diff --git a/sentry-ruby/lib/sentry/configuration.rb b/sentry-ruby/lib/sentry/configuration.rb
index 21fc48c9d..8bbf638b5 100644
--- a/sentry-ruby/lib/sentry/configuration.rb
+++ b/sentry-ruby/lib/sentry/configuration.rb
@@ -371,6 +371,20 @@ class Configuration
     # @return [Proc, nil]
     attr_reader :std_lib_logger_filter
 
+    # An optional organization ID. The SDK will try to extract it from the DSN in most cases
+    # but you can provide it explicitly for self-hosted and Relay setups.
+    # This value is used for trace propagation and for features like strict_trace_continuation.
+    # @return [String, nil]
+    attr_accessor :org_id
+
+    # Controls whether the SDK requires matching org IDs from incoming baggage
+    # to continue a trace. When true, the SDK will start a new trace if the org_id
+    # from the incoming baggage does not match the SDK's own org_id, or if either
+    # side is missing an org_id (unless both are missing).
+    # Default is false.
+    # @return [Boolean]
+    attr_accessor :strict_trace_continuation
+
     # these are not config options
     # @!visibility private
     attr_reader :errors, :gem_specs
@@ -520,6 +534,8 @@ def initialize
       self.trusted_proxies = []
       self.dsn = ENV["SENTRY_DSN"]
       self.capture_queue_time = true
+      self.org_id = nil
+      self.strict_trace_continuation = false
 
       spotlight_env = ENV["SENTRY_SPOTLIGHT"]
       spotlight_bool = Sentry::Utils::EnvHelper.env_to_bool(spotlight_env, strict: true)
@@ -673,6 +689,12 @@ def profiler_class=(profiler_class)
       @profiler_class = profiler_class
     end
 
+    # Returns the effective org ID, preferring the explicit config option over the DSN-parsed value.
+    # @return [String, nil]
+    def effective_org_id
+      org_id || dsn&.org_id
+    end
+
     def sending_allowed?
       spotlight || sending_to_dsn_allowed?
     end
diff --git a/sentry-ruby/lib/sentry/dsn.rb b/sentry-ruby/lib/sentry/dsn.rb
index 71ee00934..8fed8eae6 100644
--- a/sentry-ruby/lib/sentry/dsn.rb
+++ b/sentry-ruby/lib/sentry/dsn.rb
@@ -11,8 +11,9 @@ class DSN
     REQUIRED_ATTRIBUTES = %w[host path public_key project_id].freeze
     LOCALHOST_NAMES = %w[localhost 127.0.0.1 ::1 [::1]].freeze
     LOCALHOST_PATTERN = /\.local(host|domain)?$/i
+    ORG_ID_REGEX = /\Ao(\d+)\./
 
-    attr_reader :scheme, :secret_key, :port, *REQUIRED_ATTRIBUTES
+    attr_reader :scheme, :secret_key, :port, :org_id, *REQUIRED_ATTRIBUTES
 
     def initialize(dsn_string)
       @raw_value = dsn_string
@@ -31,6 +32,9 @@ def initialize(dsn_string)
       @host = uri.host
       @port = uri.port if uri.port
       @path = uri_path.join("/")
+
+      # Extract org ID from the host (e.g., "o123.ingest.sentry.io" -> "123")
+      @org_id = extract_org_id_from_host
     end
 
     def valid?
@@ -87,6 +91,14 @@ def resolved_ips_private?
       end
     end
 
+    # Override the org ID parsed from the DSN.
+    # This is used when the org_id config option is set explicitly.
+    # @param value [String]
+    # @return [void]
+    def org_id=(value)
+      @org_id = value
+    end
+
     def generate_auth_header(client: nil)
       now = Sentry.utc_now.to_i
 
@@ -101,5 +113,14 @@ def generate_auth_header(client: nil)
 
