diff --git a/Cargo.lock b/Cargo.lock
index 2aef72b..7d69790 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3666,7 +3666,7 @@ dependencies = [
 
 [[package]]
 name = "wasmcloud-operator-types"
-version = "0.1.5"
+version = "0.1.6"
 dependencies = [
  "k8s-openapi",
  "kube",
diff --git a/crates/types/Cargo.toml b/crates/types/Cargo.toml
index f083a05..9ee412e 100644
--- a/crates/types/Cargo.toml
+++ b/crates/types/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "wasmcloud-operator-types"
-version = "0.1.5"
+version = "0.1.6"
 edition = "2021"
 
 [dependencies]
diff --git a/crates/types/src/v1alpha1/wasmcloud_host_config.rs b/crates/types/src/v1alpha1/wasmcloud_host_config.rs
index f1accb0..4a5b6d1 100644
--- a/crates/types/src/v1alpha1/wasmcloud_host_config.rs
+++ b/crates/types/src/v1alpha1/wasmcloud_host_config.rs
@@ -76,6 +76,8 @@ pub struct WasmCloudHostConfigSpec {
     pub policy_service: Option<PolicyService>,
     /// Kubernetes scheduling options for the wasmCloud host.
     pub scheduling_options: Option<KubernetesSchedulingOptions>,
+    /// Observability options for configuring the OpenTelemetry integration
+    pub observability: Option<ObservabilityConfiguration>,
 }
 
 #[derive(Serialize, Deserialize, Clone, Debug, JsonSchema)]
@@ -101,6 +103,45 @@ pub struct KubernetesSchedulingOptions {
     pub pod_template_additions: Option<PodSpec>,
 }
 
+#[derive(Serialize, Deserialize, Clone, Debug, JsonSchema)]
+#[serde(rename_all = "camelCase")]
+pub struct ObservabilityConfiguration {
+    #[serde(default)]
+    pub enable: bool,
+    pub endpoint: String,
+    pub protocol: Option<OtelProtocol>,
+    pub logs: Option<OtelSignalConfiguration>,
+    pub metrics: Option<OtelSignalConfiguration>,
+    pub traces: Option<OtelSignalConfiguration>,
+}
+
+#[derive(Serialize, Deserialize, Debug, Clone, JsonSchema)]
+#[serde(rename_all = "camelCase")]
+pub enum OtelProtocol {
+    Grpc,
+    Http,
+}
+
+impl std::fmt::Display for OtelProtocol {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        write!(
+            f,
+            "{}",
+            match self {
+                OtelProtocol::Grpc => "grpc",
+                OtelProtocol::Http => "http",
+            }
+        )
+    }
+}
+
+#[derive(Serialize, Deserialize, Debug, Clone, JsonSchema)]
+#[serde(rename_all = "camelCase")]
+pub struct OtelSignalConfiguration {
+    pub enable: Option<bool>,
+    pub endpoint: Option<String>,
+}
+
 /// This is a workaround for the fact that we can't override the PodSpec schema to make containers
 /// an optional field. It generates the OpenAPI schema for the PodSpec type the same way that
 /// kube.rs does while dropping any required fields.
diff --git a/src/controller.rs b/src/controller.rs
index 70bea59..187d98e 100644
--- a/src/controller.rs
+++ b/src/controller.rs
@@ -31,7 +31,7 @@ use std::sync::Arc;
 use tokio::{sync::RwLock, time::Duration};
 use tracing::{debug, info, warn};
 use wasmcloud_operator_types::v1alpha1::{
-    AppStatus, WasmCloudHostConfig, WasmCloudHostConfigStatus,
+    AppStatus, WasmCloudHostConfig, WasmCloudHostConfigSpec, WasmCloudHostConfigStatus,
 };
 
 pub static CLUSTER_CONFIG_FINALIZER: &str = "operator.k8s.wasmcloud.dev/wasmcloud-host-config";
@@ -396,6 +396,8 @@ fn pod_template(config: &WasmCloudHostConfig, _ctx: Arc<Context>) -> PodTemplate
         }
     }
 
+    let wasmcloud_args = configure_observability(&config.spec);
+
     let mut nats_resources: Option<k8s_openapi::api::core::v1::ResourceRequirements> = None;
     let mut wasmcloud_resources: Option<k8s_openapi::api::core::v1::ResourceRequirements> = None;
     if let Some(scheduling_options) = &config.spec.scheduling_options {
@@ -461,6 +463,8 @@ fn pod_template(config: &WasmCloudHostConfig, _ctx: Arc<Context>) -> PodTemplate
         Container {
             name: "wasmcloud-host".to_string(),
             image: Some(image),
+            command: Some(vec!["wasmcloud".to_string()]),
+            args: Some(wasmcloud_args),
             env: Some(wasmcloud_env),
             resources: wasmcloud_resources,
             ..Default::default()
@@ -531,6 +535,51 @@ fn pod_template(config: &WasmCloudHostConfig, _ctx: Arc<Context>) -> PodTemplate
     template
 }
 
+fn configure_observability(spec: &WasmCloudHostConfigSpec) -> Vec<String> {
+    let mut args = Vec::<String>::new();
+    if let Some(observability) = &spec.observability {
+        if observability.enable {
+            args.push("--enable-observability".to_string());
+        }
+        if !observability.endpoint.is_empty() {
+            args.push("--override-observability-endpoint".to_string());
+            args.push(observability.endpoint.clone());
+        }
+        if let Some(protocol) = &observability.protocol {
+            args.push("--observability-protocol".to_string());
+            args.push(protocol.to_string());
+        }
+        if let Some(traces) = &observability.traces {
+            if traces.enable.unwrap_or(false) {
+                args.push("--enable-traces".to_string())
+            }
+            if let Some(traces_endpoint) = &traces.endpoint {
+                args.push("--override-traces-endpoint".to_string());
+                args.push(traces_endpoint.to_owned());
+            }
+        }
+        if let Some(metrics) = &observability.metrics {
+            if metrics.enable.unwrap_or(false) {
+                args.push("--enable-metrics".to_string())
+            }
+            if let Some(metrics_endpoint) = &metrics.endpoint {
+                args.push("--override-metrics-endpoint".to_string());
+                args.push(metrics_endpoint.to_owned());
+            }
+        }
+        if let Some(logs) = &observability.logs {
+            if logs.enable.unwrap_or(false) {
+                args.push("--enable-logs".to_string())
+            }
+            if let Some(logs_endpoint) = &logs.endpoint {
+                args.push("--override-logs-endpoint".to_string());
+                args.push(logs_endpoint.to_owned());
+            }
+        }
+    }
+    args
+}
+
 fn deployment_spec(config: &WasmCloudHostConfig, ctx: Arc<Context>) -> DeploymentSpec {
     let pod_template = pod_template(config, ctx);
     let ls = LabelSelector {