diff --git a/packages/next/src/server/base-server.ts b/packages/next/src/server/base-server.ts
index d9d7d882cb719..e2a466b22dae9 100644
--- a/packages/next/src/server/base-server.ts
+++ b/packages/next/src/server/base-server.ts
@@ -702,6 +702,15 @@ export default abstract class Server<ServerOptions extends Options = Options> {
   ): Promise<void> {
     await this.prepare()
     const method = req.method.toUpperCase()
+
+    // Extract the w3c trace context headers and pass them to tracer
+    const traceParentHeader = req.headers.traceparent
+    const traceStateHeader = req.headers.tracestate
+    const traceParent =
+      typeof traceParentHeader === 'string' ? traceParentHeader : undefined
+    const traceState =
+      typeof traceStateHeader === 'string' ? traceStateHeader : undefined
+
     return getTracer().trace(
       BaseServerSpan.handleRequest,
       {
@@ -711,6 +720,7 @@ export default abstract class Server<ServerOptions extends Options = Options> {
           'http.method': method,
           'http.target': req.url,
         },
+        reqHeaderTraceContext: { traceParent, traceState },
       },
       async (span) =>
         this.handleRequestImpl(req, res, parsedUrl).finally(() => {
diff --git a/packages/next/src/server/lib/trace/tracer.ts b/packages/next/src/server/lib/trace/tracer.ts
index 60632b318afee..d407e7aa4243c 100644
--- a/packages/next/src/server/lib/trace/tracer.ts
+++ b/packages/next/src/server/lib/trace/tracer.ts
@@ -28,7 +28,7 @@ if (process.env.NEXT_RUNTIME === 'edge') {
   }
 }
 
-const { context, trace, SpanStatusCode, SpanKind } = api
+const { context, trace, SpanStatusCode, SpanKind, propagation } = api
 
 const isPromise = <T>(p: any): p is Promise<T> => {
   return p !== null && typeof p === 'object' && typeof p.then === 'function'
@@ -47,6 +47,10 @@ type TracerSpanOptions = Omit<SpanOptions, 'attributes'> & {
   spanName?: string
   attributes?: Partial<Record<AttributeNames, AttributeValue | undefined>>
   hideSpan?: boolean
+  reqHeaderTraceContext?: {
+    traceParent?: string
+    traceState?: string
+  }
 }
 
 interface NextTracer {
@@ -220,8 +224,20 @@ class NextTracerImpl implements NextTracer {
     let spanContext = this.getSpanContext(
       options?.parentSpan ?? this.getActiveScopeSpan()
     )
-    let isRootSpan = false
 
+    // Use w3c trace context headers to create span context if they exist
+    if (
+      !spanContext &&
+      (options.reqHeaderTraceContext?.traceParent ||
+        options.reqHeaderTraceContext?.traceState)
+    ) {
+      spanContext = propagation.extract(context.active(), {
+        traceparent: options.reqHeaderTraceContext?.traceParent,
+        tracestate: options.reqHeaderTraceContext?.traceState,
+      })
+    }
+
+    let isRootSpan = false
     if (!spanContext) {
       spanContext = api.ROOT_CONTEXT
       isRootSpan = true