diff --git a/newrelic/core/attribute.py b/newrelic/core/attribute.py
index 79b9a56cb2..ed3e5bffa6 100644
--- a/newrelic/core/attribute.py
+++ b/newrelic/core/attribute.py
@@ -100,6 +100,7 @@
     "response.headers.contentType",
     "response.status",
     "server.address",
+    "subcomponent",
     "zeebe.client.bpmnProcessId",
     "zeebe.client.messageName",
     "zeebe.client.correlationKey",
diff --git a/newrelic/hooks/adapter_mcp.py b/newrelic/hooks/adapter_mcp.py
index bcc8ae0a39..e891df0325 100644
--- a/newrelic/hooks/adapter_mcp.py
+++ b/newrelic/hooks/adapter_mcp.py
@@ -12,6 +12,7 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import json
 import logging
 
 from newrelic.api.function_trace import FunctionTrace
@@ -37,8 +38,10 @@ async def wrap_call_tool(wrapped, instance, args, kwargs):
     bound_args = bind_args(wrapped, args, kwargs)
     tool_name = bound_args.get("name") or "tool"
     function_trace_name = f"{func_name}/{tool_name}"
+    agentic_subcomponent_data = {"type": "APM-AI_TOOL", "name": tool_name}
 
-    with FunctionTrace(name=function_trace_name, group="Llm/tool/MCP", source=wrapped):
+    with FunctionTrace(name=function_trace_name, group="Llm/tool/MCP", source=wrapped) as ft:
+        ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
         return await wrapped(*args, **kwargs)
 
 
diff --git a/newrelic/hooks/mlmodel_autogen.py b/newrelic/hooks/mlmodel_autogen.py
index 87d94a4c44..fbd38adee4 100644
--- a/newrelic/hooks/mlmodel_autogen.py
+++ b/newrelic/hooks/mlmodel_autogen.py
@@ -12,7 +12,8 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-
+import contextvars
+import json
 import logging
 import sys
 import uuid
@@ -20,11 +21,13 @@
 from newrelic.api.function_trace import FunctionTrace
 from newrelic.api.time_trace import get_trace_linking_metadata
 from newrelic.api.transaction import current_transaction
+from newrelic.common.llm_utils import AsyncGeneratorProxy
 from newrelic.common.object_names import callable_name
 from newrelic.common.object_wrapper import wrap_function_wrapper
 from newrelic.common.package_version_utils import get_package_version
 from newrelic.common.signature import bind_args
 from newrelic.core.config import global_settings
+from newrelic.core.context import ContextOf
 
 # Check for the presence of the autogen-core, autogen-agentchat, or autogen-ext package as they should all have the
 # same version and one or multiple could be installed
@@ -35,6 +38,14 @@
 )
 
 
+# ContextVar used to propagate trace context to tool functions that may run on thread pool threads.
+# This allows nested agents created inside tools to find the parent trace.
+_nr_tool_parent_trace = contextvars.ContextVar("_nr_tool_parent_trace", default=None)
+
+# Flag to indicate we're inside wrap_on_messages, so on_messages_stream can skip
+# creating a duplicate agent FT (on_messages internally calls on_messages_stream).
+_nr_in_on_messages = contextvars.ContextVar("_nr_in_on_messages", default=False)
+
 RECORD_EVENTS_FAILURE_LOG_MESSAGE = "Exception occurred in Autogen instrumentation: Failed to record LLM events. Please report this issue to New Relic Support.\n%s"
 
 
@@ -54,7 +65,97 @@ async def wrap_from_server_params(wrapped, instance, args, kwargs):
         return await wrapped(*args, **kwargs)
 
 
+async def wrap_on_messages(wrapped, instance, args, kwargs):
+    """Wrap on_messages (a regular async method) with an agent FunctionTrace.
+
+    on_messages is called by run() and internally iterates on_messages_stream.
+    Since on_messages is awaited (not an async generator), the FT can stay open
+    for the full execution, making tool FTs proper children of this agent FT.
+    """
+    transaction = current_transaction()
+    if not transaction:
+        # When a tool calls an inner agent on a different thread, NR's thread-local context is lost.
+        # The ContextVar is propagated by asyncio, so we can recover the parent trace from it.
+        parent_trace = _nr_tool_parent_trace.get(None)
+        if parent_trace:
+            with ContextOf(trace=parent_trace):
+                return await _on_messages_instrumented(wrapped, instance, args, kwargs)
+        return await wrapped(*args, **kwargs)
+
+    return await _on_messages_instrumented(wrapped, instance, args, kwargs)
+
+
+async def _on_messages_instrumented(wrapped, instance, args, kwargs):
+    transaction = current_transaction()
+    if not transaction:
+        return await wrapped(*args, **kwargs)
+
+    settings = transaction.settings or global_settings()
+    if not settings.ai_monitoring.enabled:
+        return await wrapped(*args, **kwargs)
+
+    # Framework metric also used for entity tagging in the UI
+    transaction.add_ml_model_info("Autogen", AUTOGEN_VERSION)
+    transaction._add_agent_attribute("llm", True)
+
+    agent_name = getattr(instance, "name", "agent")
+    agent_id = str(uuid.uuid4())
+    func_name = callable_name(wrapped)
+    function_trace_name = f"{func_name}/{agent_name}"
+
+    agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
+
+    ft = FunctionTrace(name=function_trace_name, group="Llm/agent/Autogen")
+    ft.__enter__()
+    ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
+
+    # Set flag so on_messages_stream (called internally) skips creating a duplicate agent FT.
+    token = _nr_in_on_messages.set(True)
+
+    try:
+        return_val = await wrapped(*args, **kwargs)
+    except Exception:
+        ft.notice_error(attributes={"agent_id": agent_id})
+        ft.__exit__(*sys.exc_info())
+        agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
+        agent_event_dict.update({"duration": ft.duration * 1000, "error": True})
+        transaction.record_custom_event("LlmAgent", agent_event_dict)
+        raise
+    finally:
+        _nr_in_on_messages.reset(token)
+
+    ft.__exit__(None, None, None)
+
+    agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
+    agent_event_dict["duration"] = ft.duration * 1000
+    transaction.record_custom_event("LlmAgent", agent_event_dict)
+
+    return return_val
+
+
 def wrap_on_messages_stream(wrapped, instance, args, kwargs):
+    transaction = current_transaction()
+    if not transaction:
+        # When a tool calls an inner agent on a different thread, NR's thread-local context is lost.
+        # The ContextVar is propagated by asyncio, so we can recover the parent trace from it.
+        parent_trace = _nr_tool_parent_trace.get(None)
+        if parent_trace:
+            with ContextOf(trace=parent_trace):
+                return _on_messages_stream_instrumented(wrapped, instance, args, kwargs)
+        return wrapped(*args, **kwargs)
+
+    return _on_messages_stream_instrumented(wrapped, instance, args, kwargs)
+
+
+def _on_messages_stream_instrumented(wrapped, instance, args, kwargs):
+    """Wrap on_messages_stream with an agent FT.
+
+    on_messages_stream returns an AsyncGenerator. When called from on_messages
+    (the run() path), the agent FT is already created by wrap_on_messages, so
+    we skip creating a duplicate here. When called directly (the run_stream()
+    path), the agent FT stays open and is exited when the generator finishes
+    via AsyncGeneratorProxy callbacks, keeping tools as children of the agent.
+    """
     transaction = current_transaction()
     if not transaction:
         return wrapped(*args, **kwargs)
@@ -63,35 +164,147 @@ def wrap_on_messages_stream(wrapped, instance, args, kwargs):
     if not settings.ai_monitoring.enabled:
         return wrapped(*args, **kwargs)
 
