diff --git a/server/src/index.ts b/server/src/index.ts
index 89da9c60..91359f08 100644
--- a/server/src/index.ts
+++ b/server/src/index.ts
@@ -16,6 +16,7 @@ import previewRoutes from './routes/preview.js';
 import conflictRoutes from './routes/conflicts.js';
 import telemetryRoutes from './routes/telemetry.js';
 import metricsRoutes from './routes/metrics.js';
+import tracesRoutes from './routes/traces.js';
 import { getTelemetryService } from './services/telemetry-service.js';
 import type { AgentOutput } from './services/agent-service.js';
 
@@ -46,6 +47,7 @@ app.use('/api/preview', previewRoutes);
 app.use('/api/conflicts', conflictRoutes);
 app.use('/api/telemetry', telemetryRoutes);
 app.use('/api/metrics', metricsRoutes);
+app.use('/api/traces', tracesRoutes);
 
 // Initialize telemetry service (runs retention cleanup)
 getTelemetryService().init().catch((err) => {
diff --git a/server/src/routes/traces.ts b/server/src/routes/traces.ts
new file mode 100644
index 00000000..7d229883
--- /dev/null
+++ b/server/src/routes/traces.ts
@@ -0,0 +1,82 @@
+import { Router, type Router as RouterType } from 'express';
+import { getTraceService } from '../services/trace-service.js';
+
+const router: RouterType = Router();
+
+/**
+ * GET /api/traces/status
+ * Get tracing status (enabled/disabled)
+ */
+router.get('/status', async (_req, res, next) => {
+  try {
+    const traceService = getTraceService();
+    res.json({
+      enabled: traceService.isEnabled(),
+    });
+  } catch (error) {
+    next(error);
+  }
+});
+
+/**
+ * POST /api/traces/enable
+ * Enable tracing
+ */
+router.post('/enable', async (_req, res, next) => {
+  try {
+    const traceService = getTraceService();
+    traceService.setEnabled(true);
+    res.json({ enabled: true });
+  } catch (error) {
+    next(error);
+  }
+});
+
+/**
+ * POST /api/traces/disable
+ * Disable tracing
+ */
+router.post('/disable', async (_req, res, next) => {
+  try {
+    const traceService = getTraceService();
+    traceService.setEnabled(false);
+    res.json({ enabled: false });
+  } catch (error) {
+    next(error);
+  }
+});
+
+/**
+ * GET /api/traces/:attemptId
+ * Get a trace by attempt ID
+ */
+router.get('/:attemptId', async (req, res, next) => {
+  try {
+    const traceService = getTraceService();
+    const trace = await traceService.getTrace(req.params.attemptId);
+    
+    if (!trace) {
+      return res.status(404).json({ error: 'Trace not found' });
+    }
+    
+    res.json(trace);
+  } catch (error) {
+    next(error);
+  }
+});
+
+/**
+ * GET /api/traces/task/:taskId
+ * List all traces for a task
+ */
+router.get('/task/:taskId', async (req, res, next) => {
+  try {
+    const traceService = getTraceService();
+    const traces = await traceService.listTraces(req.params.taskId);
+    res.json(traces);
+  } catch (error) {
+    next(error);
+  }
+});
+
+export default router;
diff --git a/server/src/services/agent-service.ts b/server/src/services/agent-service.ts
index cc0b3471..c4333c9f 100644
--- a/server/src/services/agent-service.ts
+++ b/server/src/services/agent-service.ts
@@ -6,6 +6,7 @@ import { nanoid } from 'nanoid';
 import { ConfigService } from './config-service.js';
 import { TaskService } from './task-service.js';
 import { getTelemetryService, type TelemetryService } from './telemetry-service.js';
+import { getTraceService, type TraceService } from './trace-service.js';
 import type { Task, AgentType, TaskAttempt, AttemptStatus, RunTelemetryEvent } from '@veritas-kanban/shared';
 
 const PROJECT_ROOT = path.resolve(process.cwd(), '..');
@@ -43,12 +44,14 @@ export class AgentService {
   private configService: ConfigService;
   private taskService: TaskService;
   private telemetry: TelemetryService;
+  private traceService: TraceService;
   private logsDir: string;
 
   constructor() {
     this.configService = new ConfigService();
     this.taskService = new TaskService();
     this.telemetry = getTelemetryService();
+    this.traceService = getTraceService();
     this.logsDir = LOGS_DIR;
     this.ensureLogsDir();
   }
@@ -99,6 +102,10 @@ export class AgentService {
     const startedAt = new Date().toISOString();
     const logPath = path.join(this.logsDir, `${taskId}_${attemptId}.md`);
 
