diff --git a/README.md b/README.md
index 5210781ef..23d12e0ef 100644
--- a/README.md
+++ b/README.md
@@ -283,10 +283,13 @@ environment variables.
   This defaults to `False`. If this is set to `True`, `OTEL_EXPORTER_OTLP_ENDPOINT` and `OTEL_SERVICE_NAME`
   must be set.
 * `OTEL_EXPORTER_OTLP_ENDPOINT` - The endpoint for the OpenTelemetry exporter.
-* `OTEL_SERVICE_NAME` - "iib-api"
+* `OTEL_SERVICE_NAME` - "iib-api" / "iib-worker"
 
 For more info on these environment variables, please refer to [Opentelemetry Guide](https://opentelemetry.io/docs/concepts/sdk-configuration/otlp-exporter-configuration/)
 
+Dev-env supports Opentelemetry tracing by default. It uses Jaeger for collecting and exporting traces.
+WEB UI is accessible on port 16686 - `http://localhost:16686/`
+
 ## Configuring the Worker(s)
 
 To configure an IIB Celery worker, create a Python file at `/etc/iib/celery.py`. The location
diff --git a/compose-files/docker-compose.yml b/compose-files/docker-compose.yml
index 52a5b056e..59f6145ac 100644
--- a/compose-files/docker-compose.yml
+++ b/compose-files/docker-compose.yml
@@ -63,6 +63,15 @@ services:
       # The RabbitMQ management console
       - 8081:15672
 
+  jaeger:
+    image: jaegertracing/all-in-one
+    container_name: jaeger
+    ports:
+      - 4318:4318
+      - 16686:16686 # web
+    environment:
+      - COLLECTOR_OTLP_ENABLED=true
+
   iib-api:
     build:
       context: ..
@@ -84,6 +93,11 @@ services:
       FLASK_ENV: development
       FLASK_APP: iib/web/wsgi.py
       IIB_DEV: 'true'
+      # enable OpenTelemetry for dev-env
+      IIB_OTEL_TRACING: 'true'
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://jaeger:4318
+      OTEL_EXPORTER_OTLP_TRACES_INSECURE: 'true'
+      OTEL_SERVICE_NAME: "iib-api"
     volumes:
       - ../:/src:z
       - ../docker/message_broker/certs:/broker-certs:ro,z
@@ -95,6 +109,7 @@ services:
     depends_on:
       - db
       - message-broker
+      - jaeger
 
   iib-worker:
     build:
@@ -118,7 +133,12 @@ services:
       IIB_DEV: 'true'
       REGISTRY_AUTH_FILE: '/root/.docker/config.json'
       REQUESTS_CA_BUNDLE: /etc/pki/tls/certs/ca-bundle.crt
-    # Make this privileged to be able to build container images
+      # Make this privileged to be able to build container images
+      # enable OpenTelemetry for dev-env
+      IIB_OTEL_TRACING: 'true'
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://jaeger:4318
+      OTEL_EXPORTER_OTLP_TRACES_INSECURE: 'true'
+      OTEL_SERVICE_NAME: "iib-worker"
     privileged: true
     volumes:
       - ../:/src:z
@@ -133,6 +153,7 @@ services:
       - registry
       - minica
       - memcached
+      - jaeger
 
   # This is an external message broker used to publish messages about state changes
   message-broker:
diff --git a/compose-files/podman-compose.yml b/compose-files/podman-compose.yml
index 9f55b8086..314b7b9b5 100644
--- a/compose-files/podman-compose.yml
+++ b/compose-files/podman-compose.yml
@@ -62,6 +62,15 @@ services:
       # The RabbitMQ management console
       - 8081:15672
 
+  jaeger:
+    image: jaegertracing/all-in-one
+    container_name: jaeger
+    ports:
+      - 4318:4318
+      - 16686:16686 # web
+    environment:
+      - COLLECTOR_OTLP_ENABLED=true
+
   iib-api:
     build:
       context: ..
@@ -83,6 +92,10 @@ services:
       FLASK_ENV: development
       FLASK_APP: iib/web/wsgi.py
       IIB_DEV: 'true'
+      IIB_OTEL_TRACING: 'true'
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://jaeger:4318
+      OTEL_EXPORTER_OTLP_TRACES_INSECURE: 'true'
+      OTEL_SERVICE_NAME: "iib-api"
     volumes:
       - ../:/src
       - ../docker/message_broker/certs:/broker-certs
@@ -94,6 +107,7 @@ services:
     depends_on:
       - db
       - message-broker
+      - jaeger
 
   iib-worker:
     build:
@@ -117,7 +131,12 @@ services:
       IIB_DEV: 'true'
       REGISTRY_AUTH_FILE: '/root/.docker/config.json'
       REQUESTS_CA_BUNDLE: /etc/pki/tls/certs/ca-bundle.crt
-    # Make this privileged to be able to build container images
+      # Make this privileged to be able to build container images
+      # enable OpenTelemetry for dev-env
+      IIB_OTEL_TRACING: 'true'
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://jaeger:4318
+      OTEL_EXPORTER_OTLP_TRACES_INSECURE: 'true'
+      OTEL_SERVICE_NAME: "iib-worker"
     privileged: true
     volumes:
       - ../:/src
@@ -133,6 +152,7 @@ services:
       - registry
       - minica
       - memcached
+      - jaeger
 
