diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py
index fcd801fa..4f10da10 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/config.py
@@ -11,6 +11,7 @@
 from opentelemetry.sdk.trace.export import BatchSpanProcessor, ConsoleSpanExporter
 
 from .exporters.agent365_exporter import Agent365Exporter
+from .exporters.agent365_exporter_options import Agent365ExporterOptions
 from .exporters.utils import is_agent365_exporter_enabled
 from .trace_processor.span_processor import SpanProcessor
 
@@ -51,6 +52,7 @@ def configure(
         logger_name: str = DEFAULT_LOGGER_NAME,
         token_resolver: Callable[[str, str], str | None] | None = None,
         cluster_category: str = "prod",
+        exporter_options: Optional[Agent365ExporterOptions] = None,
         **kwargs: Any,
     ) -> bool:
         """
@@ -59,8 +61,12 @@ def configure(
         :param service_name: The name of the service.
         :param service_namespace: The namespace of the service.
         :param logger_name: The name of the logger to collect telemetry from.
-        :param token_resolver: Callable that returns an auth token for a given agent + tenant.
-        :param cluster_category: Environment / cluster category (e.g., "preprod", "prod").
+        :param token_resolver: (Deprecated) Callable that returns an auth token for a given agent + tenant.
+            Use exporter_options instead.
+        :param cluster_category: (Deprecated) Environment / cluster category (e.g. "prod").
+            Use exporter_options instead.
+        :param exporter_options: Agent365ExporterOptions instance for configuring the exporter.
+            If provided, exporter_options takes precedence. If exporter_options is None, the token_resolver and cluster_category parameters are used as fallback/legacy support to construct a default Agent365ExporterOptions instance.
         :return: True if configuration succeeded, False otherwise.
         """
         try:
@@ -71,6 +77,7 @@ def configure(
                     logger_name,
                     token_resolver,
                     cluster_category,
+                    exporter_options,
                     **kwargs,
                 )
         except Exception as e:
@@ -84,6 +91,7 @@ def _configure_internal(
         logger_name: str,
         token_resolver: Callable[[str, str], str | None] | None = None,
         cluster_category: str = "prod",
+        exporter_options: Optional[Agent365ExporterOptions] = None,
         **kwargs: Any,
     ) -> bool:
         """Internal configuration method - not thread-safe, must be called with lock."""
@@ -115,11 +123,26 @@ def _configure_internal(
         trace.set_tracer_provider(tracer_provider)
         self._tracer_provider = tracer_provider
 
-        if is_agent365_exporter_enabled() and token_resolver is not None:
-            exporter = Agent365Exporter(
-                token_resolver=token_resolver,
+        # Use exporter_options if provided, otherwise create default options with legacy parameters
+        if exporter_options is None:
+            exporter_options = Agent365ExporterOptions(
                 cluster_category=cluster_category,
-                **kwargs,
+                token_resolver=token_resolver,
+            )
+
+        # Extract configuration for BatchSpanProcessor
+        batch_processor_kwargs = {
+            "max_queue_size": exporter_options.max_queue_size,
+            "schedule_delay_millis": exporter_options.scheduled_delay_ms,
+            "export_timeout_millis": exporter_options.exporter_timeout_ms,
+            "max_export_batch_size": exporter_options.max_export_batch_size,
+        }
+
+        if is_agent365_exporter_enabled() and exporter_options.token_resolver is not None:
+            exporter = Agent365Exporter(
+                token_resolver=exporter_options.token_resolver,
+                cluster_category=exporter_options.cluster_category,
+                use_s2s_endpoint=exporter_options.use_s2s_endpoint,
             )
         else:
             exporter = ConsoleSpanExporter()
@@ -130,7 +153,7 @@ def _configure_internal(
         # Add span processors
 
         # Create BatchSpanProcessor with optimized settings
-        batch_processor = BatchSpanProcessor(exporter)
+        batch_processor = BatchSpanProcessor(exporter, **batch_processor_kwargs)
         agent_processor = SpanProcessor()
 
         tracer_provider.add_span_processor(batch_processor)
@@ -197,6 +220,7 @@ def configure(
     logger_name: str = DEFAULT_LOGGER_NAME,
     token_resolver: Callable[[str, str], str | None] | None = None,
     cluster_category: str = "prod",
+    exporter_options: Optional[Agent365ExporterOptions] = None,
     **kwargs: Any,
 ) -> bool:
     """
@@ -205,6 +229,12 @@ def configure(
     :param service_name: The name of the service.
     :param service_namespace: The namespace of the service.
     :param logger_name: The name of the logger to collect telemetry from.
+    :param token_resolver: (Deprecated) Callable that returns an auth token for a given agent + tenant.
+        Use exporter_options instead.
+    :param cluster_category: (Deprecated) Environment / cluster category (e.g. "prod").
+        Use exporter_options instead.
+    :param exporter_options: Agent365ExporterOptions instance for configuring the exporter.
+        If provided, exporter_options takes precedence. If exporter_options is None, the token_resolver and cluster_category parameters are used as fallback/legacy support to construct a default Agent365ExporterOptions instance.
     :return: True if configuration succeeded, False otherwise.
     """
     return _telemetry_manager.configure(
@@ -213,6 +243,7 @@ def configure(
         logger_name,
         token_resolver,
         cluster_category,
+        exporter_options,
         **kwargs,
     )
 
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/constants.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/constants.py
index eda9442b..823bc4c6 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/constants.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/constants.py
@@ -92,13 +92,13 @@
 GEN_AI_AGENT_BLUEPRINT_ID_KEY = "gen_ai.agent.applicationid"
 CORRELATION_ID_KEY = "correlation.id"
 HIRING_MANAGER_ID_KEY = "hiring.manager.id"
+SESSION_DESCRIPTION_KEY = "session.description"
 
 # Execution context dimensions
 GEN_AI_EXECUTION_TYPE_KEY = "gen_ai.execution.type"
 GEN_AI_EXECUTION_PAYLOAD_KEY = "gen_ai.execution.payload"
 
 # Source metadata dimensions
-GEN_AI_EXECUTION_SOURCE_ID_KEY = "gen_ai.execution.sourceMetadata.id"
 GEN_AI_EXECUTION_SOURCE_NAME_KEY = "gen_ai.channel.name"
 GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY = "gen_ai.channel.link"
 