+    // Start trace (if enabled)
+    this.traceService.startTrace(attemptId, taskId, agent, task.project);
+    this.traceService.startStep(attemptId, 'init', { worktreePath: task.git.worktreePath });
+
     // Build prompt from task
     const prompt = this.buildPrompt(task);
 
@@ -155,6 +162,10 @@ export class AgentService {
       project: task.project,
     });
 
+    // End init step, start execute step (tracing)
+    this.traceService.endStep(attemptId, 'init');
+    this.traceService.startStep(attemptId, 'execute', { pid: childProcess.pid });
+
     // Handle stdout
     childProcess.stdout?.on('data', async (data: Buffer) => {
       const content = data.toString();
@@ -216,6 +227,12 @@ export class AgentService {
         success,
       });
 
+      // End execute step, start complete step, then complete trace
+      this.traceService.endStep(attemptId, 'execute');
+      this.traceService.startStep(attemptId, 'complete', { exitCode: code });
+      this.traceService.endStep(attemptId, 'complete');
+      await this.traceService.completeTrace(attemptId, success ? 'completed' : 'failed');
+
       // Emit completion
       emitter.emit('complete', { code, signal, status });
 
@@ -239,6 +256,11 @@ export class AgentService {
         success: false,
       });
 
+      // Record error step and complete trace with error status
+      this.traceService.startStep(attemptId, 'error', { error: error.message });
+      this.traceService.endStep(attemptId, 'error');
+      await this.traceService.completeTrace(attemptId, 'error');
+
       emitter.emit('error', error);
       await this.appendToLog(logPath, 'system', `\n---\nAgent error: ${error.message}`);
       runningAgents.delete(taskId);
diff --git a/server/src/services/trace-service.ts b/server/src/services/trace-service.ts
new file mode 100644
index 00000000..b9dfcea5
--- /dev/null
+++ b/server/src/services/trace-service.ts
@@ -0,0 +1,252 @@
+import fs from 'fs/promises';
+import path from 'path';
+import type { AgentType } from '@veritas-kanban/shared';
+import { getTelemetryService } from './telemetry-service.js';
+
+const PROJECT_ROOT = path.resolve(process.cwd(), '..');
+const TRACES_DIR = path.join(PROJECT_ROOT, '.veritas-kanban', 'traces');
+
+export type TraceStepType = 'init' | 'execute' | 'complete' | 'error';
+
+export interface TraceStep {
+  type: TraceStepType;
+  startedAt: string;
+  endedAt?: string;
+  durationMs?: number;
+  metadata?: Record<string, unknown>;
+}
+
+export interface Trace {
+  traceId: string;       // Same as attemptId
+  taskId: string;
+  agent: AgentType;
+  project?: string;
+  startedAt: string;
+  endedAt?: string;
+  totalDurationMs?: number;
+  steps: TraceStep[];
+  status: 'running' | 'completed' | 'failed' | 'error';
+}
+
+// In-memory store for active traces
+const activeTraces = new Map<string, Trace>();
+
+export class TraceService {
+  private tracesDir: string;
+  private enabled: boolean = false;
+
+  constructor() {
+    this.tracesDir = TRACES_DIR;
+    this.init();
+  }
+
+  private async init(): Promise<void> {
+    // Check if traces are enabled in telemetry config
+    const telemetry = getTelemetryService();
+    const config = telemetry.getConfig();
+    this.enabled = config.traces ?? false;
+
+    if (this.enabled) {
+      await fs.mkdir(this.tracesDir, { recursive: true });
+    }
+  }
+
+  /**
+   * Check if tracing is enabled
+   */
+  isEnabled(): boolean {
+    return this.enabled;
+  }
+
+  /**
+   * Enable or disable tracing
+   */
+  setEnabled(enabled: boolean): void {
+    this.enabled = enabled;
+    if (enabled) {
+      fs.mkdir(this.tracesDir, { recursive: true }).catch(() => {});
+    }
+  }
+
+  /**
+   * Start a new trace for an agent run
+   */
+  startTrace(
+    attemptId: string,
+    taskId: string,
+    agent: AgentType,
+    project?: string
+  ): Trace | null {
+    if (!this.enabled) return null;
+
+    const trace: Trace = {
+      traceId: attemptId,
+      taskId,
+      agent,
+      project,
+      startedAt: new Date().toISOString(),
+      steps: [],
+      status: 'running',
+    };
+
+    activeTraces.set(attemptId, trace);