       "Sentry " + fields.map { |key, value| "#{key}=#{value}" }.join(", ")
     end
+
+    private
+
+    def extract_org_id_from_host
+      return nil unless @host
+
+      match = ORG_ID_REGEX.match(@host)
+      match ? match[1] : nil
+    end
   end
 end
diff --git a/sentry-ruby/lib/sentry/propagation_context.rb b/sentry-ruby/lib/sentry/propagation_context.rb
index 86c5b3f22..e28862e20 100644
--- a/sentry-ruby/lib/sentry/propagation_context.rb
+++ b/sentry-ruby/lib/sentry/propagation_context.rb
@@ -53,6 +53,35 @@ def self.extract_sentry_trace(sentry_trace)
       [trace_id, parent_span_id, parent_sampled]
     end
 
+    # Determines whether we should continue an incoming trace based on org_id matching
+    # and the strict_trace_continuation configuration option.
+    #
+    # @param incoming_baggage [Baggage] the baggage from the incoming request
+    # @return [Boolean]
+    def self.should_continue_trace?(incoming_baggage)
+      return true unless Sentry.initialized?
+
+      configuration = Sentry.configuration
+      sdk_org_id = configuration.effective_org_id
+      baggage_org_id = incoming_baggage&.items&.fetch("org_id", nil)
+
+      # Mismatched org IDs always start a new trace regardless of strict mode
+      if sdk_org_id && baggage_org_id && sdk_org_id != baggage_org_id
+        return false
+      end
+
+      # In strict mode, both must be present and match (unless both are missing)
+      if configuration.strict_trace_continuation
+        if sdk_org_id.nil? && baggage_org_id.nil?
+          return true
+        end
+
+        return sdk_org_id == baggage_org_id
+      end
+
+      true
+    end
+
     def self.extract_sample_rand_from_baggage(baggage, trace_id = nil)
       return unless baggage&.items
 
@@ -96,9 +125,7 @@ def initialize(scope, env = nil)
           sentry_trace_data = self.class.extract_sentry_trace(sentry_trace_header)
 
           if sentry_trace_data
-            @trace_id, @parent_span_id, @parent_sampled = sentry_trace_data
-
-            @baggage =
+            incoming_baggage =
               if baggage_header && !baggage_header.empty?
                 Baggage.from_incoming_header(baggage_header)
               else
@@ -108,10 +135,13 @@ def initialize(scope, env = nil)
                 Baggage.new({})
               end
 
-            @sample_rand = self.class.extract_sample_rand_from_baggage(@baggage, @trace_id)
-
-            @baggage.freeze!
-            @incoming_trace = true
+            if self.class.should_continue_trace?(incoming_baggage)
+              @trace_id, @parent_span_id, @parent_sampled = sentry_trace_data
+              @baggage = incoming_baggage
+              @sample_rand = self.class.extract_sample_rand_from_baggage(@baggage, @trace_id)
+              @baggage.freeze!
+              @incoming_trace = true
+            end
           end
         end
       end
@@ -162,7 +192,8 @@ def populate_head_baggage
         "sample_rand" => Utils::SampleRand.format(@sample_rand),
         "environment" => configuration.environment,
         "release" => configuration.release,
-        "public_key" => configuration.dsn&.public_key
+        "public_key" => configuration.dsn&.public_key,
+        "org_id" => configuration.effective_org_id
       }
 
       items.compact!
diff --git a/sentry-ruby/lib/sentry/transaction.rb b/sentry-ruby/lib/sentry/transaction.rb
index 75f425dd2..01d23f345 100644
--- a/sentry-ruby/lib/sentry/transaction.rb
+++ b/sentry-ruby/lib/sentry/transaction.rb
@@ -295,7 +295,8 @@ def populate_head_baggage
         "sampled" => sampled&.to_s,
         "environment" => configuration&.environment,
         "release" => configuration&.release,
-        "public_key" => configuration&.dsn&.public_key
+        "public_key" => configuration&.dsn&.public_key,
+        "org_id" => configuration&.effective_org_id
       }
 
       items["transaction"] = name unless source_low_quality?
diff --git a/sentry-ruby/spec/sentry/dsn_spec.rb b/sentry-ruby/spec/sentry/dsn_spec.rb
index 87e48bceb..dffa938d8 100644
--- a/sentry-ruby/spec/sentry/dsn_spec.rb
+++ b/sentry-ruby/spec/sentry/dsn_spec.rb
@@ -44,6 +44,36 @@
     end
   end
 