   # This is an external message broker used to publish messages about state changes
   message-broker:
diff --git a/requirements-test.txt b/requirements-test.txt
index d6d4949e3..18310be08 100644
--- a/requirements-test.txt
+++ b/requirements-test.txt
@@ -186,30 +186,30 @@ coverage[toml]==6.0.1 \
     # via
     #   -r requirements-test.in
     #   pytest-cov
-cryptography==41.0.3 \
-    --hash=sha256:0d09fb5356f975974dbcb595ad2d178305e5050656affb7890a1583f5e02a306 \
-    --hash=sha256:23c2d778cf829f7d0ae180600b17e9fceea3c2ef8b31a99e3c694cbbf3a24b84 \
-    --hash=sha256:3fb248989b6363906827284cd20cca63bb1a757e0a2864d4c1682a985e3dca47 \
-    --hash=sha256:41d7aa7cdfded09b3d73a47f429c298e80796c8e825ddfadc84c8a7f12df212d \
-    --hash=sha256:42cb413e01a5d36da9929baa9d70ca90d90b969269e5a12d39c1e0d475010116 \
-    --hash=sha256:4c2f0d35703d61002a2bbdcf15548ebb701cfdd83cdc12471d2bae80878a4207 \
-    --hash=sha256:4fd871184321100fb400d759ad0cddddf284c4b696568204d281c902fc7b0d81 \
-    --hash=sha256:5259cb659aa43005eb55a0e4ff2c825ca111a0da1814202c64d28a985d33b087 \
-    --hash=sha256:57a51b89f954f216a81c9d057bf1a24e2f36e764a1ca9a501a6964eb4a6800dd \
-    --hash=sha256:652627a055cb52a84f8c448185922241dd5217443ca194d5739b44612c5e6507 \
-    --hash=sha256:67e120e9a577c64fe1f611e53b30b3e69744e5910ff3b6e97e935aeb96005858 \
-    --hash=sha256:6af1c6387c531cd364b72c28daa29232162010d952ceb7e5ca8e2827526aceae \
-    --hash=sha256:6d192741113ef5e30d89dcb5b956ef4e1578f304708701b8b73d38e3e1461f34 \
-    --hash=sha256:7efe8041897fe7a50863e51b77789b657a133c75c3b094e51b5e4b5cec7bf906 \
-    --hash=sha256:84537453d57f55a50a5b6835622ee405816999a7113267739a1b4581f83535bd \
-    --hash=sha256:8f09daa483aedea50d249ef98ed500569841d6498aa9c9f4b0531b9964658922 \
-    --hash=sha256:95dd7f261bb76948b52a5330ba5202b91a26fbac13ad0e9fc8a3ac04752058c7 \
-    --hash=sha256:a74fbcdb2a0d46fe00504f571a2a540532f4c188e6ccf26f1f178480117b33c4 \
-    --hash=sha256:a983e441a00a9d57a4d7c91b3116a37ae602907a7618b882c8013b5762e80574 \
-    --hash=sha256:ab8de0d091acbf778f74286f4989cf3d1528336af1b59f3e5d2ebca8b5fe49e1 \
-    --hash=sha256:aeb57c421b34af8f9fe830e1955bf493a86a7996cc1338fe41b30047d16e962c \
-    --hash=sha256:ce785cf81a7bdade534297ef9e490ddff800d956625020ab2ec2780a556c313e \
-    --hash=sha256:d0d651aa754ef58d75cec6edfbd21259d93810b73f6ec246436a21b7841908de
+cryptography==41.0.4 \
+    --hash=sha256:004b6ccc95943f6a9ad3142cfabcc769d7ee38a3f60fb0dddbfb431f818c3a67 \
+    --hash=sha256:047c4603aeb4bbd8db2756e38f5b8bd7e94318c047cfe4efeb5d715e08b49311 \
+    --hash=sha256:0d9409894f495d465fe6fda92cb70e8323e9648af912d5b9141d616df40a87b8 \
+    --hash=sha256:23a25c09dfd0d9f28da2352503b23e086f8e78096b9fd585d1d14eca01613e13 \
+    --hash=sha256:2ed09183922d66c4ec5fdaa59b4d14e105c084dd0febd27452de8f6f74704143 \
+    --hash=sha256:35c00f637cd0b9d5b6c6bd11b6c3359194a8eba9c46d4e875a3660e3b400005f \
