diff --git a/x-pack/plugins/fleet/common/types/models/agent_policy.ts b/x-pack/plugins/fleet/common/types/models/agent_policy.ts
index ac69f0c673289..e639b364343d9 100644
--- a/x-pack/plugins/fleet/common/types/models/agent_policy.ts
+++ b/x-pack/plugins/fleet/common/types/models/agent_policy.ts
@@ -118,6 +118,7 @@ export interface FullAgentPolicyMonitoring {
   enabled: boolean;
   metrics: boolean;
   logs: boolean;
+  traces: boolean;
 }
 
 export interface FullAgentPolicy {
diff --git a/x-pack/plugins/fleet/server/integration_tests/cloud_preconfiguration.test.ts b/x-pack/plugins/fleet/server/integration_tests/cloud_preconfiguration.test.ts
index 72335f2c94f31..5ffe6b643f77d 100644
--- a/x-pack/plugins/fleet/server/integration_tests/cloud_preconfiguration.test.ts
+++ b/x-pack/plugins/fleet/server/integration_tests/cloud_preconfiguration.test.ts
@@ -172,6 +172,7 @@ describe('Fleet cloud preconfiguration', () => {
                 enabled: false,
                 logs: false,
                 metrics: false,
+                traces: false,
               },
               protection: {
                 enabled: false,
diff --git a/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/full_agent_policy.test.ts.snap b/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/full_agent_policy.test.ts.snap
index 8518e43fdaf0d..d5ae12c00a9ff 100644
--- a/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/full_agent_policy.test.ts.snap
+++ b/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/full_agent_policy.test.ts.snap
@@ -11,6 +11,7 @@ Object {
       "enabled": false,
       "logs": false,
       "metrics": false,
+      "traces": false,
     },
     "protection": Object {
       "enabled": false,
@@ -180,6 +181,7 @@ Object {
       "logs": false,
       "metrics": true,
       "namespace": "default",
+      "traces": false,
       "use_output": "default",
     },
     "protection": Object {
@@ -258,6 +260,7 @@ Object {
       "logs": false,
       "metrics": true,
       "namespace": "default",
+      "traces": false,
       "use_output": "monitoring-output-id",
     },
     "protection": Object {
@@ -336,6 +339,7 @@ Object {
       "logs": false,
       "metrics": true,
       "namespace": "default",
+      "traces": false,
       "use_output": "monitoring-output-id",
     },
     "protection": Object {
diff --git a/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/monitoring_permissions.test.ts.snap b/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/monitoring_permissions.test.ts.snap
index fc854fd3b774f..91234c443ab76 100644
--- a/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/monitoring_permissions.test.ts.snap
+++ b/x-pack/plugins/fleet/server/services/agent_policies/__snapshots__/monitoring_permissions.test.ts.snap
@@ -1,6 +1,6 @@
 // Jest Snapshot v1, https://goo.gl/fbAQLP
 
