diff --git a/api/extensions/otel/runtime.py b/api/extensions/otel/runtime.py
index a9ff0eed22..b1c703f944 100644
--- a/api/extensions/otel/runtime.py
+++ b/api/extensions/otel/runtime.py
@@ -7,7 +7,7 @@ from celery.signals import worker_init
 from flask_login import user_loaded_from_request, user_logged_in
 from opentelemetry import trace
 from opentelemetry.propagate import set_global_textmap
-from opentelemetry.propagators.b3 import B3Format
+from opentelemetry.propagators.b3 import B3MultiFormat
 from opentelemetry.propagators.composite import CompositePropagator
 from opentelemetry.trace.propagation.tracecontext import TraceContextTextMapPropagator
 
@@ -24,7 +24,7 @@ def setup_context_propagation() -> None:
         CompositePropagator(
             [
                 TraceContextTextMapPropagator(),
-                B3Format(),
+                B3MultiFormat(),
             ]
         )
     )
diff --git a/api/pyproject.toml b/api/pyproject.toml
index efe219e33a..a04d00629d 100644
--- a/api/pyproject.toml
+++ b/api/pyproject.toml
@@ -53,7 +53,7 @@ dependencies = [
     "opentelemetry-instrumentation-httpx==0.49b0",
     "opentelemetry-instrumentation-redis==0.49b0",
     "opentelemetry-instrumentation-sqlalchemy==0.49b0",
-    "opentelemetry-propagator-b3==1.28.0",
+    "opentelemetry-propagator-b3==1.40.0",
     "opentelemetry-proto==1.28.0",
     "opentelemetry-sdk==1.28.0",
     "opentelemetry-semantic-conventions==0.49b0",
diff --git a/api/uv.lock b/api/uv.lock
index c989d18d56..866abaecca 100644
--- a/api/uv.lock
+++ b/api/uv.lock
@@ -1672,7 +1672,7 @@ requires-dist = [
     { name = "opentelemetry-instrumentation-httpx", specifier = "==0.49b0" },
     { name = "opentelemetry-instrumentation-redis", specifier = "==0.49b0" },
     { name = "opentelemetry-instrumentation-sqlalchemy", specifier = "==0.49b0" },
-    { name = "opentelemetry-propagator-b3", specifier = "==1.28.0" },
+    { name = "opentelemetry-propagator-b3", specifier = "==1.40.0" },
     { name = "opentelemetry-proto", specifier = "==1.28.0" },
     { name = "opentelemetry-sdk", specifier = "==1.28.0" },
     { name = "opentelemetry-semantic-conventions", specifier = "==0.49b0" },
@@ -4314,15 +4314,15 @@ wheels = [
 
 [[package]]
 name = "opentelemetry-propagator-b3"
-version = "1.28.0"
+version = "1.40.0"
 source = { registry = "https://pypi.org/simple" }
 dependencies = [
-    { name = "deprecated" },
     { name = "opentelemetry-api" },
+    { name = "typing-extensions" },
 ]
-sdist = { url = "https://files.pythonhosted.org/packages/6f/1d/225ea036785119964509e92f4e1bc0313ba6ec790fbf51bd363abafeafae/opentelemetry_propagator_b3-1.28.0.tar.gz", hash = "sha256:cf6f0d2a1881c4858898be47e8a94b11bc5b16fc73b6c37ebfa2121c4825adc6", size = 9592, upload-time = "2024-11-05T19:14:57.193Z" }
+sdist = { url = "https://files.pythonhosted.org/packages/eb/fe/e0c84af5c654ec42165ba57af83c7f67e4b8af77f836ddc29dee59ff73c6/opentelemetry_propagator_b3-1.40.0.tar.gz", hash = "sha256:59b6925498947c08a1b7e0dd38193ff97e5009bec74ec23824300c2e32f77bcf", size = 9587, upload-time = "2026-03-04T14:17:30.079Z" }
 wheels = [
-    { url = "https://files.pythonhosted.org/packages/4e/fa/438d53d73a6c45df5d416b56dc371a65d0b07859bc107ab632349a079d4a/opentelemetry_propagator_b3-1.28.0-py3-none-any.whl", hash = "sha256:9f6923a5da56d7da6724e4fdd758a67ede2a2732efb929e538cf6fea337700c5", size = 8917, upload-time = "2024-11-05T19:14:37.317Z" },
+    { url = "https://files.pythonhosted.org/packages/8f/84/8654cc0539b5145046b2e60d058cebad401a600dd0b1240f1711c6788643/opentelemetry_propagator_b3-1.40.0-py3-none-any.whl", hash = "sha256:cb72a1698fd1d1b434f70dc90c1de62da8ade1dd84850d1f040eccf6a420fa7b", size = 8922, upload-time = "2026-03-04T14:17:14.732Z" },
 ]
 
 [[package]]