diff --git a/.github/workflows/_containerTemplate.yml b/.github/workflows/_containerTemplate.yml
index b9f4bda..566ef78 100644
--- a/.github/workflows/_containerTemplate.yml
+++ b/.github/workflows/_containerTemplate.yml
@@ -56,7 +56,7 @@ jobs:
       - name: Install cosign
         uses: sigstore/cosign-installer@v3.3.0
         id: install_cosign
-        if: github.event_name != 'pull_request'
+        if: github.event_name == 'release'
         with:
           cosign-release: 'v2.2.0'
 
diff --git a/code/function/fastapp/api/v1/endpoints/sample.py b/code/function/fastapp/api/v1/endpoints/sample.py
index 47439a8..4d2d06b 100644
--- a/code/function/fastapp/api/v1/endpoints/sample.py
+++ b/code/function/fastapp/api/v1/endpoints/sample.py
@@ -1,6 +1,7 @@
-from typing import Any
+from typing import Annotated
 
-from fastapi import APIRouter
+import httpx
+from fastapi import APIRouter, Header
 from fastapp.models.sample import SampleRequest, SampleResponse
 from fastapp.utils import setup_logging
 
@@ -11,7 +12,14 @@
 
 @router.post("/sample", response_model=SampleResponse, name="sample")
 async def post_predict(
-    data: SampleRequest,
+    data: SampleRequest, x_forwarded_for: Annotated[str, Header()] = ""
 ) -> SampleResponse:
     logger.info(f"Received request: {data}")
+    logger.info(f"IP of sender: {x_forwarded_for}")
+
+    # Sample request
+    async with httpx.AsyncClient() as client:
+        response = await client.get("https://www.bing.com")
+    logger.info(f"Received response status code: {response.status_code}")
+
     return SampleResponse(output=f"Hello {data.input}")
diff --git a/code/function/fastapp/core/config.py b/code/function/fastapp/core/config.py
index dc87cf7..62846bd 100644
--- a/code/function/fastapp/core/config.py
+++ b/code/function/fastapp/core/config.py
@@ -10,11 +10,15 @@ class Settings(BaseSettings):
     APP_VERSION: str = "v0.0.1"
     API_V1_STR: str = "/v1"
     LOGGING_LEVEL: int = logging.INFO
+    LOGGING_SAMPLING_RATIO: float = 1.0
+    LOGGING_SCHEDULE_DELAY: int = 5000
     DEBUG: bool = False
     APPLICATIONINSIGHTS_CONNECTION_STRING: str = Field(
         default="", env="APPLICATIONINSIGHTS_CONNECTION_STRING"
     )
-    MY_SECRET_CONFIG: str = Field(default="", env="MY_SECRET_CONFIG")
+    WEBSITE_NAME: str = Field(default="test", alias="WEBSITE_SITE_NAME")
+    WEBSITE_INSTANCE_ID: str = Field(default="0", alias="WEBSITE_INSTANCE_ID")
+    MY_SECRET_CONFIG: str = Field(default="", alias="MY_SECRET_CONFIG")
 
 
 settings = Settings()
diff --git a/code/function/fastapp/main.py b/code/function/fastapp/main.py
index 8834cfa..7ee394f 100644
--- a/code/function/fastapp/main.py
+++ b/code/function/fastapp/main.py
@@ -1,7 +1,22 @@
+from contextlib import asynccontextmanager
+
 from fastapi import FastAPI
 from fastapp.api.v1.api_v1 import api_v1_router
 from fastapp.core.config import settings
-from fastapp.utils import setup_tracer
+from fastapp.utils import setup_opentelemetry
+
+
+@asynccontextmanager
+async def lifespan(app: FastAPI) -> None:
+    """Gracefully start the application before the server reports readiness."""
+    setup_opentelemetry(app=app)
+    yield
+    pass
+
+
+def lifespan_sync(app: FastAPI) -> None:
+    """Gracefully start the application before the server reports readiness."""
+    setup_opentelemetry(app=app)
 
 
 def get_app() -> FastAPI:
@@ -11,24 +26,14 @@ def get_app() -> FastAPI:
     """
     app = FastAPI(
         title=settings.PROJECT_NAME,
+        description="",
         version=settings.APP_VERSION,
         openapi_url="/openapi.json",
         debug=settings.DEBUG,
+        lifespan=lifespan,
     )
     app.include_router(api_v1_router, prefix=settings.API_V1_STR)
     return app
 
 
 app = get_app()
-
-
-@app.on_event("startup")
-async def startup_event():
-    """Gracefully start the application before the server reports readiness."""
-    setup_tracer(app=app)
-
-
-@app.on_event("shutdown")
-async def shutdown_event():
-    """Gracefully close connections before shutdown of the server."""
-    pass
diff --git a/code/function/fastapp/utils.py b/code/function/fastapp/utils.py
index dba9aa4..9a3d10c 100644
--- a/code/function/fastapp/utils.py
+++ b/code/function/fastapp/utils.py
@@ -1,14 +1,31 @@
 import logging
 from logging import Logger
 