-exports[`getMonitoringPermissions With elastic agent package installed should return default logs and metrics permissions if both are enabled 1`] = `
+exports[`getMonitoringPermissions With elastic agent package installed should return default logs permissions if only logs are enabled 1`] = `
 Object {
   "_elastic_agent_monitoring": Object {
     "indices": Array [
@@ -15,16 +15,25 @@ Object {
       },
       Object {
         "names": Array [
-          "metrics-elastic_agent.metricbeat-testnamespace123",
+          "logs-elastic_agent.filebeat-testnamespace123",
         ],
         "privileges": Array [
           "auto_configure",
           "create_doc",
         ],
       },
+    ],
+  },
+}
+`;
+
+exports[`getMonitoringPermissions With elastic agent package installed should return default logs, metrics, traces permissions if all are enabled 1`] = `
+Object {
+  "_elastic_agent_monitoring": Object {
+    "indices": Array [
       Object {
         "names": Array [
-          "logs-elastic_agent.filebeat-testnamespace123",
+          "logs-elastic_agent.metricbeat-testnamespace123",
         ],
         "privileges": Array [
           "auto_configure",
@@ -33,25 +42,16 @@ Object {
       },
       Object {
         "names": Array [
-          "metrics-elastic_agent.filebeat-testnamespace123",
+          "metrics-elastic_agent.metricbeat-testnamespace123",
         ],
         "privileges": Array [
           "auto_configure",
           "create_doc",
         ],
       },
-    ],
-  },
-}
-`;
-
-exports[`getMonitoringPermissions With elastic agent package installed should return default logs permissions if only logs are enabled 1`] = `
-Object {
-  "_elastic_agent_monitoring": Object {
-    "indices": Array [
       Object {
         "names": Array [
-          "logs-elastic_agent.metricbeat-testnamespace123",
+          "logs-elastic_agent.filebeat-testnamespace123",
         ],
         "privileges": Array [
           "auto_configure",
@@ -60,7 +60,7 @@ Object {
       },
       Object {
         "names": Array [
-          "logs-elastic_agent.filebeat-testnamespace123",
+          "metrics-elastic_agent.filebeat-testnamespace123",
         ],
         "privileges": Array [
           "auto_configure",
@@ -99,7 +99,15 @@ Object {
 }
 `;
 
-exports[`getMonitoringPermissions Without elastic agent package installed should return default logs and metrics permissions if both are enabled 1`] = `
+exports[`getMonitoringPermissions With elastic agent package installed should return default traces permissions if only traces are enabled 1`] = `
+Object {
+  "_elastic_agent_monitoring": Object {
+    "indices": Array [],
+  },
+}
+`;
+
+exports[`getMonitoringPermissions Without elastic agent package installed should return default logs permissions if only logs are enabled 1`] = `
 Object {
   "_elastic_agent_monitoring": Object {
     "indices": Array [
@@ -122,23 +130,6 @@ Object {
           "logs-elastic_agent.pf_host_agent-testnamespace123",
           "logs-elastic_agent.pf_elastic_collector-testnamespace123",
           "logs-elastic_agent.pf_elastic_symbolizer-testnamespace123",
-          "metrics-elastic_agent-testnamespace123",
-          "metrics-elastic_agent.elastic_agent-testnamespace123",
-          "metrics-elastic_agent.apm_server-testnamespace123",
-          "metrics-elastic_agent.filebeat-testnamespace123",
-          "metrics-elastic_agent.filebeat_input-testnamespace123",
-          "metrics-elastic_agent.fleet_server-testnamespace123",
-          "metrics-elastic_agent.metricbeat-testnamespace123",
-          "metrics-elastic_agent.osquerybeat-testnamespace123",
-          "metrics-elastic_agent.packetbeat-testnamespace123",
-          "metrics-elastic_agent.endpoint_security-testnamespace123",
-          "metrics-elastic_agent.auditbeat-testnamespace123",
-          "metrics-elastic_agent.heartbeat-testnamespace123",
-          "metrics-elastic_agent.cloudbeat-testnamespace123",
-          "metrics-elastic_agent.cloud_defend-testnamespace123",
-          "metrics-elastic_agent.pf_host_agent-testnamespace123",
-          "metrics-elastic_agent.pf_elastic_collector-testnamespace123",
-          "metrics-elastic_agent.pf_elastic_symbolizer-testnamespace123",
         ],
         "privileges": Array [
           "auto_configure",
@@ -150,7 +141,7 @@ Object {
 }
 `;
 