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/exporters/agent365_exporter_options.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/exporters/agent365_exporter_options.py
new file mode 100644
index 00000000..894f017d
--- /dev/null
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/exporters/agent365_exporter_options.py
@@ -0,0 +1,39 @@
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
+
+from typing import Awaitable, Callable, Optional
+
+
+class Agent365ExporterOptions:
+    """
+    Configuration for Agent365Exporter.
+    Only cluster_category and token_resolver are required for core operation.
+    """
+
+    def __init__(
+        self,
+        cluster_category: str = "prod",
+        token_resolver: Optional[Callable[[str, str], Awaitable[Optional[str]]]] = None,
+        use_s2s_endpoint: bool = False,
+        max_queue_size: int = 2048,
+        scheduled_delay_ms: int = 5000,
+        exporter_timeout_ms: int = 30000,
+        max_export_batch_size: int = 512,
+    ):
+        """
+        Args:
+            cluster_category: Cluster region argument. Defaults to 'prod'.
+            token_resolver: Async callable that resolves the auth token (REQUIRED).
+            use_s2s_endpoint: Use the S2S endpoint instead of standard endpoint.
+            max_queue_size: Maximum queue size for the batch processor. Default is 2048.
+            scheduled_delay_ms: Delay between export batches (ms). Default is 5000.
+            exporter_timeout_ms: Timeout for the export operation (ms). Default is 30000.
+            max_export_batch_size: Maximum batch size for export operations. Default is 512.
+        """
+        self.cluster_category = cluster_category
+        self.token_resolver = token_resolver
+        self.use_s2s_endpoint = use_s2s_endpoint
+        self.max_queue_size = max_queue_size
+        self.scheduled_delay_ms = scheduled_delay_ms
+        self.exporter_timeout_ms = exporter_timeout_ms
+        self.max_export_batch_size = max_export_batch_size
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/invoke_agent_scope.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/invoke_agent_scope.py
index 63281159..b0d6fa2b 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/invoke_agent_scope.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/invoke_agent_scope.py
@@ -17,7 +17,6 @@
     GEN_AI_CALLER_UPN_KEY,
     GEN_AI_CALLER_USER_ID_KEY,
     GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY,
-    GEN_AI_EXECUTION_SOURCE_ID_KEY,
     GEN_AI_EXECUTION_SOURCE_NAME_KEY,
     GEN_AI_EXECUTION_TYPE_KEY,
     GEN_AI_INPUT_MESSAGES_KEY,
@@ -111,7 +110,6 @@ def __init__(
         # Set request metadata if provided
         if request:
             if request.source_metadata:
-                self.set_tag_maybe(GEN_AI_EXECUTION_SOURCE_ID_KEY, request.source_metadata.id)
                 self.set_tag_maybe(GEN_AI_EXECUTION_SOURCE_NAME_KEY, request.source_metadata.name)
                 self.set_tag_maybe(
                     GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY, request.source_metadata.description
@@ -121,6 +119,7 @@ def __init__(
                 GEN_AI_EXECUTION_TYPE_KEY,
                 request.execution_type.value if request.execution_type else None,
             )
+            self.set_tag_maybe(GEN_AI_INPUT_MESSAGES_KEY, safe_json_dumps([request.content]))
 
         # Set caller details tags
         if caller_details:
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/baggage_builder.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/baggage_builder.py
index ba08a5f0..b321306d 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/baggage_builder.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/baggage_builder.py
@@ -20,12 +20,15 @@
     GEN_AI_CONVERSATION_ID_KEY,
     GEN_AI_CONVERSATION_ITEM_LINK_KEY,
     GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY,
-    GEN_AI_EXECUTION_SOURCE_ID_KEY,
     GEN_AI_EXECUTION_SOURCE_NAME_KEY,
     HIRING_MANAGER_ID_KEY,
     OPERATION_SOURCE_KEY,
+    SESSION_DESCRIPTION_KEY,
+    SESSION_ID_KEY,
     TENANT_ID_KEY,
 )
+from ..models.operation_source import OperationSource
+from ..utils import deprecated
 from .turn_context_baggage import from_turn_context
 
 
@@ -50,16 +53,18 @@ def __init__(self):
         """Initialize the baggage builder."""
         self._pairs: dict[str, str] = {}
 
-    def operation_source(self, value: str | None) -> "BaggageBuilder":
+    def operation_source(self, value: OperationSource | None) -> "BaggageBuilder":
         """Set the operation source baggage value.
 
         Args:
-            value: The operation source value
+            value: The operation source enum value
 
         Returns:
             Self for method chaining
         """
-        self._set(OPERATION_SOURCE_KEY, value)
+        # Convert enum to string value for baggage storage
+        str_value = value.value if value is not None else None
+        self._set(OPERATION_SOURCE_KEY, str_value)
         return self
 
     def tenant_id(self, value: str | None) -> "BaggageBuilder":
@@ -188,18 +193,38 @@ def conversation_item_link(self, value: str | None) -> "BaggageBuilder":
         self._set(GEN_AI_CONVERSATION_ITEM_LINK_KEY, value)
         return self
 
+    @deprecated("This is a no-op. Use channel_name() or channel_links() instead.")
     def source_metadata_id(self, value: str | None) -> "BaggageBuilder":
         """Set the execution source metadata ID (e.g., channel ID)."""
-        self._set(GEN_AI_EXECUTION_SOURCE_ID_KEY, value)
         return self
 
+    @deprecated("Use channel_name() instead")
     def source_metadata_name(self, value: str | None) -> "BaggageBuilder":
         """Set the execution source metadata name (e.g., channel name)."""
-        self._set(GEN_AI_EXECUTION_SOURCE_NAME_KEY, value)
-        return self
+        return self.channel_name(value)
 
+    @deprecated("Use channel_links() instead")
     def source_metadata_description(self, value: str | None) -> "BaggageBuilder":
         """Set the execution source metadata description (e.g., channel description)."""
+        return self.channel_links(value)
+
+    def session_id(self, value: str | None) -> "BaggageBuilder":
+        """Set the session ID baggage value."""
+        self._set(SESSION_ID_KEY, value)
+        return self
+
+    def session_description(self, value: str | None) -> "BaggageBuilder":
+        """Set the session description baggage value."""
+        self._set(SESSION_DESCRIPTION_KEY, value)
+        return self
+
+    def channel_name(self, value: str | None) -> "BaggageBuilder":
+        """Sets the channel name baggage value (e.g., 'Teams', 'msteams')."""
+        self._set(GEN_AI_EXECUTION_SOURCE_NAME_KEY, value)
+        return self
+
+    def channel_links(self, value: str | None) -> "BaggageBuilder":
+        """Sets the channel link baggage value. (e.g., channel links or description)."""
         self._set(GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY, value)
         return self
 
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/turn_context_baggage.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/turn_context_baggage.py
index 8f8cddc3..a0f528e5 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/turn_context_baggage.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/middleware/turn_context_baggage.py
@@ -1,7 +1,7 @@
 from __future__ import annotations
 
 import json
-from typing import Any, Iterable, Iterator, Mapping
+from typing import Any, Iterator, Mapping
 
 from ..constants import (
     GEN_AI_AGENT_AUID_KEY,
@@ -17,7 +17,6 @@
     GEN_AI_CONVERSATION_ID_KEY,
     GEN_AI_CONVERSATION_ITEM_LINK_KEY,
     GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY,
-    GEN_AI_EXECUTION_SOURCE_ID_KEY,
     GEN_AI_EXECUTION_SOURCE_NAME_KEY,
     GEN_AI_EXECUTION_TYPE_KEY,
     TENANT_ID_KEY,
@@ -26,9 +25,6 @@
 
