diff --git a/pkg/grpcfactory/server.go b/pkg/grpcfactory/server.go
index adad711..3fec42e 100644
--- a/pkg/grpcfactory/server.go
+++ b/pkg/grpcfactory/server.go
@@ -34,9 +34,13 @@ func (s *COSIProvisionerServer) Run(ctx context.Context, registry prometheus.Reg
 
 	// Function to extract exemplars from the tracing context.
 	exemplarFromContext := func(ctx context.Context) prometheus.Labels {
-		if span := trace.SpanContextFromContext(ctx); span.IsSampled() {
-			return prometheus.Labels{"traceID": span.TraceID().String()}
+		span := trace.SpanContextFromContext(ctx)
+		if span.IsValid() && span.IsSampled() {
+			traceID := span.TraceID().String()
+			klog.V(5).InfoS("Adding exemplar with traceID", "traceID", traceID)
+			return prometheus.Labels{"traceID": traceID}
 		}
+		klog.V(5).Info("Traces are not enabled or traceID is nil, no exemplar added")
 		return nil
 	}
 
@@ -75,33 +79,12 @@ func (s *COSIProvisionerServer) Run(ctx context.Context, registry prometheus.Reg
 	// Create the OpenTelemetry stats handler for instrumentation.
 	otelHandler := otelgrpc.NewServerHandler()
 
+	// Add gRPC server options including OpenTelemetry and Prometheus interceptors.
 	// Add gRPC server options including OpenTelemetry and Prometheus interceptors.
 	s.listenOpts = append(s.listenOpts,
-		grpc.StatsHandler(otelHandler), // Register the stats handler for OpenTelemetry.
-		grpc.ChainUnaryInterceptor(
-			srvMetrics.UnaryServerInterceptor(grpcprom.WithExemplarFromContext(exemplarFromContext)), // Add traceID as an exemplar.
-			func(ctx context.Context, req any, info *grpc.UnaryServerInfo, handler grpc.UnaryHandler) (resp any, err error) {
-				traceID := trace.SpanContextFromContext(ctx).TraceID().String()
-				klog.V(3).InfoS("Handling gRPC unary request", "method", info.FullMethod, "traceID", traceID)
-				resp, err = handler(ctx, req)
-				if err != nil {
-					klog.ErrorS(err, "Error handling gRPC unary request", "method", info.FullMethod, "traceID", traceID)
-				}
-				return resp, err
-			},
-		),
-		grpc.ChainStreamInterceptor(
-			srvMetrics.StreamServerInterceptor(grpcprom.WithExemplarFromContext(exemplarFromContext)), // Add traceID as an exemplar.
-			func(srv any, ss grpc.ServerStream, info *grpc.StreamServerInfo, handler grpc.StreamHandler) error {
-				traceID := trace.SpanContextFromContext(ss.Context()).TraceID().String()
-				klog.V(3).InfoS("Handling gRPC stream request", "method", info.FullMethod, "traceID", traceID)
-				err := handler(srv, ss)
-				if err != nil {
-					klog.ErrorS(err, "Error handling gRPC stream request", "method", info.FullMethod, "traceID", traceID)
-				}
-				return err
-			},
-		),
+		grpc.StatsHandler(otelHandler), // Register the stats handler for OpenTelemetry first.
+		grpc.ChainUnaryInterceptor(srvMetrics.UnaryServerInterceptor(grpcprom.WithExemplarFromContext(exemplarFromContext))),
+		grpc.ChainStreamInterceptor(srvMetrics.StreamServerInterceptor(grpcprom.WithExemplarFromContext(exemplarFromContext))),
 	)
 
 	// Initialize the gRPC server.
diff --git a/pkg/metrics/metrics.go b/pkg/metrics/metrics.go
index ec10aaf..945c44d 100644
--- a/pkg/metrics/metrics.go
+++ b/pkg/metrics/metrics.go
@@ -24,7 +24,7 @@ func InitializeMetrics(prefix string, registry prometheus.Registerer) {
 			Name:      "s3_requests_total",
 			Help:      "Total number of S3 requests, categorized by action and status.",
 		},
-		[]string{"action", "status", "trace_id"},
+		[]string{"action", "status"},
 	)
 
 	S3RequestDuration = prometheus.NewHistogramVec(
@@ -34,7 +34,7 @@ func InitializeMetrics(prefix string, registry prometheus.Registerer) {
 			Help:      "Duration of S3 requests in seconds, categorized by action and status.",
 			Buckets:   prometheus.DefBuckets,
 		},
-		[]string{"action", "status", "trace_id"},
+		[]string{"action", "status"},
 	)
 
 	IAMRequestsTotal = prometheus.NewCounterVec(
@@ -43,7 +43,7 @@ func InitializeMetrics(prefix string, registry prometheus.Registerer) {
 			Name:      "iam_requests_total",
 			Help:      "Total number of IAM requests, categorized by action and status.",
 		},
-		[]string{"action", "status", "trace_id"},
+		[]string{"action", "status"},
 	)
 
 	IAMRequestDuration = prometheus.NewHistogramVec(
@@ -53,7 +53,7 @@ func InitializeMetrics(prefix string, registry prometheus.Registerer) {
 			Help:      "Duration of IAM requests in seconds, categorized by action and status.",
 			Buckets:   prometheus.DefBuckets,
 		},
-		[]string{"action", "status", "trace_id"},
+		[]string{"action", "status"},
 	)
 
 	registry.MustRegister(S3RequestsTotal, S3RequestDuration, IAMRequestsTotal, IAMRequestDuration)
diff --git a/pkg/metrics/prometheus_middleware.go b/pkg/metrics/prometheus_middleware.go
index 16a4566..457386d 100644
--- a/pkg/metrics/prometheus_middleware.go
+++ b/pkg/metrics/prometheus_middleware.go
@@ -5,7 +5,6 @@ import (
 
 	"github.com/aws/smithy-go/middleware"
 	"github.com/prometheus/client_golang/prometheus"
-	"go.opentelemetry.io/otel/trace"
 	"k8s.io/klog/v2"
 )
 
@@ -24,13 +23,8 @@ func attachPrometheusMiddlewareMetrics(stack *middleware.Stack, requestDuration
 				status = "error"
 			}
 
-			traceID := ""
-			// Add traceID if available
-			if span := trace.SpanFromContext(ctx); span.SpanContext().IsValid() {
-				traceID = span.SpanContext().TraceID().String()
-			}
-			requestDuration.WithLabelValues(operationName, status, traceID).Observe(duration)
-			requestsTotal.WithLabelValues(operationName, status, traceID).Inc()
+			requestDuration.WithLabelValues(operationName, status).Observe(duration)
+			requestsTotal.WithLabelValues(operationName, status).Inc()
 		}))
 		defer timer.ObserveDuration()