diff --git a/spring-kafka-docs/src/main/antora/modules/ROOT/pages/kafka/micrometer.adoc b/spring-kafka-docs/src/main/antora/modules/ROOT/pages/kafka/micrometer.adoc
index 886cbb8f51..7b2bb36502 100644
--- a/spring-kafka-docs/src/main/antora/modules/ROOT/pages/kafka/micrometer.adoc
+++ b/spring-kafka-docs/src/main/antora/modules/ROOT/pages/kafka/micrometer.adoc
@@ -95,7 +95,9 @@ Using Micrometer for observation is now supported, since version 3.0, for the `K
 
 Set `observationEnabled` to `true` on the `KafkaTemplate` and `ContainerProperties` to enable observation; this will disable xref:kafka/micrometer.adoc[Micrometer Timers] because the timers will now be managed with each observation.
 
-Refer to https://docs.micrometer.io/tracing/reference/index.html[Micrometer Tracing] for more information.
+IMPORTANT: Micrometer Observation does not support batch listener; this will enable Micrometer Timers
+
+Refer to https://micrometer.io/docs/tracing[Micrometer Tracing] for more information.
 
 To add tags to timers/traces, configure a custom `KafkaTemplateObservationConvention` or `KafkaListenerObservationConvention` to the template or listener container, respectively.
 
diff --git a/spring-kafka/src/main/java/org/springframework/kafka/listener/KafkaMessageListenerContainer.java b/spring-kafka/src/main/java/org/springframework/kafka/listener/KafkaMessageListenerContainer.java
index 44e3fb21db..ff26ea06e1 100644
--- a/spring-kafka/src/main/java/org/springframework/kafka/listener/KafkaMessageListenerContainer.java
+++ b/spring-kafka/src/main/java/org/springframework/kafka/listener/KafkaMessageListenerContainer.java
@@ -758,6 +758,8 @@ private final class ListenerConsumer implements SchedulingAwareRunnable, Consume
 
 		private final MicrometerHolder micrometerHolder;
 
+		private final boolean observationEnabled;
+
 		private final AtomicBoolean polling = new AtomicBoolean();
 
 		private final boolean subBatchPerPartition;
@@ -912,6 +914,7 @@ private final class ListenerConsumer implements SchedulingAwareRunnable, Consume
 				this.isBatchListener = true;
 				this.wantsFullRecords = this.batchListener.wantsPollResult();
 				this.pollThreadStateProcessor = setUpPollProcessor(true);
+				this.observationEnabled = false;
 			}
 			else if (listener instanceof MessageListener) {
 				this.listener = (MessageListener<K, V>) listener;
@@ -919,6 +922,7 @@ else if (listener instanceof MessageListener) {
 				this.isBatchListener = false;
 				this.wantsFullRecords = false;
 				this.pollThreadStateProcessor = setUpPollProcessor(false);
+				this.observationEnabled = this.containerProperties.isObservationEnabled();
 			}
 			else {
 				throw new IllegalArgumentException("Listener must be one of 'MessageListener', "
@@ -999,7 +1003,7 @@ private Object determineBootstrapServers(Properties consumerProperties) {
 		@Nullable
 		private KafkaAdmin obtainAdmin() {
 			KafkaAdmin customAdmin = KafkaMessageListenerContainer.this.thisOrParentContainer.getKafkaAdmin();
-			if (customAdmin == null && this.containerProperties.isObservationEnabled()) {
+			if (customAdmin == null && this.observationEnabled) {
 				ApplicationContext applicationContext = getApplicationContext();
 				if (applicationContext != null) {
 					KafkaAdmin admin = applicationContext.getBeanProvider(KafkaAdmin.class).getIfUnique();
@@ -1279,7 +1283,7 @@ private MicrometerHolder obtainMicrometerHolder() {
 			MicrometerHolder holder = null;
 			try {
 				if (KafkaUtils.MICROMETER_PRESENT && this.containerProperties.isMicrometerEnabled()
-						&& !this.containerProperties.isObservationEnabled()) {
+						&& !this.observationEnabled) {
 
 					Function<Object, Map<String, String>> mergedProvider =
 							cr -> this.containerProperties.getMicrometerTags();