-exports[`getMonitoringPermissions Without elastic agent package installed should return default logs permissions if only logs are enabled 1`] = `
+exports[`getMonitoringPermissions Without elastic agent package installed should return default logs, metrics, traces permissions if all are enabled 1`] = `
 Object {
   "_elastic_agent_monitoring": Object {
     "indices": Array [
@@ -173,6 +164,40 @@ Object {
           "logs-elastic_agent.pf_host_agent-testnamespace123",
           "logs-elastic_agent.pf_elastic_collector-testnamespace123",
           "logs-elastic_agent.pf_elastic_symbolizer-testnamespace123",
+          "metrics-elastic_agent-testnamespace123",
+          "metrics-elastic_agent.elastic_agent-testnamespace123",
+          "metrics-elastic_agent.apm_server-testnamespace123",
+          "metrics-elastic_agent.filebeat-testnamespace123",
+          "metrics-elastic_agent.filebeat_input-testnamespace123",
+          "metrics-elastic_agent.fleet_server-testnamespace123",
+          "metrics-elastic_agent.metricbeat-testnamespace123",
+          "metrics-elastic_agent.osquerybeat-testnamespace123",
+          "metrics-elastic_agent.packetbeat-testnamespace123",
+          "metrics-elastic_agent.endpoint_security-testnamespace123",
+          "metrics-elastic_agent.auditbeat-testnamespace123",
+          "metrics-elastic_agent.heartbeat-testnamespace123",
+          "metrics-elastic_agent.cloudbeat-testnamespace123",
+          "metrics-elastic_agent.cloud_defend-testnamespace123",
+          "metrics-elastic_agent.pf_host_agent-testnamespace123",
+          "metrics-elastic_agent.pf_elastic_collector-testnamespace123",
+          "metrics-elastic_agent.pf_elastic_symbolizer-testnamespace123",
+          "traces-elastic_agent-testnamespace123",
+          "traces-elastic_agent.elastic_agent-testnamespace123",
+          "traces-elastic_agent.apm_server-testnamespace123",
+          "traces-elastic_agent.filebeat-testnamespace123",
+          "traces-elastic_agent.filebeat_input-testnamespace123",
+          "traces-elastic_agent.fleet_server-testnamespace123",
+          "traces-elastic_agent.metricbeat-testnamespace123",
+          "traces-elastic_agent.osquerybeat-testnamespace123",
+          "traces-elastic_agent.packetbeat-testnamespace123",
+          "traces-elastic_agent.endpoint_security-testnamespace123",
+          "traces-elastic_agent.auditbeat-testnamespace123",
+          "traces-elastic_agent.heartbeat-testnamespace123",
+          "traces-elastic_agent.cloudbeat-testnamespace123",
+          "traces-elastic_agent.cloud_defend-testnamespace123",
+          "traces-elastic_agent.pf_host_agent-testnamespace123",
+          "traces-elastic_agent.pf_elastic_collector-testnamespace123",
+          "traces-elastic_agent.pf_elastic_symbolizer-testnamespace123",
         ],
         "privileges": Array [
           "auto_configure",
@@ -217,3 +242,37 @@ Object {
   },
 }
 `;
+
+exports[`getMonitoringPermissions Without elastic agent package installed should return default traces permissions if only traces are enabled 1`] = `
+Object {
+  "_elastic_agent_monitoring": Object {
+    "indices": Array [
+      Object {
+        "names": Array [
+          "traces-elastic_agent-testnamespace123",
+          "traces-elastic_agent.elastic_agent-testnamespace123",
+          "traces-elastic_agent.apm_server-testnamespace123",
+          "traces-elastic_agent.filebeat-testnamespace123",
+          "traces-elastic_agent.filebeat_input-testnamespace123",
+          "traces-elastic_agent.fleet_server-testnamespace123",
+          "traces-elastic_agent.metricbeat-testnamespace123",
+          "traces-elastic_agent.osquerybeat-testnamespace123",
+          "traces-elastic_agent.packetbeat-testnamespace123",
+          "traces-elastic_agent.endpoint_security-testnamespace123",
+          "traces-elastic_agent.auditbeat-testnamespace123",
+          "traces-elastic_agent.heartbeat-testnamespace123",
+          "traces-elastic_agent.cloudbeat-testnamespace123",
+          "traces-elastic_agent.cloud_defend-testnamespace123",
+          "traces-elastic_agent.pf_host_agent-testnamespace123",
+          "traces-elastic_agent.pf_elastic_collector-testnamespace123",
+          "traces-elastic_agent.pf_elastic_symbolizer-testnamespace123",
+        ],
+        "privileges": Array [
+          "auto_configure",
+          "create_doc",
+        ],
+      },
+    ],
+  },
+}
+`;
diff --git a/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.test.ts b/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.test.ts
index 6a084b5dde586..d2ff49b04e340 100644
--- a/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.test.ts
+++ b/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.test.ts
@@ -221,6 +221,7 @@ describe('getFullAgentPolicy', () => {
           enabled: false,
           logs: false,
           metrics: false,
+          traces: false,
         },
       },
     });
@@ -257,6 +258,7 @@ describe('getFullAgentPolicy', () => {
           enabled: true,
           logs: true,
           metrics: false,
+          traces: false,
         },
       },
     });
@@ -293,12 +295,50 @@ describe('getFullAgentPolicy', () => {
           enabled: true,
           logs: false,
           metrics: true,
+          traces: false,
         },
       },
     });
   });
 
