diff --git a/OpenTelemetryPlan/05-configuration-reference.md b/OpenTelemetryPlan/05-configuration-reference.md
index b13cc839ab..46f511a8b2 100644
--- a/OpenTelemetryPlan/05-configuration-reference.md
+++ b/OpenTelemetryPlan/05-configuration-reference.md
@@ -386,12 +386,18 @@ exporters:
     tls:
       insecure: true
 
+  # Grafana Tempo for trace storage
+  otlp/tempo:
+    endpoint: tempo:4317
+    tls:
+      insecure: true
+
 service:
   pipelines:
     traces:
       receivers: [otlp]
       processors: [batch]
-      exporters: [logging, jaeger]
+      exporters: [logging, jaeger, otlp/tempo]
 ```
 
 ### 5.5.2 Production Configuration
@@ -533,6 +539,17 @@ services:
       - "16686:16686" # UI
       - "14250:14250" # gRPC
 
+  # Grafana Tempo for trace storage (recommended for production)
+  tempo:
+    image: grafana/tempo:2.7.2
+    container_name: tempo
+    command: ["-config.file=/etc/tempo.yaml"]
+    volumes:
+      - ./tempo.yaml:/etc/tempo.yaml:ro
+      - tempo-data:/var/tempo
+    ports:
+      - "3200:3200" # HTTP API
+
   # Grafana for dashboards
   grafana:
     image: grafana/grafana:10.2.3
@@ -547,6 +564,7 @@ services:
       - "3000:3000"
     depends_on:
       - jaeger
+      - tempo
 
   # Prometheus for metrics (optional, for correlation)
   prometheus:
diff --git a/docker/telemetry/docker-compose.yml b/docker/telemetry/docker-compose.yml
index e6780ac2c3..491a3c78e7 100644
--- a/docker/telemetry/docker-compose.yml
+++ b/docker/telemetry/docker-compose.yml
@@ -1,10 +1,14 @@
 # Docker Compose stack for rippled OpenTelemetry observability.
 #
-# Provides three services for local development:
+# Provides services for local development:
 #   - otel-collector: receives OTLP traces from rippled, batches and
-#     forwards them to Jaeger. Listens on ports 4317 (gRPC) and 4318 (HTTP).
+#     forwards them to Jaeger and Tempo. Listens on ports 4317 (gRPC)
+#     and 4318 (HTTP).
 #   - jaeger: all-in-one tracing backend with UI on port 16686.
-#   - grafana: dashboards on port 3000, pre-configured with Jaeger datasource.
+#   - tempo: Grafana Tempo tracing backend, queryable via Grafana Explore
+#     on port 3000. Recommended for production (S3/GCS storage, TraceQL).
+#   - grafana: dashboards on port 3000, pre-configured with Jaeger, Tempo
+#     datasources.
 #
 # Usage:
 #   docker compose -f docker/telemetry/docker-compose.yml up -d
@@ -28,6 +32,7 @@ services:
       - ./otel-collector-config.yaml:/etc/otel-collector-config.yaml:ro
     depends_on:
       - jaeger
+      - tempo
     networks:
       - rippled-telemetry
 
@@ -41,6 +46,17 @@ services:
     networks:
       - rippled-telemetry
 
+  tempo:
+    image: grafana/tempo:2.7.2
+    command: ["-config.file=/etc/tempo.yaml"]
+    ports:
+      - "3200:3200" # Tempo HTTP API (health, query)
+    volumes:
+      - ./tempo.yaml:/etc/tempo.yaml:ro
+      - tempo-data:/var/tempo
+    networks:
+      - rippled-telemetry
+
   grafana:
     image: grafana/grafana:latest
     environment:
@@ -52,9 +68,13 @@ services:
       - ./grafana/provisioning:/etc/grafana/provisioning:ro
     depends_on:
       - jaeger
+      - tempo
     networks:
       - rippled-telemetry
 
+volumes:
+  tempo-data:
+
 networks:
   rippled-telemetry:
     driver: bridge
diff --git a/docker/telemetry/grafana/provisioning/datasources/tempo.yaml b/docker/telemetry/grafana/provisioning/datasources/tempo.yaml
new file mode 100644
index 0000000000..0cf9dbd6b0
--- /dev/null
+++ b/docker/telemetry/grafana/provisioning/datasources/tempo.yaml
@@ -0,0 +1,16 @@
+# Grafana datasource provisioning for Grafana Tempo.
+# Auto-configures Tempo as a trace data source on Grafana startup.
+# Access Grafana at http://localhost:3000, then use Explore -> Tempo
+# to browse rippled traces using TraceQL.
+
+apiVersion: 1
+
+datasources:
+  - name: Tempo
+    type: tempo
+    access: proxy
+    url: http://tempo:3200
+    uid: tempo
+    jsonData:
+      nodeGraph:
+        enabled: true
diff --git a/docker/telemetry/otel-collector-config.yaml b/docker/telemetry/otel-collector-config.yaml
index 0231023969..61937af6b1 100644
--- a/docker/telemetry/otel-collector-config.yaml
+++ b/docker/telemetry/otel-collector-config.yaml
@@ -1,8 +1,10 @@
 # OpenTelemetry Collector configuration for rippled development.
 #
-# Pipeline: OTLP receiver -> batch processor -> debug exporter + Jaeger.
+# Pipeline: OTLP receiver -> batch processor -> debug + Jaeger + Tempo.
 # rippled sends traces via OTLP/HTTP to port 4318. The collector batches
-# them and forwards to Jaeger via OTLP/gRPC on the Docker network.
+# them and forwards to both Jaeger and Tempo via OTLP/gRPC on the Docker
+# network. Jaeger provides a standalone UI at :16686; Tempo is queryable
+# via Grafana Explore using TraceQL.
 
 receivers:
   otlp:
@@ -24,10 +26,14 @@ exporters:
     endpoint: jaeger:4317
     tls:
       insecure: true
+  otlp/tempo:
+    endpoint: tempo:4317
+    tls:
+      insecure: true
 
 service:
   pipelines:
     traces:
       receivers: [otlp]
       processors: [batch]
-      exporters: [debug, otlp/jaeger]
+      exporters: [debug, otlp/jaeger, otlp/tempo]
diff --git a/docker/telemetry/tempo.yaml b/docker/telemetry/tempo.yaml
new file mode 100644
index 0000000000..da5f70ef09
--- /dev/null
+++ b/docker/telemetry/tempo.yaml
@@ -0,0 +1,36 @@
+# Grafana Tempo configuration for rippled telemetry stack.
+#
+# Runs in single-binary mode for local development.
+# Receives traces via OTLP/gRPC from the OTel Collector and stores
+# them locally. Queryable via Grafana Explore using the Tempo datasource.
+#
+# For production, replace local storage with S3/GCS backend and adjust
+# retention via the compactor settings. See:
+# https://grafana.com/docs/tempo/latest/configuration/
+
+stream_over_http_enabled: true
+
+server:
+  http_listen_port: 3200
+
+distributor:
+  receivers:
+    otlp:
+      protocols:
+        grpc:
+          endpoint: 0.0.0.0:4317
+
+ingester:
+  max_block_duration: 5m
+
+compactor:
+  compaction:
+    block_retention: 1h
+
+storage:
+  trace:
+    backend: local
+    wal:
+      path: /var/tempo/wal
+    local:
+      path: /var/tempo/blocks