diff --git a/.github/scripts/ci-checks.sh b/.github/scripts/ci-checks.sh
index 77f962d8..93ccbeb6 100755
--- a/.github/scripts/ci-checks.sh
+++ b/.github/scripts/ci-checks.sh
@@ -1,18 +1,37 @@
-
 #!/bin/sh
 
 set -e
 
-hatch run test:cov
-echo SUCCESS: tests + coverage
+REPO_ROOT="$(cd "$(dirname "$0")/../.." && pwd)"
+
+PACKAGES=(
+  "packages/aws-durable-execution-sdk-python"
+  "packages/aws-durable-execution-sdk-python-otel"
+)
+
+for package_dir in "${PACKAGES[@]}"; do
+  full_path="$REPO_ROOT/$package_dir"
+  if [ -d "$full_path" ]; then
+    echo "=========================================="
+    echo "Running checks for $package_dir"
+    echo "=========================================="
+    cd "$full_path"
+
+    hatch run test:cov
+    echo "SUCCESS: tests + coverage ($package_dir)"
 
-# type checks
-hatch run types:check
-echo SUCCESS: typings
+    # type checks
+    hatch run types:check
+    echo "SUCCESS: typings ($package_dir)"
 
-# static analysis
-hatch fmt
-echo SUCCESS: linting/fmt
+    # static analysis
+    hatch fmt
+    echo "SUCCESS: linting/fmt ($package_dir)"
+  else
+    echo "WARNING: $package_dir does not exist, skipping"
+  fi
+done
 
-# commit message validation
+# commit message validation (run once from repo root)
+cd "$REPO_ROOT"
 hatch run python .github/scripts/lintcommit.py
diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index a1580ece..92a6dd09 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -43,10 +43,42 @@ jobs:
       run: |
         python -m pip install hatch==1.16.5
     - name: static analysis
-      run: hatch fmt --check
+      run: |
+        for pkg in packages/*/; do
+          if [ -f "$pkg/pyproject.toml" ]; then
+            echo "=== Checking format: $pkg ==="
+            cd "$pkg"
+            hatch fmt --check
+            cd "$GITHUB_WORKSPACE"
+          fi
+        done
     - name: type checking
-      run: hatch run types:check
+      run: |
+        for pkg in packages/*/; do
+          if [ -f "$pkg/pyproject.toml" ]; then
+            echo "=== Type checking: $pkg ==="
+            cd "$pkg"
+            hatch run types:check
+            cd "$GITHUB_WORKSPACE"
+          fi
+        done
     - name: Run tests + coverage
-      run: hatch run test:cov
+      run: |
+        for pkg in packages/*/; do
+          if [ -f "$pkg/pyproject.toml" ]; then
+            echo "=== Testing: $pkg ==="
+            cd "$pkg"
+            hatch run test:cov
+            cd "$GITHUB_WORKSPACE"
+          fi
+        done
     - name: Build distribution
-      run: hatch build
+      run: |
+        for pkg in packages/*/; do
+          if [ -f "$pkg/pyproject.toml" ]; then
+            echo "=== Building: $pkg ==="
+            cd "$pkg"
+            hatch build
+            cd "$GITHUB_WORKSPACE"
+          fi
+        done
diff --git a/.github/workflows/deploy-examples.yml b/.github/workflows/deploy-examples.yml
index 415ff16c..33223f46 100644
--- a/.github/workflows/deploy-examples.yml
+++ b/.github/workflows/deploy-examples.yml
@@ -4,8 +4,8 @@ on:
   pull_request:
     branches: [ "main", "development"]
     paths:
-      - 'src/aws_durable_execution_sdk_python/**'
-      - 'examples/**'
+      - 'packages/aws-durable-execution-sdk-python/src/**'
+      - 'packages/aws-durable-execution-sdk-python/examples/**'
       - '.github/workflows/deploy-examples.yml'
   workflow_dispatch:
 
@@ -26,7 +26,7 @@ jobs:
     
     - name: Get examples from catalog
       id: get-examples
-      working-directory: ./examples
+      working-directory: ./packages/aws-durable-execution-sdk-python/examples
       run: |
         echo "examples=$(jq -c '.examples | map(select(.integration == true))' examples-catalog.json)" >> $GITHUB_OUTPUT
 
@@ -58,10 +58,12 @@ jobs:
     - name: Install Hatch
       run: pip install hatch
     - name: Build examples
+      working-directory: ./packages/aws-durable-execution-sdk-python
       run: hatch run examples:build
 
