diff --git a/cmd/relayproxy/api/opentelemetry/otel.go b/cmd/relayproxy/api/opentelemetry/otel.go
index a7ff6498d93..4a331a3e433 100644
--- a/cmd/relayproxy/api/opentelemetry/otel.go
+++ b/cmd/relayproxy/api/opentelemetry/otel.go
@@ -30,7 +30,7 @@ func NewOtelService() OtelService {
 func (s *OtelService) Init(ctx context.Context, zapLog *zap.Logger, config config.Config) error {
 	// Require the endpoint to be set either by the openTelemetryOtlpEndpoint
 	// config element or otel.exporter.otlp.endpoint
-	if config.OpenTelemetryOtlpEndpoint == "" && config.OtelConfig.Exporter.Otlp.Endpoint == "" {
+	if (config.OpenTelemetryOtlpEndpoint == "" && config.OtelConfig.Exporter.Otlp.Endpoint == "") || config.OtelConfig.SDK.Disabled {
 		otel.SetTracerProvider(noop.NewTracerProvider())
 		return nil
 	}
diff --git a/cmd/relayproxy/api/opentelemetry/otel_test.go b/cmd/relayproxy/api/opentelemetry/otel_test.go
index 7e04622c6e8..328d0012dae 100644
--- a/cmd/relayproxy/api/opentelemetry/otel_test.go
+++ b/cmd/relayproxy/api/opentelemetry/otel_test.go
@@ -177,6 +177,7 @@ func TestInit(t *testing.T) {
 
 	t.Run("disabled", func(t *testing.T) {
 		t.Setenv("OTEL_SDK_DISABLED", "true")
+		t.Setenv("OTEL_EXPORTER_OTLP_ENDPOINT", "https://example.com:4318")
 		f := pflag.NewFlagSet("config", pflag.ContinueOnError)
 		c, errC := config.New(f, zap.L(), "1.X.X")
 		require.NoError(t, errC)