diff --git a/packages/aws-durable-execution-sdk-python-examples/cli.py b/packages/aws-durable-execution-sdk-python-examples/cli.py
index 5a5fa713..fe02dae5 100755
--- a/packages/aws-durable-execution-sdk-python-examples/cli.py
+++ b/packages/aws-durable-execution-sdk-python-examples/cli.py
@@ -19,6 +19,7 @@
 
 try:
     import boto3
+
     from aws_durable_execution_sdk_python.lambda_service import LambdaClient
 except ImportError:
     sys.exit(1)
@@ -326,6 +327,9 @@ def deploy_function(example_name: str, function_name: str | None = None):
         f"arn:aws:iam::{config['account_id']}:role/DurableFunctionsIntegrationTestRole"
     )
 
+    env_vars = {"AWS_ENDPOINT_URL_LAMBDA": config["lambda_endpoint"]}
+    env_vars.update(example_config.get("environment", {}))
+
     function_config = {
         "FunctionName": function_name,
         "Runtime": "python3.13",
@@ -334,13 +338,17 @@ def deploy_function(example_name: str, function_name: str | None = None):
         "Description": example_config["description"],
         "Timeout": 60,
         "MemorySize": 128,
-        "Environment": {
-            "Variables": {"AWS_ENDPOINT_URL_LAMBDA": config["lambda_endpoint"]}
-        },
+        "Environment": {"Variables": env_vars},
         "DurableConfig": example_config["durableConfig"],
         "LoggingConfig": example_config.get("loggingConfig", {}),
     }
 
+    if "layers" in example_config:
+        function_config["Layers"] = example_config["layers"]
+
+    if "tracing" in example_config:
+        function_config["TracingConfig"] = {"Mode": example_config["tracing"]}
+
     if config["kms_key_arn"]:
         function_config["KMSKeyArn"] = config["kms_key_arn"]
 
diff --git a/packages/aws-durable-execution-sdk-python-examples/examples-catalog.json b/packages/aws-durable-execution-sdk-python-examples/examples-catalog.json
index dc819e8d..754fb386 100644
--- a/packages/aws-durable-execution-sdk-python-examples/examples-catalog.json
+++ b/packages/aws-durable-execution-sdk-python-examples/examples-catalog.json
@@ -634,6 +634,13 @@
         "RetentionPeriodInDays": 7,
         "ExecutionTimeout": 300
       },
+      "tracing": "Active",
+      "layers": [
+        "arn:aws:lambda:us-west-2:615299751070:layer:AWSOpenTelemetryDistroPython:32"
+      ],
+      "environment": {
+        "AWS_LAMBDA_EXEC_WRAPPER": "/opt/otel-instrument"
+      },
       "path": "./src/plugin/execution_with_otel.py"
     },
     {
@@ -649,6 +656,14 @@
         "ApplicationLogLevel": "INFO",
         "LogFormat": "JSON"
       },
+      "tracing": "Active",
+      "layers": [
+        "arn:aws:lambda:us-west-2:615299751070:layer:AWSOpenTelemetryDistroPython:32"
+      ],
+      "environment": {
+        "AWS_LAMBDA_EXEC_WRAPPER": "/opt/otel-instrument",
+        "OTEL_PYTHON_LOGGING_AUTO_INSTRUMENTATION_ENABLED": "true"
+      },
       "path": "./src/otel/otel_logger_example.py"
     }
   ]
diff --git a/packages/aws-durable-execution-sdk-python-examples/scripts/generate_sam_template.py b/packages/aws-durable-execution-sdk-python-examples/scripts/generate_sam_template.py
index c4e631ce..3b2a512a 100644
--- a/packages/aws-durable-execution-sdk-python-examples/scripts/generate_sam_template.py
+++ b/packages/aws-durable-execution-sdk-python-examples/scripts/generate_sam_template.py
@@ -3,8 +3,6 @@
 import json
 from pathlib import Path
 
-import json
-
 
 def load_catalog():
     """Load examples catalog."""
@@ -95,6 +93,21 @@ def generate_sam_template():
                 example["durableConfig"]
             )
 
+        if "layers" in example:
+            template["Resources"][function_name]["Properties"]["Layers"] = example[
+                "layers"
+            ]
+
+        if "tracing" in example:
+            template["Resources"][function_name]["Properties"]["Tracing"] = example[
+                "tracing"
+            ]
+
+        if "environment" in example:
+            template["Resources"][function_name]["Properties"]["Environment"] = {
+                "Variables": example["environment"]
+            }
+
     template_path = Path(__file__).parent.parent / "template.yaml"
     with open(template_path, "w") as f:
         json.dump(template, f, sort_keys=False, indent=2)
diff --git a/packages/aws-durable-execution-sdk-python-examples/src/otel/otel_logger_example.py b/packages/aws-durable-execution-sdk-python-examples/src/otel/otel_logger_example.py
index 8490a4a2..50070028 100644
--- a/packages/aws-durable-execution-sdk-python-examples/src/otel/otel_logger_example.py
+++ b/packages/aws-durable-execution-sdk-python-examples/src/otel/otel_logger_example.py
@@ -28,11 +28,7 @@
 from aws_durable_execution_sdk_python.execution import durable_execution
 
 
-tracer_provider = TracerProvider()
-trace.set_tracer_provider(tracer_provider)
-
-# enrich_logger defaults to True, so the execution logger is wrapped with OTel
-# trace context injection (otel.trace_id, otel.span_id, otel.trace_sampled).
+tracer_provider = trace.get_tracer_provider()
 otel = DurableExecutionOtelPlugin(tracer_provider)
 
 
diff --git a/packages/aws-durable-execution-sdk-python-examples/template.yaml b/packages/aws-durable-execution-sdk-python-examples/template.yaml
index f6c885e6..5e39d9e6 100644
--- a/packages/aws-durable-execution-sdk-python-examples/template.yaml
+++ b/packages/aws-durable-execution-sdk-python-examples/template.yaml
@@ -1029,6 +1029,15 @@
         "DurableConfig": {
           "RetentionPeriodInDays": 7,
           "ExecutionTimeout": 300
+        },
+        "Layers": [
+          "arn:aws:lambda:us-west-2:615299751070:layer:AWSOpenTelemetryDistroPython:32"
+        ],
+        "Tracing": "Active",
+        "Environment": {
+          "Variables": {
+            "AWS_LAMBDA_EXEC_WRAPPER": "/opt/otel-instrument"
+          }
         }
       }
     },
@@ -1047,6 +1056,16 @@
         "DurableConfig": {
           "RetentionPeriodInDays": 7,
           "ExecutionTimeout": 300
+        },
+        "Layers": [
+          "arn:aws:lambda:us-west-2:615299751070:layer:AWSOpenTelemetryDistroPython:32"
+        ],
+        "Tracing": "Active",
+        "Environment": {
+          "Variables": {
+            "AWS_LAMBDA_EXEC_WRAPPER": "/opt/otel-instrument",
+            "OTEL_PYTHON_LOGGING_AUTO_INSTRUMENTATION_ENABLED": "true"
+          }
         }
       }
     }