diff --git a/cmd/cleanup-controller/server.go b/cmd/cleanup-controller/server.go
index 2661abb6bd..0d225cfcc1 100644
--- a/cmd/cleanup-controller/server.go
+++ b/cmd/cleanup-controller/server.go
@@ -77,7 +77,7 @@ func NewServer(
 			WithSubResourceFilter().
 			WithMetrics(policyLogger, metricsConfig.Config(), metrics.WebhookValidating).
 			WithAdmission(policyLogger.WithName("validate")).
-			ToHandlerFunc(),
+			ToHandlerFunc("VALIDATE"),
 	)
 	mux.HandlerFunc(
 		"POST",
@@ -87,7 +87,7 @@ func NewServer(
 			WithSubResourceFilter().
 			WithMetrics(labelLogger, metricsConfig.Config(), metrics.WebhookValidating).
 			WithAdmission(labelLogger.WithName("validate")).
-			ToHandlerFunc(),
+			ToHandlerFunc("VALIDATE"),
 	)
 	mux.HandlerFunc(
 		"GET",
@@ -95,7 +95,7 @@ func NewServer(
 		handlers.HttpHandler(cleanupHandlerFunc).
 			WithMetrics(policyLogger).
 			WithTrace("CLEANUP").
-			ToHandlerFunc(),
+			ToHandlerFunc("CLEANUP"),
 	)
 	mux.HandlerFunc("GET", config.LivenessServicePath, handlers.Probe(probes.IsLive))
 	mux.HandlerFunc("GET", config.ReadinessServicePath, handlers.Probe(probes.IsReady))
diff --git a/pkg/tracing/config.go b/pkg/tracing/config.go
index 49747a4338..d707ded968 100644
--- a/pkg/tracing/config.go
+++ b/pkg/tracing/config.go
@@ -63,8 +63,8 @@ func NewTraceConfig(log logr.Logger, tracerName, address, certs string, kubeClie
 		sdktrace.WithResource(res),
 	)
 	// set global propagator to tracecontext (the default is no-op).
-	otel.SetTextMapPropagator(propagation.TraceContext{})
 	otel.SetTracerProvider(tp)
+	otel.SetTextMapPropagator(propagation.NewCompositeTextMapPropagator(propagation.TraceContext{}, propagation.Baggage{}))
 	return func() {
 		ctx, cancel := context.WithTimeout(context.Background(), 20*time.Second)
 		defer cancel()
diff --git a/pkg/webhooks/handlers/types.go b/pkg/webhooks/handlers/types.go
index ce6ba78c3c..03a98b7a4b 100644
--- a/pkg/webhooks/handlers/types.go
+++ b/pkg/webhooks/handlers/types.go
@@ -6,6 +6,7 @@ import (
 	"time"
 
 	"github.com/go-logr/logr"
+	"go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp"
 	admissionv1 "k8s.io/api/admission/v1"
 	"k8s.io/apimachinery/pkg/runtime/schema"
 )
@@ -35,6 +36,7 @@ func FromAdmissionFunc(name string, h AdmissionHandler) AdmissionHandler {
 	return h.WithTrace(name)
 }
 
-func (h HttpHandler) ToHandlerFunc() http.HandlerFunc {
-	return http.HandlerFunc(h)
+func (h HttpHandler) ToHandlerFunc(operation string) http.HandlerFunc {
+	handler := otelhttp.NewHandler(http.HandlerFunc(h), operation)
+	return handler.ServeHTTP
 }
diff --git a/pkg/webhooks/server.go b/pkg/webhooks/server.go
index a418b68253..f12c8c500c 100644
--- a/pkg/webhooks/server.go
+++ b/pkg/webhooks/server.go
@@ -128,7 +128,7 @@ func NewServer(
 			WithDump(debugModeOpts.DumpPayload).
 			WithMetrics(policyLogger, metricsConfig.Config(), metrics.WebhookMutating).
 			WithAdmission(policyLogger.WithName("mutate")).
-			ToHandlerFunc(),
+			ToHandlerFunc("MUTATE"),
 	)
 	mux.HandlerFunc(
 		"POST",
@@ -138,7 +138,7 @@ func NewServer(
 			WithSubResourceFilter().
 			WithMetrics(policyLogger, metricsConfig.Config(), metrics.WebhookValidating).
 			WithAdmission(policyLogger.WithName("validate")).
-			ToHandlerFunc(),
+			ToHandlerFunc("VALIDATE"),
 	)
 	mux.HandlerFunc(
 		"POST",
@@ -148,14 +148,14 @@ func NewServer(
 			WithSubResourceFilter().
 			WithMetrics(exceptionLogger, metricsConfig.Config(), metrics.WebhookValidating).
 			WithAdmission(exceptionLogger.WithName("validate")).
-			ToHandlerFunc(),
+			ToHandlerFunc("VALIDATE"),
 	)
 	mux.HandlerFunc(
 		"POST",
 		config.VerifyMutatingWebhookServicePath,
 		handlers.FromAdmissionFunc("VERIFY", handlers.Verify).
 			WithAdmission(verifyLogger.WithName("mutate")).
-			ToHandlerFunc(),
+			ToHandlerFunc("VERIFY"),
 	)
 	mux.HandlerFunc("GET", config.LivenessServicePath, handlers.Probe(runtime.IsLive))
 	mux.HandlerFunc("GET", config.ReadinessServicePath, handlers.Probe(runtime.IsReady))
@@ -280,7 +280,7 @@ func registerWebhookHandlers(
 			return handlerFunc(ctx, logger, request, "fail", startTime)
 		},
 	)
-	mux.HandlerFunc("POST", basePath, builder(all).ToHandlerFunc())
-	mux.HandlerFunc("POST", basePath+"/ignore", builder(ignore).ToHandlerFunc())
-	mux.HandlerFunc("POST", basePath+"/fail", builder(fail).ToHandlerFunc())
+	mux.HandlerFunc("POST", basePath, builder(all).ToHandlerFunc(name))
+	mux.HandlerFunc("POST", basePath+"/ignore", builder(ignore).ToHandlerFunc(name))
+	mux.HandlerFunc("POST", basePath+"/fail", builder(fail).ToHandlerFunc(name))
 }