diff --git a/packages/dd-trace/src/opentelemetry/context_manager.js b/packages/dd-trace/src/opentelemetry/context_manager.js
index 430626bbd7e..800a309dc47 100644
--- a/packages/dd-trace/src/opentelemetry/context_manager.js
+++ b/packages/dd-trace/src/opentelemetry/context_manager.js
@@ -1,7 +1,7 @@
 'use strict'
 
 const { storage } = require('../../../datadog-core')
-const { trace, ROOT_CONTEXT } = require('@opentelemetry/api')
+const { trace, ROOT_CONTEXT, propagation } = require('@opentelemetry/api')
 const DataDogSpanContext = require('../opentracing/span_context')
 
 const SpanContext = require('./span_context')
@@ -21,14 +21,25 @@ class ContextManager {
       return context
     }
 
+    let otelBaggages
+    const baggages = JSON.parse(activeSpan.getAllBaggageItems())
+    if (Object.keys(baggages).length) {
+      const entries = {}
+      for (const [key, value] of Object.entries(baggages)) {
+        entries[key] = { value }
+      }
+      otelBaggages = propagation.createBaggage(entries)
+    }
+
     if (!context._otelSpanContext) {
       const newSpanContext = new SpanContext(context)
       context._otelSpanContext = newSpanContext
     }
     if (store && trace.getSpanContext(store) === context._otelSpanContext) {
-      return store
+      return otelBaggages ? propagation.setBaggage(store, otelBaggages) : store
     }
-    return trace.setSpanContext(store || ROOT_CONTEXT, context._otelSpanContext)
+    const wrappedContext = trace.setSpanContext(store || ROOT_CONTEXT, context._otelSpanContext)
+    return otelBaggages ? propagation.setBaggage(wrappedContext, otelBaggages) : wrappedContext
   }
 
   with (context, fn, thisArg, ...args) {
@@ -39,6 +50,18 @@ class ContextManager {
       return this._store.run(context, cb, ...args)
     }
     if (span && span._ddSpan) {
+      // remove all baggage items?
+      const baggages = propagation.getBaggage(context)
+      if (baggages) {
+        const baggageItems = baggages.getAllEntries()
+        if (baggageItems.length) {
+          for (const baggage of baggageItems) {
+            const key = baggage[0]
+            const value = baggage[1].value
+            span._ddSpan.setBaggageItem(key, value)
+          }
+        }
+      }
       return ddScope.activate(span._ddSpan, run)
     }
     return run()
diff --git a/packages/dd-trace/test/opentelemetry/context_manager.spec.js b/packages/dd-trace/test/opentelemetry/context_manager.spec.js
index ebf8f122d87..3121ca1df54 100644
--- a/packages/dd-trace/test/opentelemetry/context_manager.spec.js
+++ b/packages/dd-trace/test/opentelemetry/context_manager.spec.js
@@ -4,8 +4,17 @@ require('../setup/tap')
 
 const { expect } = require('chai')
 const ContextManager = require('../../src/opentelemetry/context_manager')
-const { ROOT_CONTEXT } = require('@opentelemetry/api')
+const TracerProvider = require('../../src/opentelemetry/tracer_provider')
+const { context, propagation, trace, ROOT_CONTEXT } = require('@opentelemetry/api')
 const api = require('@opentelemetry/api')
+const tracer = require('../../').init()
+
+function makeSpan (...args) {
+  const tracerProvider = new TracerProvider()
+  tracerProvider.register()
+  const tracer = tracerProvider.getTracer()
+  return tracer.startSpan(...args)
+}
 
 describe('OTel Context Manager', () => {
   let contextManager
@@ -114,4 +123,61 @@ describe('OTel Context Manager', () => {
     })
     expect(ret).to.equal('return value')
   })
+
+  it('should propagate baggage from an otel span to a datadog span', () => {
+    const entries = {
+      foo : { value: 'bar' }
+    }
+    const baggage = propagation.createBaggage(entries)
+    const contextWithBaggage = propagation.setBaggage(context.active(), baggage)
+    const span = makeSpan('otel-to-dd')
+    const contextWithSpan = trace.setSpan(contextWithBaggage, span)
+    api.context.with(contextWithSpan, () => {
+      expect(span._ddSpan.getBaggageItem('foo')).to.be.equal('bar')
+    })
+  })
+
+  it('should propagate baggage from a datadog span to an otel span', () => {
+    const baggageKey = 'raccoon'
+    const baggageVal = 'chunky'
+    const ddSpan = tracer.startSpan('dd-to-otel')
+    ddSpan.setBaggageItem(baggageKey, baggageVal)
+    tracer.scope().activate(ddSpan, () => {
+      const baggages = propagation.getBaggage(api.context.active()).getAllEntries()
+      expect(baggages.length).to.equal(1)
+      const baggage = baggages[0]
+      expect(baggage[0]).to.equal(baggageKey)
+      expect(baggage[1].value).to.equal(baggageVal)
+    })
+  })
+
+  // it('should handle dd-otel baggage conflict on a datadog span', () => {
+  //   // const ddSpan = tracer.startSpan('dd')
+  //   // ddSpan.setBaggageItem('key', 'dd')
+  //   // let baggageContext
+  //   // tracer.scope().activate(ddSpan, () => {
+  //   //   const entries = {
+  //   //     key : { value: 'otel' },
+  //   //   }
+  //   //   const baggage = propagation.createBaggage(entries)
+  //   //   baggageContext = propagation.setBaggage(api.context.active(), baggage)
+  //   // })
+  //   // const otelSpan = makeSpan('otel')
+  //   // const contextWithSpan = trace.setSpan(baggageContext, otelSpan)
+  //   // api.context.with(contextWithSpan, () => {
+  //   //   expect(span._ddSpan.getBaggageItem('foo')).to.be.equal('bar')
+  //   // })
+  //   tracer.trace('ddSpan', (ddSpan) => {
+  //     ddSpan.setBaggageItem('key', 'dd')
+  //     const otelSpan = makeSpan('otelSpan')
+  //     const entries = {
+  //       key : { value: 'otel' },
+  //     }
+  //     const baggage = propagation.createBaggage(entries)
+  //     baggageContext = propagation.setBaggage(otelSpan.spanContext(), baggage)
+  //     // api.context.with(baggageContext, () => {
+  //     //   console.log(ddSpan.context())
+  //     // })
+  //   })
+  // })
 })