+    # If we're already inside wrap_on_messages, skip the agent FT here to avoid
+    # a duplicate span. The on_messages wrapper owns the agent FT in that case.
+    if _nr_in_on_messages.get(False):
+        return wrapped(*args, **kwargs)
+
     # Framework metric also used for entity tagging in the UI
     transaction.add_ml_model_info("Autogen", AUTOGEN_VERSION)
     transaction._add_agent_attribute("llm", True)
 
     agent_name = getattr(instance, "name", "agent")
     agent_id = str(uuid.uuid4())
-    agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
     func_name = callable_name(wrapped)
     function_trace_name = f"{func_name}/{agent_name}"
 
+    agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
+
     ft = FunctionTrace(name=function_trace_name, group="Llm/agent/Autogen")
     ft.__enter__()
+    ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
 
     try:
         return_val = wrapped(*args, **kwargs)
     except Exception:
         ft.notice_error(attributes={"agent_id": agent_id})
         ft.__exit__(*sys.exc_info())
-        # If we hit an exception, append the error attribute and duration from the exited function trace
+        agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
         agent_event_dict.update({"duration": ft.duration * 1000, "error": True})
         transaction.record_custom_event("LlmAgent", agent_event_dict)
         raise
 
-    ft.__exit__(None, None, None)
-    agent_event_dict.update({"duration": ft.duration * 1000})
+    # Wrap the async generator with a proxy that keeps the agent FT open during
+    # iteration. The FT is exited when the generator finishes (StopAsyncIteration)
+    # or encounters an error. This ensures tool FTs created during iteration are
+    # children of the agent FT, not siblings.
+    proxied_return_val = _AutogenAsyncGeneratorProxy(return_val, _record_stream_agent_event, _handle_stream_agent_error)
+    proxied_return_val._nr_ft = ft
+    proxied_return_val._nr_agent_name = agent_name
+    proxied_return_val._nr_agent_id = agent_id
+
+    return proxied_return_val
+
+
+class _AutogenAsyncGeneratorProxy(AsyncGeneratorProxy):
+    """AsyncGeneratorProxy subclass that exits the agent FT proactively.
+
+    The agent FT stays open during generator iteration so that tool FTs
+    (which execute in separate asyncio tasks) become children of the
+    agent FT in the trace tree.
+
+    The FT is exited as soon as all tool children have completed, which
+    happens after each ``__anext__`` call that returns an item following
+    tool execution.  This ensures the agent span is recorded even if the
+    consumer breaks out of the outer ``async for`` (e.g. on TaskResult)
+    before StopAsyncIteration fires.
+
+    Fallbacks:
+    - StopAsyncIteration callback: exits FT when stream fully exhausts
+      (handles the no-tool case where child_count stays 0).
+    - aclose(): exits FT when the generator is explicitly closed.
+    - __del__(): last-resort safety net.
+    """
+
+    async def __anext__(self):
+        transaction = current_transaction()
+        if not transaction:
+            return await self._nr_wrapped_iter.__anext__()
+
+        return_val = None
+        try:
+            return_val = await self._nr_wrapped_iter.__anext__()
+        except StopAsyncIteration:
+            self._nr_on_stop_iteration(self, transaction)
+            raise
+        except Exception:
+            self._nr_on_error(self, transaction)
+            raise
+
+        # After each yielded item, check if all async tool children have
+        # completed.  If so, exit the agent FT now.  NR's trace system
+        # supports deferred completion: if the FT exits while children are
+        # still running, the last child's _complete_trace cascades to
+        # complete the parent.  By exiting here (after tools finish), we
+        # guarantee the agent span is recorded even if the consumer breaks
+        # before StopAsyncIteration.
+        ft = getattr(self, "_nr_ft", None)
+        if ft and not ft.exited and ft.child_count > 0 and not ft.has_outstanding_children():
+            _exit_stream_agent_ft(self)
+
+        return return_val
+
+    async def aclose(self):
+        try:
+            return await self.__wrapped__.aclose()
+        finally:
+            _exit_stream_agent_ft(self)
+
+    def __del__(self):
+        _exit_stream_agent_ft(self)
+
+
+def _exit_stream_agent_ft(proxy, error=False):
+    """Exit the agent FT stored on the proxy and record the LlmAgent event.
+
+    Guards against double-exit: if the FT was already exited (e.g. by
+    StopAsyncIteration firing before aclose), this is a no-op.
+    """
+    ft = getattr(proxy, "_nr_ft", None)
+    if not ft or ft.exited:
+        return
+
+    agent_name = getattr(proxy, "_nr_agent_name", "agent")
+    agent_id = getattr(proxy, "_nr_agent_id", None)
+
+    if error:
+        ft.notice_error(attributes={"agent_id": agent_id})
+        ft.__exit__(*sys.exc_info())
+    else:
+        ft.__exit__(None, None, None)
 
