diff --git a/CHANGELOG.md b/CHANGELOG.md
index 72f351d4d..98dd78952 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,15 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/)
 and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.html).
 
 ## [Unreleased]
+
+## [7.1.1] - 2025-09-08
+### Changed
+- Add conditional enabling for diagnostics telemetry signals
+
+## [7.1.0] - 2025-09-08
+### Changed
+- Add metrics instrumentation based on diagnostics lib
+
 ## [7.1.0] - 2025-09-02
 ### Changed
 - Add new scope argument into auth directive
diff --git a/package.json b/package.json
index 67e5e93ac..c632418e8 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vtex/api",
-  "version": "7.1.0",
+  "version": "7.1.1",
   "description": "VTEX I/O API client",
   "main": "lib/index.js",
   "typings": "lib/index.d.ts",
@@ -53,7 +53,7 @@
     "@opentelemetry/instrumentation-koa": "0.47.1",
     "@types/koa": "^2.11.0",
     "@types/koa-compose": "^3.2.3",
-    "@vtex/diagnostics-nodejs": "0.1.0-io-beta.19",
+    "@vtex/diagnostics-nodejs": "0.1.0-io-beta.20",
     "@vtex/node-error-report": "^0.0.3",
     "@wry/equality": "^0.1.9",
     "agentkeepalive": "^4.0.2",
diff --git a/src/constants.ts b/src/constants.ts
index 3860b0af3..156860b6c 100644
--- a/src/constants.ts
+++ b/src/constants.ts
@@ -74,3 +74,9 @@ export const INSPECT_DEBUGGER_PORT = 5858
 export const cancellableMethods = new Set(['GET', 'OPTIONS', 'HEAD'])
 
 export const LOG_CLIENT_INIT_TIMEOUT_MS = 5000
+
+export const OTEL_EXPORTER_OTLP_ENDPOINT = process.env.OTEL_EXPORTER_OTLP_ENDPOINT as string;
+
+export const DK_APP_ID = process.env.NODE_VTEX_API_DK_APP_ID as string || "apps-team";
+
+export const DIAGNOSTICS_TELEMETRY_ENABLED = process.env.VTEX_DIAGNOSTICS_TELEMETRY_ENABLED === 'true';
\ No newline at end of file
diff --git a/src/service/logger/logger.ts b/src/service/logger/logger.ts
index 1441fb55e..3c4678364 100644
--- a/src/service/logger/logger.ts
+++ b/src/service/logger/logger.ts
@@ -32,7 +32,7 @@ export class Logger {
       }
     }
 
-    // this.initLogClient();
+    this.initLogClient();
   }
 
   private initLogClient(): Promise<Types.LogClient | undefined> {
diff --git a/src/service/telemetry/client.ts b/src/service/telemetry/client.ts
index db42e276d..2a5312703 100644
--- a/src/service/telemetry/client.ts
+++ b/src/service/telemetry/client.ts
@@ -6,14 +6,12 @@ import {
   Metrics,
   Traces,
 } from '@vtex/diagnostics-nodejs';
-import { APP } from '../../constants';
+import { APP, OTEL_EXPORTER_OTLP_ENDPOINT, DK_APP_ID, DIAGNOSTICS_TELEMETRY_ENABLED, WORKSPACE, PRODUCTION } from '../../constants';
 import { TelemetryClient } from '@vtex/diagnostics-nodejs/dist/telemetry';
 import { KoaInstrumentation } from '@opentelemetry/instrumentation-koa';
 import { HostMetricsInstrumentation } from '../metrics/instruments/hostMetrics';
 
-const CLIENT_NAME = APP.NAME || 'node-vtex-api';
 const APPLICATION_ID = APP.ID || 'vtex-io-app';
-const EXPORTER_OTLP_ENDPOINT = process.env.EXPORTER_OTLP_ENDPOINT;
 
 interface TelemetryClients {
   logsClient: Logs.LogClient;
@@ -38,14 +36,14 @@ class TelemetryClientSingleton {
   private initializeTracesClient = async (telemetryClient: TelemetryClient) =>
     await telemetryClient.newTracesClient({
       exporter: Exporters.CreateExporter(Exporters.CreateTracesExporterConfig({
-        endpoint: EXPORTER_OTLP_ENDPOINT,
+        endpoint: OTEL_EXPORTER_OTLP_ENDPOINT,
       }), 'otlp'),
     });
 
