Distributed tracing has become essential in modern cloud-native environments due to the complexity introduced by technologies like microservices, containers, and open-source tools. It provides a method for observing requests as they move through distributed systems, tagging each transaction with a unique identifier to ensure real-time visibility into user experiences from the top of the stack to the infrastructure layer. This visibility is crucial as businesses undergo digital transformation, with 90% of organizations reporting accelerated transformation in the past year. Distributed tracing offers several benefits, such as reducing the mean time to detect and repair issues, improving compliance with service-level agreements, and fostering better internal collaboration. However, challenges such as manual instrumentation and limited back-end coverage can hinder its effectiveness. Unlike traditional logging, which can be centralized or distributed, distributed tracing provides a more comprehensive view of system health by following a request through all its interactions, making it indispensable for monitoring, debugging, and optimizing software architectures. As organizations continue to rely on cloud-native applications, distributed tracing becomes a strategic tool for maintaining performance and ensuring customer satisfaction.