-    transaction.record_custom_event("LlmAgent", agent_event_dict)
+    transaction = current_transaction()
+    if not transaction:
+        return
 
-    return return_val
+    try:
+        agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
+        agent_event_dict["duration"] = ft.duration * 1000
+        if error:
+            agent_event_dict["error"] = True
+        transaction.record_custom_event("LlmAgent", agent_event_dict)
+    except Exception:
+        _logger.warning(RECORD_EVENTS_FAILURE_LOG_MESSAGE, exc_info=True)
+
+
+def _record_stream_agent_event(proxy, _transaction):
+    """Callback for AsyncGeneratorProxy when the stream finishes normally (StopAsyncIteration)."""
+    _exit_stream_agent_ft(proxy, error=False)
+
+
+def _handle_stream_agent_error(proxy, _transaction):
+    """Callback for AsyncGeneratorProxy when the stream encounters an error."""
+    _exit_stream_agent_ft(proxy, error=True)
 
 
 def _get_llm_metadata(transaction):
@@ -180,12 +393,18 @@ async def wrap__execute_tool_call(wrapped, instance, args, kwargs):
     bound_args = bind_args(wrapped, args, kwargs)
     tool_call_data = bound_args.get("tool_call")
     tool_event_dict = _construct_base_tool_event_dict(bound_args, tool_call_data, tool_id, transaction, settings)
-
     tool_name = getattr(tool_call_data, "name", "tool")
-
     func_name = callable_name(wrapped)
+
+    agentic_subcomponent_data = {"type": "APM-AI_TOOL", "name": tool_name}
+
     ft = FunctionTrace(name=f"{func_name}/{tool_name}", group="Llm/tool/Autogen")
     ft.__enter__()
+    ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
+
+    # Store the tool's trace in a ContextVar so that nested agents created inside tool functions
+    # (which may run on thread pool threads) can find the parent trace.
+    _nr_tool_parent_trace.set(ft)
 
     try:
         return_val = await wrapped(*args, **kwargs)
@@ -212,6 +431,8 @@ async def wrap__execute_tool_call(wrapped, instance, args, kwargs):
 
 def instrument_autogen_agentchat_agents__assistant_agent(module):
     if hasattr(module, "AssistantAgent"):
+        if hasattr(module.AssistantAgent, "on_messages"):
+            wrap_function_wrapper(module, "AssistantAgent.on_messages", wrap_on_messages)
         if hasattr(module.AssistantAgent, "on_messages_stream"):
             wrap_function_wrapper(module, "AssistantAgent.on_messages_stream", wrap_on_messages_stream)
         if hasattr(module.AssistantAgent, "_execute_tool_call"):
diff --git a/newrelic/hooks/mlmodel_langchain.py b/newrelic/hooks/mlmodel_langchain.py
index e682f1bff3..a1c22e331f 100644
--- a/newrelic/hooks/mlmodel_langchain.py
+++ b/newrelic/hooks/mlmodel_langchain.py
@@ -12,6 +12,7 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import json
 import logging
 import sys
 import time
@@ -161,9 +162,11 @@ def invoke(self, *args, **kwargs):
         agent_id = str(uuid.uuid4())
         agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
         function_trace_name = f"invoke/{agent_name}"
+        agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
 
         ft = FunctionTrace(name=function_trace_name, group="Llm/agent/LangChain")
         ft.__enter__()
+        ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
         try:
             return_val = self.__wrapped__.invoke(*args, **kwargs)
         except Exception:
@@ -189,9 +192,11 @@ async def ainvoke(self, *args, **kwargs):
         agent_id = str(uuid.uuid4())
         agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
         function_trace_name = f"ainvoke/{agent_name}"
+        agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
 
         ft = FunctionTrace(name=function_trace_name, group="Llm/agent/LangChain")
         ft.__enter__()
+        ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
         try:
             return_val = await self.__wrapped__.ainvoke(*args, **kwargs)
         except Exception:
@@ -217,9 +222,11 @@ def stream(self, *args, **kwargs):
         agent_id = str(uuid.uuid4())
         agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
         function_trace_name = f"stream/{agent_name}"
+        agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
 
         ft = FunctionTrace(name=function_trace_name, group="Llm/agent/LangChain")
         ft.__enter__()
+        ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
         try:
             return_val = self.__wrapped__.stream(*args, **kwargs)
             return_val = GeneratorProxy(
@@ -242,9 +249,11 @@ def astream(self, *args, **kwargs):
         agent_id = str(uuid.uuid4())
         agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
         function_trace_name = f"astream/{agent_name}"
+        agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
 
