diff --git a/examples/example-gcp-observability/README.md b/examples/example-gcp-observability/README.md
new file mode 100644
index 00000000000..95270fa8140
--- /dev/null
+++ b/examples/example-gcp-observability/README.md
@@ -0,0 +1,39 @@
+gRPC GCP Observability Example
+================
+
+The GCP Observability example consists of a Hello World client and a Hello World server instrumented for logs, metrics and tracing. 
+
+__Please refer to Microservices Observability user guide for setup.__
+
+### Build the example
+
+Build the Observability client & server. From the `grpc-java/examples/example-gcp-observability`
+directory:
+```
+$ ../gradlew installDist
+```
+
+This creates the scripts `build/install/example-gcp-observability/bin/gcp-observability-client` and
+`build/install/example-gcp-observability/bin/gcp-observability-server`.
+
+### Run the example with configuration
+
+To use Observability, you should first setup and configure authorization as mentioned in the user guide. 
+
+You need to set the `GRPC_GCP_OBSERVABILITY_CONFIG_FILE` environment variable to point to the gRPC GCP Observability configuration file (preferred) or if that
+is not set then `GRPC_GCP_OBSERVABILITY_CONFIG` environment variable to gRPC GCP Observability configuration value. This is needed by both
+`build/install/example-gcp-observability/bin/gcp-observability-client` and
+`build/install/example-gcp-observability/bin/gcp-observability-server`.
+
+1. To start the observability-enabled example server on its default port of 50051, run:
+```
+$ export GRPC_GCP_OBSERVABILITY_CONFIG_FILE=src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_server_config.json
+$ ./build/install/example-gcp-observability/bin/gcp-observability-server
+```
+
+2. In a different terminal window, run the observability-enabled example client:
+```
+$ export GRPC_GCP_OBSERVABILITY_CONFIG_FILE=src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_client_config.json
+$ ./build/install/example-gcp-observability/bin/gcp-observability-client
+```
+
diff --git a/examples/example-gcp-observability/build.gradle b/examples/example-gcp-observability/build.gradle
new file mode 100644
index 00000000000..957d4da8fd9
--- /dev/null
+++ b/examples/example-gcp-observability/build.gradle
@@ -0,0 +1,68 @@
+plugins {
+    // Provide convenience executables for trying out the examples.
+    id 'application'
+    // ASSUMES GRADLE 5.6 OR HIGHER. Use plugin version 0.8.10 with earlier gradle versions
+    id 'com.google.protobuf' version '0.8.17'
+    // Generate IntelliJ IDEA's .idea & .iml project files
+    id 'idea'
+    id 'java'
+}
+
+repositories {
+    maven { // The google mirror is less flaky than mavenCentral()
+        url "https://maven-central.storage-download.googleapis.com/maven2/"
+    }
+    mavenCentral()
+    mavenLocal()
+}
+
+sourceCompatibility = 1.8
+targetCompatibility = 1.8
+
+// IMPORTANT: You probably want the non-SNAPSHOT version of gRPC. Make sure you
+// are looking at a tagged version of the example and not "master"!
+
+// Feel free to delete the comment at the next line. It is just for safely
+// updating the version in our release process.
+def grpcVersion = '1.54.0-SNAPSHOT' // CURRENT_GRPC_VERSION
+def protocVersion = '3.21.7'
+
+dependencies {
+    implementation "io.grpc:grpc-protobuf:${grpcVersion}"
+    implementation "io.grpc:grpc-stub:${grpcVersion}"
+    implementation "io.grpc:grpc-gcp-observability:${grpcVersion}"
+    compileOnly "org.apache.tomcat:annotations-api:6.0.53"
+    runtimeOnly "io.grpc:grpc-netty-shaded:${grpcVersion}"
+}
+
+protobuf {
+    protoc { artifact = "com.google.protobuf:protoc:${protocVersion}" }
+    plugins {
+        grpc { artifact = "io.grpc:protoc-gen-grpc-java:${grpcVersion}" }
+    }
+    generateProtoTasks {
+        all()*.plugins { grpc {} }
+    }
+}
+
+startScripts.enabled = false
+
+task ObservabilityHelloWorldServer(type: CreateStartScripts) {
+    mainClass = 'io.grpc.examples.gcpobservability.GcpObservabilityServer'
+    applicationName = 'gcp-observability-server'
+    outputDir = new File(project.buildDir, 'tmp/scripts/' + name)
+    classpath = startScripts.classpath
+}
+
+task ObservabilityHelloWorldClient(type: CreateStartScripts) {
+    mainClass = 'io.grpc.examples.gcpobservability.GcpObservabilityClient'
+    applicationName = 'gcp-observability-client'
+    outputDir = new File(project.buildDir, 'tmp/scripts/' + name)
+    classpath = startScripts.classpath
+}
+
+applicationDistribution.into('bin') {
+    from(ObservabilityHelloWorldServer)
+    from(ObservabilityHelloWorldClient)
+    fileMode = 0755
+}
diff --git a/examples/example-gcp-observability/settings.gradle b/examples/example-gcp-observability/settings.gradle