 AGENT_ROLE = "agenticUser"
 CHANNEL_ID_AGENTS = "agents"
-ENTITY_TYPE_WPX_COMMENT = "wpxcomment"
-ENTITY_TYPE_EMAIL_NOTIFICATION = "emailNotification"
-WPX_CONVERSATION_ID_FORMAT = "{document_id}_{parent_comment_id}"
 
 
 def _safe_get(obj: Any, *names: str) -> Any:
@@ -135,37 +131,40 @@ def _iter_tenant_id_pair(activity: Any) -> Iterator[tuple[str, Any]]:
 
 
 def _iter_source_metadata_pairs(activity: Any) -> Iterator[tuple[str, Any]]:
+    """
+    Generate source metadata pairs from activity, handling both string and ChannelId object cases.
+
+    :param activity: The activity object (Activity instance or dict)
+    :return: Iterator of (key, value) tuples for source metadata
+    """
+    # Handle channel_id (can be string or ChannelId object)
     channel_id = _safe_get(activity, "channel_id")
-    yield GEN_AI_EXECUTION_SOURCE_ID_KEY, channel_id
-    yield GEN_AI_EXECUTION_SOURCE_NAME_KEY, channel_id
-    yield GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY, _safe_get(activity, "type", "Type")
+
+    # Extract channel name from either string or ChannelId object
+    channel_name = None
+    sub_channel = None
+
+    if channel_id is not None:
+        if isinstance(channel_id, str):
+            # Direct string value
+            channel_name = channel_id
+        elif hasattr(channel_id, "channel"):
+            # ChannelId object
+            channel_name = channel_id.channel
+            sub_channel = getattr(channel_id, "sub_channel", None)
+        elif isinstance(channel_id, dict):
+            # Serialized ChannelId as dict
+            channel_name = channel_id.get("channel")
+            sub_channel = channel_id.get("sub_channel")
+
+    # Yield channel name as source name
+    yield GEN_AI_EXECUTION_SOURCE_NAME_KEY, channel_name
+    yield GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY, sub_channel
 
 
 def _iter_conversation_pairs(activity: Any) -> Iterator[tuple[str, Any]]:
-    channel_id = _safe_get(activity, "channel_id")
-    entities = _safe_get(activity, "entities") or []
-    conversation_id = None
-
-    if channel_id == CHANNEL_ID_AGENTS and isinstance(entities, Iterable):
-        # search entities for wpxcomment or emailNotification
-        for e in entities:
-            etype = _safe_get(e, "type", "Type")
-            if etype == ENTITY_TYPE_WPX_COMMENT:
-                document_id = _safe_get(e, "documentId", "document_id")
-                parent_comment_id = _safe_get(e, "parentCommentId", "parent_comment_id")
-                if document_id and parent_comment_id:
-                    conversation_id = WPX_CONVERSATION_ID_FORMAT.format(
-                        document_id=document_id,
-                        parent_comment_id=parent_comment_id,
-                    )
-                    break
-            elif etype == ENTITY_TYPE_EMAIL_NOTIFICATION:
-                conversation_id = _safe_get(e, "conversationId", "conversation_id")
-                if conversation_id:
-                    break
-    if not conversation_id:
-        conv = _safe_get(activity, "conversation")
-        conversation_id = _safe_get(conv, "id", "Id")
+    conv = _safe_get(activity, "conversation")
+    conversation_id = _safe_get(conv, "id")
 
     item_link = _safe_get(activity, "service_url")
 
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/models/operation_source.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/models/operation_source.py
new file mode 100644
index 00000000..2395879b
--- /dev/null
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/models/operation_source.py
@@ -0,0 +1,21 @@
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
+
+"""Operation source enumeration for Agent365 SDK."""
+
+from enum import Enum
+
+
+class OperationSource(Enum):
+    """
+    Enumeration representing the source of an operation.
+    """
+
+    SDK = "SDK"
+    """Operation executed by SDK."""
+
+    GATEWAY = "Gateway"
+    """Operation executed by Gateway."""
+
+    MCP_SERVER = "MCPServer"
+    """Operation executed by MCP Server."""
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/request.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/request.py
index 418b7705..3e292641 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/request.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/request.py
@@ -16,4 +16,3 @@ class Request:
     execution_type: ExecutionType
     session_id: str | None = None
     source_metadata: SourceMetadata | None = None
-    payload: str | None = None
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/span_processor.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/span_processor.py
index aa44af6e..237be264 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/span_processor.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/span_processor.py
@@ -16,7 +16,8 @@
 from opentelemetry import baggage, context
 from opentelemetry.sdk.trace import SpanProcessor as BaseSpanProcessor
 
-from ..constants import GEN_AI_OPERATION_NAME_KEY, INVOKE_AGENT_OPERATION_NAME
+from ..constants import GEN_AI_OPERATION_NAME_KEY, INVOKE_AGENT_OPERATION_NAME, OPERATION_SOURCE_KEY
+from ..models.operation_source import OperationSource
 from .util import COMMON_ATTRIBUTES, INVOKE_AGENT_ATTRIBUTES
 
 
@@ -41,6 +42,14 @@ def on_start(self, span, parent_context=None):
         except Exception:
             baggage_map = {}
 
+        # Set operation source - coalesce baggage value with SDK default
+        if OPERATION_SOURCE_KEY not in existing:
+            operation_source = baggage_map.get(OPERATION_SOURCE_KEY) or OperationSource.SDK.value
+            try:
+                span.set_attribute(OPERATION_SOURCE_KEY, operation_source)
+            except Exception:
+                pass
+
         operation_name = existing.get(GEN_AI_OPERATION_NAME_KEY)
         is_invoke_agent = False
         if operation_name == INVOKE_AGENT_OPERATION_NAME:
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/util.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/util.py
index 524413ab..f5283237 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/util.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/trace_processor/util.py
@@ -19,6 +19,10 @@
     consts.GEN_AI_AGENT_BLUEPRINT_ID_KEY,  # gen_ai.agent.applicationid
     consts.GEN_AI_AGENT_AUID_KEY,
     consts.GEN_AI_AGENT_TYPE_KEY,
+    consts.OPERATION_SOURCE_KEY,  # operation.source
+    consts.SESSION_ID_KEY,
+    consts.SESSION_DESCRIPTION_KEY,
+    consts.HIRING_MANAGER_ID_KEY,
 ]
 
 # Invoke Agent–specific attributes
@@ -38,7 +42,6 @@
     consts.GEN_AI_CALLER_AGENT_APPLICATION_ID_KEY,  # gen_ai.caller.agent.applicationid
     # Execution context
     consts.GEN_AI_EXECUTION_TYPE_KEY,  # gen_ai.execution.type
-    consts.GEN_AI_EXECUTION_SOURCE_ID_KEY,  # gen_ai.execution.sourceMetadata.id
     consts.GEN_AI_EXECUTION_SOURCE_NAME_KEY,  # gen_ai.execution.sourceMetadata.name
     consts.GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY,  # gen_ai.execution.sourceMetadata.description
 ]
diff --git a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/utils.py b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/utils.py
index 7237242d..b1461b3f 100644
--- a/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/utils.py
+++ b/libraries/microsoft-agents-a365-observability-core/microsoft_agents_a365/observability/core/utils.py
@@ -1,15 +1,21 @@
-# Copyright (c) Microsoft. All rights reserved.
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
 
 import datetime
+import functools
 import json
 import logging
 import traceback
+import warnings
 from collections.abc import Callable, Hashable, Iterable, Iterator, Mapping
 from enum import Enum
 from threading import RLock
 from typing import Any, Generic, TypeVar, cast
 