         ft = FunctionTrace(name=function_trace_name, group="Llm/agent/LangChain")
         ft.__enter__()
+        ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
         try:
             return_val = self.__wrapped__.astream(*args, **kwargs)
             return_val = AsyncGeneratorProxy(
@@ -267,9 +276,11 @@ def transform(self, *args, **kwargs):
         agent_id = str(uuid.uuid4())
         agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
         function_trace_name = f"stream/{agent_name}"
+        agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
 
         ft = FunctionTrace(name=function_trace_name, group="Llm/agent/LangChain")
         ft.__enter__()
+        ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
         try:
             return_val = self.__wrapped__.transform(*args, **kwargs)
             return_val = GeneratorProxy(
@@ -292,9 +303,11 @@ def atransform(self, *args, **kwargs):
         agent_id = str(uuid.uuid4())
         agent_event_dict = _construct_base_agent_event_dict(agent_name, agent_id, transaction)
         function_trace_name = f"astream/{agent_name}"
+        agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
 
         ft = FunctionTrace(name=function_trace_name, group="Llm/agent/LangChain")
         ft.__enter__()
+        ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
         try:
             return_val = self.__wrapped__.atransform(*args, **kwargs)
             return_val = AsyncGeneratorProxy(
@@ -512,8 +525,11 @@ def wrap_tool_sync_run(wrapped, instance, args, kwargs):
     except Exception:
         filtered_tool_input = tool_input
 
+    agentic_subcomponent_data = {"type": "APM-AI_TOOL", "name": tool_name}
+
     ft = FunctionTrace(name=f"{wrapped.__name__}/{tool_name}", group="Llm/tool/LangChain")
     ft.__enter__()
+    ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
     linking_metadata = get_trace_linking_metadata()
     try:
         return_val = wrapped(**run_args)
@@ -573,8 +589,11 @@ async def wrap_tool_async_run(wrapped, instance, args, kwargs):
     except Exception:
         filtered_tool_input = tool_input
 
+    agentic_subcomponent_data = {"type": "APM-AI_TOOL", "name": tool_name}
+
     ft = FunctionTrace(name=f"{wrapped.__name__}/{tool_name}", group="Llm/tool/LangChain")
     ft.__enter__()
+    ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
     linking_metadata = get_trace_linking_metadata()
     try:
         return_val = await wrapped(**run_args)
diff --git a/newrelic/hooks/mlmodel_strands.py b/newrelic/hooks/mlmodel_strands.py
index a4ac6e5d72..9001b95ed2 100644
--- a/newrelic/hooks/mlmodel_strands.py
+++ b/newrelic/hooks/mlmodel_strands.py
@@ -12,6 +12,8 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import contextvars
+import json
 import logging
 import sys
 import uuid
@@ -31,6 +33,10 @@
 _logger = logging.getLogger(__name__)
 STRANDS_VERSION = get_package_version("strands-agents")
 
+# ContextVar used to propagate trace context to sync @tool functions that run on thread pool threads
+# (via asyncio.to_thread). This allows nested agents created inside sync tools to find the parent trace.
+_nr_tool_parent_trace = contextvars.ContextVar("_nr_tool_parent_trace", default=None)
+
 RECORD_EVENTS_FAILURE_LOG_MESSAGE = "Exception occurred in Strands instrumentation: Failed to record LLM events. Please report this issue to New Relic Support."
 TOOL_OUTPUT_FAILURE_LOG_MESSAGE = "Exception occurred in Strands instrumentation: Failed to record output of tool call. Please report this issue to New Relic Support."
 AGENT_EVENT_FAILURE_LOG_MESSAGE = "Exception occurred in Strands instrumentation: Failed to record agent data. Please report this issue to New Relic Support."
@@ -40,6 +46,11 @@
 
 def wrap_agent__call__(wrapped, instance, args, kwargs):
     trace = current_trace()
+    if not trace:
+        # When a sync @tool function creates an inner agent, the tool runs on a thread pool thread
+        # (via asyncio.to_thread) where NR's thread-local context is lost. The ContextVar is propagated
+        # by asyncio.to_thread, so we can recover the parent trace from it.
+        trace = _nr_tool_parent_trace.get(None)
     if not trace:
         return wrapped(*args, **kwargs)
 
@@ -94,9 +105,12 @@ def wrap_stream_async(wrapped, instance, args, kwargs):
     func_name = callable_name(wrapped)
     agent_name = getattr(instance, "name", "agent")
     function_trace_name = f"{func_name}/{agent_name}"
+    agentic_subcomponent_data = {"type": "APM-AI_AGENT", "name": agent_name}
 
     ft = FunctionTrace(name=function_trace_name, group="Llm/agent/Strands")
     ft.__enter__()
+    ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
+
     linking_metadata = get_trace_linking_metadata()
     agent_id = str(uuid.uuid4())
 
@@ -105,7 +119,6 @@ def wrap_stream_async(wrapped, instance, args, kwargs):
     except Exception:
         raise
 
-    # For streaming responses, wrap with proxy and attach metadata
     try:
         # For streaming responses, wrap with proxy and attach metadata
         proxied_return_val = AsyncGeneratorProxy(
@@ -126,7 +139,6 @@ def _record_agent_event_on_stop_iteration(self, transaction):
         # Use saved linking metadata to maintain correct span association
         linking_metadata = self._nr_metadata or get_trace_linking_metadata()
         self._nr_ft.__exit__(None, None, None)
-
         try:
             strands_attrs = getattr(self, "_nr_strands_attrs", {})
 