new file mode 100644
index 00000000000..1e4ba3812eb
--- /dev/null
+++ b/examples/example-gcp-observability/settings.gradle
@@ -0,0 +1 @@
+rootProject.name = 'example-gcp-observability'
diff --git a/examples/example-gcp-observability/src/main/java/io/grpc/examples/gcpobservability/GcpObservabilityClient.java b/examples/example-gcp-observability/src/main/java/io/grpc/examples/gcpobservability/GcpObservabilityClient.java
new file mode 100644
index 00000000000..34112adb108
--- /dev/null
+++ b/examples/example-gcp-observability/src/main/java/io/grpc/examples/gcpobservability/GcpObservabilityClient.java
@@ -0,0 +1,93 @@
+/*
+ * Copyright 2023 The gRPC Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package io.grpc.examples.gcpobservability;
+
+import io.grpc.Channel;
+import io.grpc.Grpc;
+import io.grpc.InsecureChannelCredentials;
+import io.grpc.ManagedChannel;
+import io.grpc.StatusRuntimeException;
+import io.grpc.examples.helloworld.GreeterGrpc;
+import io.grpc.examples.helloworld.HelloReply;
+import io.grpc.examples.helloworld.HelloRequest;
+import io.grpc.gcp.observability.GcpObservability;
+import java.util.concurrent.TimeUnit;
+import java.util.logging.Level;
+import java.util.logging.Logger;
+
+/**
+ * A simple observability client that requests a greeting from the {@link HelloWorldServer} and
+ * generates logs, metrics and traces based on the configuration.
+ */
+public class GcpObservabilityClient {
+  private static final Logger logger = Logger.getLogger(GcpObservabilityClient.class.getName());
+
+  private final GreeterGrpc.GreeterBlockingStub blockingStub;
+
+  /** Construct client for accessing HelloWorld server using the existing channel. */
+  public GcpObservabilityClient(Channel channel) {
+    blockingStub = GreeterGrpc.newBlockingStub(channel);
+  }
+
+  /** Say hello to server. */
+  public void greet(String name) {
+    logger.info("Will try to greet " + name + " ...");
+    HelloRequest request = HelloRequest.newBuilder().setName(name).build();
+    HelloReply response;
+    try {
+      response = blockingStub.sayHello(request);
+    } catch (StatusRuntimeException e) {
+      logger.log(Level.WARNING, "RPC failed: {0}", e.getStatus());
+      return;
+    }
+    logger.info("Greeting: " + response.getMessage());
+  }
+
+  /**
+   * Greet server. If provided, the first element of {@code args} is the name to use in the
+   * greeting. The second argument is the target server.
+   */
+  public static void main(String[] args) throws Exception {
+    String user = "world";
+    String target = "localhost:50051";
+    if (args.length > 0) {
+      if ("--help".equals(args[0])) {
+        System.err.println("Usage: [name [target]]");
+        System.err.println("");
+        System.err.println("  name    The name you wish to be greeted by. Defaults to " + user);
+        System.err.println("  target  The server to connect to. Defaults to " + target);
+        System.exit(1);
+      }
+      user = args[0];
+    }
+    if (args.length > 1) {
+      target = args[1];
+    }
+
+    // Initialize observability
+    try (GcpObservability observability = GcpObservability.grpcInit()) {
+      ManagedChannel channel = Grpc.newChannelBuilder(target, InsecureChannelCredentials.create())
+          .build();
+      try {
+        GcpObservabilityClient client = new GcpObservabilityClient(channel);
+        client.greet(user);
+      } finally {
+        channel.shutdownNow().awaitTermination(5, TimeUnit.SECONDS);
+      }
+    } // observability.close() called implicitly
+  }
+}
diff --git a/examples/example-gcp-observability/src/main/java/io/grpc/examples/gcpobservability/GcpObservabilityServer.java b/examples/example-gcp-observability/src/main/java/io/grpc/examples/gcpobservability/GcpObservabilityServer.java
new file mode 100644
index 00000000000..c599e7047c5
--- /dev/null
+++ b/examples/example-gcp-observability/src/main/java/io/grpc/examples/gcpobservability/GcpObservabilityServer.java
@@ -0,0 +1,97 @@
+/*
+ * Copyright 2023 The gRPC Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package io.grpc.examples.gcpobservability;
+
+import io.grpc.Grpc;
+import io.grpc.InsecureServerCredentials;
+import io.grpc.Server;
+import io.grpc.examples.helloworld.GreeterGrpc;
+import io.grpc.examples.helloworld.HelloReply;
+import io.grpc.examples.helloworld.HelloRequest;
+import io.grpc.gcp.observability.GcpObservability;
+import io.grpc.stub.StreamObserver;
+import java.io.IOException;
+import java.util.concurrent.TimeUnit;
+import java.util.logging.Logger;
+
+/**
+ * Observability server that manages startup/shutdown of a {@code Greeter} server and generates
+ * logs, metrics and traces based on the configuration.