     - name: Deploy Lambda function - ${{ matrix.example.name }}
       id: deploy
+      working-directory: ./packages/aws-durable-execution-sdk-python
       env:
         AWS_ACCOUNT_ID: ${{ secrets.AWS_ACCOUNT_ID }}
         LAMBDA_ENDPOINT: "https://lambda.us-west-2.amazonaws.com"
@@ -99,6 +101,7 @@ jobs:
         echo "QUALIFIED_FUNCTION_NAME=$QUALIFIED_FUNCTION_NAME" >> $GITHUB_OUTPUT
 
     - name: Run Integration Tests - ${{ matrix.example.name }}
+      working-directory: ./packages/aws-durable-execution-sdk-python
       env:
         AWS_REGION: ${{ env.AWS_REGION }}
         LAMBDA_ENDPOINT: "https://lambda.us-west-2.amazonaws.com"
diff --git a/.github/workflows/integration-tests.yml b/.github/workflows/integration-tests.yml
index 13441abc..7a8b011a 100644
--- a/.github/workflows/integration-tests.yml
+++ b/.github/workflows/integration-tests.yml
@@ -37,11 +37,11 @@ jobs:
       run: python -m pip install hatch==1.16.5
 
     - name: Setup and run tests
-      working-directory: language-sdk
+      working-directory: language-sdk/packages/aws-durable-execution-sdk-python
       run: |
         echo "Running SDK tests..."
-        hatch run -- test:pip install -e ../testing-sdk
-        hatch run -- test:pip install -e ../language-sdk
+        hatch run -- test:pip install -e ../../../testing-sdk
+        hatch run -- test:pip install -e .
         hatch fmt --check
         hatch run types:check
         hatch run test:cov
@@ -84,7 +84,7 @@ jobs:
 
     - name: Get integration examples
       id: get-examples
-      working-directory: language-sdk/examples
+      working-directory: language-sdk/packages/aws-durable-execution-sdk-python/examples
       run: |
         echo "examples=$(jq -c '.examples | map(select(.integration == true)) | .[0:2]' examples-catalog.json)" >> $GITHUB_OUTPUT
 
@@ -97,7 +97,7 @@ jobs:
         rm -rf /tmp/aws/
 
     - name: Deploy and test examples
-      working-directory: language-sdk
+      working-directory: language-sdk/packages/aws-durable-execution-sdk-python
       env:
         AWS_ACCOUNT_ID: ${{ secrets.AWS_ACCOUNT_ID }}
         LAMBDA_ENDPOINT: "https://lambda.us-west-2.amazonaws.com"
@@ -105,7 +105,7 @@ jobs:
         KMS_KEY_ARN: ${{ secrets.KMS_KEY_ARN }}
       run: |
         echo "Building examples..."
-        hatch run -- examples:pip install -e ../testing-sdk
+        hatch run -- examples:pip install -e ../../../testing-sdk
         hatch run examples:build
 
         # Get first integration example for testing
diff --git a/.github/workflows/pypi-publish.yml b/.github/workflows/pypi-publish.yml
index e0e0a2b6..726f823b 100644
--- a/.github/workflows/pypi-publish.yml
+++ b/.github/workflows/pypi-publish.yml
@@ -1,4 +1,4 @@
-# This workflow will upload a Python Package to PyPI when a release is created
+# This workflow will upload Python Packages to PyPI when a release is created
 # For more information see: https://docs.github.com/en/actions/automating-builds-and-tests/building-and-testing-python#publishing-to-package-registries
 
 # This workflow uses actions that are not certified by GitHub.
@@ -18,6 +18,14 @@ permissions:
 jobs:
   release-build:
     runs-on: ubuntu-latest
+    strategy:
+      fail-fast: false
+      matrix:
+        package:
+          - name: aws-durable-execution-sdk-python
+            path: packages/aws-durable-execution-sdk-python
+          - name: aws-durable-execution-sdk-python-otel
+            path: packages/aws-durable-execution-sdk-python-otel
 
     steps:
       - uses: actions/checkout@de0fac2e4500dabe0009e67214ff5f5447ce83dd  # v6.0.2
@@ -25,52 +33,51 @@ jobs:
       - uses: actions/setup-python@a309ff8b426b58ec0e2a45f0f869d46889d02405  # v6.2.0
         with:
           python-version: "3.11"
-      - name: Install Hatch 
-        run: |
-          python -m pip install --upgrade hatch==1.16.5
+
+      - name: Install Hatch
+        run: python -m pip install --upgrade hatch==1.16.5
+
       - name: Build release distributions
-        run: |
-          # NOTE: put your own distribution build steps here.
-          hatch build
+        working-directory: ${{ matrix.package.path }}
+        run: hatch build
 
