diff --git a/playbooks/roles/xqueue/defaults/main.yml b/playbooks/roles/xqueue/defaults/main.yml
index 507665e566c..8b9ad0873b5 100644
--- a/playbooks/roles/xqueue/defaults/main.yml
+++ b/playbooks/roles/xqueue/defaults/main.yml
@@ -58,6 +58,10 @@ XQUEUE_MYSQL_CONN_MAX_AGE: 0 # This is Django's default https://docs.djangoproje
 
 XQUEUE_NEWRELIC_APPNAME: "{{ COMMON_ENVIRONMENT }}-{{ COMMON_DEPLOYMENT }}-xqueue"
 XQUEUE_CONSUMER_NEWRELIC_APPNAME: "{{ COMMON_ENVIRONMENT }}-{{ COMMON_DEPLOYMENT }}-xqueue_consumer"
+
+XQUEUE_CONSUMER_DATADOG_APPNAME: "xqueue_consumer"
+
+XQUEUE_DATADOG_APPNAME: "{{ xqueue_service_name }}"
 # Set the number of gunicorn front end workers explicitely for xqueue
 XQUEUE_WORKERS: !!null
 
diff --git a/playbooks/roles/xqueue/tasks/main.yml b/playbooks/roles/xqueue/tasks/main.yml
index 5804e01522d..8fc4676a1eb 100644
--- a/playbooks/roles/xqueue/tasks/main.yml
+++ b/playbooks/roles/xqueue/tasks/main.yml
@@ -74,6 +74,19 @@
     - install
     - install:app-requirements
 
+- name: "Install Datadog APM requirements"
+  when: COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP
+  pip:
+    name:
+      - ddtrace
+    extra_args: "--exists-action w"
+    virtualenv: "{{ xqueue_venv_dir }}"
+    state: present
+  become_user: "{{ xqueue_user }}"
+  tags:
+    - install
+    - install:app-requirements
+
 ######## END PYTHON3 ########
 
 - name: build virtualenv with python2.7
diff --git a/playbooks/roles/xqueue/templates/xqueue.conf.j2 b/playbooks/roles/xqueue/templates/xqueue.conf.j2
index b058f73bc3c..39eb0687506 100644
--- a/playbooks/roles/xqueue/templates/xqueue.conf.j2
+++ b/playbooks/roles/xqueue/templates/xqueue.conf.j2
@@ -6,12 +6,16 @@
 {% set executable = xqueue_venv_bin + '/gunicorn' %}
 {% endif %}
 
+{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}
+{% set executable = xqueue_venv_bin + '/ddtrace-run ' + executable %}
+{% endif -%}
+
 command={{ executable }} -c {{ xqueue_app_dir }}/xqueue_gunicorn.py {{ XQUEUE_GUNICORN_WORKERS_EXTRA }} xqueue.wsgi
 
 user={{ common_web_user }}
 directory={{ xqueue_code_dir }}
 
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQUEUE_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}PID=/var/tmp/xqueue.pid,PORT={{ xqueue_gunicorn_port }},ADDRESS={{ xqueue_gunicorn_host }},LANG={{ XQUEUE_LANG }},DJANGO_SETTINGS_MODULE=xqueue.{{ XQUEUE_SETTINGS }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQUEUE_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS={{ XQUEUE_DATADOG_APPNAME }},{% endif -%}PID=/var/tmp/xqueue.pid,PORT={{ xqueue_gunicorn_port }},ADDRESS={{ xqueue_gunicorn_host }},LANG={{ XQUEUE_LANG }},DJANGO_SETTINGS_MODULE=xqueue.{{ XQUEUE_SETTINGS }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
 
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
diff --git a/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2 b/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
index fe6a0c58496..014ada0809d 100644
--- a/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
+++ b/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
@@ -6,12 +6,16 @@
 {% set executable = xqueue_venv_bin + '/django-admin run_consumer' %}
 {% endif %}
 
+{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}
+{% set executable = xqueue_venv_bin + '/ddtrace-run ' + executable %}
+{% endif -%}
+
 command={{ executable }} --pythonpath={{ xqueue_code_dir }} --settings=xqueue.{{ XQUEUE_SETTINGS }}
 
 user={{ common_web_user }}
 directory={{ xqueue_code_dir }}
 
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_STARTUP_TIMEOUT=10,NEW_RELIC_APP_NAME={{ XQUEUE_CONSUMER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}LANG={{ XQUEUE_LANG }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_STARTUP_TIMEOUT=10,NEW_RELIC_APP_NAME={{ XQUEUE_CONSUMER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS={{ XQUEUE_CONSUMER_DATADOG_APPNAME }},{% endif -%}LANG={{ XQUEUE_LANG }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
 
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
diff --git a/playbooks/roles/xqwatcher/defaults/main.yml b/playbooks/roles/xqwatcher/defaults/main.yml
index d79b0551ce6..2bfe8760ee8 100644
--- a/playbooks/roles/xqwatcher/defaults/main.yml
+++ b/playbooks/roles/xqwatcher/defaults/main.yml
@@ -75,6 +75,7 @@ XQWATCHER_REPOS:
 XQWATCHER_NEWRELIC_APPNAME: "{{ COMMON_DEPLOYMENT }}-{{ COMMON_ENVIRONMENT }}-xqwatcher"
 XQWATCHER_PIP_EXTRA_ARGS: "-i {{ COMMON_PYPI_MIRROR_URL }}"
 
+XQWATCHER_DATADOG_APPNAME: "{{ xqwatcher_service_name }}"
 #
 #
 # vars are namespace with the module name.
diff --git a/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml b/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml
index 8cbd29c52f3..e9a13e29113 100644
--- a/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml
+++ b/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml
@@ -14,6 +14,19 @@
     - install
     - install:app-requirements
 
+- name: "Install Datadog APM requirements"
+  when: COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP
+  pip:
+    name:
+      - ddtrace
+    extra_args: "--exists-action w"
+    virtualenv: "{{ xqwatcher_app_dir }}/venvs/{{ xqwatcher_service_name }}"
+    state: present
+  become_user: "{{ xqwatcher_user }}"
+  tags:
+    - install
+    - install:app-requirements
+
 - name: Write out course config files
   template:
     src: "edx/app/xqwatcher/conf.d/course.json.j2"
diff --git a/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2 b/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
index 94b94fdb05d..778e7a7217e 100644
--- a/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
+++ b/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
@@ -8,6 +8,9 @@
 {% else %}
 {% set executable = xqwatcher_venv_dir + '/bin/python' %}
 {% endif %}
+{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}
+{% set executable = xqwatcher_venv_dir + '/ddtrace-run ' + executable %}
+{% endif -%}
 
 [program:{{ xqwatcher_service_name }}]
 command={{ executable }} -m {{ xqwatcher_module }} -d {{ xqwatcher_conf_dir }} 
@@ -16,6 +19,6 @@ user={{ common_web_user }}
 directory={{ xqwatcher_code_dir }}
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQWATCHER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQWATCHER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS="service:{{ XQWATCHER_DATADOG_APPNAME }}",{% endif -%}
 killasgroup=true
 stopasgroup=true