diff --git a/litellm/integrations/langfuse/langfuse_otel.py b/litellm/integrations/langfuse/langfuse_otel.py
index 7370bcdf934..1ba6c27b108 100644
--- a/litellm/integrations/langfuse/langfuse_otel.py
+++ b/litellm/integrations/langfuse/langfuse_otel.py
@@ -1,7 +1,9 @@
 import base64
 import json  # <--- NEW
 import os
+import re
 from datetime import datetime
+from hashlib import sha256
 from typing import TYPE_CHECKING, Any, Optional, Union
 
 from litellm._logging import verbose_logger
@@ -26,6 +28,23 @@ else:
 LANGFUSE_CLOUD_EU_ENDPOINT = "https://cloud.langfuse.com/api/public/otel"
 LANGFUSE_CLOUD_US_ENDPOINT = "https://us.cloud.langfuse.com/api/public/otel"
 
+_OTEL_TRACE_ID_HEX = re.compile(r"[0-9a-f]{32}")
+
+
+def normalize_trace_id_for_otel(trace_id: str) -> str:
+    """Map an arbitrary trace id onto a valid 32-hex-char OTEL/Langfuse trace id.
+
+    Langfuse derives a trace's identity from the OTEL span-context trace id, which
+    must be 32 lowercase hex chars. An id that is already valid (case-insensitively,
+    or a dashed UUID) is reused directly so an explicit valid id is preserved; any
+    other string is hashed exactly as ``langfuse.create_trace_id(seed=...)`` does,
+    so a caller can reproduce the trace id from their external id.
+    """
+    canonical = trace_id.replace("-", "").lower()
+    if _OTEL_TRACE_ID_HEX.fullmatch(canonical):
+        return canonical
+    return sha256(trace_id.encode("utf-8")).digest()[:16].hex()
+
 
 class LangfuseOtelLogger(OpenTelemetry):
     def __init__(self, config=None, *args, **kwargs):
diff --git a/tests/test_litellm/integrations/test_langfuse_otel.py b/tests/test_litellm/integrations/test_langfuse_otel.py
index 022df5b54d4..83cb8955cd8 100644
--- a/tests/test_litellm/integrations/test_langfuse_otel.py
+++ b/tests/test_litellm/integrations/test_langfuse_otel.py
@@ -550,6 +550,63 @@ class TestLangfuseOtelIntegration:
             # Endpoint assertion removed as side effect is gone
 
 
+class TestNormalizeTraceIdForOtel:
+    """Unit tests for the trace-id normalization helper."""
+
+    def test_valid_lowercase_hex_passthrough(self):
+        from litellm.integrations.langfuse.langfuse_otel import (
+            normalize_trace_id_for_otel,
+        )
+
+        tid = "abcdef0123456789abcdef0123456789"
+        assert normalize_trace_id_for_otel(tid) == tid
+
+    def test_uppercase_hex_is_lowercased(self):
+        from litellm.integrations.langfuse.langfuse_otel import (
+            normalize_trace_id_for_otel,
+        )
+
+        assert (
+            normalize_trace_id_for_otel("ABCDEF0123456789ABCDEF0123456789")
+            == "abcdef0123456789abcdef0123456789"
+        )
+
+    def test_dashed_uuid_is_stripped_not_hashed(self):
+        from litellm.integrations.langfuse.langfuse_otel import (
+            normalize_trace_id_for_otel,
+        )
+
+        assert (
+            normalize_trace_id_for_otel("123e4567-e89b-12d3-a456-426614174000")
+            == "123e4567e89b12d3a456426614174000"
+        )
+
+    def test_external_id_hashed_like_langfuse_create_trace_id(self):
+        """Non-hex ids hash the ORIGINAL string (dashes and case preserved) so
+        the result is byte-for-byte ``langfuse.create_trace_id(seed=...)``."""
+        import hashlib
+
+        from litellm.integrations.langfuse.langfuse_otel import (
+            normalize_trace_id_for_otel,
+        )
+
+        for seed in ("global_20260225143025_ord2468", "Order-42", "ab-cd"):
+            assert (
+                normalize_trace_id_for_otel(seed)
+                == hashlib.sha256(seed.encode("utf-8")).digest()[:16].hex()
+            )
+
+    def test_output_is_always_32_lowercase_hex(self):
+        import re
+
+        from litellm.integrations.langfuse.langfuse_otel import (
+            normalize_trace_id_for_otel,
+        )
+
+        for seed in ("x", "global_seed", "ABCDEF0123456789ABCDEF0123456789", "1-2-3"):
+            assert re.fullmatch(r"[0-9a-f]{32}", normalize_trace_id_for_otel(seed))
+
+
 class TestLangfuseOtelResponsesAPI:
     """Test suite for Langfuse OTEL integration with ResponsesAPI"""