@@ -352,9 +364,16 @@ def wrap_tool_executor__stream(wrapped, instance, args, kwargs):
 
     func_name = callable_name(wrapped)
     function_trace_name = f"{func_name}/{tool_name}"
+    agentic_subcomponent_data = {"type": "APM-AI_TOOL", "name": tool_name}
 
     ft = FunctionTrace(name=function_trace_name, group="Llm/tool/Strands")
     ft.__enter__()
+    ft._add_agent_attribute("subcomponent", json.dumps(agentic_subcomponent_data))
+
+    # Store the tool's trace in a ContextVar so that nested agents created inside sync @tool functions
+    # (which run on thread pool threads via asyncio.to_thread) can find the parent trace.
+    _nr_tool_parent_trace.set(ft)
+
     linking_metadata = get_trace_linking_metadata()
     tool_id = str(uuid.uuid4())
 
diff --git a/tests/adapter_mcp/test_mcp.py b/tests/adapter_mcp/test_mcp.py
index 5ba6a81074..5424b57ca7 100644
--- a/tests/adapter_mcp/test_mcp.py
+++ b/tests/adapter_mcp/test_mcp.py
@@ -19,6 +19,7 @@
 from mcp.server.fastmcp.tools import ToolManager
 from testing_support.ml_testing_utils import disabled_ai_monitoring_settings
 from testing_support.validators.validate_function_not_called import validate_function_not_called
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
 from newrelic.api.background_task import background_task
@@ -57,6 +58,7 @@ def echo_prompt(message: str):
     rollup_metrics=[("Llm/tool/MCP/mcp.client.session:ClientSession.call_tool/add_exclamation", 1)],
     background_task=True,
 )
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_tool_tracing_via_client_session(loop, fastmcp_server):
     async def _test():
@@ -75,6 +77,7 @@ async def _test():
     rollup_metrics=[("Llm/tool/MCP/mcp.server.fastmcp.tools.tool_manager:ToolManager.call_tool/add_exclamation", 1)],
     background_task=True,
 )
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_tool_tracing_via_tool_manager(loop):
     async def _test():
diff --git a/tests/mlmodel_autogen/test_assistant_agent.py b/tests/mlmodel_autogen/test_assistant_agent.py
index 866b3b39df..3b2ea8c4ed 100644
--- a/tests/mlmodel_autogen/test_assistant_agent.py
+++ b/tests/mlmodel_autogen/test_assistant_agent.py
@@ -16,7 +16,7 @@
 import pytest
 from autogen_agentchat.agents import AssistantAgent
 from autogen_agentchat.base import TaskResult
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import (
     disabled_ai_monitoring_record_content_settings,
     disabled_ai_monitoring_settings,
@@ -27,6 +27,7 @@
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
 from testing_support.validators.validate_error_trace_attributes import validate_error_trace_attributes
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_error_event_count import validate_transaction_error_event_count
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
@@ -97,6 +98,7 @@ def add_exclamation(message: str) -> str:
     return f"{message}!"
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(
     events_with_context_attrs(tool_recorded_event) + events_with_context_attrs(agent_recorded_event)
@@ -127,6 +129,8 @@ def add_exclamation(message: str) -> str:
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_run_assistant_agent(loop, set_trace_info, single_tool_model_client):
     set_trace_info()
@@ -142,6 +146,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(tool_recorded_event + agent_recorded_event)
 @validate_custom_event_count(count=2)
@@ -170,6 +175,8 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_run_stream_assistant_agent(loop, set_trace_info, single_tool_model_client):
     set_trace_info()
@@ -192,6 +199,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @disabled_ai_monitoring_record_content_settings
 @validate_custom_events(tool_events_sans_content(tool_recorded_event) + agent_recorded_event)
@@ -221,6 +229,8 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_run_assistant_agent_no_content(loop, set_trace_info, single_tool_model_client):
     set_trace_info()
@@ -235,6 +245,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @disabled_ai_monitoring_settings
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
@@ -259,6 +270,7 @@ async def _test():
 
 
 @SKIP_IF_AUTOGEN_062
+@dt_enabled
 @reset_core_stats_engine()
 @validate_transaction_error_event_count(1)
 @validate_error_trace_attributes(callable_name(TypeError), exact_attrs={"agent": {}, "intrinsic": {}, "user": {}})
@@ -289,6 +301,8 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_run_assistant_agent_error(loop, set_trace_info, single_tool_model_client_error):
     set_trace_info()
@@ -306,6 +320,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
 def test_run_assistant_agent_outside_txn(loop, single_tool_model_client):
diff --git a/tests/mlmodel_autogen/test_teams.py b/tests/mlmodel_autogen/test_teams.py
index fa8b8ca3f6..f0d6123223 100644
--- a/tests/mlmodel_autogen/test_teams.py
+++ b/tests/mlmodel_autogen/test_teams.py
@@ -17,7 +17,7 @@
 from autogen_agentchat.base import TaskResult
 from autogen_agentchat.teams import RoundRobinGroupChat
 from test_assistant_agent import SKIP_IF_AUTOGEN_062
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import (
     disabled_ai_monitoring_record_content_settings,
     disabled_ai_monitoring_settings,
@@ -28,6 +28,7 @@
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
 from testing_support.validators.validate_error_trace_attributes import validate_error_trace_attributes
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_error_event_count import validate_transaction_error_event_count
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
@@ -175,6 +176,7 @@ def compute_sum(a: int, b: int) -> int:
     return a + b
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=8)
 @validate_transaction_metrics(
@@ -213,6 +215,10 @@ def compute_sum(a: int, b: int) -> int:
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "robot_agent"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "compute_sum"}'})
 @background_task()
 def test_run_stream_round_robin_group(loop, set_trace_info, multi_tool_model_client):
     set_trace_info()
@@ -250,6 +256,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=8)
 @validate_transaction_metrics(
@@ -287,6 +294,10 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "robot_agent"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "compute_sum"}'})
 @background_task()
 def test_run_round_robin_group(loop, set_trace_info, multi_tool_model_client):
     set_trace_info()
@@ -319,6 +330,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @disabled_ai_monitoring_record_content_settings
 @validate_custom_events(tool_events_sans_content(team_tools_recorded_events) + team_agent_recorded_events)
@@ -358,6 +370,10 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "robot_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "compute_sum"}'})
 @background_task()
 def test_run_round_robin_group_no_content(loop, set_trace_info, multi_tool_model_client):
     set_trace_info()
@@ -385,6 +401,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @disabled_ai_monitoring_settings
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
@@ -416,6 +433,7 @@ async def _test():
 