+    return trace;
+  }
+
+  /**
+   * Start a step within a trace
+   */
+  startStep(
+    attemptId: string,
+    stepType: TraceStepType,
+    metadata?: Record<string, unknown>
+  ): TraceStep | null {
+    if (!this.enabled) return null;
+
+    const trace = activeTraces.get(attemptId);
+    if (!trace) return null;
+
+    const step: TraceStep = {
+      type: stepType,
+      startedAt: new Date().toISOString(),
+      metadata,
+    };
+
+    trace.steps.push(step);
+    return step;
+  }
+
+  /**
+   * End the current step of a given type
+   */
+  endStep(attemptId: string, stepType: TraceStepType): void {
+    if (!this.enabled) return;
+
+    const trace = activeTraces.get(attemptId);
+    if (!trace) return;
+
+    // Find the last step of this type that hasn't ended
+    const step = [...trace.steps]
+      .reverse()
+      .find(s => s.type === stepType && !s.endedAt);
+
+    if (step) {
+      step.endedAt = new Date().toISOString();
+      step.durationMs = new Date(step.endedAt).getTime() - new Date(step.startedAt).getTime();
+    }
+  }
+
+  /**
+   * Complete a trace (success or failure)
+   */
+  async completeTrace(
+    attemptId: string,
+    status: 'completed' | 'failed' | 'error'
+  ): Promise<Trace | null> {
+    if (!this.enabled) return null;
+
+    const trace = activeTraces.get(attemptId);
+    if (!trace) return null;
+
+    trace.endedAt = new Date().toISOString();
+    trace.totalDurationMs = new Date(trace.endedAt).getTime() - new Date(trace.startedAt).getTime();
+    trace.status = status;
+
+    // Close any open steps
+    for (const step of trace.steps) {
+      if (!step.endedAt) {
+        step.endedAt = trace.endedAt;
+        step.durationMs = new Date(step.endedAt).getTime() - new Date(step.startedAt).getTime();
+      }
+    }
+
+    // Save to disk
+    await this.saveTrace(trace);
+
+    // Remove from active traces
+    activeTraces.delete(attemptId);
+
+    return trace;
+  }
+
+  /**
+   * Get an active trace
+   */
+  getActiveTrace(attemptId: string): Trace | null {
+    return activeTraces.get(attemptId) || null;
+  }
+
+  /**
+   * Get a completed trace from disk
+   */
+  async getTrace(attemptId: string): Promise<Trace | null> {
+    // Check active traces first
+    const active = activeTraces.get(attemptId);
+    if (active) return active;
+
+    // Try to load from disk
+    try {
+      const filepath = path.join(this.tracesDir, `${attemptId}.json`);
+      const content = await fs.readFile(filepath, 'utf-8');
+      return JSON.parse(content) as Trace;
+    } catch {
+      return null;
+    }
+  }
+
+  /**
+   * List all traces for a task
+   */
+  async listTraces(taskId: string): Promise<Trace[]> {
+    const traces: Trace[] = [];
+
+    // Add active traces for this task
+    for (const trace of activeTraces.values()) {
+      if (trace.taskId === taskId) {
+        traces.push(trace);
+      }
+    }
+
+    // Load completed traces from disk
+    try {
+      const files = await fs.readdir(this.tracesDir);
+      for (const file of files) {
+        if (!file.endsWith('.json')) continue;
+
+        try {
+          const content = await fs.readFile(path.join(this.tracesDir, file), 'utf-8');
+          const trace = JSON.parse(content) as Trace;
+          if (trace.taskId === taskId && !activeTraces.has(trace.traceId)) {
+            traces.push(trace);
+          }
+        } catch {
+          // Skip invalid files
+        }
+      }
+    } catch {
+      // Directory might not exist
+    }
+
+    // Sort by startedAt descending
+    return traces.sort((a, b) => b.startedAt.localeCompare(a.startedAt));
+  }
+
+  /**
+   * Save a trace to disk
+   */
+  private async saveTrace(trace: Trace): Promise<void> {
+    await fs.mkdir(this.tracesDir, { recursive: true });
+    const filepath = path.join(this.tracesDir, `${trace.traceId}.json`);
+    await fs.writeFile(filepath, JSON.stringify(trace, null, 2), 'utf-8');
+  }
+}
+
+// Singleton instance
+let instance: TraceService | null = null;
+
+export function getTraceService(): TraceService {
+  if (!instance) {
+    instance = new TraceService();
+  }
+  return instance;
+}