runID>
+// (injected via OTEL_RESOURCE_ATTRIBUTES — no code changes), so one TraceQL
+// query finds exactly this run's traces, in the test and in Grafana alike.
+var _ = Describe("OTel tracing", Ordered, func() {
+	// Proxy CRs live in default, not the operator namespace: the squid pods
+	// the kubernetes provider creates carry no securityContext and would be
+	// rejected by the operator namespace's restricted PSS label.
+	const proxyNS = "default"
+	const deploymentName = "egress-proxies-operator-controller-manager"
+	const squidImage = "ubuntu/squid:6.6-24.04_edge"
+
+	proxyNames := []string{"proxy-tracing-e2e-1", "proxy-tracing-e2e-2"}
+
+	var (
+		tempoURL     string
+		otlpEndpoint string
+		runID        string
+		suiteStart   time.Time
+	)
+
+	BeforeAll(func() {
+		tempoURL = os.Getenv("TEMPO_URL")
+		otlpEndpoint = os.Getenv("OTLP_ENDPOINT")
+		if tempoURL == "" || otlpEndpoint == "" {
+			Skip("TEMPO_URL / OTLP_ENDPOINT not set — skipping the Tempo-backed tracing e2e")
+		}
+		suiteStart = time.Now()
+		runID = "e2e-" + strconv.FormatInt(suiteStart.UnixNano(), 10)
+		_, _ = fmt.Fprintf(GinkgoWriter,
+			"tracing e2e run id: %s — find this run in Grafana with TraceQL {resource.test.run.id=%q}\n",
+			runID, runID)
+
+		By("creating manager namespace")
+		cmd := exec.Command("kubectl", "create", "ns", namespace)
+		_, err := utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to create namespace")
+
+		By("labeling the namespace to enforce the restricted security policy")
+		cmd = exec.Command("kubectl", "label", "--overwrite", "ns", namespace,
+			"pod-security.kubernetes.io/enforce=restricted")
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to label namespace with restricted policy")
+
+		By("installing CRDs")
+		cmd = exec.Command("make", "install")
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to install CRDs")
+
+		By("deploying the controller-manager")
+		cmd = exec.Command("make", "deploy", fmt.Sprintf("IMG=%s", managerImage))
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to deploy the controller-manager")
+
+		By("pre-pulling the squid image into kind (best effort, kills the biggest flake source)")
+		if _, err := utils.Run(exec.Command("docker", "pull", squidImage)); err == nil {
+			if err := utils.LoadImageToKindClusterWithName(squidImage); err != nil {
+				_, _ = fmt.Fprintf(GinkgoWriter, "kind load of %s failed (continuing): %v\n", squidImage, err)
+			}
+		} else {
+			_, _ = fmt.Fprintf(GinkgoWriter, "docker pull %s failed (continuing): %v\n", squidImage, err)
+		}
+
+		By("preflighting the OTLP endpoint from inside the cluster")
+		// Host-reachability of the OTLP endpoint does not prove
+		// pod-reachability from inside kind, and the operator logs export
+		// failures only at V(1) — without this, a broken path is a slow,
+		// opaque search timeout instead of a clear failure.
+		preflightOTLP(otlpEndpoint)
+
+		By("pointing the operator at the OTLP endpoint and tagging the test run")
+		// OTEL_RESOURCE_ATTRIBUTES is replaced in place, which keeps it
+		// listed after the downward-API POD_NAME/POD_NAMESPACE vars —
+		// $(VAR) expansion only sees earlier-listed vars. exec.Command
+		// passes $(...) through without shell mangling.