 
 @SKIP_IF_AUTOGEN_062
+@dt_enabled
 @reset_core_stats_engine()
 @validate_transaction_error_event_count(1)
 @validate_error_trace_attributes(callable_name(TypeError), exact_attrs={"agent": {}, "intrinsic": {}, "user": {}})
@@ -456,6 +474,10 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "pirate_agent"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "robot_agent"}'})
+@validate_span_events(count=2, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "compute_sum"}'})
 @background_task()
 def test_run_round_robin_group_error(loop, set_trace_info, multi_tool_model_client_error):
     set_trace_info()
@@ -485,6 +507,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
 def test_run_round_robin_group_outside_txn(loop, multi_tool_model_client):
diff --git a/tests/mlmodel_langchain/test_agents.py b/tests/mlmodel_langchain/test_agents.py
index 9ec7b20dff..6a1c471ecd 100644
--- a/tests/mlmodel_langchain/test_agents.py
+++ b/tests/mlmodel_langchain/test_agents.py
@@ -15,7 +15,7 @@
 import pytest
 from langchain.messages import HumanMessage
 from langchain.tools import tool
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import (
     disabled_ai_monitoring_record_content_settings,
     disabled_ai_monitoring_settings,
@@ -24,6 +24,7 @@
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
 from testing_support.validators.validate_error_trace_attributes import validate_error_trace_attributes
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_error_event_count import validate_transaction_error_event_count
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
@@ -76,6 +77,7 @@ def add_exclamation(message: str) -> str:
     return f"{message}!"
 
 
+@dt_enabled
 @reset_core_stats_engine()
 def test_agent(exercise_agent, create_agent_runnable, set_trace_info, method_name):
     @validate_custom_events(events_with_context_attrs(agent_recorded_event))
@@ -87,6 +89,8 @@ def test_agent(exercise_agent, create_agent_runnable, set_trace_info, method_nam
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
     @background_task(name="test_agent")
     def _test():
         set_trace_info()
@@ -100,6 +104,7 @@ def _test():
     _test()
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @disabled_ai_monitoring_record_content_settings
 def test_agent_no_content(exercise_agent, create_agent_runnable, set_trace_info, method_name):
@@ -112,6 +117,8 @@ def test_agent_no_content(exercise_agent, create_agent_runnable, set_trace_info,
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
     @background_task(name="test_agent_no_content")
     def _test():
         set_trace_info()
@@ -123,6 +130,7 @@ def _test():
     _test()
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
 def test_agent_outside_txn(exercise_agent, create_agent_runnable):
@@ -130,6 +138,7 @@ def test_agent_outside_txn(exercise_agent, create_agent_runnable):
     exercise_agent(my_agent, PROMPT)
 
 
+@dt_enabled
 @disabled_ai_monitoring_settings
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
@@ -140,6 +149,7 @@ def test_agent_disabled_ai_monitoring_events(exercise_agent, create_agent_runnab
     exercise_agent(my_agent, PROMPT)
 
 
+@dt_enabled
 @reset_core_stats_engine()
 def test_agent_execution_error(exercise_agent, create_agent_runnable, set_trace_info, method_name, agent_runnable_type):
     # Add a wrapper to intentionally force an error in the Agent code
@@ -159,6 +169,8 @@ def inject_exception(wrapped, instance, args, kwargs):
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    # Only an agent span is expected here and not a tool because the error is injected before the tool is called
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
     @background_task(name="test_agent_execution_error")
     def _test():
         set_trace_info()
diff --git a/tests/mlmodel_langchain/test_tools.py b/tests/mlmodel_langchain/test_tools.py
index 19778997db..3ad250fb45 100644
--- a/tests/mlmodel_langchain/test_tools.py
+++ b/tests/mlmodel_langchain/test_tools.py
@@ -14,7 +14,7 @@
 
 import pytest
 from langchain.messages import HumanMessage
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import (
     disabled_ai_monitoring_record_content_settings,
     events_with_context_attrs,
@@ -23,6 +23,7 @@
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
 from testing_support.validators.validate_error_trace_attributes import validate_error_trace_attributes
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_error_event_count import validate_transaction_error_event_count
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
@@ -95,6 +96,7 @@
 ]
 
 
+@dt_enabled
 @reset_core_stats_engine()
 def test_tool(exercise_agent, set_trace_info, create_agent_runnable, add_exclamation, tool_method_name):
     @validate_custom_events(events_with_context_attrs(tool_recorded_event))
@@ -106,6 +108,8 @@ def test_tool(exercise_agent, set_trace_info, create_agent_runnable, add_exclama
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
     @background_task(name="test_tool")
     def _test():
         set_trace_info()
@@ -119,6 +123,7 @@ def _test():
     _test()
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @disabled_ai_monitoring_record_content_settings
 def test_tool_no_content(exercise_agent, set_trace_info, create_agent_runnable, add_exclamation, tool_method_name):
@@ -131,6 +136,8 @@ def test_tool_no_content(exercise_agent, set_trace_info, create_agent_runnable,
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
     @background_task(name="test_tool_no_content")
     def _test():
         set_trace_info()
@@ -142,6 +149,7 @@ def _test():
     _test()
 