+from azure.monitor.opentelemetry import configure_azure_monitor
+
 # from azure.identity import ManagedIdentityCredential
-from azure.monitor.opentelemetry.exporter import AzureMonitorTraceExporter
+from azure.monitor.opentelemetry.exporter import (
+    ApplicationInsightsSampler,
+    AzureMonitorLogExporter,
+    AzureMonitorMetricExporter,
+    AzureMonitorTraceExporter,
+)
 from fastapi import FastAPI
 from fastapp.core.config import settings
+from opentelemetry import trace
+from opentelemetry._logs import set_logger_provider
 from opentelemetry.instrumentation.fastapi import FastAPIInstrumentor
+from opentelemetry.instrumentation.httpx import HTTPXClientInstrumentor
+from opentelemetry.instrumentation.system_metrics import SystemMetricsInstrumentor
+from opentelemetry.metrics import set_meter_provider
+from opentelemetry.sdk._logs import LoggerProvider, LoggingHandler
+from opentelemetry.sdk._logs.export import BatchLogRecordProcessor
+from opentelemetry.sdk.metrics import MeterProvider
+from opentelemetry.sdk.metrics.export import PeriodicExportingMetricReader
 from opentelemetry.sdk.resources import SERVICE_NAME, Resource
 from opentelemetry.sdk.trace import TracerProvider
 from opentelemetry.sdk.trace.export import BatchSpanProcessor
+from opentelemetry.trace import Tracer, get_tracer_provider, set_tracer_provider
 
 
 def setup_logging(module) -> Logger:
@@ -21,15 +38,24 @@ def setup_logging(module) -> Logger:
     logger.propagate = False
 
     # Create stream handler
-    logger_stream_handler = logging.StreamHandler()
-    logger_stream_handler.setFormatter(
+    stream_handler = logging.StreamHandler()
+    stream_handler.setFormatter(
         logging.Formatter("[%(asctime)s] [%(levelname)s] [%(module)-8.8s] %(message)s")
     )
-    logger.addHandler(logger_stream_handler)
+    logger.addHandler(stream_handler)
     return logger
 
 
-def setup_tracer(app: FastAPI):
+def setup_tracer(module) -> Tracer:
+    """Setup tracer and event handler.
+
+    RETURNS (Tracer): The tracer object to create spans.
+    """
+    tracer = trace.get_tracer(module)
+    return tracer
+
+
+def setup_opentelemetry(app: FastAPI):
     """Setup tracer for Open Telemetry.
 
