propagate scope in async failures

spring-kafka/src/main/java/org/springframework/kafka/listener/KafkaMessageListenerContainer.java

@@ -1498,7 +1498,7 @@ protected void handleAsyncFailure() {
 			// We will give up on retrying with the remaining copied and failed Records.
 			for (FailedRecordTuple<K, V> copyFailedRecord : copyFailedRecords) {
 				try {
-					invokeErrorHandlerBySingleRecord(copyFailedRecord);
+					copyFailedRecord.observation.scoped(() -> invokeErrorHandlerBySingleRecord(copyFailedRecord));
 				}
 				catch (Exception e) {
 					this.logger.warn(() ->
@@ -3432,8 +3432,13 @@ private Collection<ConsumerRecord<K, V>> getHighestOffsetRecords(ConsumerRecords
 					.values();
 		}
 
+		private Observation getCurrentObservation() {
+			Observation currentObservation = this.observationRegistry.getCurrentObservation();
+			return currentObservation == null ? Observation.NOOP : currentObservation;
+		}
+
 		private void callbackForAsyncFailure(ConsumerRecord<K, V> cRecord, RuntimeException ex) {
-			this.failedRecords.addLast(new FailedRecordTuple<>(cRecord, ex));
+			this.failedRecords.addLast(new FailedRecordTuple<>(cRecord, ex, getCurrentObservation()));
 		}
 
 		@Override
@@ -4050,6 +4055,6 @@ private static class StopAfterFenceException extends KafkaException {
 
 	}
 
-	private record FailedRecordTuple<K, V>(ConsumerRecord<K, V> record, RuntimeException ex) { }
+	private record FailedRecordTuple<K, V>(ConsumerRecord<K, V> record, RuntimeException ex, Observation observation) { }
 
 }

spring-kafka/src/main/java/org/springframework/kafka/listener/adapter/MessagingMessageListenerAdapter.java

@@ -549,7 +549,7 @@ else if (!(result instanceof CompletableFuture<?>)) {
 		}
 
 		completableFutureResult.whenComplete((r, t) -> {
-			try {
+			try (var scope = observation.openScope()) {
 				if (t == null) {
 					asyncSuccess(r, replyTopic, source, messageReturnType);
 					if (isAsyncReplies()) {
@@ -736,13 +736,15 @@ protected void asyncFailure(Object request, @Nullable Acknowledgment acknowledgm
 									"Async Fail", Objects.requireNonNull(source).getPayload()), cause));
 		}
 		catch (Throwable ex) {
-			this.logger.error(t, () -> "Future, Mono, or suspend function was completed with an exception for " + source);
 			acknowledge(acknowledgment);
 			if (canAsyncRetry(request, ex) && this.asyncRetryCallback != null) {
 				@SuppressWarnings("unchecked")
 				ConsumerRecord<K, V> record = (ConsumerRecord<K, V>) request;
 				this.asyncRetryCallback.accept(record, (RuntimeException) ex);
 			}
+			else {
+				this.logger.error(ex, () -> "Future, Mono, or suspend function was completed with an exception for " + source);
+			}
 		}
 	}
 

spring-kafka/src/test/java/org/springframework/kafka/support/micrometer/ObservationTests.java