+		cmd = exec.Command("kubectl", "set", "env",
+			"deployment/"+deploymentName, "-n", namespace,
+			"OTEL_EXPORTER_OTLP_ENDPOINT="+otlpEndpoint,
+			fmt.Sprintf(
+				"OTEL_RESOURCE_ATTRIBUTES=k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE),test.run.id=%s",
+				runID))
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to set OTel env on the deployment")
+
+		cmd = exec.Command("kubectl", "rollout", "status",
+			"deployment/"+deploymentName, "-n", namespace, "--timeout=3m")
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Rollout after set env did not finish")
+
+		By("verifying the operator reports tracing enabled")
+		Eventually(func(g Gomega) {
+			pod := newestControllerPod(g)
+			out, err := utils.Run(exec.Command("kubectl", "logs", pod, "-n", namespace))
+			g.Expect(err).NotTo(HaveOccurred())
+			g.Expect(out).To(ContainSubstring("tracing enabled"),
+				"operator did not log 'tracing enabled' after rollout")
+		}, 2*time.Minute).Should(Succeed())
+	})
+
+	AfterAll(func() {
+		if tempoURL == "" || otlpEndpoint == "" {
+			return // spec was skipped; nothing was deployed
+		}
+		By("cleaning up test proxies")
+		args := append([]string{"delete", "proxy", "-n", proxyNS, "--ignore-not-found"}, proxyNames...)
+		_, _ = utils.Run(exec.Command("kubectl", args...))
+
+		By("cleaning up the OTLP preflight pod")
+		_, _ = utils.Run(exec.Command("kubectl", "delete", "pod", otlpProbePodName, "-n", namespace,
+			"--ignore-not-found"))
+
+		By("undeploying the controller-manager")
+		_, _ = utils.Run(exec.Command("make", "undeploy"))
+
+		By("uninstalling CRDs")
+		_, _ = utils.Run(exec.Command("make", "uninstall"))
+
+		By("removing manager namespace")
+		_, _ = utils.Run(exec.Command("kubectl", "delete", "ns", namespace))
+	})
+
+	It("creates proxies and reports reconcile traces to Tempo", func() {
+		By("applying two kubernetes-provider proxies")
+		// Absolute paths on purpose: utils.Run chdirs the whole process.
+		dir := GinkgoT().TempDir()
+		for _, name := range proxyNames {
+			manifest := fmt.Sprintf(`apiVersion: crawl.example.com/v1alpha1
+kind: Proxy
+metadata:
+  name: %s
+  namespace: %s
+spec:
+  mode: Managed
+  provider: kubernetes
+  attributes:
+    purpose: tracing-e2e
+`, name, proxyNS)
+			path := filepath.Join(dir, name+".yaml")
+			Expect(os.WriteFile(path, []byte(manifest), 0o644)).To(Succeed())
+			_, err := utils.Run(exec.Command("kubectl", "apply", "-f", path))
+			Expect(err).NotTo(HaveOccurred(), "Failed to apply %s", name)
+		}
+
+		By("waiting for the proxies to become Ready")
+		Eventually(func(g Gomega) {
+			for _, name := range proxyNames {
+				out, err := utils.Run(exec.Command("kubectl", "get", "proxy", name,
+					"-n", proxyNS, "-o", "jsonpath={.status.phase}"))
+				g.Expect(err).NotTo(HaveOccurred())
+				g.Expect(out).To(Equal("Ready"), "proxy %s not Ready", name)
+			}
+		}, 5*time.Minute).Should(Succeed())
+
+		By("finding a provider.create trace for this run in Tempo")
+		// Anchored on provider.create, not the root span name: a
+		// "Reconcile Proxy" hit could be the finalizer-add or a drift
+		// reconcile, which contain no provider call.
+		traceID := eventuallyFindTrace(tempoURL, runID, "provider.create", suiteStart)
+
+		By("asserting the reconcile trace structure")
+		spanNames, resAttrs, err := tempoTrace(tempoURL, traceID)
+		Expect(err).NotTo(HaveOccurred())
+		Expect(spanNames).To(ContainElements(
+			"Reconcile Proxy", "reconcile.managed", "provider.create", "status.patch"),
+			"trace %s is missing expected spans; got: %v", traceID, spanNames)
+		Expect(resAttrs["service.name"]).To(Equal("egress-proxies-operator"))
+		Expect(resAttrs["test.run.id"]).To(Equal(runID))
+	})
+
+	It("traces proxy deletion", func() {
+		By("deleting the proxies")
+		args := append([]string{"delete", "proxy", "-n", proxyNS, "--wait=false"}, proxyNames...)
+		_, err := utils.Run(exec.Command("kubectl", args...))
