diff --git a/apps/server/src/mcp/McpHttpServer.test.ts b/apps/server/src/mcp/McpHttpServer.test.ts
index e3622194ec40f..a4c3e4fc198f7 100644
--- a/apps/server/src/mcp/McpHttpServer.test.ts
+++ b/apps/server/src/mcp/McpHttpServer.test.ts
@@ -24,6 +24,7 @@ import * as Layer from "effect/Layer";
 import * as Logger from "effect/Logger";
 import * as Schema from "effect/Schema";
 import * as Stream from "effect/Stream";
+import * as Tracer from "effect/Tracer";
 import { McpSchema, McpServer, Tool, Toolkit } from "effect/ai";
 import { HttpBody, HttpClient, HttpClientRequest, HttpRouter } from "effect/http";
 
@@ -140,6 +141,26 @@ const serveSnapshots = (clientId: string, result: unknown) =>
     return inputs;
   });
 
+/** Records every span and the order spans start and end in, by span ID. */
+const recordSpans = () => {
+  const spans: Array<Tracer.NativeSpan> = [];
+  const order: Array<string> = [];
+  const tracer = Tracer.make({
+    span: (options) => {
+      const span = new Tracer.NativeSpan(options);
+      spans.push(span);
+      order.push(`start ${span.spanId}`);
+      const end = span.end.bind(span);
+      span.end = (endTime, exit) => {
+        end(endTime, exit);
+        order.push(`end ${span.spanId}`);
+      };
+      return span;
+    },
+  });
+  return { tracer, spans, order };
+};
+
 const callTool = (name: string, args: Record<string, unknown>) =>
   Effect.gen(function* () {
     const server = yield* McpServer.McpServer;
@@ -178,12 +199,14 @@ it.effect.each([
   ({ input, open, message, ...options }) =>
     Effect.gen(function* () {
       const server = yield* McpServer.McpServer;
+      const traced = recordSpans();
       const result = yield* server.callTool({ name: "device_screenshot", arguments: input }).pipe(
         Effect.provideService(McpInvocationContext.McpInvocationContext, {
           ...invocation,
           capabilities: new Set(["device"] as const),
         }),
         Effect.provideService(McpSchema.McpServerClient, client),
+        Effect.withTracer(traced.tracer),
       );
       expect(result.isError).toBe(true);
       expect(result.content).toEqual([{ type: "text", text: message }]);
@@ -191,6 +214,14 @@ it.effect.each([
         error: { message, operation: "screenshot" },
       });
       expect(JSON.stringify(result)).not.toContain("private hub output");
+      // The tool's span names it, never its arguments.
+      expect(
+        traced.spans
+          .filter((span) => span.name.startsWith("mcp.tool."))
+          .map((span) => Object.fromEntries(span.attributes)),
+      ).toEqual([
+        { "rpc.system": "mcp", "rpc.method": "tools/call", "mcp.tool.name": "device_screenshot" },
+      ]);
     }).pipe(
       Effect.provide(
         McpHttpServer.layerDeviceToolkit.pipe(
@@ -904,8 +935,10 @@ it.effect("admits provider and OAuth client credentials and points only clients
           }),
         ),
       );
+      const traced = recordSpans();
       yield* HttpRouter.serve(serverLayer, { disableListenLog: true, disableLogger: true }).pipe(
         Layer.build,
+        Effect.withTracer(traced.tracer),
       );
       const httpClient = yield* HttpClient.HttpClient;
       const call = (token: string | undefined) =>
@@ -936,6 +969,21 @@ it.effect("admits provider and OAuth client credentials and points only clients
         });
 
       expect((yield* call(providerToken)).status).toBe(200);
+      // The tool gets its own span, without its arguments, which starts once authentication has ended.
+      const toolSpan = traced.spans.find((span) => span.name === "mcp.tool.probe");
+      expect(Object.fromEntries(toolSpan?.attributes ?? [])).toEqual({
+        "rpc.system": "mcp",
+        "rpc.method": "tools/call",
+        "mcp.tool.name": "probe",
+      });
+      const authSpan = traced.spans.find(
+        (span) =>
+          span.name === "McpHttpServer.authenticateRequest" && span.traceId === toolSpan?.traceId,
+      );
+      expect(authSpan).toBeDefined();
+      expect(traced.order.slice(0, traced.order.indexOf(`start ${toolSpan?.spanId}`))).toContain(
+        `end ${authSpan?.spanId}`,
+      );
       expect((yield* call(clientToken)).status).toBe(200);
       expect(seen.map((scope) => scope.requestNamespace)).toEqual([
         "provider-session",
@@ -952,9 +1000,22 @@ it.effect("admits provider and OAuth client credentials and points only clients
       expect(expiredClient.headers["www-authenticate"]).toContain("resource_metadata=");
       expect(expiredClient.headers["www-authenticate"]).toContain('error="invalid_token"');
 
