diff --git a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs
index 91bd5fc168..335470aa51 100644
--- a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs
+++ b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs
@@ -405,7 +405,6 @@ private IHost CreateStdioHost(ServiceStartOptions serverOptions)
             .ConfigureLogging(logging =>
             {
                 logging.ClearProviders();
-                logging.ConfigureOpenTelemetryLogger();
                 logging.AddEventSourceLogger();
 
                 if (serverOptions.Debug)
@@ -451,7 +450,6 @@ private IHost CreateHttpHost(ServiceStartOptions serverOptions)
 
         // Configure logging
         builder.Logging.ClearProviders();
-        builder.Logging.ConfigureOpenTelemetryLogger();
         builder.Logging.AddEventSourceLogger();
         builder.Logging.AddConsole();
         ConfigureSupportLogging(builder.Logging, serverOptions);
@@ -629,7 +627,6 @@ private IHost CreateIncomingAuthDisabledHttpHost(ServiceStartOptions serverOptio
 
         // Configure logging
         builder.Logging.ClearProviders();
-        builder.Logging.ConfigureOpenTelemetryLogger();
         builder.Logging.AddEventSourceLogger();
         builder.Logging.AddConsole();
         ConfigureSupportLogging(builder.Logging, serverOptions);
diff --git a/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs b/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs
index 0b20b2ef9a..b0ae283231 100644
--- a/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs
+++ b/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs
@@ -10,6 +10,7 @@
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Logging;
 using Microsoft.Extensions.Options;
+using Microsoft.Mcp.Core.Commands;
 using OpenTelemetry.Logs;
 using OpenTelemetry.Metrics;
 using OpenTelemetry.Resources;
@@ -48,14 +49,6 @@ public static void ConfigureOpenTelemetry(this IServiceCollection services)
         EnableAzureMonitor(services);
     }
 
-    public static void ConfigureOpenTelemetryLogger(this ILoggingBuilder builder)
-    {
-        builder.AddOpenTelemetry(logger =>
-        {
-            logger.AddProcessor(new TelemetryLogRecordEraser());
-        });
-    }
-
     private static void EnableAzureMonitor(this IServiceCollection services)
     {
 #if DEBUG
@@ -92,7 +85,7 @@ private static void EnableAzureMonitor(this IServiceCollection services)
         if (!string.IsNullOrWhiteSpace(userProvidedAppInsightsConnectionString))
         {
             // Configure telemetry to be sent to user-provided Application Insights instance regardless of build configuration.
-            ConfigureAzureMonitorExporter(otelBuilder, userProvidedAppInsightsConnectionString, "UserProvided");
+            ConfigureUserProvidedAzureMonitorExporter(otelBuilder, userProvidedAppInsightsConnectionString);
         }
 
         // Configure Microsoft-owned telemetry only in RELEASE builds to avoid polluting telemetry during development.
@@ -105,7 +98,7 @@ private static void EnableAzureMonitor(this IServiceCollection services)
 
         if (shouldCollectMicrosoftTelemetry)
         {
-            ConfigureAzureMonitorExporter(otelBuilder, MicrosoftOwnedAppInsightsConnectionString, "Microsoft");
+            ConfigureMicrosoftAzureMonitorExporter(otelBuilder, MicrosoftOwnedAppInsightsConnectionString);
         }
 #endif
 
@@ -118,7 +111,39 @@ private static void EnableAzureMonitor(this IServiceCollection services)
         }
     }
 
-    private static void ConfigureAzureMonitorExporter(OpenTelemetry.OpenTelemetryBuilder otelBuilder, string appInsightsConnectionString, string name)
+    /// <summary>
+    /// Configures OpenTelemetry to use Azure Monitor exporters with Microsoft's Application Insights instance.
+    /// </summary>
+    /// <param name="otelBuilder">The OpenTelemetry builder to configure.</param>
+    /// <param name="appInsightsConnectionString">The Application Insights connection string for Microsoft's telemetry instance.</param>
+    private static void ConfigureMicrosoftAzureMonitorExporter(OpenTelemetry.OpenTelemetryBuilder otelBuilder, string appInsightsConnectionString)
+    {
+        // We don't configure logging for Microsoft telemetry to avoid sending potentially sensitive log data to Microsoft.
+        otelBuilder.WithMetrics(metrics =>
+        {
+            metrics.AddAzureMonitorMetricExporter(options =>
+            {
+                options.ConnectionString = appInsightsConnectionString;
+            },
+            name: AppInsightsInstanceType.Microsoft);
+        });
+
+        otelBuilder.WithTracing(tracing =>
+        {
+            tracing.AddAzureMonitorTraceExporter(options =>
+            {
+                options.ConnectionString = appInsightsConnectionString;
+            },
+            name: AppInsightsInstanceType.Microsoft);
+        });
+    }
+
+    /// <summary>
+    /// Configures OpenTelemetry to use Azure Monitor exporters with a user-provided Application Insights connection string.
+    /// </summary>
+    /// <param name="otelBuilder">The OpenTelemetry builder to configure.</param>
+    /// <param name="appInsightsConnectionString">The Application Insights connection string provided by the user.</param>
+    private static void ConfigureUserProvidedAzureMonitorExporter(OpenTelemetry.OpenTelemetryBuilder otelBuilder, string appInsightsConnectionString)
     {
         otelBuilder.WithLogging(logging =>
         {
@@ -126,7 +151,7 @@ private static void ConfigureAzureMonitorExporter(OpenTelemetry.OpenTelemetryBui
             {
                 options.ConnectionString = appInsightsConnectionString;
             },
-            name: name);
+            name: AppInsightsInstanceType.UserProvided);
         });
 