+		Expect(err).NotTo(HaveOccurred(), "Failed to delete proxies")
+
+		By("waiting for the proxies to be gone (finalizer ran provider.delete)")
+		Eventually(func(g Gomega) {
+			out, err := utils.Run(exec.Command("kubectl", "get", "proxy", "-n", proxyNS, "-o", "name"))
+			g.Expect(err).NotTo(HaveOccurred())
+			g.Expect(out).NotTo(ContainSubstring("proxy-tracing-e2e"))
+		}, 3*time.Minute).Should(Succeed())
+
+		By("finding a provider.delete trace for this run in Tempo")
+		traceID := eventuallyFindTrace(tempoURL, runID, "provider.delete", suiteStart)
+
+		By("asserting the deletion trace structure")
+		spanNames, _, err := tempoTrace(tempoURL, traceID)
+		Expect(err).NotTo(HaveOccurred())
+		Expect(spanNames).To(ContainElements("Reconcile Proxy", "reconcile.delete", "provider.delete"),
+			"trace %s is missing expected spans; got: %v", traceID, spanNames)
+	})
+})
+
+// preflightOTLP runs a one-shot curl pod inside the cluster POSTing to the
+// OTLP HTTP ingest, and fails with a clear message when it is unreachable.
+// The pod runs in the restricted-PSS operator namespace, hence the full
+// securityContext (same shape as the curl-metrics pod).
+func preflightOTLP(otlpEndpoint string) {
+	script := fmt.Sprintf(
+		"for i in $(seq 1 10); do "+
+			"code=$(curl -sS -o /dev/null -w '%%{http_code}' -X POST "+
+			"-H 'Content-Type: application/json' -d '{}' %s/v1/traces); "+
+			"echo \"attempt $i: HTTP $code\"; "+
+			"[ \"$code\" = \"200\" ] && echo OTLP_OK && exit 0; sleep 2; "+
+			"done; echo OTLP_UNREACHABLE; exit 1",
+		otlpEndpoint)
+	cmd := exec.Command("kubectl", "run", otlpProbePodName, "--restart=Never",
+		"--namespace", namespace,
+		"--image=curlimages/curl:latest",
+		"--overrides",
+		fmt.Sprintf(`{
+			"spec": {
+				"containers": [{
+					"name": "curl",
+					"image": "curlimages/curl:latest",
+					"command": ["/bin/sh", "-c"],
+					"args": [%q],
+					"securityContext": {
+						"readOnlyRootFilesystem": true,
+						"allowPrivilegeEscalation": false,
+						"capabilities": {
+							"drop": ["ALL"]
+						},
+						"runAsNonRoot": true,
+						"runAsUser": 1000,
+						"seccompProfile": {
+							"type": "RuntimeDefault"
+						}
+					}
+				}]
+			}
+		}`, script))
+	_, err := utils.Run(cmd)
+	Expect(err).NotTo(HaveOccurred(), "Failed to create the OTLP preflight pod")
+
+	Eventually(func(g Gomega) {
+		out, err := utils.Run(exec.Command("kubectl", "get", "pod", otlpProbePodName,
+			"-n", namespace, "-o", "jsonpath={.status.phase}"))
+		g.Expect(err).NotTo(HaveOccurred())
+		g.Expect(out).To(BeElementOf("Succeeded", "Failed"), "preflight pod still running")
+	}, 2*time.Minute).Should(Succeed())
+
+	logs, _ := utils.Run(exec.Command("kubectl", "logs", otlpProbePodName, "-n", namespace))
+	Expect(logs).To(ContainSubstring("OTLP_OK"),
+		"OTLP endpoint %s is not reachable from inside the kind cluster; curl output:\n%s",
+		otlpEndpoint, logs)
+}
+
+// otlpProbePodName mirrors the Describe-local constant for the helpers below.
+const otlpProbePodName = "curl-otlp"
+
+// newestControllerPod returns the most recently created controller pod —
+// right after a rollout, an unsorted lookup may pick the terminating one.