+  describe "#org_id" do
+    it "extracts org_id from DSN host with org prefix" do
+      dsn = described_class.new("https://key@o1234.ingest.sentry.io/42")
+      expect(dsn.org_id).to eq("1234")
+    end
+
+    it "extracts single digit org_id" do
+      dsn = described_class.new("https://key@o1.ingest.us.sentry.io/42")
+      expect(dsn.org_id).to eq("1")
+    end
+
+    it "returns nil when host does not have org prefix" do
+      dsn = described_class.new("http://12345:67890@sentry.localdomain:3000/sentry/42")
+      expect(dsn.org_id).to be_nil
+    end
+
+    it "returns nil for non-standard host without o prefix" do
+      dsn = described_class.new("https://key@not_org_id.ingest.sentry.io/42")
+      expect(dsn.org_id).to be_nil
+    end
+
+    it "can be overridden with org_id=" do
+      dsn = described_class.new("https://key@o1234.ingest.sentry.io/42")
+      expect(dsn.org_id).to eq("1234")
+
+      dsn.org_id = "9999"
+      expect(dsn.org_id).to eq("9999")
+    end
+  end
+
   describe "#local?" do
     it "returns true for localhost" do
       expect(described_class.new("http://12345:67890@localhost/sentry/42").local?).to eq(true)
diff --git a/sentry-ruby/spec/sentry/net/http_spec.rb b/sentry-ruby/spec/sentry/net/http_spec.rb
index afe53f519..bd1e3a8fc 100644
--- a/sentry-ruby/spec/sentry/net/http_spec.rb
+++ b/sentry-ruby/spec/sentry/net/http_spec.rb
@@ -156,7 +156,8 @@
         "sentry-sample_rand=#{Sentry::Utils::SampleRand.format(transaction.sample_rand)},"\
         "sentry-sampled=true,"\
         "sentry-environment=development,"\
-        "sentry-public_key=foobarbaz"
+        "sentry-public_key=foobarbaz,"\
+        "sentry-org_id=447951"
       )
     end
 
diff --git a/sentry-ruby/spec/sentry/propagation_context_spec.rb b/sentry-ruby/spec/sentry/propagation_context_spec.rb
index 418360de1..84b4ce1dc 100644
--- a/sentry-ruby/spec/sentry/propagation_context_spec.rb
+++ b/sentry-ruby/spec/sentry/propagation_context_spec.rb
@@ -133,6 +133,183 @@
     end
   end
 