+    --hash=sha256:37480760ae08065437e6573d14be973112c9e6dcaf5f11d00147ee74f37a3829 \
+    --hash=sha256:3b224890962a2d7b57cf5eeb16ccaafba6083f7b811829f00476309bce2fe0fd \
+    --hash=sha256:5a0f09cefded00e648a127048119f77bc2b2ec61e736660b5789e638f43cc397 \
+    --hash=sha256:5b72205a360f3b6176485a333256b9bcd48700fc755fef51c8e7e67c4b63e3ac \
+    --hash=sha256:7e53db173370dea832190870e975a1e09c86a879b613948f09eb49324218c14d \
+    --hash=sha256:7febc3094125fc126a7f6fb1f420d0da639f3f32cb15c8ff0dc3997c4549f51a \
+    --hash=sha256:80907d3faa55dc5434a16579952ac6da800935cd98d14dbd62f6f042c7f5e839 \
+    --hash=sha256:86defa8d248c3fa029da68ce61fe735432b047e32179883bdb1e79ed9bb8195e \
+    --hash=sha256:8ac4f9ead4bbd0bc8ab2d318f97d85147167a488be0e08814a37eb2f439d5cf6 \
+    --hash=sha256:93530900d14c37a46ce3d6c9e6fd35dbe5f5601bf6b3a5c325c7bffc030344d9 \
+    --hash=sha256:9eeb77214afae972a00dee47382d2591abe77bdae166bda672fb1e24702a3860 \
+    --hash=sha256:b5f4dfe950ff0479f1f00eda09c18798d4f49b98f4e2006d644b3301682ebdca \
+    --hash=sha256:c3391bd8e6de35f6f1140e50aaeb3e2b3d6a9012536ca23ab0d9c35ec18c8a91 \
+    --hash=sha256:c880eba5175f4307129784eca96f4e70b88e57aa3f680aeba3bab0e980b0f37d \
+    --hash=sha256:cecfefa17042941f94ab54f769c8ce0fe14beff2694e9ac684176a2535bf9714 \
+    --hash=sha256:e40211b4923ba5a6dc9769eab704bdb3fbb58d56c5b336d30996c24fcf12aadb \
+    --hash=sha256:efc8ad4e6fc4f1752ebfb58aefece8b4e3c4cae940b0994d43649bdfce8d0d4f
     # via
     #   -r requirements.txt
     #   pyspnego
diff --git a/requirements.txt b/requirements.txt
index 0cccd9d95..cf4ddd41e 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -131,30 +131,30 @@ click-repl==0.2.0 \
     --hash=sha256:94b3fbbc9406a236f176e0506524b2937e4b23b6f4c0c0b2a0a83f8a64e9194b \
     --hash=sha256:cd12f68d745bf6151210790540b4cb064c7b13e571bc64b6957d98d120dacfd8
     # via celery
-cryptography==41.0.3 \
-    --hash=sha256:0d09fb5356f975974dbcb595ad2d178305e5050656affb7890a1583f5e02a306 \
-    --hash=sha256:23c2d778cf829f7d0ae180600b17e9fceea3c2ef8b31a99e3c694cbbf3a24b84 \
-    --hash=sha256:3fb248989b6363906827284cd20cca63bb1a757e0a2864d4c1682a985e3dca47 \
-    --hash=sha256:41d7aa7cdfded09b3d73a47f429c298e80796c8e825ddfadc84c8a7f12df212d \
-    --hash=sha256:42cb413e01a5d36da9929baa9d70ca90d90b969269e5a12d39c1e0d475010116 \
-    --hash=sha256:4c2f0d35703d61002a2bbdcf15548ebb701cfdd83cdc12471d2bae80878a4207 \
-    --hash=sha256:4fd871184321100fb400d759ad0cddddf284c4b696568204d281c902fc7b0d81 \
-    --hash=sha256:5259cb659aa43005eb55a0e4ff2c825ca111a0da1814202c64d28a985d33b087 \
-    --hash=sha256:57a51b89f954f216a81c9d057bf1a24e2f36e764a1ca9a501a6964eb4a6800dd \
-    --hash=sha256:652627a055cb52a84f8c448185922241dd5217443ca194d5739b44612c5e6507 \
-    --hash=sha256:67e120e9a577c64fe1f611e53b30b3e69744e5910ff3b6e97e935aeb96005858 \
-    --hash=sha256:6af1c6387c531cd364b72c28daa29232162010d952ceb7e5ca8e2827526aceae \
-    --hash=sha256:6d192741113ef5e30d89dcb5b956ef4e1578f304708701b8b73d38e3e1461f34 \