-  it('should return a policy with monitoring enabled but no logs/metrics if keep_monitoring_alive is true', async () => {
+  it('should return a policy with monitoring if monitoring is enabled for traces', async () => {
+    mockAgentPolicy({
+      namespace: 'default',
+      revision: 1,
+      monitoring_enabled: ['traces'],
+    });
+    const agentPolicy = await getFullAgentPolicy(savedObjectsClientMock.create(), 'agent-policy');
+
+    expect(agentPolicy).toMatchObject({
+      id: 'agent-policy',
+      outputs: {
+        default: {
+          type: 'elasticsearch',
+          hosts: ['http://127.0.0.1:9201'],
+        },
+      },
+      inputs: [],
+      revision: 1,
+      fleet: {
+        hosts: ['http://fleetserver:8220'],
+      },
+      agent: {
+        download: {
+          sourceURI: 'http://default-registry.co',
+        },
+        monitoring: {
+          namespace: 'default',
+          use_output: 'default',
+          enabled: true,
+          logs: false,
+          metrics: false,
+          traces: true,
+        },
+      },
+    });
+  });
+
+  it('should return a policy with monitoring enabled but no logs/metrics/traces if keep_monitoring_alive is true', async () => {
     mockAgentPolicy({
       keep_monitoring_alive: true,
     });
@@ -309,6 +349,7 @@ describe('getFullAgentPolicy', () => {
       enabled: true,
       logs: false,
       metrics: false,
+      traces: false,
     });
   });
 
@@ -325,6 +366,7 @@ describe('getFullAgentPolicy', () => {
       {
         logs: false,
         metrics: true,
+        traces: false,
       },
       'testnamespace'
     );
@@ -553,6 +595,7 @@ describe('getFullAgentPolicy', () => {
           enabled: true,
           logs: false,
           metrics: true,
+          traces: false,
         },
       },
     });
@@ -590,6 +633,7 @@ describe('getFullAgentPolicy', () => {
           enabled: true,
           logs: false,
           metrics: true,
+          traces: false,
         },
         features: {
           fqdn: {
@@ -743,6 +787,7 @@ describe('getFullAgentPolicy', () => {
           enabled: false,
           logs: false,
           metrics: false,
+          traces: false,
         },
       },
       fleet: {
diff --git a/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.ts b/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.ts
index a65b4ce8dc9fd..d00721f08a3d9 100644
--- a/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.ts
+++ b/x-pack/plugins/fleet/server/services/agent_policies/full_agent_policy.ts
@@ -140,12 +140,13 @@ export async function getFullAgentPolicy(
     enabled: false,
     logs: false,
     metrics: false,
+    traces: false,
   };
 
   let monitoring: FullAgentPolicyMonitoring = { ...defaultMonitoringConfig };
 