+  describe ".should_continue_trace?" do
+    # Decision matrix:
+    # | Baggage org | SDK org | strict | Result       |
+    # |-------------|---------|--------|--------------|
+    # | 1           | 1       | false  | Continue     |
+    # | None        | 1       | false  | Continue     |
+    # | 1           | None    | false  | Continue     |
+    # | None        | None    | false  | Continue     |
+    # | 1           | 2       | false  | Start new    |
+    # | 1           | 1       | true   | Continue     |
+    # | None        | 1       | true   | Start new    |
+    # | 1           | None    | true   | Start new    |
+    # | None        | None    | true   | Continue     |
+    # | 1           | 2       | true   | Start new    |
+
+    let(:sentry_trace) { "771a43a4192642f0b136d5159a501700-7c51afd529da4a2a-1" }
+
+    def make_env(sentry_trace:, baggage_org_id: nil)
+      baggage_parts = ["sentry-trace_id=771a43a4192642f0b136d5159a501700"]
+      baggage_parts << "sentry-org_id=#{baggage_org_id}" if baggage_org_id
+
+      {
+        "sentry-trace" => sentry_trace,
+        "baggage" => baggage_parts.join(",")
+      }
+    end
+
+    context "with strict_trace_continuation=false" do
+      it "continues when baggage org matches SDK org" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o1.ingest.sentry.io/42"
+          config.strict_trace_continuation = false
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "1")
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(true)
+        expect(propagation_context.trace_id).to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "continues when baggage has no org but SDK has org" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o1.ingest.sentry.io/42"
+          config.strict_trace_continuation = false
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: nil)
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(true)
+        expect(propagation_context.trace_id).to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "continues when baggage has org but SDK has no org" do
+        perform_basic_setup do |config|
+          config.strict_trace_continuation = false
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "1")
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(true)
+        expect(propagation_context.trace_id).to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "continues when neither has org" do
+        perform_basic_setup do |config|
+          config.strict_trace_continuation = false
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: nil)
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(true)
+        expect(propagation_context.trace_id).to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "starts new trace when orgs mismatch" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o2.ingest.sentry.io/42"
+          config.strict_trace_continuation = false
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "1")
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(false)
+        expect(propagation_context.trace_id).not_to eq("771a43a4192642f0b136d5159a501700")
+      end
+    end
+
+    context "with strict_trace_continuation=true" do
+      it "continues when baggage org matches SDK org" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o1.ingest.sentry.io/42"
+          config.strict_trace_continuation = true
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "1")
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(true)
+        expect(propagation_context.trace_id).to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "starts new trace when baggage has no org but SDK has org" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o1.ingest.sentry.io/42"
+          config.strict_trace_continuation = true
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: nil)
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(false)
+        expect(propagation_context.trace_id).not_to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "starts new trace when baggage has org but SDK has no org" do
+        perform_basic_setup do |config|
+          config.strict_trace_continuation = true
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "1")
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(false)
+        expect(propagation_context.trace_id).not_to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "continues when neither has org" do
+        perform_basic_setup do |config|
+          config.strict_trace_continuation = true
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: nil)
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(true)
+        expect(propagation_context.trace_id).to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "starts new trace when orgs mismatch" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o2.ingest.sentry.io/42"
+          config.strict_trace_continuation = true
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "1")
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(false)
+        expect(propagation_context.trace_id).not_to eq("771a43a4192642f0b136d5159a501700")
+      end
+    end
+
+    context "with explicit org_id config" do
+      it "uses explicit org_id over DSN-parsed org_id" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o1234.ingest.sentry.io/42"
+          config.org_id = "9999"
+          config.strict_trace_continuation = false
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "1234")
+        propagation_context = described_class.new(scope, env)
+        # org_id mismatch: baggage has 1234 but SDK effective org_id is 9999
+        expect(propagation_context.incoming_trace).to eq(false)
+        expect(propagation_context.trace_id).not_to eq("771a43a4192642f0b136d5159a501700")
+      end
+
+      it "continues when explicit org_id matches baggage org_id" do
+        perform_basic_setup do |config|
+          config.dsn = "https://key@o1234.ingest.sentry.io/42"
+          config.org_id = "5678"
+          config.strict_trace_continuation = false
+        end
+
+        env = make_env(sentry_trace: sentry_trace, baggage_org_id: "5678")
+        propagation_context = described_class.new(scope, env)
+        expect(propagation_context.incoming_trace).to eq(true)
+        expect(propagation_context.trace_id).to eq("771a43a4192642f0b136d5159a501700")
+      end
+    end
+  end
+
   describe ".extract_sentry_trace" do
     it "extracts valid sentry-trace without whitespace" do
       sentry_trace = "771a43a4192642f0b136d5159a501700-7c51afd529da4a2a-1"