-from opentelemetry.semconv.trace import SpanAttributes as OTELSpanAttributes
+from opentelemetry.semconv.attributes.exception_attributes import (
+    EXCEPTION_MESSAGE,
+    EXCEPTION_STACKTRACE,
+)
 from opentelemetry.trace import Span
 from opentelemetry.util.types import AttributeValue
 from wrapt import ObjectProxy
@@ -69,10 +75,10 @@ def record_exception(span: Span, error: BaseException) -> None:
         exception_message = repr(error)
     attributes: dict[str, AttributeValue] = {
         ERROR_TYPE_KEY: exception_type,
-        OTELSpanAttributes.EXCEPTION_MESSAGE: exception_message,
+        EXCEPTION_MESSAGE: exception_message,
     }
     try:
-        attributes[OTELSpanAttributes.EXCEPTION_STACKTRACE] = traceback.format_exc()
+        attributes[EXCEPTION_STACKTRACE] = traceback.format_exc()
     except Exception:
         logger.exception("Failed to record exception stacktrace.")
     span.add_event(name="exception", attributes=attributes)
@@ -149,3 +155,21 @@ def extract_model_name(span_name: str) -> str | None:
         return model_name.strip()
 
     return None
+
+
+def deprecated(reason: str):
+    """Decorator to mark functions as deprecated."""
+
+    def decorator(func):
+        @functools.wraps(func)
+        def wrapper(*args, **kwargs):
+            warnings.warn(
+                f"{func.__name__}() is deprecated. {reason}",
+                category=DeprecationWarning,
+                stacklevel=2,
+            )
+            return func(*args, **kwargs)
+
+        return wrapper
+
+    return decorator
diff --git a/tests/observability/core/test_agent365.py b/tests/observability/core/test_agent365.py
index 02bbb32a..2ebde6ad 100644
--- a/tests/observability/core/test_agent365.py
+++ b/tests/observability/core/test_agent365.py
@@ -1,36 +1,117 @@
-# Copyright (c) Microsoft. All rights reserved.
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
 
+import unittest
+from unittest.mock import Mock, patch
 
 from microsoft_agents_a365.observability.core import configure
+from microsoft_agents_a365.observability.core.exporters.agent365_exporter_options import (
+    Agent365ExporterOptions,
+)
 from microsoft_agents_a365.observability.core.trace_processor import SpanProcessor
 
 
-def test_basic_functionality():
-    """Test basic Microsoft Agent 365 SDK functionality"""
-    print("Testing Microsoft Agent 365 SDK...")
+class TestAgent365Configure(unittest.TestCase):
+    """Test suite for Agent365 configuration functionality."""
 
-    # Test configure function
-    try:
-        configure(
+    def setUp(self):
+        """Set up test fixtures."""
+        self.mock_token_resolver = Mock()
+        self.mock_token_resolver.return_value = "test_token_123"
+
+    def test_configure_basic_functionality(self):
+        """Test configure function with basic parameters and legacy parameters."""
+        # Test basic configuration without exporter_options
+        result = configure(
+            service_name="test-service",
+            service_namespace="test-namespace",
+        )
+        self.assertTrue(result, "configure() should return True")
+
+        # Test configuration with legacy parameters
+        result = configure(
+            service_name="test-service",
+            service_namespace="test-namespace",
+            token_resolver=self.mock_token_resolver,
+            cluster_category="test",
+        )
+        self.assertTrue(result, "configure() should return True with legacy parameters")
+
+    @patch("microsoft_agents_a365.observability.core.config.is_agent365_exporter_enabled")
+    def test_configure_with_exporter_options_and_parameter_precedence(self, mock_is_enabled):
+        """Test configure function with exporter_options and verify parameter precedence."""
+        # Enable Agent365 exporter for this test
+        mock_is_enabled.return_value = True
+
+        # Test 1: Basic exporter_options functionality
+        exporter_options = Agent365ExporterOptions(
+            cluster_category="dev",
+            token_resolver=self.mock_token_resolver,
+            use_s2s_endpoint=True,
+            max_queue_size=1024,
+            scheduled_delay_ms=2500,
+            exporter_timeout_ms=15000,
+            max_export_batch_size=256,
+        )
+
+        result = configure(
             service_name="test-service",
             service_namespace="test-namespace",
+            exporter_options=exporter_options,
+        )
+        self.assertTrue(result, "configure() should return True with exporter_options")
+
+    @patch("microsoft_agents_a365.observability.core.config.Agent365Exporter")
+    @patch("microsoft_agents_a365.observability.core.config.BatchSpanProcessor")
+    @patch("microsoft_agents_a365.observability.core.config.is_agent365_exporter_enabled")
+    def test_batch_span_processor_and_exporter_called_with_correct_values(
+        self, mock_is_enabled, mock_batch_processor, mock_exporter
+    ):
+        """Test that BatchSpanProcessor and Agent365Exporter are called with correct values from exporter_options."""
+        # Enable Agent365 exporter for this test
+        mock_is_enabled.return_value = True
+
+        # Create exporter options with specific values
+        exporter_options = Agent365ExporterOptions(
+            cluster_category="staging",
+            token_resolver=self.mock_token_resolver,
+            use_s2s_endpoint=True,
+            max_queue_size=512,
+            scheduled_delay_ms=1000,
+            exporter_timeout_ms=10000,
+            max_export_batch_size=128,
+        )
+
+        # Configure with exporter_options
+        result = configure(
+            service_name="test-service",
+            service_namespace="test-namespace",
+            exporter_options=exporter_options,
+        )
+
+        # Verify configuration succeeded
+        self.assertTrue(result, "configure() should return True")
+
+        # Verify Agent365Exporter was called with correct parameters
+        mock_exporter.assert_called_once_with(
+            token_resolver=self.mock_token_resolver,
+            cluster_category="staging",
+            use_s2s_endpoint=True,
         )
-        print("✅ configure() executed successfully")
-    except Exception as e:
-        print(f"❌ configure() failed: {e}")
-        return False
 
-    # Test SpanProcessor class
-    try:
-        SpanProcessor()
-        print("✅ SpanProcessor created successfully")
-    except Exception as e:
-        print(f"❌ SpanProcessor creation failed: {e}")
-        return False
+        # Verify BatchSpanProcessor was called with correct parameters from exporter_options
+        mock_batch_processor.assert_called_once()
+        call_args = mock_batch_processor.call_args
+        self.assertEqual(call_args.kwargs["max_queue_size"], 512)
+        self.assertEqual(call_args.kwargs["schedule_delay_millis"], 1000)
+        self.assertEqual(call_args.kwargs["export_timeout_millis"], 10000)
+        self.assertEqual(call_args.kwargs["max_export_batch_size"], 128)
 
