diff --git a/tests/tracing/instrumentation/conftest.py b/tests/tracing/instrumentation/conftest.py
new file mode 100644
index 000000000..df3a7a166
--- /dev/null
+++ b/tests/tracing/instrumentation/conftest.py
@@ -0,0 +1,23 @@
+import pytest
+
+from opentelemetry.sdk.trace import TracerProvider
+from opentelemetry.sdk.trace.export import SimpleSpanProcessor
+from opentelemetry.sdk.trace.export.in_memory_span_exporter import InMemorySpanExporter
+
+
+@pytest.fixture(scope="session")
+def tracer_provider() -> TracerProvider:
+    return TracerProvider()
+
+
+@pytest.fixture(scope="session")
+def span_exporter(tracer_provider: TracerProvider) -> InMemorySpanExporter:
+    exporter = InMemorySpanExporter()  # type: ignore
+    tracer_provider.add_span_processor(SimpleSpanProcessor(exporter))
+    return exporter
+
+
+@pytest.fixture(scope="function")
+def previous_num_captured_spans(span_exporter: InMemorySpanExporter) -> int:
+    captured_spans = span_exporter.get_finished_spans()  # type: ignore
+    return len(captured_spans)
diff --git a/tests/tracing/instrumentation/test_tracing.py b/tests/tracing/instrumentation/test_tracing.py
new file mode 100644
index 000000000..80444ba09
--- /dev/null
+++ b/tests/tracing/instrumentation/test_tracing.py
@@ -0,0 +1,57 @@
+import json
+
+import rasa_sdk.endpoint as ep
+
+from typing import Sequence
+from opentelemetry import trace
+from opentelemetry.sdk.trace import TracerProvider
+
+from opentelemetry.sdk.trace import ReadableSpan
+from opentelemetry.sdk.trace.export.in_memory_span_exporter import InMemorySpanExporter
+from opentelemetry.sdk.trace.export import SimpleSpanProcessor, ConsoleSpanExporter
+
+trace.set_tracer_provider(TracerProvider())
+tracer_provider = trace.get_tracer_provider().add_span_processor(
+    SimpleSpanProcessor(ConsoleSpanExporter())
+)
+# noinspection PyTypeChecker
+app = ep.create_app(None, tracer_provider=tracer_provider)
+
+
+def test_server_webhook_custom_action_is_instrumented(
+    span_exporter: InMemorySpanExporter,
+    previous_num_captured_spans: int,
+):
+    data = {
+        "next_action": "custom_action",
+        "version": "1.0.0",
+        "tracker": {
+            "sender_id": "1",
+            "conversation_id": "default",
+            "latest_message": {"message_id": "1"},
+        },
+    }
+    _, response = app.test_client.post("/webhook", data=json.dumps(data))
+    result = response.json
+
+    assert response.status == 200
+
+    captured_spans: Sequence[
+        ReadableSpan
+    ] = span_exporter.get_finished_spans()  # type: ignore
+
+    print("******** captured_spans ******", captured_spans)
+
+    num_captured_spans = len(captured_spans) - previous_num_captured_spans
+    assert num_captured_spans == 1
+
+    captured_span = captured_spans[-1]
+
+    assert captured_span.attributes == {
+        "http.method": "POST",
+        "http.route": "/webhook",
+        "next_action": result.get("next_action"),
+        "version": result.get("version"),
+        "sender_id": result.get("sender_id"),
+        "message_id": result.get("latest_message", {}).get("message_id"),
+    }