@@ -38,15 +38,16 @@
 import io.micrometer.observation.Observation;
 import io.micrometer.observation.ObservationHandler;
 import io.micrometer.observation.ObservationRegistry;
-import io.micrometer.observation.tck.TestObservationRegistry;
 import io.micrometer.tracing.Span;
 import io.micrometer.tracing.TraceContext;
 import io.micrometer.tracing.Tracer;
 import io.micrometer.tracing.handler.DefaultTracingObservationHandler;
 import io.micrometer.tracing.handler.PropagatingReceiverTracingObservationHandler;
 import io.micrometer.tracing.handler.PropagatingSenderTracingObservationHandler;
+import io.micrometer.tracing.handler.TracingAwareMeterObservationHandler;
 import io.micrometer.tracing.propagation.Propagator;
 import io.micrometer.tracing.test.simple.SimpleSpan;
+import io.micrometer.tracing.test.simple.SimpleTraceContext;
 import io.micrometer.tracing.test.simple.SimpleTracer;
 import org.apache.kafka.clients.admin.AdminClientConfig;
 import org.apache.kafka.clients.consumer.Consumer;
@@ -70,8 +71,10 @@
 import org.springframework.context.annotation.Configuration;
 import org.springframework.context.annotation.Primary;
 import org.springframework.kafka.KafkaException;
+import org.springframework.kafka.annotation.DltHandler;
 import org.springframework.kafka.annotation.EnableKafka;
 import org.springframework.kafka.annotation.KafkaListener;
+import org.springframework.kafka.annotation.RetryableTopic;
 import org.springframework.kafka.config.ConcurrentKafkaListenerContainerFactory;
 import org.springframework.kafka.config.KafkaListenerEndpointRegistry;
 import org.springframework.kafka.core.ConsumerFactory;
@@ -80,6 +83,7 @@
 import org.springframework.kafka.core.KafkaAdmin;
 import org.springframework.kafka.core.KafkaTemplate;
 import org.springframework.kafka.core.ProducerFactory;
+import org.springframework.kafka.listener.ContainerProperties;
 import org.springframework.kafka.listener.MessageListenerContainer;
 import org.springframework.kafka.listener.RecordInterceptor;
 import org.springframework.kafka.requestreply.ReplyingKafkaTemplate;
@@ -90,6 +94,9 @@
 import org.springframework.kafka.test.context.EmbeddedKafka;
 import org.springframework.kafka.test.utils.KafkaTestUtils;
 import org.springframework.messaging.handler.annotation.SendTo;
+import org.springframework.retry.annotation.Backoff;
+import org.springframework.scheduling.TaskScheduler;
+import org.springframework.scheduling.concurrent.ThreadPoolTaskScheduler;
 import org.springframework.test.annotation.DirtiesContext;
 import org.springframework.test.context.junit.jupiter.SpringJUnitConfig;
 import org.springframework.util.StringUtils;
@@ -113,7 +120,8 @@
 @EmbeddedKafka(topics = {ObservationTests.OBSERVATION_TEST_1, ObservationTests.OBSERVATION_TEST_2,
 		ObservationTests.OBSERVATION_TEST_3, ObservationTests.OBSERVATION_TEST_4, ObservationTests.OBSERVATION_REPLY,
 		ObservationTests.OBSERVATION_RUNTIME_EXCEPTION, ObservationTests.OBSERVATION_ERROR,
-		ObservationTests.OBSERVATION_TRACEPARENT_DUPLICATE}, partitions = 1)
+		ObservationTests.OBSERVATION_TRACEPARENT_DUPLICATE, ObservationTests.OBSERVATION_ASYNC_FAILURE_TEST,
+		ObservationTests.OBSERVATION_ASYNC_FAILURE_WITH_RETRY_TEST}, partitions = 1)
 @DirtiesContext
 public class ObservationTests {
 
@@ -137,6 +145,55 @@ public class ObservationTests {
 
 	public final static String OBSERVATION_TRACEPARENT_DUPLICATE = "observation.traceparent.duplicate";
 