-    print("✅ All tests passed!")
-    return True
+    def test_span_processor_creation(self):
+        """Test SpanProcessor class creation."""
+        processor = SpanProcessor()
+        self.assertIsNotNone(processor, "SpanProcessor should be created successfully")
 
 
 if __name__ == "__main__":
-    test_basic_functionality()
+    unittest.main()
diff --git a/tests/observability/core/test_alignment.py b/tests/observability/core/test_alignment.py
deleted file mode 100644
index 5dc45f8a..00000000
--- a/tests/observability/core/test_alignment.py
+++ /dev/null
@@ -1,200 +0,0 @@
-# Copyright (c) Microsoft. All rights reserved.
-
-
-import os
-import sys
-from urllib.parse import urlparse
-
-
-def test_new_classes():
-    """Test the new classes align with .NET SDK."""
-    from microsoft_agents_a365.observability.core import (
-        AgentDetails,
-        ExecutionType,
-        InvokeAgentDetails,
-        Request,
-        SourceMetadata,
-        TenantDetails,
-    )
-
-    print("✅ Testing new classes...")
-
-    # Test TenantDetails
-    tenant_details = TenantDetails(tenant_id="12345678-1234-5678-1234-567812345678")
-    assert tenant_details.tenant_id == "12345678-1234-5678-1234-567812345678"
-    print("   ✅ TenantDetails works")
-
-    # Test AgentDetails with icon_uri
-    agent_details = AgentDetails(
-        agent_id="test-agent-123",
-        agent_name="Test Agent",
-        agent_description="A test agent",
-        conversation_id="conv-456",
-        icon_uri="https://example.com/icon.png",
-    )
-    assert agent_details.agent_id == "test-agent-123"
-    assert agent_details.icon_uri == "https://example.com/icon.png"
-    print("   ✅ AgentDetails with icon_uri works")
-
-    # Test SourceMetadata
-    source_metadata = SourceMetadata(
-        id="source-123",
-        name="Source Agent",
-        icon_uri="https://example.com/source-icon.png",
-        description="Source agent description",
-    )
-    assert source_metadata.id == "source-123"
-    print("   ✅ SourceMetadata works")
-
-    # Test ExecutionType
-    exec_type = ExecutionType.AGENT_TO_AGENT
-    assert exec_type.value == "Agent2Agent"
-    print("   ✅ ExecutionType works")
-
-    # Test Request
-    request = Request(
-        content="Test request content",
-        execution_type=ExecutionType.EVENT_TO_AGENT,
-        session_id="session-789",
-        source_metadata=source_metadata,
-        payload="Test payload",
-    )
-    assert request.content == "Test request content"
-    assert request.session_id == "session-789"
-    print("   ✅ Request works")
-
-    # Test InvokeAgentDetails with session_id
-    invoke_details = InvokeAgentDetails(
-        endpoint=urlparse("https://example.com:8080/agent"),
-        details=agent_details,
-        session_id="session-789",
-    )
-    assert invoke_details.session_id == "session-789"
-    assert invoke_details.details.agent_id == "test-agent-123"
-    print("   ✅ InvokeAgentDetails with session_id works")
-
-
-def test_scope_functionality():
-    """Test that scopes work with new parameters."""
-
-    os.environ["ENABLE_OBSERVABILITY"] = "true"
-
-    from urllib.parse import urlparse
-
-    from microsoft_agents_a365.observability.core import (
-        AgentDetails,
-        ExecutionType,
-        InvokeAgentDetails,
-        InvokeAgentScope,
-        Request,
-        SourceMetadata,
-        TenantDetails,
-    )
-
-    print("✅ Testing scope functionality...")
-
-    # Create tenant details
-    tenant_details = TenantDetails(tenant_id="12345678-1234-5678-1234-567812345678")
-
-    # Test scope functionality with Request
-    source_metadata = SourceMetadata(
-        id="source-agent-456",
-        name="Source Agent",
-        icon_uri="https://example.com/source.png",
-        description="Source agent description",
-    )
-
-    request = Request(
-        content="Execute agent request",
-        execution_type=ExecutionType.AGENT_TO_AGENT,
-        session_id="session-123",
-        source_metadata=source_metadata,
-        payload="Agent execution payload",
-    )
-
-    # Test InvokeAgentScope with enhanced details
-    agent_details = AgentDetails(
-        agent_id="target-agent-789",
-        agent_name="Target Agent",
-        agent_description="Agent being invoked",
-        conversation_id="conv-123",
-        icon_uri="https://example.com/target.png",
-    )
-
-    invoke_details = InvokeAgentDetails(
-        endpoint=urlparse("https://example.com:8080/agent"),
-        details=agent_details,
-        session_id="session-456",
-    )
-
-    with InvokeAgentScope.start(invoke_details, tenant_details, request) as scope:
-        assert scope is not None, "Scope should be created when telemetry is enabled"
-        print("   ✅ InvokeAgentScope with enhanced details works")
-
-
-def test_constants_alignment():
-    """Test that constants are aligned with .NET SDK."""
-    from microsoft_agents_a365.observability.core.constants import (
-        AGENT_ID_KEY,
-        GEN_AI_EXECUTION_PAYLOAD_KEY,
-        GEN_AI_EXECUTION_TYPE_KEY,
-        GEN_AI_ICON_URI_KEY,
-        SESSION_ID_KEY,
-    )
-
-    print("✅ Testing constants alignment...")
-
-    # Key change: agent.id -> gen_ai.agent.id
-    assert AGENT_ID_KEY == "gen_ai.agent.id", f"Expected 'gen_ai.agent.id', got '{AGENT_ID_KEY}'"
-    print("   ✅ AGENT_ID_KEY is correctly aligned with .NET SDK")
-
-    # New constants from .NET SDK
-    assert SESSION_ID_KEY == "session.id"
-    assert GEN_AI_ICON_URI_KEY == "gen_ai.agent365.icon_uri"
-    assert GEN_AI_EXECUTION_TYPE_KEY == "gen_ai.execution.type"
-    assert GEN_AI_EXECUTION_PAYLOAD_KEY == "gen_ai.execution.payload"
-    print("   ✅ New constants match .NET SDK")
-
-
-def test_span_processor():
-    """Test that span processor works with updated constants."""
-    from microsoft_agents_a365.observability.core import SpanProcessor
-
-    print("✅ Testing span processor...")
-
-    # Create span processor
-    processor = SpanProcessor()
-    assert processor is not None
-    print("   ✅ SpanProcessor created successfully")
-
-
-def main():
-    """Run all tests."""
-    print("🔍 Testing Microsoft Agent 365 Python SDK alignment with .NET SDK...\n")
-
-    try:
-        test_constants_alignment()
-        print()
-
-        test_new_classes()
-        print()
-
-        test_scope_functionality()
-        print()
-
-        test_span_processor()
-        print()
-
-        print("🎉 All tests passed! Python SDK is aligned with .NET SDK.")
-        return 0
-
-    except Exception as e:
-        print(f"❌ Test failed: {e}")
-        import traceback
-
-        traceback.print_exc()
-        return 1
-
-
-if __name__ == "__main__":
-    sys.exit(main())
diff --git a/tests/observability/core/test_baggage_builder.py b/tests/observability/core/test_baggage_builder.py
index 274232bb..df0bbe9b 100644
--- a/tests/observability/core/test_baggage_builder.py
+++ b/tests/observability/core/test_baggage_builder.py
@@ -11,11 +11,16 @@
     GEN_AI_AGENT_ID_KEY,
     GEN_AI_AGENT_UPN_KEY,
     GEN_AI_CALLER_ID_KEY,
+    GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY,
+    GEN_AI_EXECUTION_SOURCE_NAME_KEY,
     HIRING_MANAGER_ID_KEY,
     OPERATION_SOURCE_KEY,
+    SESSION_DESCRIPTION_KEY,
+    SESSION_ID_KEY,
     TENANT_ID_KEY,
 )
 from microsoft_agents_a365.observability.core.middleware.baggage_builder import BaggageBuilder
+from microsoft_agents_a365.observability.core.models.operation_source import OperationSource
 from opentelemetry import baggage, context, trace
 from opentelemetry.sdk.trace import TracerProvider
 from opentelemetry.sdk.trace.export import SimpleSpanProcessor
@@ -48,6 +53,9 @@ def setUp(self):
         # Clear any existing context/baggage before each test
         context.detach(context.attach({}))
 
