In the realm of serverless computing, ensuring robust observability is vital, particularly for AWS Lambda functions. This text discusses the complexities and solutions associated with monitoring AWS Lambda using OpenTelemetry and Grafana Cloud. The challenges of serverless observability stem from Lambda's unique architecture, which lacks traditional servers, involves highly distributed components, and features ephemeral function executions. The text compares two approaches for instrumenting Lambda functions: using the AWS Distro for OpenTelemetry (ADOT) for straightforward setups with minimal configuration, and custom OpenTelemetry instrumentation for more complex requirements. It also outlines various data collection deployment options, including direct integration, agent deployment, and gateway deployment, each offering different levels of processing capabilities and flexibility. Additionally, the text highlights a practical project that tracks the Formula One "Driver of the Day" using AWS Lambda and Grafana Cloud, illustrating the application of these observability practices in a real-world scenario. Finally, it emphasizes the importance of understanding Lambda's execution lifecycle to ensure consistent telemetry data collection and invites feedback from users to enhance the observability solutions provided by OpenTelemetry and Grafana Cloud.