-  // If the agent policy has monitoring enabled for at least one of "logs" or "metrics", generate
-  // a monitoring config for the resulting compiled agent policy
+  // If the agent policy has monitoring enabled for at least one of "logs", "metrics", or "traces"
+  // generate a monitoring config for the resulting compiled agent policy
   if (agentPolicy.monitoring_enabled && agentPolicy.monitoring_enabled.length > 0) {
     monitoring = {
       namespace: agentPolicy.namespace,
@@ -153,6 +154,7 @@ export async function getFullAgentPolicy(
       enabled: true,
       logs: agentPolicy.monitoring_enabled.includes(dataTypes.Logs),
       metrics: agentPolicy.monitoring_enabled.includes(dataTypes.Metrics),
+      traces: agentPolicy.monitoring_enabled.includes(dataTypes.Traces),
     };
     // If the `keep_monitoring_alive` flag is set, enable monitoring but don't enable logs or metrics.
     // This allows cloud or other environments to keep the monitoring server alive without tearing it down.
@@ -161,6 +163,7 @@ export async function getFullAgentPolicy(
       enabled: true,
       logs: false,
       metrics: false,
+      traces: false,
     };
   }
 
@@ -249,6 +252,7 @@ export async function getFullAgentPolicy(
     {
       logs: agentPolicy.monitoring_enabled?.includes(dataTypes.Logs) ?? false,
       metrics: agentPolicy.monitoring_enabled?.includes(dataTypes.Metrics) ?? false,
+      traces: agentPolicy.monitoring_enabled?.includes(dataTypes.Traces) ?? false,
     },
     agentPolicy.namespace
   );
diff --git a/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.test.ts b/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.test.ts
index f336fd093c3af..0f72997cc3f2c 100644
--- a/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.test.ts
+++ b/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.test.ts
@@ -19,10 +19,10 @@ const mockedGetPackageInfo = getPackageInfo as jest.Mock<ReturnType<typeof getPa
 
 describe('getMonitoringPermissions', () => {
   describe('Without elastic agent package installed', () => {
-    it('should return default logs and metrics permissions if both are enabled', async () => {
+    it('should return default logs, metrics, traces permissions if all are enabled', async () => {
       const permissions = await getMonitoringPermissions(
         savedObjectsClientMock.create(),
-        { logs: true, metrics: true },
+        { logs: true, metrics: true, traces: true },
         'testnamespace123'
       );
       expect(permissions).toMatchSnapshot();
@@ -30,7 +30,7 @@ describe('getMonitoringPermissions', () => {
     it('should return default logs permissions if only logs are enabled', async () => {
       const permissions = await getMonitoringPermissions(
         savedObjectsClientMock.create(),
-        { logs: true, metrics: false },
+        { logs: true, metrics: false, traces: false },
         'testnamespace123'
       );
       expect(permissions).toMatchSnapshot();
@@ -38,16 +38,24 @@ describe('getMonitoringPermissions', () => {
     it('should return default metrics permissions if only metrics are enabled', async () => {
       const permissions = await getMonitoringPermissions(
         savedObjectsClientMock.create(),
-        { logs: false, metrics: true },
+        { logs: false, metrics: true, traces: false },
+        'testnamespace123'
+      );
+      expect(permissions).toMatchSnapshot();
+    });
+    it('should return default traces permissions if only traces are enabled', async () => {
+      const permissions = await getMonitoringPermissions(
+        savedObjectsClientMock.create(),
+        { logs: false, metrics: false, traces: true },
         'testnamespace123'
       );
       expect(permissions).toMatchSnapshot();
     });
 