+        # Create a fresh BaggageBuilder for each test
+        self.builder = BaggageBuilder()
+
     def tearDown(self):
         """Clean up after each test."""
         # Clear context
@@ -78,7 +86,7 @@ def test_all_baggage_keys(self):
         """Test all baggage key setter methods."""
         with (
             BaggageBuilder()
-            .operation_source("sdk")
+            .operation_source(OperationSource.SDK)
             .tenant_id("tenant-1")
             .agent_id("agent-1")
             .agent_auid("auid-1")
@@ -90,7 +98,7 @@ def test_all_baggage_keys(self):
             .build()
         ):
             current_baggage = baggage.get_all()
-            self.assertEqual(current_baggage.get(OPERATION_SOURCE_KEY), "sdk")
+            self.assertEqual(current_baggage.get(OPERATION_SOURCE_KEY), OperationSource.SDK.value)
             self.assertEqual(current_baggage.get(TENANT_ID_KEY), "tenant-1")
             self.assertEqual(current_baggage.get(GEN_AI_AGENT_ID_KEY), "agent-1")
             self.assertEqual(current_baggage.get(GEN_AI_AGENT_AUID_KEY), "auid-1")
@@ -152,7 +160,7 @@ def test_baggage_reset_after_scope_exit(self):
         # Use BaggageBuilder to set all possible values
         with (
             BaggageBuilder()
-            .operation_source("test_sdk")
+            .operation_source(OperationSource.SDK)
             .tenant_id("test-tenant")
             .agent_id("test-agent")
             .agent_auid("test-auid")
@@ -165,7 +173,7 @@ def test_baggage_reset_after_scope_exit(self):
         ):
             # Inside scope - verify all baggage values are set
             scoped_baggage = baggage.get_all()
-            self.assertEqual(scoped_baggage.get(OPERATION_SOURCE_KEY), "test_sdk")
+            self.assertEqual(scoped_baggage.get(OPERATION_SOURCE_KEY), OperationSource.SDK.value)
             self.assertEqual(scoped_baggage.get(TENANT_ID_KEY), "test-tenant")
             self.assertEqual(scoped_baggage.get(GEN_AI_AGENT_ID_KEY), "test-agent")
             self.assertEqual(scoped_baggage.get(GEN_AI_AGENT_AUID_KEY), "test-auid")
@@ -210,7 +218,7 @@ def test_set_pairs_accepts_dict_and_iterable(self):
 
         # Also verify that None / whitespace values are ignored
         dict_pairs_with_ignored = {
-            OPERATION_SOURCE_KEY: "sdk",
+            OPERATION_SOURCE_KEY: OperationSource.SDK.value,
             GEN_AI_CALLER_ID_KEY: None,  # ignored
         }
         iter_pairs_with_ignored = [
@@ -231,7 +239,7 @@ def test_set_pairs_accepts_dict_and_iterable(self):
             self.assertEqual(baggage_contents.get(CORRELATION_ID_KEY), "corr-x")
             self.assertEqual(baggage_contents.get(GEN_AI_AGENT_AUID_KEY), "auid-x")
             self.assertEqual(baggage_contents.get(GEN_AI_AGENT_UPN_KEY), "upn-x")
-            self.assertEqual(baggage_contents.get(OPERATION_SOURCE_KEY), "sdk")
+            self.assertEqual(baggage_contents.get(OPERATION_SOURCE_KEY), OperationSource.SDK.value)
             # Ignored values should not be present
             self.assertIsNone(baggage_contents.get(GEN_AI_CALLER_ID_KEY))
             self.assertIsNone(baggage_contents.get(HIRING_MANAGER_ID_KEY))
@@ -253,7 +261,7 @@ def fake_from_turn_context(turn_ctx: any):
                 GEN_AI_AGENT_ID_KEY: "agent-ctx",
                 CORRELATION_ID_KEY: "  ",  # will be ignored
                 GEN_AI_AGENT_UPN_KEY: None,  # will be ignored
-                OPERATION_SOURCE_KEY: "sdk-ctx",
+                OPERATION_SOURCE_KEY: OperationSource.SDK.value,
             }
 
         try:
@@ -270,7 +278,9 @@ def fake_from_turn_context(turn_ctx: any):
                 # Values from turn_context
                 self.assertEqual(baggage_contents.get(TENANT_ID_KEY), "tenant-ctx")
                 self.assertEqual(baggage_contents.get(GEN_AI_AGENT_ID_KEY), "agent-ctx")
-                self.assertEqual(baggage_contents.get(OPERATION_SOURCE_KEY), "sdk-ctx")
+                self.assertEqual(
+                    baggage_contents.get(OPERATION_SOURCE_KEY), OperationSource.SDK.value
+                )
                 # Pre-existing (non-overlapping) still present
                 self.assertEqual(baggage_contents.get(GEN_AI_AGENT_AUID_KEY), "auid-pre")
                 # Ignored values should not be present
@@ -280,6 +290,79 @@ def fake_from_turn_context(turn_ctx: any):
             # Restore original
             tempBaggageBuilder.from_turn_context = original_fn
 
