diff --git a/lambda-runtime/src/lib.rs b/lambda-runtime/src/lib.rs
index 7664a499..cad99de4 100644
--- a/lambda-runtime/src/lib.rs
+++ b/lambda-runtime/src/lib.rs
@@ -26,7 +26,7 @@ use tokio::io::{AsyncRead, AsyncWrite};
 use tokio_stream::{Stream, StreamExt};
 pub use tower::{self, service_fn, Service};
 use tower::{util::ServiceFn, ServiceExt};
-use tracing::{error, trace};
+use tracing::{error, trace, Instrument};
 
 mod requests;
 #[cfg(test)]
@@ -120,15 +120,6 @@ where
                 continue;
             }
 
-            let body = hyper::body::to_bytes(body).await?;
-            trace!("response body - {}", std::str::from_utf8(&body)?);
-
-            #[cfg(debug_assertions)]
-            if parts.status.is_server_error() {
-                error!("Lambda Runtime server returned an unexpected error");
-                return Err(parts.status.to_string().into());
-            }
-
             let ctx: Context = Context::try_from(parts.headers)?;
             let ctx: Context = ctx.with_config(config);
             let request_id = &ctx.request_id.clone();
@@ -138,55 +129,80 @@ where
                 Some(trace_id) => env::set_var("_X_AMZN_TRACE_ID", trace_id),
                 None => env::remove_var("_X_AMZN_TRACE_ID"),
             }
-            let body = match serde_json::from_slice(&body) {
-                Ok(body) => body,
-                Err(err) => {
-                    let req = build_event_error_request(request_id, err)?;
-                    client.call(req).await.expect("Unable to send response to Runtime APIs");
-                    return Ok(());
-                }
+            let request_span = match xray_trace_id {
+                Some(trace_id) => tracing::span!(
+                    tracing::Level::INFO,
+                    "Lambda request",
+                    requestId = request_id,
+                    xrayTraceId = trace_id
+                ),
+                None => tracing::span!(tracing::Level::INFO, "Lambda request", requestId = request_id),
             };
 
-            let req = match handler.ready().await {
-                Ok(handler) => {
-                    // Catches panics outside of a `Future`
-                    let task =
-                        panic::catch_unwind(panic::AssertUnwindSafe(|| handler.call(LambdaEvent::new(body, ctx))));
-
-                    let task = match task {
-                        // Catches panics inside of the `Future`
-                        Ok(task) => panic::AssertUnwindSafe(task).catch_unwind().await,
-                        Err(err) => Err(err),
-                    };
-
-                    match task {
-                        Ok(response) => match response {
-                            Ok(response) => {
-                                trace!("Ok response from handler (run loop)");
-                                EventCompletionRequest {
-                                    request_id,
-                                    body: response,
+            // Group the handling in one future and instrument it with the span
+            async {
+                let body = hyper::body::to_bytes(body).await?;
+                trace!("response body - {}", std::str::from_utf8(&body)?);
+
+                #[cfg(debug_assertions)]
+                if parts.status.is_server_error() {
+                    error!("Lambda Runtime server returned an unexpected error");
+                    return Err(parts.status.to_string().into());
+                }
+
+                let body = match serde_json::from_slice(&body) {
+                    Ok(body) => body,
+                    Err(err) => {
+                        let req = build_event_error_request(request_id, err)?;
+                        client.call(req).await.expect("Unable to send response to Runtime APIs");
+                        return Ok(());
+                    }
+                };
+
+                let req = match handler.ready().await {
+                    Ok(handler) => {
+                        // Catches panics outside of a `Future`
+                        let task =
+                            panic::catch_unwind(panic::AssertUnwindSafe(|| handler.call(LambdaEvent::new(body, ctx))));
+
+                        let task = match task {
+                            // Catches panics inside of the `Future`
+                            Ok(task) => panic::AssertUnwindSafe(task).catch_unwind().await,
+                            Err(err) => Err(err),
+                        };
+
+                        match task {
+                            Ok(response) => match response {
+                                Ok(response) => {
+                                    trace!("Ok response from handler (run loop)");
+                                    EventCompletionRequest {
+                                        request_id,
+                                        body: response,
+                                    }
+                                    .into_req()
                                 }
-                                .into_req()
+                                Err(err) => build_event_error_request(request_id, err),
+                            },
+                            Err(err) => {
+                                error!("{:?}", err);
+                                let error_type = type_name_of_val(&err);
+                                let msg = if let Some(msg) = err.downcast_ref::<&str>() {
+                                    format!("Lambda panicked: {}", msg)
+                                } else {
+                                    "Lambda panicked".to_string()
+                                };
+                                EventErrorRequest::new(request_id, error_type, &msg).into_req()
                             }
-                            Err(err) => build_event_error_request(request_id, err),
-                        },
-                        Err(err) => {
-                            error!("{:?}", err);
-                            let error_type = type_name_of_val(&err);
-                            let msg = if let Some(msg) = err.downcast_ref::<&str>() {
-                                format!("Lambda panicked: {}", msg)
-                            } else {
-                                "Lambda panicked".to_string()
-                            };
-                            EventErrorRequest::new(request_id, error_type, &msg).into_req()
                         }
                     }
-                }
-                Err(err) => build_event_error_request(request_id, err),
-            }?;
+                    Err(err) => build_event_error_request(request_id, err),
+                }?;
 
-            client.call(req).await.expect("Unable to send response to Runtime APIs");
+                client.call(req).await.expect("Unable to send response to Runtime APIs");
+                Ok::<(), Error>(())
+            }
+            .instrument(request_span)
+            .await?;
         }
         Ok(())
     }