       - name: Upload distributions
         uses: actions/upload-artifact@043fb46d1a93c77aae656e7c1c64a875d1fc6a0a  # v7.0.1
         with:
-          name: release-dists
-          path: dist/
+          name: release-dists-${{ matrix.package.name }}
+          path: ${{ matrix.package.path }}/dist/
 
   pypi-publish:
     runs-on: ubuntu-latest
     needs:
       - release-build
+    strategy:
+      fail-fast: false
+      matrix:
+        package:
+          - name: aws-durable-execution-sdk-python
+          - name: aws-durable-execution-sdk-python-otel
     permissions:
-      # IMPORTANT: this permission is mandatory for trusted publishing
       id-token: write
 
-    # Dedicated environments with protections for publishing are strongly recommended.
-    # For more information, see: https://docs.github.com/en/actions/deployment/targeting-different-environments/using-environments-for-deployment#deployment-protection-rules
     environment:
       name: pypi
-      # OPTIONAL: uncomment and update to include your PyPI project URL in the deployment status:
-      # url: https://pypi.org/p/aws-durable-execution-sdk-python
-      #
-      # ALTERNATIVE: if your GitHub Release name is the PyPI project version string
-      # ALTERNATIVE: exactly, uncomment the following line instead:
-      url: https://pypi.org/project/aws-durable-execution-sdk-python/${{ github.event.release.name }}
+      url: https://pypi.org/project/${{ matrix.package.name }}/${{ github.event.release.name }}
 
     steps:
       - name: Retrieve release distributions
         uses: actions/download-artifact@3e5f45b2cfb9172054b4087a40e8e0b5a5461e7c  # v8.0.1
         with:
-          name: release-dists
+          name: release-dists-${{ matrix.package.name }}
           path: dist/
 
-      - name: Publish release distributions to PyPI
+      - name: Publish to PyPI
         uses: pypa/gh-action-pypi-publish@cef221092ed1bacb1cc03d23a2d87d1d172e277b # v1.14.0
         with:
           packages-dir: dist/
 
   notify-release:
+    if: always() && contains(needs.pypi-publish.result, 'success')
     needs: [pypi-publish]
     uses: ./.github/workflows/notify-release.yml
     with:
diff --git a/.github/workflows/sync-package.yml b/.github/workflows/sync-package.yml
deleted file mode 100644
index afe31965..00000000
--- a/.github/workflows/sync-package.yml
+++ /dev/null
@@ -1,72 +0,0 @@
-name: Sync package
-
-on:
-  push:
-    branches: [ "main" ]
-env:
-  AWS_REGION : "us-west-2"
-
-# permission can be added at job level or workflow level
-permissions:
-  id-token: write   # This is required for requesting the JWT
-  contents: read    # This is required for actions/checkout
-
-jobs:
-  on-success:
-    runs-on: ubuntu-latest
-    strategy:
-      fail-fast: false
-      matrix:
-        python-version: ["3.13"]
-
-    steps:
-      - uses: actions/checkout@de0fac2e4500dabe0009e67214ff5f5447ce83dd  # v6.0.2
-      - name: Set up Python ${{ matrix.python-version }}
-        uses: actions/setup-python@a309ff8b426b58ec0e2a45f0f869d46889d02405 # v6.2.0
-        with:
-          python-version: ${{ matrix.python-version }}
-      - name: Install Hatch
-        run: |
-          python -m pip install --upgrade hatch==1.16.5
-      - name: Build distribution
-        run: hatch build
-      - name: configure aws credentials
-        uses: aws-actions/configure-aws-credentials@ec61189d14ec14c8efccab744f656cffd0e33f37 # v6.1.0
-        with:
-          role-to-assume: "${{ secrets.ACTIONS_SYNC_ROLE_NAME }}"
-          role-session-name: gh-python
-          aws-region: ${{ env.AWS_REGION }}
-      - name: Copy tar gz build file to s3
-        run: |
-          aws s3 cp ./dist/*.tar.gz \
-            s3://${{ secrets.S3_BUCKET_NAME }}/aws-durable-execution-sdk-python.tar.gz
-      - name: commit tar gz to Gitfarm
-        run: |
-          aws lambda invoke \
-            --function-name ${{ secrets.SYNC_LAMBDA_ARN }} \
-            --payload '{"gitFarmRepo":"${{ secrets.GITFARM_LAN_SDK_REPO }}","gitFarmBranch":"${{ secrets.GITFARM_LAN_SDK_BRANCH }}","gitFarmFilepath":"aws-durable-execution-sdk-python.tar.gz","s3Bucket":"${{ secrets.S3_BUCKET_NAME }}","s3FilePath":"aws-durable-execution-sdk-python.tar.gz", "gitHubRepo": "aws-durable-execution-sdk-python", "gitHubCommit":"${{ github.sha }}"}' \
-            --cli-binary-format raw-in-base64-out \
-            output.txt
-      - name: Check for error in lambda invoke
-        run: |
-          if grep -q "Error" output.txt; then
-            cat output.txt
-            exit 1
-          fi
-      - name: Copy whl build file to s3
-        run: |
-          aws s3 cp ./dist/*.whl \
-            s3://${{ secrets.S3_BUCKET_NAME }}/aws-durable-execution-sdk-python.whl
-      - name: commit whl to Gitfarm
-        run: |
-          aws lambda invoke \
-            --function-name ${{ secrets.SYNC_LAMBDA_ARN }} \
-            --payload '{"gitFarmRepo":"${{ secrets.GITFARM_LAN_SDK_REPO }}","gitFarmBranch":"${{ secrets.GITFARM_LAN_SDK_BRANCH }}","gitFarmFilepath":"aws-durable-execution-sdk-python.whl","s3Bucket":"${{ secrets.S3_BUCKET_NAME }}","s3FilePath":"aws-durable-execution-sdk-python.whl", "gitHubRepo": "aws-durable-execution-sdk-python", "gitHubCommit":"${{ github.sha }}"}' \
-            --cli-binary-format raw-in-base64-out \
-            output.txt
-      - name: Check for error in lambda invoke
-        run: |
-          if grep -q "Error" output.txt; then
-            cat output.txt
-            exit 1
-          fi
diff --git a/.github/workflows/update-sam-template.yml b/.github/workflows/update-sam-template.yml
index 63bdde9a..70aa2e16 100644
--- a/.github/workflows/update-sam-template.yml
+++ b/.github/workflows/update-sam-template.yml
@@ -27,7 +27,7 @@ jobs:
           python-version: "3.13"
 