+      const spansBeforeRejection = traced.spans.length;
       const deadProvider = yield* call("deadProviderToken");
       expect(deadProvider.status).toBe(401);
       expect(deadProvider.headers["www-authenticate"]).toBe('Bearer error="invalid_token"');
+      // A rejected credential is recorded on the auth span, and nothing is handled.
+      const rejectedSpans = traced.spans.slice(spansBeforeRejection);
+      expect(
+        rejectedSpans
+          .filter((span) => span.name === "McpHttpServer.authenticateRequest")
+          .map((span) => span.events.map(([name]) => name)),
+      ).toEqual([[expect.stringContaining("unknown_or_expired_token")]]);
+      expect(
+        rejectedSpans.filter(
+          (span) => span.name.startsWith("mcp.tool.") || span.name.startsWith("McpServer."),
+        ),
+      ).toEqual([]);
     }),
   ).pipe(Effect.provide(NodeHttpServer.layerTest)),
 );
diff --git a/apps/server/src/mcp/McpHttpServer.ts b/apps/server/src/mcp/McpHttpServer.ts
index 9bc3b9da43d94..66fdd446fc991 100644
--- a/apps/server/src/mcp/McpHttpServer.ts
+++ b/apps/server/src/mcp/McpHttpServer.ts
@@ -203,8 +203,9 @@ const makeMcpAuthMiddleware = Effect.gen(function* () {
     Effect.map((settings) => settings.linkedEnvironmentsEnabled),
     Effect.orElseSucceed(() => false),
   );
-  return Effect.fn("McpHttpServer.authenticateRequest")(function* (httpEffect) {
-    const request = yield* HttpServerRequest.HttpServerRequest;
+  const authenticateRequest = Effect.fn("McpHttpServer.authenticateRequest")(function* (
+    request: HttpServerRequest.HttpServerRequest,
+  ) {
     const authorization = request.headers.authorization;
     const token = parseBearerToken(request) ?? "";
     const invocation =
@@ -234,11 +235,14 @@ const makeMcpAuthMiddleware = Effect.gen(function* () {
     const limited = McpInvocationContext.withRuntimeModeCeiling(asked, runtimeModeCeiling);
     const linkedEnvironments = yield* linksEnabled;
     if (limited.client?.linked === true && !linkedEnvironments) return linkedEnvironmentsOff;
+    return { ...limited, linkedEnvironments };
+  });
+  // Untraced: a span here would wrap the tool call; the HTTP server span already covers it.
+  return Effect.fnUntraced(function* (httpEffect) {
+    const admitted = yield* authenticateRequest(yield* HttpServerRequest.HttpServerRequest);
+    if (HttpServerResponse.isHttpServerResponse(admitted)) return admitted;
     return yield* httpEffect.pipe(
-      Effect.provideService(McpInvocationContext.McpInvocationContext, {
-        ...limited,
-        linkedEnvironments,
-      }),
+      Effect.provideService(McpInvocationContext.McpInvocationContext, admitted),
       Effect.map(normalizeMcpHttpResponse),
     );
   }) satisfies McpAuthMiddleware;
@@ -1022,6 +1026,36 @@ const withToolAnalytics =
     return yield* registration.pipe(Effect.provideService(McpServer.McpServer, recordingServer));
   });
 
+/** Each tool call gets a span named for its tool; arguments stay out, as they carry prompts and IDs. */
+const withToolSpans = Effect.fn("McpHttpServer.withToolSpans")(function* <A, E, R>(
+  registration: Effect.Effect<A, E, R>,
+) {
+  const server = yield* McpServer.McpServer;
+  const tracingServer = McpServer.McpServer.of({
+    ...server,
+    addTool: Effect.fn("McpServer.addTool")(function (options) {
+      const name = options.tool.name;
+      return server.addTool({
+        ...options,
+        // Never the current span: Toolkit.handle annotates that one with the raw arguments.
+        handle: (payload) =>
+          Effect.useSpan(
+            `mcp.tool.${name}`,
+            {
+              attributes: {
+                "rpc.system": "mcp",
+                "rpc.method": "tools/call",
+                "mcp.tool.name": name,
+              },
+            },
+            () => options.handle(payload),
+          ),
+      });
+    }),
+  });
+  return yield* registration.pipe(Effect.provideService(McpServer.McpServer, tracingServer));
+});
+
 /** `McpServer.registerToolkit` advertises the full codec schema; agents get the compact one. */
 const withAdvertisedSchemas = Effect.fn("McpHttpServer.withAdvertisedSchemas")(function* <
   Tools extends Record<string, Tool.Any>,
@@ -1074,7 +1108,9 @@ export const toolkitRegistration = <Tools extends Record<string, Tool.Any>, EX,
 ) =>
   Layer.effectDiscard(
     withToolAnalytics(
-      withAdvertisedSchemas(toolkit, McpServer.registerToolkit(decodeAsAdvertised(toolkit))),
+      withToolSpans(
+        withAdvertisedSchemas(toolkit, McpServer.registerToolkit(decodeAsAdvertised(toolkit))),
+      ),
     ),
   ).pipe(
     Layer.provide(
@@ -1090,7 +1126,7 @@ const imageToolRegistration = <Tools extends Record<string, Tool.Any>, A, E, R,
   register: Effect.Effect<A, E, R>,
   handlers: McpToolAccess.HandlersLayer<Tools, EX, RX>,
 ) =>
-  Layer.effectDiscard(withToolAnalytics(register)).pipe(
+  Layer.effectDiscard(withToolAnalytics(withToolSpans(register))).pipe(
     Layer.provide(McpToolAccess.HandlersLayer.layer(handlers)),
   );
 
diff --git a/docs/operations/observability.md b/docs/operations/observability.md
index ab27a5f87c607..3edebc634cd79 100644
--- a/docs/operations/observability.md
+++ b/docs/operations/observability.md
@@ -63,6 +63,11 @@ span spent waiting for that connection, behind other SQL. That wait does not blo
 so subtract it before you blame a slow span on the query. Statements inside a transaction use its
 connection and do not carry these attributes.
 
+An MCP request over HTTP has a `McpHttpServer.authenticateRequest` span that covers only admitting
+it: the credential check, the mode limit, and the Linked environments gate. The request runs after
+it, under the `McpServer.…/<method>` span, and each tool call has its own `mcp.tool.<name>` span
+that times it. That span's attributes name the tool, never its arguments.
+
 DPoP proof failures include the safe `environment.dpop.failure_code` span
 attribute. A `time_window` failure means that a signed proof was too old or too
 far in the future for the environment server's allowed window. It can point to