 
+@dt_enabled
 @reset_core_stats_engine()
 def test_tool_execution_error(exercise_agent, set_trace_info, create_agent_runnable, add_exclamation, tool_method_name):
     @validate_transaction_error_event_count(1)
@@ -157,6 +165,8 @@ def test_tool_execution_error(exercise_agent, set_trace_info, create_agent_runna
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
     @background_task(name="test_tool_execution_error")
     def _test():
         set_trace_info()
@@ -169,6 +179,7 @@ def _test():
     _test()
 
 
+@dt_enabled
 @reset_core_stats_engine()
 def test_tool_pre_execution_exception(
     exercise_agent, set_trace_info, create_agent_runnable, add_exclamation, tool_method_name
@@ -190,6 +201,8 @@ def inject_exception(wrapped, instance, args, kwargs):
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
     @background_task(name="test_tool_pre_execution_exception")
     def _test():
         set_trace_info()
diff --git a/tests/mlmodel_strands/test_agents.py b/tests/mlmodel_strands/test_agents.py
index b0a1965eea..93d635a716 100644
--- a/tests/mlmodel_strands/test_agents.py
+++ b/tests/mlmodel_strands/test_agents.py
@@ -14,7 +14,7 @@
 
 import pytest
 from strands import Agent
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import (
     disabled_ai_monitoring_record_content_settings,
     disabled_ai_monitoring_settings,
@@ -23,6 +23,7 @@
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
 from testing_support.validators.validate_error_trace_attributes import validate_error_trace_attributes
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_error_event_count import validate_transaction_error_event_count
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
@@ -65,6 +66,7 @@
 ]
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(events_with_context_attrs(agent_recorded_event))
 @validate_custom_event_count(count=2)
@@ -75,6 +77,8 @@
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_agent(exercise_agent, set_trace_info, single_tool_model):
     set_trace_info()
@@ -97,6 +101,7 @@ def test_agent(exercise_agent, set_trace_info, single_tool_model):
         assert response.metrics.tool_metrics["add_exclamation"].success_count == 1
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @disabled_ai_monitoring_record_content_settings
 @validate_custom_events(agent_recorded_event)
@@ -108,6 +113,8 @@ def test_agent(exercise_agent, set_trace_info, single_tool_model):
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_agent_no_content(exercise_agent, set_trace_info, single_tool_model):
     set_trace_info()
@@ -129,6 +136,7 @@ def test_agent_no_content(exercise_agent, set_trace_info, single_tool_model):
         assert response.metrics.tool_metrics["add_exclamation"].success_count == 1
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
 def test_agent_outside_txn(exercise_agent, single_tool_model):
@@ -150,6 +158,7 @@ def test_agent_outside_txn(exercise_agent, single_tool_model):
         assert response.metrics.tool_metrics["add_exclamation"].success_count == 1
 
 
+@dt_enabled
 @disabled_ai_monitoring_settings
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
@@ -174,6 +183,7 @@ def test_agent_disabled_ai_monitoring_events(exercise_agent, set_trace_info, sin
         assert response.metrics.tool_metrics["add_exclamation"].success_count == 1
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_transaction_error_event_count(1)
 @validate_error_trace_attributes(callable_name(ValueError), exact_attrs={"agent": {}, "intrinsic": {}, "user": {}})
@@ -186,6 +196,8 @@ def test_agent_disabled_ai_monitoring_events(exercise_agent, set_trace_info, sin
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+# Only an agent span is expected here and not a tool because the error is injected before the tool is called
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
 @background_task()
 def test_agent_execution_error(exercise_agent, set_trace_info, single_tool_model):
     # Add a wrapper to intentionally force an error in the Agent code
diff --git a/tests/mlmodel_strands/test_multiagent_graph.py b/tests/mlmodel_strands/test_multiagent_graph.py
index 7bd84fc901..216a6bd3a5 100644
--- a/tests/mlmodel_strands/test_multiagent_graph.py
+++ b/tests/mlmodel_strands/test_multiagent_graph.py
@@ -12,10 +12,11 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import disabled_ai_monitoring_settings, events_with_context_attrs
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
 from newrelic.api.background_task import background_task
@@ -86,6 +87,7 @@
 ]
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(events_with_context_attrs(tool_recorded_events))
 @validate_custom_events(events_with_context_attrs(agent_recorded_events))
@@ -107,6 +109,10 @@
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "math_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "calculate_sum"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "analysis_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "analyze_result"}'})
 @background_task()
 def test_multiagent_graph_invoke(set_trace_info, agent_graph):
     set_trace_info()
@@ -123,6 +129,7 @@ def test_multiagent_graph_invoke(set_trace_info, agent_graph):
     )
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(tool_recorded_events)
 @validate_custom_events(agent_recorded_events)
@@ -144,6 +151,10 @@ def test_multiagent_graph_invoke(set_trace_info, agent_graph):
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "math_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "calculate_sum"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "analysis_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "analyze_result"}'})
 @background_task()
 def test_multiagent_graph_invoke_async(loop, set_trace_info, agent_graph):
     set_trace_info()
@@ -162,6 +173,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(tool_recorded_events)
 @validate_custom_events(agent_recorded_events)
@@ -183,6 +195,10 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "math_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "calculate_sum"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "analysis_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "analyze_result"}'})
 @background_task()
 def test_multiagent_graph_stream_async(loop, set_trace_info, agent_graph):
     set_trace_info()
@@ -201,6 +217,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @disabled_ai_monitoring_settings
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
@@ -219,6 +236,7 @@ def test_multiagent_graph_invoke_disabled_ai_monitoring_events(set_trace_info, a
     )
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
 def test_multiagent_graph_invoke_outside_txn(agent_graph):
diff --git a/tests/mlmodel_strands/test_multiagent_swarm.py b/tests/mlmodel_strands/test_multiagent_swarm.py
index bbcbb3e27c..dc4ee95628 100644
--- a/tests/mlmodel_strands/test_multiagent_swarm.py
+++ b/tests/mlmodel_strands/test_multiagent_swarm.py
@@ -12,10 +12,11 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import disabled_ai_monitoring_settings, events_with_context_attrs
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
 from newrelic.api.background_task import background_task
@@ -106,6 +107,7 @@
 ]
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(events_with_context_attrs(tool_recorded_events))
 @validate_custom_events(events_with_context_attrs(agent_recorded_events))
@@ -128,6 +130,10 @@
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "math_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "calculate_sum"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "analysis_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "analyze_result"}'})
 @background_task()
 def test_multiagent_swarm_invoke(set_trace_info, agent_swarm):
     set_trace_info()
@@ -145,6 +151,7 @@ def test_multiagent_swarm_invoke(set_trace_info, agent_swarm):
     )
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(tool_recorded_events)
 @validate_custom_events(agent_recorded_events)
@@ -167,6 +174,10 @@ def test_multiagent_swarm_invoke(set_trace_info, agent_swarm):
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "math_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "calculate_sum"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "analysis_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "analyze_result"}'})
 @background_task()
 def test_multiagent_swarm_invoke_async(loop, set_trace_info, agent_swarm):
     set_trace_info()
@@ -186,6 +197,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(tool_recorded_events)
 @validate_custom_events(agent_recorded_events)
@@ -208,6 +220,10 @@ async def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "math_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "calculate_sum"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "analysis_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "analyze_result"}'})
 @background_task()
 def test_multiagent_swarm_stream_async(loop, set_trace_info, agent_swarm):
     set_trace_info()
@@ -226,6 +242,7 @@ async def _test():
     loop.run_until_complete(_test())
 