+func newestControllerPod(g Gomega) string {
+	out, err := utils.Run(exec.Command("kubectl", "get", "pods",
+		"-l", "control-plane=controller-manager", "-n", namespace,
+		"--sort-by=.metadata.creationTimestamp", "-o", "name"))
+	g.Expect(err).NotTo(HaveOccurred())
+	lines := utils.GetNonEmptyLines(out)
+	g.Expect(lines).NotTo(BeEmpty(), "no controller pods found")
+	return strings.TrimPrefix(lines[len(lines)-1], "pod/")
+}
+
+// eventuallyFindTrace polls Tempo until a trace containing a span with the
+// given name exists for this run, and returns its trace ID. The batch span
+// processor flushes every ~5s, so a couple of polls is normal.
+func eventuallyFindTrace(tempoURL, runID, spanName string, since time.Time) string {
+	var traceID string
+	query := fmt.Sprintf(`{resource.test.run.id=%q && name=%q}`, runID, spanName)
+	Eventually(func(g Gomega) {
+		ids, err := tempoSearch(tempoURL, query, since)
+		g.Expect(err).NotTo(HaveOccurred())
+		g.Expect(ids).NotTo(BeEmpty(), "no trace for %s yet (query: %s)", spanName, query)
+		traceID = ids[0]
+	}, 2*time.Minute).Should(Succeed())
+	return traceID
+}
+
+// tempoSearch runs a TraceQL query against Tempo's search API and returns
+// the matching trace IDs. start/end are Unix seconds.
+func tempoSearch(tempoURL, traceql string, since time.Time) ([]string, error) {
+	u, err := url.Parse(tempoURL + "/api/search")
+	if err != nil {
+		return nil, err
+	}
+	q := u.Query()
+	q.Set("q", traceql)
+	q.Set("start", strconv.FormatInt(since.Add(-5*time.Minute).Unix(), 10))
+	q.Set("end", strconv.FormatInt(time.Now().Add(time.Minute).Unix(), 10))
+	q.Set("limit", "20")
+	u.RawQuery = q.Encode()
+
+	body, err := tempoGet(u.String())
+	if err != nil {
+		return nil, err
+	}
+	var result struct {
+		Traces []struct {
+			TraceID string `json:"traceID"`
+		} `json:"traces"`
+	}
+	if err := json.Unmarshal(body, &result); err != nil {
+		return nil, fmt.Errorf("decoding Tempo search response: %w", err)
+	}
+	ids := make([]string, 0, len(result.Traces))
+	for _, t := range result.Traces {
+		ids = append(ids, t.TraceID)
+	}
+	return ids, nil
+}
+
+// tempoTrace fetches one trace and flattens it to a span-name list plus the
+// resource attributes. Tempo returns OTLP-JSON (batches → scopeSpans →
+// spans), not Jaeger's shape.
+func tempoTrace(tempoURL, traceID string) ([]string, map[string]string, error) {
+	body, err := tempoGet(tempoURL + "/api/traces/" + traceID)
+	if err != nil {
+		return nil, nil, err
+	}
+	var trace struct {
+		Batches []struct {
+			Resource struct {
+				Attributes []struct {
+					Key   string `json:"key"`
+					Value struct {
+						StringValue string `json:"stringValue"`
+					} `json:"value"`
+				} `json:"attributes"`
+			} `json:"resource"`
+			ScopeSpans []struct {
+				Spans []struct {
+					Name string `json:"name"`
+				} `json:"spans"`
+			} `json:"scopeSpans"`
+		} `json:"batches"`
+	}
+	if err := json.Unmarshal(body, &trace); err != nil {
+		return nil, nil, fmt.Errorf("decoding Tempo trace %s: %w", traceID, err)
+	}
+	var spanNames []string
+	resAttrs := map[string]string{}
+	for _, b := range trace.Batches {
+		for _, a := range b.Resource.Attributes {
+			if a.Value.StringValue != "" {
+				resAttrs[a.Key] = a.Value.StringValue
+			}
+		}
+		for _, ss := range b.ScopeSpans {
+			for _, s := range ss.Spans {
+				spanNames = append(spanNames, s.Name)
+			}
+		}
+	}
+	return spanNames, resAttrs, nil
+}
+
+func tempoGet(rawURL string) ([]byte, error) {
+	ctx, cancel := context.WithTimeout(context.Background(), 15*time.Second)
+	defer cancel()
+	req, err := http.NewRequestWithContext(ctx, http.MethodGet, rawURL, nil)
+	if err != nil {
+		return nil, err
+	}
+	resp, err := http.DefaultClient.Do(req)
+	if err != nil {
+		return nil, fmt.Errorf("querying Tempo: %w", err)
+	}
+	defer func() { _ = resp.Body.Close() }()
+	body, err := io.ReadAll(resp.Body)
+	if err != nil {
+		return nil, err
+	}
+	if resp.StatusCode != http.StatusOK {
+		return nil, fmt.Errorf("tempo returned %d for %s: %s", resp.StatusCode, rawURL, string(body))
