diff --git a/python/samples/02-agents/observability/microsoft_opentelemetry_distro.py b/python/samples/02-agents/observability/microsoft_opentelemetry_distro.py
new file mode 100644
index 0000000000..578f82af59
--- /dev/null
+++ b/python/samples/02-agents/observability/microsoft_opentelemetry_distro.py
@@ -0,0 +1,60 @@
+# Copyright (c) Microsoft. All rights reserved.
+
+import asyncio
+from random import randint
+from typing import Annotated
+
+from agent_framework import Agent, tool
+from agent_framework.foundry import FoundryChatClient
+from agent_framework.observability import get_tracer
+from azure.identity import AzureCliCredential
+from dotenv import load_dotenv
+from microsoft.opentelemetry import use_microsoft_opentelemetry
+from opentelemetry.trace import SpanKind
+from opentelemetry.trace.span import format_trace_id
+from pydantic import Field
+
+# Load environment variables from .env file
+load_dotenv()
+
+
+@tool(approval_mode="never_require")
+async def get_weather(
+    location: Annotated[str, Field(description="The location to get the weather for.")],
+) -> str:
+    """Get the weather for a given location."""
+    await asyncio.sleep(randint(0, 10) / 10.0)  # Simulate a network call
+    conditions = ["sunny", "cloudy", "rainy", "stormy"]
+    return f"The weather in {location} is {conditions[randint(0, 3)]} with a high of {randint(10, 30)}°C."
+
+
+async def main():
+    # Set up Azure monitor exporters for telemetry
+    # This will automatically enable instrumentation for Agent Framework
+    # Install the Microsoft OpenTelemetry Distro package to enable this functionality:
+    # pip install microsoft-opentelemetry
+    use_microsoft_opentelemetry(enable_azure_monitor=True)
+
+    questions = ["What's the weather in Amsterdam?", "and in Paris, and which is better?", "Why is the sky blue?"]
+
+    with get_tracer().start_as_current_span("Scenario: Agent Chat", kind=SpanKind.CLIENT) as current_span:
+        print(f"Trace ID: {format_trace_id(current_span.get_span_context().trace_id)}")
+
+        agent = Agent(
+            client=FoundryChatClient(credential=AzureCliCredential()),
+            tools=get_weather,
+            name="WeatherAgent",
+            instructions="You are a weather assistant.",
+            id="weather-agent",
+        )
+        session = agent.create_session()
+        for question in questions:
+            print(f"\nUser: {question}")
+            print(f"{agent.name}: ", end="")
+            async for update in agent.run(question, session=session, stream=True):
+                if update.text:
+                    print(update.text, end="")
+
+
+if __name__ == "__main__":
+    asyncio.run(main())