       - name: Generate SAM template
-        run: python examples/scripts/generate_sam_template.py
+        run: python packages/aws-durable-execution-sdk-python/examples/scripts/generate_sam_template.py
 
       - name: Commit and push changes
         run: |
diff --git a/.gitignore b/.gitignore
index bfc52e93..fa41c3e0 100644
--- a/.gitignore
+++ b/.gitignore
@@ -9,6 +9,7 @@ __pycache__/
 *$py.class
 *.egg-info/
 
+*.coverage
 /.coverage
 /.coverage.*
 /.cache
@@ -30,7 +31,7 @@ dist/
 
 .kiro/
 
-/examples/build/*
-/examples/*.zip
+examples/build/*
+examples/*.zip
 
 .env
\ No newline at end of file
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 8a65b26a..880f3676 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -9,7 +9,35 @@ information to effectively respond to your bug report or contribution.
 ## Dependencies
 Install [hatch](https://hatch.pypa.io/dev/install/).
 
+## Repository Structure
+
+This is a monorepo containing multiple packages under the `packages/` directory:
+
+```
+packages/
+├── aws-durable-execution-sdk-python/       # Core SDK
+│   ├── pyproject.toml
+│   ├── src/
+│   ├── tests/
+│   └── examples/
+└── aws-durable-execution-sdk-python-otel/  # OpenTelemetry instrumentation
+    ├── pyproject.toml
+    ├── src/
+    └── tests/
+```
+
+Shared files (`.github/`, `LICENSE`, `CONTRIBUTING.md`, etc.) live at the repository root.
+
 ## Developer workflow
+
+All `hatch` commands must be run from within a specific package directory:
+
+```bash
+cd packages/aws-durable-execution-sdk-python
+# or
+cd packages/aws-durable-execution-sdk-python-otel
+```
+
 These are all the checks you would typically do as you prepare a PR:
 ```
 # just test
@@ -25,7 +53,7 @@ hatch run types:check
 hatch fmt
 ```
 
-There is a convenience script for the above that you can run from the root of the repo as you prepare your PR:
+There is a convenience script that runs checks across all packages from the root of the repo:
 ```
 .github/scripts/ci-checks.sh
 ```
@@ -131,7 +159,8 @@ class WaitOptions:
 
 ## Set up your IDE
 Point your IDE at the hatch virtual environment to have it recognize dependencies
-and imports.
+and imports. Run these commands from within the package directory you're working on
+(e.g., `packages/aws-durable-execution-sdk-python`).
 
