diff --git a/sentry_sdk/integrations/opentelemetry/potel_span_processor.py b/sentry_sdk/integrations/opentelemetry/potel_span_processor.py
index faa583a18d..849e75d471 100644
--- a/sentry_sdk/integrations/opentelemetry/potel_span_processor.py
+++ b/sentry_sdk/integrations/opentelemetry/potel_span_processor.py
@@ -118,6 +118,7 @@ def _root_span_to_transaction_event(self, span):
 
         (op, description, _) = extract_span_data(span)
 
+        # TODO-neel-potel DSC
         trace_context = {
             "trace_id": trace_id,
             "span_id": span_id,
diff --git a/tests/integrations/opentelemetry/test_potel.py b/tests/integrations/opentelemetry/test_potel.py
new file mode 100644
index 0000000000..deaa0df8c9
--- /dev/null
+++ b/tests/integrations/opentelemetry/test_potel.py
@@ -0,0 +1,210 @@
+import pytest
+
+from opentelemetry import trace
+
+import sentry_sdk
+
+
+tracer = trace.get_tracer(__name__)
+
+
+@pytest.fixture(autouse=True)
+def sentry_init_potel(sentry_init):
+    sentry_init(
+        traces_sample_rate=1.0,
+        _experiments={"otel_powered_performance": True},
+    )
+
+
+def test_root_span_transaction_payload_started_with_otel_only(capture_envelopes):
+    envelopes = capture_envelopes()
+
+    with tracer.start_as_current_span("request"):
+        pass
+
+    (envelope,) = envelopes
+    # TODO-neel-potel DSC header
+    (item,) = envelope.items
+    payload = item.payload.json
+
+    assert payload["type"] == "transaction"
+    assert payload["transaction"] == "request"
+    assert payload["transaction_info"] == {"source": "custom"}
+    assert payload["timestamp"] is not None
+    assert payload["start_timestamp"] is not None
+
+    contexts = payload["contexts"]
+    assert "runtime" in contexts
+    assert "otel" in contexts
+    assert "resource" in contexts["otel"]
+
+    trace_context = contexts["trace"]
+    assert "trace_id" in trace_context
+    assert "span_id" in trace_context
+    assert trace_context["origin"] == "auto.otel"
+    assert trace_context["op"] == "request"
+    assert trace_context["status"] == "ok"
+
+    assert payload["spans"] == []
+
+
+def test_child_span_payload_started_with_otel_only(capture_envelopes):
+    envelopes = capture_envelopes()
+
+    with tracer.start_as_current_span("request"):
+        with tracer.start_as_current_span("db"):
+            pass
+
+    (envelope,) = envelopes
+    (item,) = envelope.items
+    payload = item.payload.json
+    (span,) = payload["spans"]
+
+    assert span["op"] == "db"
+    assert span["description"] == "db"
+    assert span["origin"] == "auto.otel"
+    assert span["status"] == "ok"
+    assert span["span_id"] is not None
+    assert span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert span["timestamp"] is not None
+    assert span["start_timestamp"] is not None
+
+
+def test_children_span_nesting_started_with_otel_only(capture_envelopes):
+    envelopes = capture_envelopes()
+
+    with tracer.start_as_current_span("request"):
+        with tracer.start_as_current_span("db"):
+            with tracer.start_as_current_span("redis"):
+                pass
+        with tracer.start_as_current_span("http"):
+            pass
+
+    (envelope,) = envelopes
+    (item,) = envelope.items
+    payload = item.payload.json
+    (db_span, http_span, redis_span) = payload["spans"]
+
+    assert db_span["op"] == "db"
+    assert redis_span["op"] == "redis"
+    assert http_span["op"] == "http"
+
+    assert db_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert redis_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert http_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+
+    assert db_span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert http_span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert redis_span["parent_span_id"] == db_span["span_id"]
+
+
+def test_root_span_transaction_payload_started_with_sentry_only(capture_envelopes):
+    envelopes = capture_envelopes()
+
+    with sentry_sdk.start_span(description="request"):
+        pass
+
+    (envelope,) = envelopes
+    # TODO-neel-potel DSC header
+    (item,) = envelope.items
+    payload = item.payload.json
+
+    assert payload["type"] == "transaction"
+    assert payload["transaction"] == "request"
+    assert payload["transaction_info"] == {"source": "custom"}
+    assert payload["timestamp"] is not None
+    assert payload["start_timestamp"] is not None
+
+    contexts = payload["contexts"]
+    assert "runtime" in contexts
+    assert "otel" in contexts
+    assert "resource" in contexts["otel"]
+
+    trace_context = contexts["trace"]
+    assert "trace_id" in trace_context
+    assert "span_id" in trace_context
+    assert trace_context["origin"] == "auto.otel"
+    assert trace_context["op"] == "request"
+    assert trace_context["status"] == "ok"
+
+    assert payload["spans"] == []
+
+
+def test_child_span_payload_started_with_sentry_only(capture_envelopes):
+    envelopes = capture_envelopes()
+
+    with sentry_sdk.start_span(description="request"):
+        with sentry_sdk.start_span(description="db"):
+            pass
+
+    (envelope,) = envelopes
+    (item,) = envelope.items
+    payload = item.payload.json
+    (span,) = payload["spans"]
+
+    assert span["op"] == "db"
+    assert span["description"] == "db"
+    assert span["origin"] == "auto.otel"
+    assert span["status"] == "ok"
+    assert span["span_id"] is not None
+    assert span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert span["timestamp"] is not None
+    assert span["start_timestamp"] is not None
+
+
+def test_children_span_nesting_started_with_sentry_only(capture_envelopes):
+    envelopes = capture_envelopes()
+
+    with sentry_sdk.start_span(description="request"):
+        with sentry_sdk.start_span(description="db"):
+            with sentry_sdk.start_span(description="redis"):
+                pass
+        with sentry_sdk.start_span(description="http"):
+            pass
+
+    (envelope,) = envelopes
+    (item,) = envelope.items
+    payload = item.payload.json
+    (db_span, http_span, redis_span) = payload["spans"]
+
+    assert db_span["op"] == "db"
+    assert redis_span["op"] == "redis"
+    assert http_span["op"] == "http"
+
+    assert db_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert redis_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert http_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+
+    assert db_span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert http_span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert redis_span["parent_span_id"] == db_span["span_id"]
+
+
+def test_children_span_nesting_mixed(capture_envelopes):
+    envelopes = capture_envelopes()
+
+    with sentry_sdk.start_span(description="request"):
+        with tracer.start_as_current_span("db"):
+            with sentry_sdk.start_span(description="redis"):
+                pass
+        with tracer.start_as_current_span("http"):
+            pass
+
+    (envelope,) = envelopes
+    (item,) = envelope.items
+    payload = item.payload.json
+    (db_span, http_span, redis_span) = payload["spans"]
+
+    assert db_span["op"] == "db"
+    assert redis_span["op"] == "redis"
+    assert http_span["op"] == "http"
+
+    assert db_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert redis_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+    assert http_span["trace_id"] == payload["contexts"]["trace"]["trace_id"]
+
+    assert db_span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert http_span["parent_span_id"] == payload["contexts"]["trace"]["span_id"]
+    assert redis_span["parent_span_id"] == db_span["span_id"]