diff --git a/integration-tests/bin/app.ts b/integration-tests/bin/app.ts
index 08806d31d..b2294b075 100644
--- a/integration-tests/bin/app.ts
+++ b/integration-tests/bin/app.ts
@@ -5,6 +5,7 @@ import {OnDemand} from '../lib/stacks/on-demand';
 import {Otlp} from '../lib/stacks/otlp';
 import {Snapstart} from '../lib/stacks/snapstart';
 import {LambdaManagedInstancesStack} from '../lib/stacks/lmi';
+import {DurableExecutionStatusStack} from '../lib/stacks/de-status';
 import {ACCOUNT, getIdentifier, REGION} from '../config';
 import {CapacityProviderStack} from "../lib/capacity-provider";
 
@@ -34,6 +35,9 @@ const stacks = [
     new LambdaManagedInstancesStack(app, `integ-${identifier}-lmi`, {
         env,
     }),
+    new DurableExecutionStatusStack(app, `integ-${identifier}-de-status`, {
+        env,
+    }),
 ]
 
 // Tag all stacks so we can easily clean them up
diff --git a/integration-tests/lambda/de-status-python/lambda_function.py b/integration-tests/lambda/de-status-python/lambda_function.py
new file mode 100644
index 000000000..34e23baa6
--- /dev/null
+++ b/integration-tests/lambda/de-status-python/lambda_function.py
@@ -0,0 +1,53 @@
+"""
+Durable execution Lambda handler for testing durable_function_execution_status tag.
+
+This handler uses the @durable_execution decorator from the AWS Durable Execution SDK
+to create a durable function. When invoked, the extension should detect the durable
+execution status from the response and add the `durable_function_execution_status` tag
+to the aws.lambda span.
+"""
+import json
+import logging
+
+from aws_durable_execution_sdk_python import (
+    DurableContext,
+    durable_execution,
+    durable_step,
+    StepContext,
+)
+
+logger = logging.getLogger()
+logger.setLevel(logging.INFO)
+
+
+@durable_step
+def do_work(step_context: StepContext, message: str) -> str:
+    """A simple durable step that returns the input message."""
+    logger.info(f"Executing durable step with message: {message}")
+    return f"Processed: {message}"
+
+
+@durable_execution
+def handler(event: dict, context: DurableContext) -> dict:
+    """
+    Durable Lambda handler.
+
+    The @durable_execution decorator transforms this into a durable function.
+    When invoked, AWS Lambda returns a response with {"Status": "SUCCEEDED|FAILED|PENDING", ...}
+    which the extension should parse to set the durable_function_execution_status tag.
+    """
+    logger.info("Hello world!")
+
+    message = event.get("message", "Hello from durable function!")
+
+    # Execute a durable step - this creates a checkpoint
+    result = context.step(do_work(message))
+
+    logger.info(f"Durable step completed with result: {result}")
+
+    return {
+        "statusCode": 200,
+        "body": json.dumps({
+            "message": result,
+        })
+    }
diff --git a/integration-tests/lambda/de-status-python/requirements.txt b/integration-tests/lambda/de-status-python/requirements.txt
new file mode 100644
index 000000000..b2109b255
--- /dev/null
+++ b/integration-tests/lambda/de-status-python/requirements.txt
@@ -0,0 +1 @@
+aws-durable-execution-sdk-python>=1.3.0
diff --git a/integration-tests/lib/stacks/de-status.ts b/integration-tests/lib/stacks/de-status.ts
new file mode 100644
index 000000000..8cb2ed1c2
--- /dev/null
+++ b/integration-tests/lib/stacks/de-status.ts
@@ -0,0 +1,65 @@
+import * as cdk from 'aws-cdk-lib';
+import * as lambda from 'aws-cdk-lib/aws-lambda';
+import { LayerVersion } from 'aws-cdk-lib/aws-lambda';
+import { Construct } from 'constructs';
+import {
+  createLogGroup,
+  defaultDatadogEnvVariables,
+  defaultDatadogSecretPolicy,
+  getExtensionLayer,
+  getDefaultPythonLayer,
+  defaultPythonRuntime,
+} from '../util';
+
+// Use custom Python layer ARN if provided, otherwise use default
+const customPythonLayerArn = process.env.PYTHON_TRACER_LAYER_ARN;
+
+/**
+ * CDK Stack for testing durable_function_execution_status tag.
+ *
+ * Deploys a Python Lambda function with durable execution enabled.
+ * The durable function uses the @durable_execution decorator from the
+ * AWS Durable Execution SDK, which causes Lambda to return responses
+ * with {"Status": "SUCCEEDED|FAILED|PENDING", ...}.
+ *
+ * The datadog-lambda-python library extracts this status and adds the
+ * `durable_function_execution_status` tag to the aws.lambda span.