 You can find the path to the hatch Python interpreter like this:
 ```
@@ -148,6 +177,7 @@ errors finding the interpreter. You can create a local .venv file symlink _witho
 in the path:
 
 ```bash
+# From within the package directory, e.g. packages/aws-durable-execution-sdk-python
 # create a symlink at: ./.venv/bin/python
 rm -rf .venv && ln -s "$(hatch env find)" .venv
 ```
@@ -179,6 +209,8 @@ These `settings.json` settings are useful:
 
 ## Testing
 ### How to run tests
+Run these commands from within a package directory (e.g., `packages/aws-durable-execution-sdk-python`).
+
 To run all tests:
 ```
 hatch test
@@ -220,7 +252,8 @@ tests/mypackage/mymodule_test.py
 
 ## Examples and Deployment
 
-The project includes a unified CLI tool for managing examples, deployment, and AWS account setup:
+The project includes a unified CLI tool for managing examples, deployment, and AWS account setup.
+Run these commands from the core SDK package directory (`packages/aws-durable-execution-sdk-python`):
 
 ### Bootstrap AWS Account
 ```bash
diff --git a/RELEASING.md b/RELEASING.md
new file mode 100644
index 00000000..3b5b8264
--- /dev/null
+++ b/RELEASING.md
@@ -0,0 +1,106 @@
+# Releasing
+
+This document describes how to cut a release for packages in this monorepo and how the automated PyPI publishing workflow is triggered.
+
+## Packages
+
+This monorepo contains the following packages:
+
+| Package | Path | Tag Prefix |
+|---------|------|------------|
+| `aws-durable-execution-sdk-python` | `packages/aws-durable-execution-sdk-python` | `sdk` |
+| `aws-durable-execution-sdk-python-otel` | `packages/aws-durable-execution-sdk-python-otel` | `otel` |
+
+## Versioning
+
+Each package maintains its own version in its respective `__about__.py` file:
+
+- SDK: `packages/aws-durable-execution-sdk-python/src/aws_durable_execution_sdk_python/__about__.py`
+- OTel: `packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/__about__.py`
+
+Bump the version in the appropriate `__about__.py` file(s) and merge to `main` before creating a release.
+
+## Cutting a Release
+
+### 1. Bump the version
+
+Update the `__version__` string in the relevant `__about__.py` file(s). Commit and merge to `main`.
+
+### 2. Create a GitHub Release
+
+1. Go to the [Releases page](https://github.com/aws/aws-durable-execution-sdk-python/releases) on GitHub.
+2. Click **Draft a new release**.
+3. Create a new tag following the tagging convention below.
+4. Set the release title (typically the same as the tag).
+5. Write release notes following the format described in [Release Notes Format](#release-notes-format).
+6. Click **Publish release**.
+
+### Tagging Convention
+
+The tag should be the version of the package being bumped, prepended with a descriptive prefix:
+
+- **SDK only:** `sdk-v<version>` (e.g., `sdk-v1.6.0`)
+- **OTel only:** `otel-v<version>` (e.g., `otel-v0.3.0`)
+- **Both packages in a single release:** comma-separate the sub-tags (e.g., `sdk-1.6.0,otel-0.3.0`)
+
+Examples:
+
+```
+sdk-1.6.0
+otel-0.3.0
+sdk-1.6.0,otel-0.3.0
+```
+
+If additional packages are added to the monorepo in the future, follow the same pattern: choose a short descriptive prefix for the package and use `<prefix>-<version>`.
+
+## How Publishing Works
+
+Creating a GitHub Release triggers the [`pypi-publish.yml`](.github/workflows/pypi-publish.yml) workflow automatically. The workflow:
+
+1. **Builds** both packages using [Hatch](https://hatch.pypa.io/) (`hatch build`).
+2. **Uploads** the built distributions as artifacts.
+3. **Publishes** each package to [PyPI](https://pypi.org/) using trusted publishing (OIDC-based, no API tokens required).
+
+The workflow runs on the `release: [published]` event, so it fires whenever a release is published on GitHub — no manual intervention is needed beyond creating the release.
+
+> **Note:** The workflow builds and publishes all packages in the matrix. Ensure the version in each package's `__about__.py` is correct before publishing. If only one package has a version bump, PyPI will reject the re-upload of the unchanged package (which is expected and harmless since `fail-fast: false` is set).
+
+## Release Notes Format
+
+Release notes should maintain separate timelines for each package. Use the following structure:
+
+```markdown
+## aws-durable-execution-sdk-python v1.6.0
+
+### Features
+- Added support for X
+- New `context.foo()` API
+
+### Bug Fixes