+	public final static String OBSERVATION_ASYNC_FAILURE_TEST = "observation.async.failure.test";
+
+	public final static String OBSERVATION_ASYNC_FAILURE_WITH_RETRY_TEST = "observation.async.failure.retry.test";
+
+	@Test
+	void asyncRetryScopePropagation(@Autowired AsyncFailureListener asyncFailureListener,
+			@Autowired KafkaTemplate<Integer, String> template,
+			@Autowired SimpleTracer tracer,
+			@Autowired ObservationRegistry observationRegistry) throws InterruptedException {
+
+		// Clear any previous spans
+		tracer.getSpans().clear();
+
+		// Create an observation scope to ensure we have a proper trace context
+		var testObservation = Observation.createNotStarted("test.message.send", observationRegistry);
+
+		// Send a message within the observation scope to ensure trace context is propagated
+		testObservation.observe(() -> {
+			try {
+				template.send(OBSERVATION_ASYNC_FAILURE_TEST, "trigger-async-failure").get(5, TimeUnit.SECONDS);
+			}
+			catch (Exception e) {
+				throw new RuntimeException("Failed to send message", e);
+			}
+		});
+
+		// Wait for the listener to process the message (initial + retry + DLT = 3 invocations)
+		assertThat(asyncFailureListener.asyncFailureLatch.await(100000, TimeUnit.SECONDS)).isTrue();
+
+		// Verify that the captured spans from the listener contexts are all part of the same trace
+		// This demonstrates that the tracing context propagates correctly through the retry mechanism
+		Deque<SimpleSpan> spans = tracer.getSpans();
+		assertThat(spans).hasSizeGreaterThanOrEqualTo(4); // template + listener + retry + DLT spans
+
+		// Verify that spans were captured for each phase and belong to the same trace
+		assertThat(asyncFailureListener.capturedSpanInListener).isNotNull();
+		assertThat(asyncFailureListener.capturedSpanInRetry).isNotNull();
+		assertThat(asyncFailureListener.capturedSpanInDlt).isNotNull();
+
+		// All spans should have the same trace ID, demonstrating trace continuity
+		var originalTraceId = asyncFailureListener.capturedSpanInListener.getTraceId();
+		assertThat(originalTraceId).isNotBlank();
+		assertThat(asyncFailureListener.capturedSpanInRetry.getTraceId()).isEqualTo(originalTraceId);
+		assertThat(asyncFailureListener.capturedSpanInDlt.getTraceId()).isEqualTo(originalTraceId);
+
+		// Clear any previous spans
+		tracer.getSpans().clear();
+	}
+
 	@Test
 	void endToEnd(@Autowired Listener listener, @Autowired KafkaTemplate<Integer, String> template,
 			@Autowired SimpleTracer tracer, @Autowired KafkaListenerEndpointRegistry rler,
@@ -628,6 +685,11 @@ ConcurrentKafkaListenerContainerFactory<Integer, String> kafkaListenerContainerF
 				if (container.getListenerId().equals("obs3")) {
 					container.setKafkaAdmin(this.mockAdmin);
 				}
+				if (container.getListenerId().contains("asyncFailure")) {
+					// Enable async acks to trigger async failure handling
+					container.getContainerProperties().setAsyncAcks(true);
+					container.getContainerProperties().setAckMode(ContainerProperties.AckMode.MANUAL);
+				}
 				if (container.getListenerId().equals("obs4")) {
 					container.setRecordInterceptor(new RecordInterceptor<>() {
 
@@ -662,17 +724,17 @@ MeterRegistry meterRegistry() {
 
 		@Bean
 		ObservationRegistry observationRegistry(Tracer tracer, Propagator propagator, MeterRegistry meterRegistry) {
-			TestObservationRegistry observationRegistry = TestObservationRegistry.create();
+			var observationRegistry = ObservationRegistry.create();
 			observationRegistry.observationConfig().observationHandler(
 							// Composite will pick the first matching handler
 							new ObservationHandler.FirstMatchingCompositeObservationHandler(
-									// This is responsible for creating a child span on the sender side
-									new PropagatingSenderTracingObservationHandler<>(tracer, propagator),
 									// This is responsible for creating a span on the receiver side
 									new PropagatingReceiverTracingObservationHandler<>(tracer, propagator),
+									// This is responsible for creating a child span on the sender side
+									new PropagatingSenderTracingObservationHandler<>(tracer, propagator),
 									// This is responsible for creating a default span
 									new DefaultTracingObservationHandler(tracer)))
-					.observationHandler(new DefaultMeterObservationHandler(meterRegistry));
+					.observationHandler(new TracingAwareMeterObservationHandler<>(new DefaultMeterObservationHandler(meterRegistry), tracer));
 			return observationRegistry;
 		}
 
@@ -683,29 +745,41 @@ Propagator propagator(Tracer tracer) {
 				// List of headers required for tracing propagation
 				@Override
 				public List<String> fields() {
-					return Arrays.asList("foo", "bar");
+					return Arrays.asList("traceId", "spanId", "foo", "bar");
 				}
 