         otelBuilder.WithMetrics(metrics =>
@@ -135,7 +160,7 @@ private static void ConfigureAzureMonitorExporter(OpenTelemetry.OpenTelemetryBui
             {
                 options.ConnectionString = appInsightsConnectionString;
             },
-            name: name);
+            name: AppInsightsInstanceType.UserProvided);
         });
 
         otelBuilder.WithTracing(tracing =>
@@ -144,7 +169,7 @@ private static void ConfigureAzureMonitorExporter(OpenTelemetry.OpenTelemetryBui
             {
                 options.ConnectionString = appInsightsConnectionString;
             },
-            name: name);
+            name: AppInsightsInstanceType.UserProvided);
         });
     }
 }
diff --git a/core/Microsoft.Mcp.Core/src/Commands/TelemetryConstants.cs b/core/Microsoft.Mcp.Core/src/Commands/TelemetryConstants.cs
index 57947f962d..9e603b4a2b 100644
--- a/core/Microsoft.Mcp.Core/src/Commands/TelemetryConstants.cs
+++ b/core/Microsoft.Mcp.Core/src/Commands/TelemetryConstants.cs
@@ -40,3 +40,9 @@ public class ActivityName
     public const string ToolExecuted = "ToolExecuted";
     public const string ServerStarted = "ServerStarted";
 }
+
+public class AppInsightsInstanceType
+{
+    public const string Microsoft = "Microsoft";
+    public const string UserProvided = "UserProvided";
+}
diff --git a/servers/Azure.Mcp.Server/changelog-entries/1770145613303.yaml b/servers/Azure.Mcp.Server/changelog-entries/1770145613303.yaml
new file mode 100644
index 0000000000..a763eb93fb
--- /dev/null
+++ b/servers/Azure.Mcp.Server/changelog-entries/1770145613303.yaml
@@ -0,0 +1,4 @@
+pr: 1638
+changes:
+  - section: "Features Added"
+    description: "Add log telemetry support for customer-owned AppInsights"
\ No newline at end of file
diff --git a/servers/Azure.Mcp.Server/src/Program.cs b/servers/Azure.Mcp.Server/src/Program.cs
index c50d0fc156..6f8a165133 100644
--- a/servers/Azure.Mcp.Server/src/Program.cs
+++ b/servers/Azure.Mcp.Server/src/Program.cs
@@ -44,7 +44,6 @@ private static async Task<int> Main(string[] args)
 
             services.AddLogging(builder =>
             {
-                builder.ConfigureOpenTelemetryLogger();
                 builder.AddConsole();
                 builder.SetMinimumLevel(LogLevel.Information);
             });
diff --git a/servers/Fabric.Mcp.Server/src/Program.cs b/servers/Fabric.Mcp.Server/src/Program.cs
index c4ef999bcb..8331dad09b 100644
--- a/servers/Fabric.Mcp.Server/src/Program.cs
+++ b/servers/Fabric.Mcp.Server/src/Program.cs
@@ -37,7 +37,6 @@ private static async Task<int> Main(string[] args)
 
             services.AddLogging(builder =>
             {
-                builder.ConfigureOpenTelemetryLogger();
                 builder.AddConsole();
                 builder.SetMinimumLevel(LogLevel.Information);
             });
diff --git a/servers/Template.Mcp.Server/src/Program.cs b/servers/Template.Mcp.Server/src/Program.cs
index 928fb730f3..4d6f0c1f1b 100644
--- a/servers/Template.Mcp.Server/src/Program.cs
+++ b/servers/Template.Mcp.Server/src/Program.cs
@@ -34,7 +34,6 @@ private static async Task<int> Main(string[] args)
 
             services.AddLogging(builder =>
             {
-                builder.ConfigureOpenTelemetryLogger();
                 builder.AddConsole();
                 builder.SetMinimumLevel(LogLevel.Information);
             });