+- Fixed issue with Y under Z conditions
+
+### Breaking Changes
+- Removed deprecated `bar()` method
+
+---
+
+## aws-durable-execution-sdk-python-otel v0.3.0
+
+### Features
+- Added tracing for `map` operations
+
+### Bug Fixes
+- Fixed span context propagation in child contexts
+```
+
+If only one package is being released, include only that package's section. Each package's changelog should be self-contained so users can follow the history of the package they depend on independently.
+
+## Checklist
+
+Before publishing a release:
+
+- [ ] Version bumped in the relevant `__about__.py` file(s)
+- [ ] Changes merged to `main`
+- [ ] CI checks pass on `main`
+- [ ] Release notes written with separate sections per package
+- [ ] Tag follows the naming convention (`sdk-X.Y.Z`, `otel-X.Y.Z`, or comma-separated)
diff --git a/packages/aws-durable-execution-sdk-python-otel/README.md b/packages/aws-durable-execution-sdk-python-otel/README.md
new file mode 100644
index 00000000..b69c4b51
--- /dev/null
+++ b/packages/aws-durable-execution-sdk-python-otel/README.md
@@ -0,0 +1,47 @@
+# aws-durable-execution-sdk-python-otel
+
+OpenTelemetry instrumentation for the [AWS Durable Execution SDK for Python](https://github.com/aws/aws-durable-execution-sdk-python).
+
+## Overview
+
+This package provides automatic OpenTelemetry tracing for durable execution workflows, giving you visibility into step execution, waits, retries, and overall workflow performance.
+
+## Installation
+
+```bash
+pip install aws-durable-execution-sdk-python-otel
+```
+
+## Quick Start
+
+```python
+from aws_durable_execution_sdk_python import DurableContext, durable_execution
+from aws_durable_execution_sdk_python_otel import instrument_durable_execution
+
+# Instrument the SDK (call once at module load)
+instrument_durable_execution()
+
+@durable_execution
+def handler(event: dict, context: DurableContext) -> dict:
+    # Steps, waits, and invokes are automatically traced
+    result = context.step(lambda _: do_work(), name="my-step")
+    return {"result": result}
+```
+
+## Features
+
+- Automatic span creation for steps, waits, invokes, and child contexts
+- Replay-aware tracing (distinguishes fresh executions from replays)
+- Error recording with proper OTel status codes
+- Configurable span attributes and naming
+
+## Requirements
+
+- Python >= 3.11
+- `aws-durable-execution-sdk-python` >= 1.5.0
+- `opentelemetry-api` >= 1.20.0
+- `opentelemetry-sdk` >= 1.20.0
+
+## License
+
+Apache-2.0
diff --git a/packages/aws-durable-execution-sdk-python-otel/pyproject.toml b/packages/aws-durable-execution-sdk-python-otel/pyproject.toml
new file mode 100644
index 00000000..998db75f
--- /dev/null
+++ b/packages/aws-durable-execution-sdk-python-otel/pyproject.toml
@@ -0,0 +1,100 @@
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[project]
+name = "aws-durable-execution-sdk-python-otel"
+dynamic = ["version"]
+description = 'OpenTelemetry instrumentation for AWS Durable Execution SDK for Python'
+readme = "README.md"
+requires-python = ">=3.11"
+license = "Apache-2.0"
+keywords = ["opentelemetry", "tracing", "observability", "durable-execution"]
+authors = [{ name = "AWS durable-execution-dev", email = "durable-execution-dev@amazon.com" }]
+classifiers = [
+  "Development Status :: 4 - Beta",
+  "Programming Language :: Python",
+  "Programming Language :: Python :: 3.11",
+  "Programming Language :: Python :: 3.12",
+  "Programming Language :: Python :: 3.13",
+  "Programming Language :: Python :: 3.14",
+  "Programming Language :: Python :: Implementation :: CPython",
+  "Programming Language :: Python :: Implementation :: PyPy",
+]
+dependencies = [
+  "aws-durable-execution-sdk-python>=1.5.0",
+  "opentelemetry-api>=1.20.0",
+  "opentelemetry-sdk>=1.20.0",
+]
+
+[project.urls]
+Documentation = "https://github.com/aws/aws-durable-execution-sdk-python#readme"
+Issues = "https://github.com/aws/aws-durable-execution-sdk-python/issues"
+Source = "https://github.com/aws/aws-durable-execution-sdk-python"
+
+[tool.hatch.build.targets.wheel]
+packages = ["src/aws_durable_execution_sdk_python_otel"]
+
+[tool.hatch.version]
+path = "src/aws_durable_execution_sdk_python_otel/__about__.py"
+
+[tool.hatch.envs.test]
+dependencies = [
+  "coverage[toml]",
+  "pytest",
+  "pytest-cov",
+  "opentelemetry-sdk>=1.20.0",
+]
+
+[tool.hatch.envs.test.scripts]
+cov = "pytest --cov-report=term-missing --cov-config=pyproject.toml --cov=src/aws_durable_execution_sdk_python_otel"