+    def test_source_metadata_name_method(self):
+        """Test deprecated source_metadata_name method - should delegate to channel_name."""
+        # Should exist and be callable
+        self.assertTrue(hasattr(self.builder, "source_metadata_name"))
+        self.assertTrue(callable(self.builder.source_metadata_name))
+
+        # Should set channel name baggage through delegation
+        with self.builder.source_metadata_name("test-channel").build():
+            current_baggage = baggage.get_all()
+            self.assertEqual(current_baggage.get(GEN_AI_EXECUTION_SOURCE_NAME_KEY), "test-channel")
+
+    def test_source_metadata_description_method(self):
+        """Test deprecated source_metadata_description method - should delegate to channel_links."""
+        # Should exist and be callable
+        self.assertTrue(hasattr(self.builder, "source_metadata_description"))
+        self.assertTrue(callable(self.builder.source_metadata_description))
+
+        # Should set channel description baggage through delegation
+        with self.builder.source_metadata_description("test-description").build():
+            current_baggage = baggage.get_all()
+            self.assertEqual(
+                current_baggage.get(GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY), "test-description"
+            )
+
+    def test_session_id_method(self):
+        """Test session_id method sets session ID baggage."""
+        # Should exist and be callable
+        self.assertTrue(hasattr(self.builder, "session_id"))
+        self.assertTrue(callable(self.builder.session_id))
+
+        # Should set session ID baggage
+        with self.builder.session_id("test-session-123").build():
+            current_baggage = baggage.get_all()
+            self.assertEqual(current_baggage.get(SESSION_ID_KEY), "test-session-123")
+
+    def test_session_description_method(self):
+        """Test session_description method sets session description baggage."""
+        # Should exist and be callable
+        self.assertTrue(hasattr(self.builder, "session_description"))
+        self.assertTrue(callable(self.builder.session_description))
+
+        # Should set session description baggage
+        with self.builder.session_description("test session description").build():
+            current_baggage = baggage.get_all()
+            self.assertEqual(
+                current_baggage.get(SESSION_DESCRIPTION_KEY), "test session description"
+            )
+
+    def test_channel_name_method(self):
+        """Test channel_name method sets channel name baggage."""
+        # Should exist and be callable
+        self.assertTrue(hasattr(self.builder, "channel_name"))
+        self.assertTrue(callable(self.builder.channel_name))
+
+        # Should set channel name baggage
+        with self.builder.channel_name("Teams Channel").build():
+            current_baggage = baggage.get_all()
+            self.assertEqual(current_baggage.get(GEN_AI_EXECUTION_SOURCE_NAME_KEY), "Teams Channel")
+
+    def test_channel_links_method(self):
+        """Test channel_links method sets channel description baggage."""
+        # Should exist and be callable
+        self.assertTrue(hasattr(self.builder, "channel_links"))
+        self.assertTrue(callable(self.builder.channel_links))
+
+        # Should set channel description baggage
+        with self.builder.channel_links("https://teams.microsoft.com/channel/123").build():
+            current_baggage = baggage.get_all()
+            self.assertEqual(
+                current_baggage.get(GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY),
+                "https://teams.microsoft.com/channel/123",
+            )
+
 
 if __name__ == "__main__":
     unittest.main()
diff --git a/tests/observability/core/test_invoke_agent_scope.py b/tests/observability/core/test_invoke_agent_scope.py
index ac43a9d9..14fbda96 100644
--- a/tests/observability/core/test_invoke_agent_scope.py
+++ b/tests/observability/core/test_invoke_agent_scope.py
@@ -6,11 +6,25 @@
 
 from microsoft_agents_a365.observability.core import (
     AgentDetails,
+    ExecutionType,
     InvokeAgentDetails,
     InvokeAgentScope,
+    Request,
+    SourceMetadata,
     TenantDetails,
     configure,
 )
+from microsoft_agents_a365.observability.core.models.caller_details import CallerDetails
+from opentelemetry import trace
+from opentelemetry.sdk.trace import TracerProvider
+from opentelemetry.sdk.trace.export import SimpleSpanProcessor
+from opentelemetry.sdk.trace.export.in_memory_span_exporter import InMemorySpanExporter
+
+# Constants for span attribute keys
+GEN_AI_EXECUTION_SOURCE_NAME_KEY = "gen_ai.channel.name"
+GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY = "gen_ai.channel.link"
+GEN_AI_EXECUTION_TYPE_KEY = "gen_ai.execution.type"
+GEN_AI_INPUT_MESSAGES_KEY = "gen_ai.input.messages"
 
 
 class TestInvokeAgentScope(unittest.TestCase):
@@ -37,6 +51,42 @@ def setUpClass(cls):
             session_id="session-123",
         )
 
+        # Create source metadata for requests
+        cls.source_metadata = SourceMetadata(
+            id="source-agent-456",
+            name="Source Channel",
+            icon_uri="https://example.com/source-icon.png",
+            description="Source channel description",
+        )
+
+        # Create a comprehensive request object
+        cls.test_request = Request(
+            content="Process customer inquiry about order status",
+            execution_type=ExecutionType.AGENT_TO_AGENT,
+            session_id="session-abc123",
+            source_metadata=cls.source_metadata,
+        )
+
+        # Create caller details (non-agentic caller)
+        cls.caller_details = CallerDetails(
+            caller_id="user-123",
+            caller_upn="user@contoso.com",
+            caller_name="John Doe",
+            caller_user_id="user-id-456",
+            tenant_id="tenant-789",
+        )
+
+        # Create caller agent details (agentic caller)
+        cls.caller_agent_details = AgentDetails(
+            agent_id="caller-agent-789",
+            agent_name="Caller Agent",
+            agent_description="The agent that initiated this request",
+            agent_blueprint_id="blueprint-456",
+            agent_auid="auid-123",
+            agent_upn="agent@contoso.com",
+            tenant_id="tenant-789",
+        )
+
     def test_record_response_method_exists(self):
         """Test that record_response method exists on InvokeAgentScope."""
         scope = InvokeAgentScope.start(self.invoke_details, self.tenant_details)
@@ -67,6 +117,62 @@ def test_record_output_messages_method_exists(self):
             self.assertTrue(callable(scope.record_output_messages))
             scope.dispose()
 
+    def test_request_attributes_set_on_span(self):
+        """Test that request parameters from mock data are available on span attributes."""
+        # Set up tracer to capture spans
+        span_exporter = InMemorySpanExporter()
+        tracer_provider = TracerProvider()
+        tracer_provider.add_span_processor(SimpleSpanProcessor(span_exporter))
+        trace.set_tracer_provider(tracer_provider)
+
+        # Create scope with request
+        scope = InvokeAgentScope.start(
+            invoke_agent_details=self.invoke_details,
+            tenant_details=self.tenant_details,
+            request=self.test_request,
+        )
+
+        if scope is not None:
+            scope.dispose()
+
+        # Check if mock data parameters are available in span attributes
+        finished_spans = span_exporter.get_finished_spans()
+
+        if finished_spans:
+            # Get attributes from the span
+            span = finished_spans[-1]
+            span_attributes = getattr(span, "attributes", {}) or {}
+
+            # Verify mock data request parameters are in span attributes
+            # Check source channel name from mock data
+            if GEN_AI_EXECUTION_SOURCE_NAME_KEY in span_attributes:
+                self.assertEqual(
+                    span_attributes[GEN_AI_EXECUTION_SOURCE_NAME_KEY],
+                    self.source_metadata.name,  # From cls.source_metadata.name
+                )
+
+            # Check source channel description from mock data
+            if GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY in span_attributes:
+                self.assertEqual(
+                    span_attributes[GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY],
+                    self.source_metadata.description,  # From cls.source_metadata.description
+                )
+
+            # Check execution type from mock data
+            if GEN_AI_EXECUTION_TYPE_KEY in span_attributes:
+                self.assertEqual(
+                    span_attributes[GEN_AI_EXECUTION_TYPE_KEY],
+                    self.test_request.execution_type.value,  # From cls.test_request.execution_type
+                )
+
+            # Check input messages contain request content from mock data
+            if GEN_AI_INPUT_MESSAGES_KEY in span_attributes:
+                input_messages = span_attributes[GEN_AI_INPUT_MESSAGES_KEY]
+                self.assertIn(
+                    self.test_request.content,  # From cls.test_request.content
+                    input_messages,
+                )
+
 
 if __name__ == "__main__":
     unittest.main(verbosity=2)
diff --git a/tests/observability/core/test_span_processor.py b/tests/observability/core/test_span_processor.py
index 088edf79..a10d52f9 100644
--- a/tests/observability/core/test_span_processor.py
+++ b/tests/observability/core/test_span_processor.py
@@ -4,9 +4,11 @@
 import unittest
 from unittest.mock import MagicMock
 
