diff --git a/CHANGELOG.md b/CHANGELOG.md
index d088a4fe85..f46ba16d09 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -31,6 +31,8 @@ release.
   ([#1174](https://github.com/open-telemetry/opentelemetry-demo/pull/1174))
 * [otelcol] merge configuration files for base and observability configs
   ([#1173](https://github.com/open-telemetry/opentelemetry-demo/pull/1173))
+* [frontendproxy] Fix service graph by enabling client spans in envoy proxy
+  ([#1180](https://github.com/open-telemetry/opentelemetry-demo/pull/1180))
 * [java-services] Update java, gradle and OTel agent versions
   ([#1183](https://github.com/open-telemetry/opentelemetry-demo/pull/1183))
 
diff --git a/src/frontendproxy/Dockerfile b/src/frontendproxy/Dockerfile
index ff0c726300..2d0555ce8b 100644
--- a/src/frontendproxy/Dockerfile
+++ b/src/frontendproxy/Dockerfile
@@ -2,7 +2,7 @@
 # SPDX-License-Identifier: Apache-2.0
 
 
-FROM envoyproxy/envoy:v1.27-latest
+FROM envoyproxy/envoy:v1.28-latest
 RUN apt-get update && apt-get install -y gettext-base && apt-get clean && rm -rf /var/lib/apt/lists/*
 
 USER envoy
diff --git a/src/frontendproxy/envoy.tmpl.yaml b/src/frontendproxy/envoy.tmpl.yaml
index 8e1942a9c0..e99eced39c 100644
--- a/src/frontendproxy/envoy.tmpl.yaml
+++ b/src/frontendproxy/envoy.tmpl.yaml
@@ -16,6 +16,7 @@ static_resources:
                 codec_type: AUTO
                 stat_prefix: ingress_http
                 tracing:
+                  spawn_upstream_span: true
                   provider:
                     name: envoy.tracers.opentelemetry
                     typed_config:
@@ -48,6 +49,7 @@ static_resources:
                   - name: envoy.filters.http.router
                     typed_config:
                       "@type": type.googleapis.com/envoy.extensions.filters.http.router.v3.Router
+                      start_child_span: true
 
   clusters:
     - name: opentelemetry_collector_grpc