+	}
+	return body, nil
+}
Author	SHA1	Message	Date
Jan Novak	f8b911f1db	Record live and negative Tempo e2e runs in the execution log Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 12:39:05 +02:00
Jan Novak	e691105f89	Add Tempo-gated e2e test for OTel tracing Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 12:31:41 +02:00
Jan Novak	026acea279	Add plan: e2e test of OTel tracing against real Tempo Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 12:25:30 +02:00
Jan Novak	aeb4115c72	Add tracing manifests and docs; clean up branch lint findings Manager env block (downward-API resource attrs, commented OTLP examples), architecture §10 + Decisions entries, README section. Lint: goconst constants, gofmt, logcheck (Setup now takes its logger from ctx via logf.FromContext). Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 11:30:27 +02:00
Jan Novak	53c0d77ef5	Enrich GCP wire logs with trace context from the request ctx Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 11:09:48 +02:00
Jan Novak	bca32f10d3	Trace GC sweeps and (opt-in) health probes Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 11:07:13 +02:00
Jan Novak	ec7267b8de	Trace discovery API requests and enrich request logs Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 10:59:48 +02:00
Jan Novak	896bf89a19	Trace reconciles: root span wrapper plus state-machine sub-spans Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 10:53:52 +02:00
Jan Novak	8e4f3b9b13	Wire tracing into the composition root Setup after SetLogger, wrapped rest configs (manager + kubernetes provider), tracing-outermost provider decorators, and an explicit trace flush after mgr.Start returns (os.Exit skips defers). Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 10:51:24 +02:00
Jan Novak	d15b06ec45	Add provider.WithTracing decorator mirroring WithMetrics Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 10:50:13 +02:00
Jan Novak	6b34f68469	Add internal/tracing: env-gated OTel setup, span/log helpers, decorators Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 10:43:55 +02:00
Jan Novak	b1a16774bf	Align OTel deps at v1.45.0 and add trace exporter modules Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 10:41:06 +02:00
Jan Novak	328877e000	Add plan: OTel tracing integrated with logr/zap logging Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-24 10:26:21 +02:00
Jan Novak	5ccd317bec	Extend Claude permission allowlist with session-approved commands Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-12 00:18:09 +02:00
Jan Novak	6ff9eebefc	Document providers and how to add one in README New Providers section: named-instance config model, a table of the implemented kubernetes and gcp providers, and a four-step guide for adding a new backend (interface contract, GC tagging, error taxonomy, wiring in config.go and main.go). Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-12 00:16:54 +02:00
Jan Novak	f6b67006dc	Add tmux demo driver and table variant of egress IP check run-demo.sh opens a 2x2 tmux grid: egress-IP table looping in a netshoot pod, kubectl get px watch, and both create scripts running with COUNT (default 4) proxies. show-egress-ips-table.sh is the pane-sized one-line-per-proxy variant used by the driver. Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-11 23:10:23 +02:00
Jan Novak	0d68111bc2	Add demo scripts: egress IP check and bulk proxy creation docs/demo/show-egress-ips.sh probes each healthy proxy from the discovery API against an IP-echo site; create-kubernetes-proxies.sh and create-gcp-proxies.sh bulk-create demo Proxies, the gcp one spreading them across randomly picked EU zones. Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-11 22:40:24 +02:00
Jan Novak	e1abac3e8f	Add plan: demo script for egress IP check via proxies Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-11 22:21:28 +02:00
Jan Novak	f3ff6a0ca2	Use $BASE_URL variable in docs/api.md curl examples Co-Authored-By: Claude <noreply@anthropic.com>	2026-08-11 22:01:50 +02:00