-    it('should an empty valid permission entry if neither metrics and logs are enabled', async () => {
+    it('should an empty valid permission entry if neither metrics, logs, nor traces are enabled', async () => {
       const permissions = await getMonitoringPermissions(
         savedObjectsClientMock.create(),
-        { logs: false, metrics: false },
+        { logs: false, metrics: false, traces: false },
         'testnamespace123'
       );
       expect(permissions).toEqual({ _elastic_agent_monitoring: { indices: [] } });
@@ -82,10 +90,10 @@ describe('getMonitoringPermissions', () => {
         ],
       } as PackageInfo);
     });
-    it('should return default logs and metrics permissions if both are enabled', async () => {
+    it('should return default logs, metrics, traces permissions if all are enabled', async () => {
       const permissions = await getMonitoringPermissions(
         savedObjectsClientMock.create(),
-        { logs: true, metrics: true },
+        { logs: true, metrics: true, traces: true },
         'testnamespace123'
       );
       expect(permissions).toMatchSnapshot();
@@ -93,7 +101,7 @@ describe('getMonitoringPermissions', () => {
     it('should return default logs permissions if only logs are enabled', async () => {
       const permissions = await getMonitoringPermissions(
         savedObjectsClientMock.create(),
-        { logs: true, metrics: false },
+        { logs: true, metrics: false, traces: false },
         'testnamespace123'
       );
       expect(permissions).toMatchSnapshot();
@@ -101,7 +109,15 @@ describe('getMonitoringPermissions', () => {
     it('should return default metrics permissions if only metrics are enabled', async () => {
       const permissions = await getMonitoringPermissions(
         savedObjectsClientMock.create(),
-        { logs: false, metrics: true },
+        { logs: false, metrics: true, traces: false },
+        'testnamespace123'
+      );
+      expect(permissions).toMatchSnapshot();
+    });
+    it('should return default traces permissions if only traces are enabled', async () => {
+      const permissions = await getMonitoringPermissions(
+        savedObjectsClientMock.create(),
+        { logs: false, metrics: false, traces: true },
         'testnamespace123'
       );
       expect(permissions).toMatchSnapshot();
diff --git a/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.ts b/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.ts
index 0729367c2b65b..e03a8e19eb120 100644
--- a/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.ts
+++ b/x-pack/plugins/fleet/server/services/agent_policies/monitoring_permissions.ts
@@ -18,7 +18,10 @@ import { dataTypes } from '../../../common/constants';
 
 import { getDataStreamPrivileges } from './package_policies_to_agent_permissions';
 
-function buildDefault(enabled: { logs: boolean; metrics: boolean }, namespace: string) {
+function buildDefault(
+  enabled: { logs: boolean; metrics: boolean; traces: boolean },
+  namespace: string
+) {
   let names: string[] = [];
   if (enabled.logs) {
     names = names.concat(
@@ -30,6 +33,11 @@ function buildDefault(enabled: { logs: boolean; metrics: boolean }, namespace: s
       AGENT_POLICY_DEFAULT_MONITORING_DATASETS.map((dataset) => `metrics-${dataset}-${namespace}`)
     );
   }
+  if (enabled.traces) {
+    names = names.concat(
+      AGENT_POLICY_DEFAULT_MONITORING_DATASETS.map((dataset) => `traces-${dataset}-${namespace}`)
+    );
+  }
 
   if (names.length === 0) {
     return {
@@ -53,7 +61,7 @@ function buildDefault(enabled: { logs: boolean; metrics: boolean }, namespace: s
 
 export async function getMonitoringPermissions(
   soClient: SavedObjectsClientContract,
-  enabled: { logs: boolean; metrics: boolean },
+  enabled: { logs: boolean; metrics: boolean; traces: boolean },
   namespace: string
 ): Promise<FullAgentPolicyOutputPermissions> {
   const installation = await getInstallation({
@@ -85,6 +93,9 @@ export async function getMonitoringPermissions(
           if (ds.type === dataTypes.Metrics && !enabled.metrics) {
             return;
           }
+          if (ds.type === dataTypes.Traces && !enabled.traces) {
+            return;
+          }
           return getDataStreamPrivileges(ds, namespace);
         })
         .filter(