 
+@dt_enabled
 @disabled_ai_monitoring_settings
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
@@ -245,6 +262,7 @@ def test_multiagent_swarm_invoke_disabled_ai_monitoring_events(set_trace_info, a
     )
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_event_count(count=0)
 def test_multiagent_swarm_invoke_outside_txn(agent_swarm):
diff --git a/tests/mlmodel_strands/test_tools.py b/tests/mlmodel_strands/test_tools.py
index a5e62ff3a3..bc9eb233c7 100644
--- a/tests/mlmodel_strands/test_tools.py
+++ b/tests/mlmodel_strands/test_tools.py
@@ -14,7 +14,7 @@
 
 import pytest
 from strands import Agent
-from testing_support.fixtures import reset_core_stats_engine, validate_attributes
+from testing_support.fixtures import dt_enabled, reset_core_stats_engine, validate_attributes
 from testing_support.ml_testing_utils import (
     disabled_ai_monitoring_record_content_settings,
     events_with_context_attrs,
@@ -23,6 +23,7 @@
 from testing_support.validators.validate_custom_event import validate_custom_event_count
 from testing_support.validators.validate_custom_events import validate_custom_events
 from testing_support.validators.validate_error_trace_attributes import validate_error_trace_attributes
+from testing_support.validators.validate_span_events import validate_span_events
 from testing_support.validators.validate_transaction_error_event_count import validate_transaction_error_event_count
 from testing_support.validators.validate_transaction_metrics import validate_transaction_metrics
 
@@ -94,6 +95,7 @@
 EXPECTED_ERROR_MESSAGES = ["Error: RuntimeError - Oops", "Error: Oops"]
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_custom_events(events_with_context_attrs(tool_recorded_event))
 @validate_custom_event_count(count=2)
@@ -104,6 +106,8 @@
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_tool(exercise_agent, set_trace_info, single_tool_model, add_exclamation):
     set_trace_info()
@@ -126,6 +130,7 @@ def test_tool(exercise_agent, set_trace_info, single_tool_model, add_exclamation
         assert response.metrics.tool_metrics["add_exclamation"].success_count == 1
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @disabled_ai_monitoring_record_content_settings
 @validate_custom_events(tool_events_sans_content(tool_recorded_event))
@@ -137,6 +142,8 @@ def test_tool(exercise_agent, set_trace_info, single_tool_model, add_exclamation
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_tool_no_content(exercise_agent, set_trace_info, single_tool_model, add_exclamation):
     set_trace_info()
@@ -158,6 +165,7 @@ def test_tool_no_content(exercise_agent, set_trace_info, single_tool_model, add_
         assert response.metrics.tool_metrics["add_exclamation"].success_count == 1
 
 
+@dt_enabled
 @reset_core_stats_engine()
 def test_tool_execution_error(exercise_agent, set_trace_info, single_tool_model_error, add_exclamation):
     from strands.tools import PythonAgentTool
@@ -178,6 +186,8 @@ def test_tool_execution_error(exercise_agent, set_trace_info, single_tool_model_
         background_task=True,
     )
     @validate_attributes("agent", ["llm"])
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+    @validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
     @background_task(name="test_tool_execution_error")
     def _test():
         set_trace_info()
@@ -201,6 +211,7 @@ def _test():
     _test()
 
 
+@dt_enabled
 @reset_core_stats_engine()
 @validate_transaction_error_event_count(1)
 @validate_error_trace_attributes(callable_name(ValueError), exact_attrs={"agent": {}, "intrinsic": {}, "user": {}})
@@ -213,6 +224,8 @@ def _test():
     background_task=True,
 )
 @validate_attributes("agent", ["llm"])
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_AGENT", "name": "my_agent"}'})
+@validate_span_events(count=1, exact_agents={"subcomponent": '{"type": "APM-AI_TOOL", "name": "add_exclamation"}'})
 @background_task()
 def test_tool_pre_execution_exception(exercise_agent, set_trace_info, single_tool_model, add_exclamation):
     # Add a wrapper to intentionally force an error in the ToolExecutor._stream code to hit the exception path in