-from opentelemetry import context
-
+from microsoft_agents_a365.observability.core.constants import OPERATION_SOURCE_KEY
+from microsoft_agents_a365.observability.core.middleware.baggage_builder import BaggageBuilder
+from microsoft_agents_a365.observability.core.models.operation_source import OperationSource
 from microsoft_agents_a365.observability.core.trace_processor.span_processor import SpanProcessor
+from opentelemetry import context
 
 
 class TestSpanProcessor(unittest.TestCase):
@@ -18,17 +20,37 @@ def setUp(self):
         self.mock_span = MagicMock()
         self.mock_context = None  # Root span
 
-    def test_on_start_with_no_baggage(self):
-        # Call on_start with no baggage, should not set agent_id since there's none
+    def test_operation_source_defaults_to_sdk(self):
+        """Test that operation source is set to SDK by default when not in baggage."""
+        # Mock span with no existing attributes
+        self.mock_span.attributes = {}
+
+        # Call on_start with no baggage
         self.processor.on_start(self.mock_span, self.mock_context)
-        # Should not call set_attribute since there's no agent_id in baggage or config
-        self.mock_span.set_attribute.assert_not_called()
-        print("✅ Span on_start(Span, Parent) with no baggage testing passed!")
+
+        # Verify SDK was set as default operation source
+        self.mock_span.set_attribute.assert_called_with(
+            OPERATION_SOURCE_KEY, OperationSource.SDK.value
+        )
+
+    def test_operation_source_honors_baggage_value(self):
+        """Test that operation source from baggage is used when available."""
+        # Mock span with no existing attributes
+        self.mock_span.attributes = {}
+
+        # Set operation source in baggage using BaggageBuilder
+        with BaggageBuilder().operation_source(OperationSource.GATEWAY).build():
+            # Call on_start - should use baggage value
+            self.processor.on_start(self.mock_span, context.get_current())
+
+        # Verify GATEWAY was used from baggage
+        self.mock_span.set_attribute.assert_called_with(
+            OPERATION_SOURCE_KEY, OperationSource.GATEWAY.value
+        )
 
     def test_on_end_calls_super(self):
         try:
             self.processor.on_end(self.mock_span)
-            print("✅ Span on_end(ReadableSpan) testing passed!")
         except Exception as e:
             self.fail(f"on_end raised an exception: {e}")
 
diff --git a/tests/observability/core/test_turn_context_baggage.py b/tests/observability/core/test_turn_context_baggage.py
index b1e7c79a..1fef1dce 100644
--- a/tests/observability/core/test_turn_context_baggage.py
+++ b/tests/observability/core/test_turn_context_baggage.py
@@ -13,7 +13,6 @@
     GEN_AI_CONVERSATION_ID_KEY,
     GEN_AI_CONVERSATION_ITEM_LINK_KEY,
     GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY,
-    GEN_AI_EXECUTION_SOURCE_ID_KEY,
     GEN_AI_EXECUTION_SOURCE_NAME_KEY,
     GEN_AI_EXECUTION_TYPE_KEY,
     TENANT_ID_KEY,
@@ -117,9 +116,8 @@ def test_iter_source_metadata_pairs(self):
             "type": "message",
         })
         pairs = dict(tcb._iter_source_metadata_pairs(activity))
-        self.assertEqual(pairs[GEN_AI_EXECUTION_SOURCE_ID_KEY], "msteams")
         self.assertEqual(pairs[GEN_AI_EXECUTION_SOURCE_NAME_KEY], "msteams")
-        self.assertEqual(pairs[GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY], "message")
+        self.assertIsNone(pairs.get(GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY))
 
     def test_iter_conversation_pairs_wpxcomment(self):
         activity = FakeActivity(**{
@@ -134,8 +132,7 @@ def test_iter_conversation_pairs_wpxcomment(self):
             "service_url": "https://service/link",
         })
         pairs = dict(tcb._iter_conversation_pairs(activity))
-        # Expect composed id doc-100_parent-200
-        self.assertEqual(pairs[GEN_AI_CONVERSATION_ID_KEY], "doc-100_parent-200")
+        self.assertIsNone(pairs.get(GEN_AI_CONVERSATION_ID_KEY))
         self.assertEqual(pairs[GEN_AI_CONVERSATION_ITEM_LINK_KEY], "https://service/link")
 
     def test_iter_conversation_pairs_email_notification(self):
@@ -150,7 +147,7 @@ def test_iter_conversation_pairs_email_notification(self):
             "service_url": "http://service/url",
         })
         pairs = dict(tcb._iter_conversation_pairs(activity))
-        self.assertEqual(pairs[GEN_AI_CONVERSATION_ID_KEY], "email-conv-123")
+        self.assertIsNone(pairs.get(GEN_AI_CONVERSATION_ID_KEY))
         self.assertEqual(pairs[GEN_AI_CONVERSATION_ITEM_LINK_KEY], "http://service/url")
 
     def test_iter_conversation_pairs_fallback_conversation(self):
@@ -198,12 +195,11 @@ def test_from_turn_context_aggregates_all(self):
         # Execution type (agent-to-agent)
         self.assertEqual(result[GEN_AI_EXECUTION_TYPE_KEY], ExecutionType.HUMAN_TO_AGENT.value)
         # Conversation
-        self.assertEqual(result[GEN_AI_CONVERSATION_ID_KEY], "email-conv-123")
+        self.assertIsNone(result.get(GEN_AI_CONVERSATION_ID_KEY))
         self.assertEqual(result[GEN_AI_CONVERSATION_ITEM_LINK_KEY], "svc-url")
         # Source metadata
-        self.assertEqual(result[GEN_AI_EXECUTION_SOURCE_ID_KEY], "agents")
         self.assertEqual(result[GEN_AI_EXECUTION_SOURCE_NAME_KEY], "agents")
-        self.assertEqual(result[GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY], "message")
+        self.assertIsNone(result.get(GEN_AI_EXECUTION_SOURCE_DESCRIPTION_KEY))
 
     def test_from_turn_context_missing_activity(self):
         ctx = FakeTurnContext(activity=None)