+
+[tool.hatch.envs.types]
+extra-dependencies = ["mypy>=1.0.0", "pytest"]
+
+[tool.hatch.envs.types.scripts]
+check = "mypy --install-types --non-interactive {args:src/aws_durable_execution_sdk_python_otel tests}"
+
+[tool.coverage.run]
+source_pkgs = ["aws_durable_execution_sdk_python_otel"]
+branch = true
+parallel = true
+omit = ["src/aws_durable_execution_sdk_python_otel/__about__.py"]
+
+[tool.coverage.paths]
+aws_durable_execution_sdk_python_otel = [
+  "src/aws_durable_execution_sdk_python_otel",
+  "*/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel",
+]
+
+[tool.coverage.report]
+exclude_lines = ["no cov", "if __name__ == .__main__.:", "if TYPE_CHECKING:"]
+
+[tool.ruff]
+line-length = 88
+target-version = "py311"
+
+[tool.ruff.lint]
+preview = true
+select = ["TID252"]
+
+[tool.ruff.lint.isort]
+known-first-party = ["aws_durable_execution_sdk_python_otel"]
+force-single-line = false
+lines-after-imports = 2
+
+[tool.ruff.lint.per-file-ignores]
+"tests/**" = [
+  "ARG001",
+  "ARG002",
+  "ARG005",
+  "S101",
+  "PLR2004",
+  "PLR6301",
+  "SIM117",
+  "TRY301",
+]
+
+[tool.pytest.ini_options]
+testpaths = ["tests"]
+addopts = "-v --strict-markers"
diff --git a/packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/__about__.py b/packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/__about__.py
new file mode 100644
index 00000000..1c35361c
--- /dev/null
+++ b/packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/__about__.py
@@ -0,0 +1,4 @@
+# SPDX-FileCopyrightText: 2025-present Amazon.com, Inc. or its affiliates.
+#
+# SPDX-License-Identifier: Apache-2.0
+__version__ = "0.1.0"
diff --git a/packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/__init__.py b/packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/__init__.py
new file mode 100644
index 00000000..63b1b9cc
--- /dev/null
+++ b/packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/__init__.py
@@ -0,0 +1,8 @@
+"""OpenTelemetry instrumentation for AWS Lambda Durable Executions Python SDK."""
+
+from aws_durable_execution_sdk_python_otel.__about__ import __version__
+
+
+__all__ = [
+    "__version__",
+]
diff --git a/src/aws_durable_execution_sdk_python/.gitignore b/packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/py.typed
similarity index 100%
rename from src/aws_durable_execution_sdk_python/.gitignore
rename to packages/aws-durable-execution-sdk-python-otel/src/aws_durable_execution_sdk_python_otel/py.typed
diff --git a/src/aws_durable_execution_sdk_python/concurrency/__init__.py b/packages/aws-durable-execution-sdk-python-otel/tests/__init__.py
similarity index 100%
rename from src/aws_durable_execution_sdk_python/concurrency/__init__.py
rename to packages/aws-durable-execution-sdk-python-otel/tests/__init__.py
diff --git a/packages/aws-durable-execution-sdk-python-otel/tests/test_init.py b/packages/aws-durable-execution-sdk-python-otel/tests/test_init.py
new file mode 100644
index 00000000..4144ba82
--- /dev/null
+++ b/packages/aws-durable-execution-sdk-python-otel/tests/test_init.py
@@ -0,0 +1,18 @@
+"""Tests for aws_durable_execution_sdk_python_otel package."""
+
+from aws_durable_execution_sdk_python_otel import __version__
+
+
+def test_version_is_set():
+    """Verify the package version is defined."""
+    assert __version__ is not None
+    assert isinstance(__version__, str)
+    assert len(__version__) > 0
+
+
+def test_version_format():
+    """Verify the package version follows semver format."""
+    parts = __version__.split(".")
+    assert len(parts) == 3
+    for part in parts:
+        assert part.isdigit()
diff --git a/packages/aws-durable-execution-sdk-python/.coverage b/packages/aws-durable-execution-sdk-python/.coverage
new file mode 100644
index 00000000..ccb4aa74
Binary files /dev/null and b/packages/aws-durable-execution-sdk-python/.coverage differ
diff --git a/packages/aws-durable-execution-sdk-python/README.md b/packages/aws-durable-execution-sdk-python/README.md
new file mode 100644
index 00000000..3a772717
--- /dev/null
+++ b/packages/aws-durable-execution-sdk-python/README.md
@@ -0,0 +1,85 @@
+# AWS Durable Execution SDK for Python
+
+[![Build](https://github.com/aws/aws-durable-execution-sdk-python/actions/workflows/ci.yml/badge.svg)](https://github.com/aws/aws-durable-execution-sdk-python/actions/workflows/ci.yml)
