diff --git a/api/v1/server/middleware/telemetry/telemetry.go b/api/v1/server/middleware/telemetry/telemetry.go
index bc5b640fb..1bec26a70 100644
--- a/api/v1/server/middleware/telemetry/telemetry.go
+++ b/api/v1/server/middleware/telemetry/telemetry.go
@@ -1,9 +1,14 @@
 package telemetry
 
 import (
+	"errors"
+	"fmt"
+
 	"github.com/labstack/echo/v4"
 	"go.opentelemetry.io/contrib/instrumentation/github.com/labstack/echo/otelecho"
 	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
 
 	"github.com/hatchet-dev/hatchet/pkg/config/server"
 )
@@ -30,3 +35,39 @@ func (m *OTelMiddleware) Middleware() echo.MiddlewareFunc {
 		otelecho.WithTracerProvider(tracerProvider),
 	)
 }
+
+// ErrorStatusMiddleware marks the current span as Error for any 4xx or 5xx response.
+// otelecho only sets Error for 5xx (per OTel semantic conventions). This middleware
+// must be registered after otelecho so it runs inside the span. The OTel SDK ignores
+// attempts to downgrade from Error to Unset, so otelecho's subsequent status-setting
+// for 4xx is a no-op.
+func (m *OTelMiddleware) ErrorStatusMiddleware() echo.MiddlewareFunc {
+	return func(next echo.HandlerFunc) echo.HandlerFunc {
+		return func(c echo.Context) error {
+			err := next(c)
+
+			span := trace.SpanFromContext(c.Request().Context())
+
+			statusCode := 0
+			if err != nil {
+				var he *echo.HTTPError
+				if errors.As(err, &he) {
+					statusCode = he.Code
+				}
+			}
+
+			if statusCode == 0 {
+				statusCode = c.Response().Status
+			}
+
+			if statusCode >= 400 {
+				span.SetStatus(codes.Error, fmt.Sprintf("HTTP %d", statusCode))
+				if err != nil {
+					span.RecordError(err)
+				}
+			}
+
+			return err
+		}
+	}
+}
diff --git a/api/v1/server/run/run.go b/api/v1/server/run/run.go
index 0bce97a07..96a09e148 100644
--- a/api/v1/server/run/run.go
+++ b/api/v1/server/run/run.go
@@ -722,6 +722,7 @@ func (t *APIServer) registerSpec(g *echo.Group, spec *openapi3.T) (*populator.Po
 		middleware.Recover(),
 		rateLimitMW.Middleware(),
 		otelMW.Middleware(),
+		otelMW.ErrorStatusMiddleware(),
 		allHatchetMiddleware,
 	)