diff --git a/packages/instrumentation-oracledb/src/OracleTelemetryTraceHandler.ts b/packages/instrumentation-oracledb/src/OracleTelemetryTraceHandler.ts
index e3a5151437..24c1206488 100644
--- a/packages/instrumentation-oracledb/src/OracleTelemetryTraceHandler.ts
+++ b/packages/instrumentation-oracledb/src/OracleTelemetryTraceHandler.ts
@@ -24,6 +24,8 @@ import {
   SpanKind,
   trace,
   diag,
+  TraceFlags,
+  SpanContext,
 } from '@opentelemetry/api';
 import {
   ATTR_DB_NAMESPACE,
@@ -63,6 +65,14 @@ function getTraceHandlerBaseClass(
   }
 }
 
+export function buildTraceparent(
+  spanContext: SpanContext
+): string | undefined {
+  return `00-${spanContext.traceId}-${spanContext.spanId}-0${Number(
+    spanContext.traceFlags || TraceFlags.NONE
+  ).toString(16)}`;
+}
+
 export function getOracleTelemetryTraceHandlerClass(
   obj: typeof oracleDBTypes
 ): any {
@@ -354,6 +364,27 @@ export function getOracleTelemetryTraceHandlerClass(
       };
 
       if (traceContext.fn) {
+        if (
+          this._instrumentConfig.traceContextPropagation &&
+          (traceContext.operation === SpanNames.EXECUTE ||
+            traceContext.operation === SpanNames.EXECUTE_MANY)
+        ) {
+          const connection = traceContext.additionalConfig?.self;
+          const traceparent = buildTraceparent(
+            traceContext.userContext.span.spanContext()
+          );
+          if (connection && 'action' in connection && traceparent) {
+            try {
+              connection.action = traceparent;
+            } catch (err) {
+              diag.debug(
+                'Failed to set connection.action for trace propagation',
+                err
+              );
+            }
+          }
+        }
+
         // wrap the active span context to the exported function.
         traceContext.fn = context.bind(
           trace.setSpan(context.active(), traceContext.userContext.span),
diff --git a/packages/instrumentation-oracledb/src/types.ts b/packages/instrumentation-oracledb/src/types.ts
index 821554609e..c8b9451b44 100644
--- a/packages/instrumentation-oracledb/src/types.ts
+++ b/packages/instrumentation-oracledb/src/types.ts
@@ -91,4 +91,11 @@ export interface OracleInstrumentationConfig extends InstrumentationConfig {
    * @default false
    */
   requireParentSpan?: boolean;
+
+  /**
+   * Automatic propagation of trace context using V$SESSION.ACTION.
+   *
+   * @default false
+   */
+  traceContextPropagation?: boolean;
 }
diff --git a/packages/instrumentation-oracledb/test/oracle.test.ts b/packages/instrumentation-oracledb/test/oracle.test.ts
index c833eb0ac0..e97869b365 100644
--- a/packages/instrumentation-oracledb/test/oracle.test.ts
+++ b/packages/instrumentation-oracledb/test/oracle.test.ts
@@ -36,6 +36,7 @@ import {
 import * as assert from 'assert';
 import { OracleInstrumentation } from '../src';
 import { SpanNames } from '../src/constants';
+import { buildTraceparent} from '../src/OracleTelemetryTraceHandler';
 
 import {
   ATTR_DB_NAMESPACE,
@@ -524,6 +525,7 @@ describe('oracledb', () => {
     instrumentation.setConfig({
       enhancedDatabaseReporting: false,
       dbStatementDump: false,
+      traceContextPropagation: false,
     });
   });
 
@@ -975,6 +977,28 @@ describe('oracledb', () => {
       });
     });
 
+    it('should propagate trace context via connection.action when enabled', async () => {
+      instrumentation.setConfig({ traceContextPropagation: true });
+      const result = await connection.execute(
+        "select sys_context('USERENV', 'ACTION') as action from dual",
+        [],
+        { outFormat: oracledb.OUT_FORMAT_OBJECT }
+      );
+      const row = result.rows?.[0] as Record<string, string> | undefined;
+      const actionValue = row?.ACTION;        
+      const spans = memoryExporter.getFinishedSpans();
+      const executeSpan = spans[spans.length - 1];
+      assert.ok(executeSpan, 'expected span to verify trace propagation');
+      assert.ok(
+        executeSpan.name.startsWith(SpanNames.EXECUTE),
+        `expected execute span, got ${executeSpan.name}`
+      );
+      const expectedTraceparent = buildTraceparent(
+        executeSpan.spanContext()
+      );
+      assert.strictEqual(actionValue, expectedTraceparent);
+    });
+
     it('should intercept connection.execute(sql, values) bind-by-name', async () => {
       const span = tracer.startSpan('test span');
       await context.with(trace.setSpan(context.active(), span), async () => {