   private initializeMetricsClient = async (telemetryClient: TelemetryClient) =>
     await telemetryClient.newMetricsClient({
       exporter: Exporters.CreateExporter(Exporters.CreateMetricsExporterConfig({
-        endpoint: EXPORTER_OTLP_ENDPOINT,
+        endpoint: OTEL_EXPORTER_OTLP_ENDPOINT,
         interval: 5,
         timeoutSeconds: 5,
       }), 'otlp'),
@@ -54,21 +52,27 @@ class TelemetryClientSingleton {
   private initializeLogsClient = async (telemetryClient: TelemetryClient) =>
     await telemetryClient.newLogsClient({
       exporter: Exporters.CreateExporter(Exporters.CreateLogsExporterConfig({
-        endpoint: EXPORTER_OTLP_ENDPOINT,
+        endpoint: OTEL_EXPORTER_OTLP_ENDPOINT,
       }), 'otlp'),
       loggerName: `node-vtex-api-${APPLICATION_ID}`,
     });
 
   private async initializeTelemetryClients(): Promise<TelemetryClients> {
+
     try {
       const telemetryClient = await NewTelemetryClient(
-        APPLICATION_ID,
-        CLIENT_NAME,
+        DK_APP_ID,
         'node-vtex-api',
+        APPLICATION_ID,
         {
+          // Use built-in no-op functionality when telemetry is disabled
+          noop: !DIAGNOSTICS_TELEMETRY_ENABLED,
           additionalAttrs: {
+            'app.id': APPLICATION_ID,
+            'vendor': APP.VENDOR,
             'version': APP.VERSION || '',
-            'environment': process.env.VTEX_WORKSPACE || 'development',
+            'workspace': WORKSPACE,
+            'production': PRODUCTION.toString(),
           },
         }
       );
@@ -79,16 +83,20 @@ class TelemetryClientSingleton {
         this.initializeLogsClient(telemetryClient),
       ]);
 
-      const instrumentations = [
-        ...Instrumentation.CommonInstrumentations.minimal(),
-        new KoaInstrumentation(),
-        new HostMetricsInstrumentation({
-          name: 'host-metrics-instrumentation',
-          meterProvider: metricsClient.provider(),
-        }),
-      ];
-
-      telemetryClient.registerInstrumentations(instrumentations);
+      if (DIAGNOSTICS_TELEMETRY_ENABLED) {
+        console.log(`Telemetry enabled for app: ${APP.ID} (vendor: ${APP.VENDOR})`);
+        
+        const instrumentations = [
+          ...Instrumentation.CommonInstrumentations.minimal(),
+          new KoaInstrumentation(),
+          new HostMetricsInstrumentation({
+            name: 'host-metrics-instrumentation',
+            meterProvider: metricsClient.provider(),
+          }),
+        ];
+
+        telemetryClient.registerInstrumentations(instrumentations);
+      }
 
       const clients: TelemetryClients = {
         logsClient,
diff --git a/yarn.lock b/yarn.lock
index 0d548c37f..2aaebf317 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1251,10 +1251,10 @@
   dependencies:
     "@types/yargs-parser" "*"
 
-"@vtex/diagnostics-nodejs@0.1.0-io-beta.19":
-  version "0.1.0-io-beta.19"
-  resolved "https://registry.yarnpkg.com/@vtex/diagnostics-nodejs/-/diagnostics-nodejs-0.1.0-io-beta.19.tgz#e8ebc6a0b44014d0ffcda9df736291c52604ee9e"
-  integrity sha512-p3bcfpCI12k1DXqD2wJvO53dDdrULYsK7muJFHlwiZio4WvnSfPU1Ay5ni9Y8alD/MLX4fP4EEjRYXTGc7wFWQ==
+"@vtex/diagnostics-nodejs@0.1.0-io-beta.20":
+  version "0.1.0-io-beta.20"
+  resolved "https://registry.yarnpkg.com/@vtex/diagnostics-nodejs/-/diagnostics-nodejs-0.1.0-io-beta.20.tgz#79ee25a88827a501206d1a8ef0715674fa1521b5"
+  integrity sha512-8DbibPcPEd2yJCRKZOM2JAf4FYr9W90lD+DRV/mOwgMd1ZGdZuXupfoqqOzOdrkOidXhCeLBPhRXne8O2N3QEQ==
   dependencies:
     "@grpc/grpc-js" "^1.13.4"
     "@opentelemetry/api" "^1.9.0"