+[![PyPI - Version](https://img.shields.io/pypi/v/aws-durable-execution-sdk-python.svg)](https://pypi.org/project/aws-durable-execution-sdk-python)
+[![PyPI - Python Version](https://img.shields.io/pypi/pyversions/aws-durable-execution-sdk-python.svg)](https://pypi.org/project/aws-durable-execution-sdk-python)
+[![OpenSSF Scorecard](https://api.scorecard.dev/projects/github.com/aws/aws-durable-execution-sdk-python/badge)](https://scorecard.dev/viewer/?uri=github.com/aws/aws-durable-execution-sdk-python)
+[![License](https://img.shields.io/badge/License-Apache%202.0-blue.svg)](LICENSE)
+
+-----
+
+Build reliable, long-running AWS Lambda workflows with checkpointed steps, waits, callbacks, and parallel execution.
+
+## ✨ Key Features
+
+- **Automatic checkpointing** - Resume execution after Lambda pauses or restarts
+- **Durable steps** - Run work with retry strategies and deterministic replay
+- **Waits and callbacks** - Pause for time or external signals without blocking Lambda
+- **Parallel and map operations** - Fan out work with configurable completion criteria
+- **Child contexts** - Structure complex workflows into isolated subflows
+- **Replay-safe logging** - Use `context.logger` for structured, de-duplicated logs
+- **Local and cloud testing** - Validate workflows with the testing SDK
+
+## 📦 Packages
+
+| Package | Description | Version |
+| --- | --- | --- |
+| `aws-durable-execution-sdk-python` | Execution SDK for Lambda durable functions | [![PyPI - Version](https://img.shields.io/pypi/v/aws-durable-execution-sdk-python.svg)](https://pypi.org/project/aws-durable-execution-sdk-python) |
+| `aws-durable-execution-sdk-python-testing` | Local/cloud test runner and pytest helpers | [![PyPI - Version](https://img.shields.io/pypi/v/aws-durable-execution-sdk-python-testing.svg)](https://pypi.org/project/aws-durable-execution-sdk-python-testing) |
+
+## 🚀 Quick Start
+
+Install the execution SDK:
+
+```console
+pip install aws-durable-execution-sdk-python
+```
+
+Create a durable Lambda handler:
+
+```python
+from aws_durable_execution_sdk_python import (
+    DurableContext,
+    StepContext,
+    durable_execution,
+    durable_step,
+)
+from aws_durable_execution_sdk_python.config import Duration
+
+@durable_step
+def validate_order(step_ctx: StepContext, order_id: str) -> dict:
+    step_ctx.logger.info("Validating order", extra={"order_id": order_id})
+    return {"order_id": order_id, "valid": True}
+
+@durable_execution
+def handler(event: dict, context: DurableContext) -> dict:
+    order_id = event["order_id"]
+    context.logger.info("Starting workflow", extra={"order_id": order_id})
+
+    validation = context.step(validate_order(order_id), name="validate_order")
+    if not validation["valid"]:
+        return {"status": "rejected", "order_id": order_id}
+
+    # simulate approval (real world: use wait_for_callback)
+    context.wait(duration=Duration.from_seconds(5), name="await_confirmation")
+
+    return {"status": "approved", "order_id": order_id}
+```
+
+## 📚 Documentation
+
+The complete documentation for the AWS Durable Execution SDK for Python lives on the AWS Documentation site:
+
+- **[AWS Durable Execution Documentation](https://docs.aws.amazon.com/durable-execution/)** - Concepts, getting started, core operations, advanced topics, and API reference
+- **[AWS Lambda Durable Functions Guide](https://docs.aws.amazon.com/lambda/latest/dg/durable-functions.html)** - How durable functions work on Lambda
+
+## 💬 Feedback & Support
+
+- [Bug report](https://github.com/aws/aws-durable-execution-sdk-python/issues/new?template=bug_report.yml)
+- [Feature request](https://github.com/aws/aws-durable-execution-sdk-python/issues/new?template=feature_request.yml)
+- [Documentation feedback](https://github.com/aws/aws-durable-execution-sdk-python/issues/new?template=documentation.yml)
+- [Contributing guide](CONTRIBUTING.md)
+
+## 📄 License
+
+See the [LICENSE](LICENSE) file for our project's licensing.
diff --git a/examples/cli.py b/packages/aws-durable-execution-sdk-python/examples/cli.py
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similarity index 100%
rename from tests/types_test.py
rename to packages/aws-durable-execution-sdk-python/tests/types_test.py
diff --git a/tests/waits_test.py b/packages/aws-durable-execution-sdk-python/tests/waits_test.py
similarity index 100%
rename from tests/waits_test.py
rename to packages/aws-durable-execution-sdk-python/tests/waits_test.py