Since its launch in 2014, AWS Lambda has revolutionized application development through serverless computing by allowing developers to focus on customer-centric problem-solving rather than infrastructure management. However, monitoring serverless applications presents new challenges, necessitating insights into function-level performance. Datadog APM addresses this by providing distributed tracing and comprehensive visibility into AWS serverless services, including Lambda. Their lightweight Lambda extension enables detailed data collection and asynchronous transmission of metrics, logs, and traces to Datadog APM, even during function failures. The extension seamlessly integrates with AWS services while capturing critical performance metrics like cold starts and request payloads. Datadog's APM offers end-to-end visibility across serverless functions and infrastructure by correlating traces with metrics and logs, helping identify bottlenecks and errors impacting user experience. It supports various tracing methods and runtimes, enhancing application performance optimization and issue resolution. This comprehensive approach aids businesses in navigating the complexities of serverless architectures, ultimately contributing to improved user experiences and business outcomes.