     app (FastAPI): The app to be instrumented by Open Telemetry.
@@ -37,10 +63,76 @@ def setup_tracer(app: FastAPI):
     """
     if settings.APPLICATIONINSIGHTS_CONNECTION_STRING:
         # credential = ManagedIdentityCredential()
-        exporter = AzureMonitorTraceExporter.from_connection_string(
+        resource = Resource.create(
+            {
+                "service.name": settings.WEBSITE_NAME,
+                "service.namespace": settings.WEBSITE_NAME,
+                "service.instance.id": settings.WEBSITE_INSTANCE_ID,
+            }
+        )
+
+        # Create logger provider
+        logger_exporter = AzureMonitorLogExporter.from_connection_string(
             settings.APPLICATIONINSIGHTS_CONNECTION_STRING,
             # credential=credential
         )
-        tracer = TracerProvider(resource=Resource({SERVICE_NAME: "api"}))
-        tracer.add_span_processor(BatchSpanProcessor(exporter))
-        FastAPIInstrumentor.instrument_app(app, tracer_provider=tracer)
+        logger_provider = LoggerProvider(resource=resource)
+        logger_provider.add_log_record_processor(
+            BatchLogRecordProcessor(
+                exporter=logger_exporter,
+                schedule_delay_millis=settings.LOGGING_SCHEDULE_DELAY,
+            )
+        )
+        set_logger_provider(logger_provider)
+        handler = LoggingHandler(
+            level=settings.LOGGING_LEVEL, logger_provider=logger_provider
+        )
+        logging.getLogger().addHandler(handler)
+
+        # Create tracer provider
+        tracer_exporter = AzureMonitorTraceExporter.from_connection_string(
+            settings.APPLICATIONINSIGHTS_CONNECTION_STRING,
+            # credential=credential
+        )
+        sampler = ApplicationInsightsSampler(
+            sampling_ratio=settings.LOGGING_SAMPLING_RATIO
+        )
+        tracer_provider = TracerProvider(resource=resource, sampler=sampler)
+        tracer_provider.add_span_processor(
+            BatchSpanProcessor(
+                span_exporter=tracer_exporter,
+                schedule_delay_millis=settings.LOGGING_SCHEDULE_DELAY,
+            )
+        )
+        set_tracer_provider(tracer_provider)
+
+        # Create meter provider
+        metrics_exporter = AzureMonitorMetricExporter.from_connection_string(
+            settings.APPLICATIONINSIGHTS_CONNECTION_STRING,
+            # credential=credential
+        )
+        reader = PeriodicExportingMetricReader(
+            exporter=metrics_exporter,
+            export_interval_millis=settings.LOGGING_SCHEDULE_DELAY,
+        )
+        meter_provider = MeterProvider(metric_readers=[reader], resource=resource)
+        set_meter_provider(meter_provider)
+
+        # Configure custom metrics
+        system_metrics_config = {
+            "system.memory.usage": ["used", "free", "cached"],
+            "system.cpu.time": ["idle", "user", "system", "irq"],
+            "system.network.io": ["transmit", "receive"],
+            "process.runtime.memory": ["rss", "vms"],
+            "process.runtime.cpu.time": ["user", "system"],
+        }
+
+        # Create instrumenter
+        FastAPIInstrumentor.instrument_app(
+            app,
+            excluded_urls=f"{settings.API_V1_STR}/health/heartbeat",
+            tracer_provider=tracer_provider,
+            meter_provider=meter_provider,
+        )
+        HTTPXClientInstrumentor().instrument()
+        SystemMetricsInstrumentor(config=system_metrics_config).instrument()
diff --git a/code/function/requirements.txt b/code/function/requirements.txt
index f4a40cd..5d01136 100644
--- a/code/function/requirements.txt
+++ b/code/function/requirements.txt
@@ -2,10 +2,11 @@
 # The Python Worker is managed by Azure Functions platform
 # Manually managing azure-functions-worker may cause unexpected issues
 
-# azure-identity~=1.13.0
+# azure-identity~=1.15.0
 azure-functions~=1.17.0
 fastapi~=0.106.0
 pydantic-settings~=2.1.0
-aiohttp~=3.9.1
-opentelemetry-instrumentation-fastapi==0.43b0
-azure-monitor-opentelemetry-exporter==1.0.0b19
+httpx~=0.26.0
+azure-monitor-opentelemetry~=1.1.1
+opentelemetry-instrumentation-httpx~=0.43b0
+opentelemetry-instrumentation-system-metrics~=0.43b0
diff --git a/code/function/wrapper/__init__.py b/code/function/wrapper/__init__.py
index b30f269..4748e4c 100644
--- a/code/function/wrapper/__init__.py
+++ b/code/function/wrapper/__init__.py
@@ -1,6 +1,26 @@
 import azure.functions as func
-from fastapp.main import app
+from fastapp.main import app, lifespan_sync
+from fastapp.utils import setup_tracer
+from opentelemetry.trace.propagation.tracecontext import TraceContextTextMapPropagator
+
+lifespan_sync(app=app)
+tracer = setup_tracer(__name__)
 
 
 async def main(req: func.HttpRequest, context: func.Context) -> func.HttpResponse:
-    return await func.AsgiMiddleware(app).handle_async(req, context)
+    # Start distributed tracing
+    functions_current_context = {
+        "traceparent": context.trace_context.Traceparent,
+        "tracestate": context.trace_context.Tracestate,
+    }
+    parent_context = TraceContextTextMapPropagator().extract(
+        carrier=functions_current_context
+    )
+
+    # Function logic
+    with tracer.start_as_current_span("wrapper", context=parent_context) as span:
+        response = await func.AsgiMiddleware(app).handle_async(
+            req=req, context=parent_context
+        )
+
+    return response
diff --git a/code/infra/function.tf b/code/infra/function.tf
index 30216b9..a3d6473 100644
--- a/code/infra/function.tf
+++ b/code/infra/function.tf
@@ -93,6 +93,14 @@ resource "azapi_resource" "function" {
             name  = "APPLICATIONINSIGHTS_CONNECTION_STRING"
             value = azurerm_application_insights.application_insights.connection_string
           },
+          {
+            name  = "AZURE_SDK_TRACING_IMPLEMENTATION"
+            value = "opentelemetry"
+          },
+          {
+            name  = "AZURE_TRACING_ENABLED"
+            value = "true"
+          },
           {
             name  = "AZURE_FUNCTIONS_ENVIRONMENT"
             value = "Production"