diff --git a/build.sbt b/build.sbt
index 979d7d7501..4c68846d1a 100644
--- a/build.sbt
+++ b/build.sbt
@@ -165,7 +165,7 @@ val http4s_ce2_version = "0.22.15"
 val http4s_ce3_version = "0.23.34"
 val osLibVersion = "0.11.4"
 val tethysVersion = "0.29.8"
-val openTelemetryVersion = "1.59.0"
+val openTelemetryVersion = "1.62.0"
 val openTelemetrySemconvVersion = "1.41.1"
 val otel4s = "1.0.0"
 val otel4sSdk = "0.19.0"
diff --git a/observability/opentelemetry-tracing-zio-backend/src/test/scala/sttp/client4/opentelemetry/zio/OpenTelemetryTracingZioBackendTest.scala b/observability/opentelemetry-tracing-zio-backend/src/test/scala/sttp/client4/opentelemetry/zio/OpenTelemetryTracingZioBackendTest.scala
index 83bfe7c2ce..fa39b97f6d 100644
--- a/observability/opentelemetry-tracing-zio-backend/src/test/scala/sttp/client4/opentelemetry/zio/OpenTelemetryTracingZioBackendTest.scala
+++ b/observability/opentelemetry-tracing-zio-backend/src/test/scala/sttp/client4/opentelemetry/zio/OpenTelemetryTracingZioBackendTest.scala
@@ -77,7 +77,10 @@ class OpenTelemetryTracingZioBackendTest extends AnyFlatSpec with Matchers with
 
     val spanId = spans.head.getSpanId
     val traceId = spans.head.getTraceId
-    recordedRequests(0).header("traceparent") shouldBe Some(s"00-${traceId}-${spanId}-01")
+    // trace-flags are read from the span rather than hardcoded: since the W3C trace-context level 2 support added in
+    // OpenTelemetry 1.62, the "random trace id" flag (0x02) is set in addition to "sampled" (0x01), yielding "03"
+    val traceFlags = spans.head.getSpanContext.getTraceFlags.asHex
+    recordedRequests(0).header("traceparent") shouldBe Some(s"00-${traceId}-${spanId}-${traceFlags}")
   }
 
   it should "set span status in case of error" in {