 				// This is called on the producer side when the message is being sent
-				// Normally we would pass information from tracing context - for tests we don't need to
 				@Override
 				public <C> void inject(TraceContext context, @Nullable C carrier, Setter<C> setter) {
 					setter.set(carrier, "foo", "some foo value");
 					setter.set(carrier, "bar", "some bar value");
 
+					setter.set(carrier, "traceId", context.traceId());
+					setter.set(carrier, "spanId", context.spanId());
+
 					// Add a traceparent header to simulate W3C trace context
 					setter.set(carrier, "traceparent", "traceparent-from-propagator");
 				}
 
 				// This is called on the consumer side when the message is consumed
-				// Normally we would use tools like Extractor from tracing but for tests we are just manually creating a span
 				@Override
 				public <C> Span.Builder extract(C carrier, Getter<C> getter) {
 					String foo = getter.get(carrier, "foo");
 					String bar = getter.get(carrier, "bar");
-					return tracer.spanBuilder()
+
+					var traceId = getter.get(carrier, "traceId");
+					var spanId = getter.get(carrier, "spanId");
+
+					Span.Builder spanBuilder = tracer.spanBuilder()
 							.tag("foo", foo)
 							.tag("bar", bar);
+
+					var traceContext = new SimpleTraceContext();
+					traceContext.setTraceId(traceId);
+					traceContext.setSpanId(spanId);
+					spanBuilder = spanBuilder.setParent(traceContext);
+
+					return spanBuilder;
 				}
 			};
 		}
@@ -720,6 +794,15 @@ ExceptionListener exceptionListener() {
 			return new ExceptionListener();
 		}
 
+		@Bean
+		AsyncFailureListener asyncFailureListener(SimpleTracer tracer) {
+			return new AsyncFailureListener(tracer);
+		}
+
+		@Bean
+		public TaskScheduler taskExecutor() {
+			return new ThreadPoolTaskScheduler();
+		}
 	}
 
 	public static class Listener {
@@ -801,4 +884,54 @@ Mono<Void> receive1(ConsumerRecord<Object, Object> record) {
 
 	}
 
+	public static class AsyncFailureListener {
+
+		final CountDownLatch asyncFailureLatch = new CountDownLatch(3);
+
+		volatile @Nullable SimpleSpan capturedSpanInListener;
+
+		volatile @Nullable SimpleSpan capturedSpanInRetry;
+
+		volatile @Nullable SimpleSpan capturedSpanInDlt;
+
+		private final SimpleTracer tracer;
+
+		public AsyncFailureListener(SimpleTracer tracer) {
+			this.tracer = tracer;
+		}
+
+		@RetryableTopic(
+				attempts = "2",
+				backoff = @Backoff(delay = 1000)
+		)
+		@KafkaListener(id = "asyncFailure", topics = OBSERVATION_ASYNC_FAILURE_TEST)
+		CompletableFuture<Void> handleAsync(ConsumerRecord<Integer, String> record) {
+
+			// Use topic name to distinguish between original and retry calls
+			String topicName = record.topic();
+
+			if (topicName.equals(OBSERVATION_ASYNC_FAILURE_TEST)) {
+				// This is the original call
+				this.capturedSpanInListener = this.tracer.currentSpan();
+			}
+			else {
+				// This is a retry call (topic name will be different for retry topics)
+				this.capturedSpanInRetry = this.tracer.currentSpan();
+			}
+
+			this.asyncFailureLatch.countDown();
+
+			// Return a failed CompletableFuture to trigger async failure handling
+			return CompletableFuture.supplyAsync(() -> {
+				throw new RuntimeException("Async failure for observation test");
+			});
+		}
+
+		@DltHandler
+		void handleDlt(ConsumerRecord<Integer, String> record, Exception exception) {
+			this.capturedSpanInDlt = this.tracer.currentSpan();
+			this.asyncFailureLatch.countDown();
+		}
+	}
+
 }