diff --git a/crates/containerd-shim-wasm/src/sandbox/shim/otel.rs b/crates/containerd-shim-wasm/src/sandbox/shim/otel.rs
index 7676bd386..9c79b7b8c 100644
--- a/crates/containerd-shim-wasm/src/sandbox/shim/otel.rs
+++ b/crates/containerd-shim-wasm/src/sandbox/shim/otel.rs
@@ -35,10 +35,11 @@ pub use opentelemetry_otlp::{
 };
 use opentelemetry_sdk::propagation::TraceContextPropagator;
 use opentelemetry_sdk::{runtime, trace as sdktrace};
-use tracing::Span;
-use tracing_opentelemetry::OpenTelemetrySpanExt as _;
+use tracing::span::{Attributes, Id};
+use tracing::{Span, Subscriber};
+use tracing_opentelemetry::{OpenTelemetrySpanExt as _, OtelData};
 use tracing_subscriber::layer::SubscriberExt as _;
-use tracing_subscriber::{EnvFilter, Registry};
+use tracing_subscriber::{EnvFilter, Layer, Registry};
 
 const OTEL_EXPORTER_OTLP_PROTOCOL_HTTP_JSON: &str = "http/json";
 const OTEL_EXPORTER_OTLP_PROTOCOL_HTTP_PROTOBUF: &str = "http/protobuf";
@@ -91,7 +92,10 @@ impl Config {
 
         let filter = EnvFilter::try_new("info,h2=off")?;
 
-        let subscriber = Registry::default().with(telemetry).with(filter);
+        let subscriber = Registry::default()
+            .with(telemetry)
+            .with(filter)
+            .with(SpanNamingLayer);
 
         tracing::subscriber::set_global_default(subscriber)?;
         Ok(ShutdownGuard)
@@ -179,6 +183,31 @@ fn traces_protocol_from_env() -> anyhow::Result<Protocol> {
     Ok(protocol)
 }
 
+/// A layer that renames spans to include the target in the span name.
+struct SpanNamingLayer;
+
+impl<S> Layer<S> for SpanNamingLayer
+where
+    S: Subscriber + for<'a> tracing_subscriber::registry::LookupSpan<'a>,
+{
+    fn on_new_span(
+        &self,
+        attrs: &Attributes<'_>,
+        id: &Id,
+        ctx: tracing_subscriber::layer::Context<'_, S>,
+    ) {
+        let span = ctx.span(id).expect("Span not found");
+        let mut extensions = span.extensions_mut();
+
+        if let Some(otel_data) = extensions.get_mut::<OtelData>() {
+            let target = attrs.metadata().target();
+            let original_name = attrs.metadata().name();
+            let new_name = format!("{}::{}", target, original_name);
+            otel_data.builder.name = new_name.into();
+        }
+    }
+}
+
 #[cfg(test)]
 mod tests {
     use temp_env::with_vars;
diff --git a/scripts/verify-jaeger-traces.sh b/scripts/verify-jaeger-traces.sh
index 25d0030fe..ac9792d2d 100755
--- a/scripts/verify-jaeger-traces.sh
+++ b/scripts/verify-jaeger-traces.sh
@@ -4,7 +4,17 @@ set -euo pipefail
 TRACE_DATA=$(curl -s "http://localhost:16686/api/traces?service=containerd&limit=0" \
     | jq '[ .data[].spans[].operationName ]')
 
-REQUIRED_OPS=("task_create" "task_wait" "task_start" "task_delete" "task_state" "wait" "shutdown" "shim_main_inner")
+PREFIX="containerd_shim_wasm::sandbox"
+REQUIRED_OPS=(
+    "${PREFIX}::shim::local::task_create"
+    "${PREFIX}::shim::local::task_wait"
+    "${PREFIX}::shim::local::task_start"
+    "${PREFIX}::shim::local::task_delete"
+    "${PREFIX}::shim::local::task_state"
+    "${PREFIX}::shim::cli::wait"
+    "${PREFIX}::shim::local::shutdown"
+    "${PREFIX}::cli::shim_main_inner"
+)
 
 for op in "${REQUIRED_OPS[@]}"; do
   COUNT=$(echo "$TRACE_DATA" | jq --arg op "$op" '[ .[] | select(. == $op) ] | length')