+ */
+export class DurableExecutionStatusStack extends cdk.Stack {
+  constructor(scope: Construct, id: string, props: cdk.StackProps) {
+    super(scope, id, props);
+
+    const extensionLayer = getExtensionLayer(this);
+    const pythonLayer = customPythonLayerArn
+      ? LayerVersion.fromLayerVersionArn(this, 'CustomPythonLayer', customPythonLayerArn)
+      : getDefaultPythonLayer(this);
+
+    const pythonFunctionName = `${id}-python-lambda`;
+    const pythonFunction = new lambda.Function(this, pythonFunctionName, {
+      runtime: defaultPythonRuntime,
+      architecture: lambda.Architecture.ARM_64,
+      handler: 'datadog_lambda.handler.handler',
+      code: lambda.Code.fromAsset('./lambda/de-status-python/package'),
+      functionName: pythonFunctionName,
+      timeout: cdk.Duration.seconds(60),
+      memorySize: 512,
+      environment: {
+        ...defaultDatadogEnvVariables,
+        DD_SERVICE: pythonFunctionName,
+        DD_TRACE_ENABLED: 'true',
+        DD_LAMBDA_HANDLER: 'lambda_function.handler',
+        DD_TRACE_AGENT_URL: 'http://127.0.0.1:8126',
+      },
+      logGroup: createLogGroup(this, pythonFunctionName),
+      // Enable durable execution
+      // executionTimeout must be <= 15 minutes for synchronous invocation
+      durableConfig: {
+        executionTimeout: cdk.Duration.minutes(15),
+        retentionPeriod: cdk.Duration.days(14),
+      },
+    });
+    pythonFunction.addToRolePolicy(defaultDatadogSecretPolicy);
+    pythonFunction.addLayers(extensionLayer);
+    pythonFunction.addLayers(pythonLayer);
+  }
+}
diff --git a/integration-tests/tests/de-status.test.ts b/integration-tests/tests/de-status.test.ts
new file mode 100644
index 000000000..9c153fc54
--- /dev/null
+++ b/integration-tests/tests/de-status.test.ts
@@ -0,0 +1,116 @@
+import { invokeAndCollectTelemetry, FunctionConfig } from './utils/default';
+import { DatadogTelemetry } from './utils/datadog';
+import { getIdentifier } from '../config';
+
+const identifier = getIdentifier();
+const stackName = `integ-${identifier}-de-status`;
+
+describe('Durable Execution Status Tag Integration Tests', () => {
+  let results: Record<string, DatadogTelemetry[][]>;
+
+  beforeAll(async () => {
+    // Durable functions require a qualified ARN (with version) for invocation
+    const functions: FunctionConfig[] = [
+      {
+        functionName: `${stackName}-python-lambda:$LATEST`,
+        runtime: 'python',
+      },
+    ];
+
+    console.log('Invoking durable execution functions...');
+
+    // Invoke all durable execution functions and collect telemetry
+    results = await invokeAndCollectTelemetry(functions, 1);
+
+    console.log('Durable execution invocation and data fetching completed');
+  }, 600000);
+
+  describe('Python Runtime with Durable Execution', () => {
+    const getResult = () => results['python']?.[0]?.[0];
+
+    it('should invoke Lambda successfully', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      expect(result.statusCode).toBe(200);
+    });
+
+    it('should have logs in Datadog', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      expect(result.logs).toBeDefined();
+      expect(result.logs!.length).toBeGreaterThan(0);
+    });
+
+    it('should have "Hello world!" log message', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      expect(result.logs).toBeDefined();
+      const helloWorldLog = result.logs!.find((log: any) =>
+        log.message && log.message.includes('Hello world!')
+      );
+      expect(helloWorldLog).toBeDefined();
+    });
+
+    it('should send one trace to Datadog', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      expect(result.traces?.length).toEqual(1);
+    });
+
+    it('trace should have exactly one span with operation_name=aws.lambda', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      const trace = result.traces![0];
+      expect(trace.spans).toBeDefined();
+
+      const awsLambdaSpans = trace.spans.filter((span: any) =>
+        span.attributes.operation_name === 'aws.lambda'
+      );
+      expect(awsLambdaSpans).toBeDefined();
+      expect(awsLambdaSpans.length).toEqual(1);
+    });
+
+    it('aws.lambda span should have durable_function_execution_status tag', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      const trace = result.traces![0];
+      const awsLambdaSpan = trace.spans.find((span: any) =>
+        span.attributes.operation_name === 'aws.lambda'
+      );
+      expect(awsLambdaSpan).toBeDefined();
+
+      // The durable_function_execution_status tag should be present
+      const status = awsLambdaSpan?.attributes.custom?.durable_function_execution_status;
+      expect(status).toBeDefined();
+    });
+
+    it('durable_function_execution_status tag should be one of: SUCCEEDED, FAILED, STOPPED, TIMED_OUT', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      const trace = result.traces![0];
+      const awsLambdaSpan = trace.spans.find((span: any) =>
+        span.attributes.operation_name === 'aws.lambda'
+      );
+      expect(awsLambdaSpan).toBeDefined();
+
+      const status = awsLambdaSpan?.attributes.custom?.durable_function_execution_status;
+      expect(status).toBeDefined();
+      expect(['SUCCEEDED', 'FAILED', 'STOPPED', 'TIMED_OUT']).toContain(status);
+    });
+
+    it('durable_function_execution_status tag should be SUCCEEDED for successful execution', () => {
+      const result = getResult();
+      expect(result).toBeDefined();
+      const trace = result.traces![0];
+      const awsLambdaSpan = trace.spans.find((span: any) =>
+        span.attributes.operation_name === 'aws.lambda'
+      );
+      expect(awsLambdaSpan).toBeDefined();
+
+      // For a successful durable function invocation that completes in one call,
+      // the status should be SUCCEEDED
+      const status = awsLambdaSpan?.attributes.custom?.durable_function_execution_status;
+      expect(status).toBe('SUCCEEDED');
+    });
+  });
+});