+ */
+public class GcpObservabilityServer {
+  private static final Logger logger = Logger.getLogger(GcpObservabilityServer.class.getName());
+
+  private Server server;
+
+  private void start() throws IOException {
+    int port = 50051;
+    server = Grpc.newServerBuilderForPort(port, InsecureServerCredentials.create())
+        .addService(new GreeterImpl())
+        .build()
+        .start();
+    logger.info("Server started, listening on " + port);
+  }
+
+  private void stop() throws InterruptedException {
+    if (server != null) {
+      server.shutdown().awaitTermination(30, TimeUnit.SECONDS);
+    }
+  }
+
+  private void blockUntilShutdown() throws InterruptedException {
+    if (server != null) {
+      server.awaitTermination();
+    }
+  }
+
+  /**
+   * Main launches the server from the command line.
+   */
+  public static void main(String[] args) throws IOException, InterruptedException {
+    // Initialize observability
+    GcpObservability observability = GcpObservability.grpcInit();
+    final GcpObservabilityServer server = new GcpObservabilityServer();
+    server.start();
+
+    Runtime.getRuntime().addShutdownHook(new Thread() {
+      @Override
+      public void run() {
+        System.err.println("*** shutting down gRPC server since JVM is shutting down");
+        try {
+          server.stop();
+        } catch (InterruptedException e) {
+          e.printStackTrace(System.err);
+        }
+        // Shut down observability
+        observability.close();
+        System.err.println("*** server shut down");
+      }
+    });
+
+    server.blockUntilShutdown();
+  }
+
+  static class GreeterImpl extends GreeterGrpc.GreeterImplBase {
+
+    @Override
+    public void sayHello(HelloRequest req, StreamObserver<HelloReply> responseObserver) {
+      HelloReply reply = HelloReply.newBuilder().setMessage("Hello " + req.getName()).build();
+      responseObserver.onNext(reply);
+      responseObserver.onCompleted();
+    }
+  }
+}
diff --git a/examples/example-gcp-observability/src/main/proto/helloworld/helloworld.proto b/examples/example-gcp-observability/src/main/proto/helloworld/helloworld.proto
new file mode 100644
index 00000000000..64a8c09ee16
--- /dev/null
+++ b/examples/example-gcp-observability/src/main/proto/helloworld/helloworld.proto
@@ -0,0 +1,39 @@
+/*
+ * Copyright 2023 The gRPC Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+syntax = "proto3";
+
+option java_multiple_files = true;
+option java_package = "io.grpc.examples.helloworld";
+option java_outer_classname = "HelloWorldProto";
+option objc_class_prefix = "HLW";
+
+package helloworld;
+
+// The greeting service definition.
+service Greeter {
+  // Sends a greeting
+  rpc SayHello (HelloRequest) returns (HelloReply) {}
+}
+
+// The request message containing the user's name.
+message HelloRequest {
+  string name = 1;
+}
+
+// The response message containing the greetings
+message HelloReply {
+  string message = 1;
+}
diff --git a/examples/example-gcp-observability/src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_client_config.json b/examples/example-gcp-observability/src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_client_config.json
new file mode 100644
index 00000000000..9c69d55e7f7
--- /dev/null
+++ b/examples/example-gcp-observability/src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_client_config.json
@@ -0,0 +1,17 @@
+{
+  "cloud_monitoring": {},
+  "cloud_trace": {
+    "sampling_rate": 1.0
+  },
+  "cloud_logging": {
+    "client_rpc_events": [{
+      "methods": ["helloworld.Greeter/*"]
+    }],
+    "server_rpc_events": [{
+      "methods": ["helloworld.Greeter/*"]
+    }]
+  },
+  "labels": {
+    "environment" : "example-client"
+  }
+}
diff --git a/examples/example-gcp-observability/src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_server_config.json b/examples/example-gcp-observability/src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_server_config.json
new file mode 100644
index 00000000000..78698c05faf
--- /dev/null
+++ b/examples/example-gcp-observability/src/main/resources/io/grpc/examples/gcpobservability/gcp_observability_server_config.json
@@ -0,0 +1,17 @@
+{
+  "cloud_monitoring": {},
+  "cloud_trace": {
+    "sampling_rate": 1.0
+  },
+  "cloud_logging": {
+    "client_rpc_events": [{
+      "methods": ["helloworld.Greeter/*"]
+    }],
+    "server_rpc_events": [{
+      "methods": ["helloworld.Greeter/*"]
+    }]
+  },
+  "labels": {
+    "environment" : "example-server"
+  }
+}