-    --hash=sha256:7efe8041897fe7a50863e51b77789b657a133c75c3b094e51b5e4b5cec7bf906 \
-    --hash=sha256:84537453d57f55a50a5b6835622ee405816999a7113267739a1b4581f83535bd \
-    --hash=sha256:8f09daa483aedea50d249ef98ed500569841d6498aa9c9f4b0531b9964658922 \
-    --hash=sha256:95dd7f261bb76948b52a5330ba5202b91a26fbac13ad0e9fc8a3ac04752058c7 \
-    --hash=sha256:a74fbcdb2a0d46fe00504f571a2a540532f4c188e6ccf26f1f178480117b33c4 \
-    --hash=sha256:a983e441a00a9d57a4d7c91b3116a37ae602907a7618b882c8013b5762e80574 \
-    --hash=sha256:ab8de0d091acbf778f74286f4989cf3d1528336af1b59f3e5d2ebca8b5fe49e1 \
-    --hash=sha256:aeb57c421b34af8f9fe830e1955bf493a86a7996cc1338fe41b30047d16e962c \
-    --hash=sha256:ce785cf81a7bdade534297ef9e490ddff800d956625020ab2ec2780a556c313e \
-    --hash=sha256:d0d651aa754ef58d75cec6edfbd21259d93810b73f6ec246436a21b7841908de
+cryptography==41.0.4 \
+    --hash=sha256:004b6ccc95943f6a9ad3142cfabcc769d7ee38a3f60fb0dddbfb431f818c3a67 \
+    --hash=sha256:047c4603aeb4bbd8db2756e38f5b8bd7e94318c047cfe4efeb5d715e08b49311 \
+    --hash=sha256:0d9409894f495d465fe6fda92cb70e8323e9648af912d5b9141d616df40a87b8 \
+    --hash=sha256:23a25c09dfd0d9f28da2352503b23e086f8e78096b9fd585d1d14eca01613e13 \
+    --hash=sha256:2ed09183922d66c4ec5fdaa59b4d14e105c084dd0febd27452de8f6f74704143 \
+    --hash=sha256:35c00f637cd0b9d5b6c6bd11b6c3359194a8eba9c46d4e875a3660e3b400005f \
+    --hash=sha256:37480760ae08065437e6573d14be973112c9e6dcaf5f11d00147ee74f37a3829 \
+    --hash=sha256:3b224890962a2d7b57cf5eeb16ccaafba6083f7b811829f00476309bce2fe0fd \
+    --hash=sha256:5a0f09cefded00e648a127048119f77bc2b2ec61e736660b5789e638f43cc397 \
+    --hash=sha256:5b72205a360f3b6176485a333256b9bcd48700fc755fef51c8e7e67c4b63e3ac \
+    --hash=sha256:7e53db173370dea832190870e975a1e09c86a879b613948f09eb49324218c14d \
+    --hash=sha256:7febc3094125fc126a7f6fb1f420d0da639f3f32cb15c8ff0dc3997c4549f51a \
+    --hash=sha256:80907d3faa55dc5434a16579952ac6da800935cd98d14dbd62f6f042c7f5e839 \
+    --hash=sha256:86defa8d248c3fa029da68ce61fe735432b047e32179883bdb1e79ed9bb8195e \
+    --hash=sha256:8ac4f9ead4bbd0bc8ab2d318f97d85147167a488be0e08814a37eb2f439d5cf6 \
+    --hash=sha256:93530900d14c37a46ce3d6c9e6fd35dbe5f5601bf6b3a5c325c7bffc030344d9 \
+    --hash=sha256:9eeb77214afae972a00dee47382d2591abe77bdae166bda672fb1e24702a3860 \
+    --hash=sha256:b5f4dfe950ff0479f1f00eda09c18798d4f49b98f4e2006d644b3301682ebdca \
+    --hash=sha256:c3391bd8e6de35f6f1140e50aaeb3e2b3d6a9012536ca23ab0d9c35ec18c8a91 \
+    --hash=sha256:c880eba5175f4307129784eca96f4e70b88e57aa3f680aeba3bab0e980b0f37d \
+    --hash=sha256:cecfefa17042941f94ab54f769c8ce0fe14beff2694e9ac684176a2535bf9714 \
+    --hash=sha256:e40211b4923ba5a6dc9769eab704bdb3fbb58d56c5b336d30996c24fcf12aadb \
+    --hash=sha256:efc8ad4e6fc4f1752ebfb58aefece8b4e3c4cae940b0994d43649bdfce8d0d4f
     # via
     #   pyspnego
     #   requests-kerberos