diff --git a/examples/parallel/README.md b/examples/parallel/README.md
new file mode 100644
index 0000000..8a56ef1
--- /dev/null
+++ b/examples/parallel/README.md
@@ -0,0 +1,14 @@
+# parfor Example
+This example can only run if Parallel Computing Toolbox is installed. It shows how to instrument a parfor loop using spans. parfor is a function in Parallel Computing Toolbox that implements a parallel for-loop. It performs its iterations in parallel by sending them to workers in a parallel pool. The instrumented code loops through a series of random matrices and compute their maximum eigenvalue.
+* At the beginning of the first run, initialization is necessary to create and store a global tracer provider.
+* Initialization is also necessary in the parfor block, as this code is run in separate workers and each worker needs to run the initialization during the first run.
+* A span is created both before and inside the parfor block.
+* To have all the spans form a single trace, context has to be passed explicitly into the parfor block.
+
+## Running the Example
+1. Start an instance of [OpenTelemetry Collector](https://github.com/open-telemetry/opentelemetry-collector).
+2. Start MATLAB. 
+3. Make sure Parallel Computing Toolbox is installed by typing the command "ver parallel".
+3. Ensure the installation directory of OpenTelemetry-matlab is on the MATLAB path.
+4. Run parfor\_example. By default, MATLAB automatically opens a parallel pool of workers on your local machine.
+5. Run parfor\_example again. The second run should be faster than the first run because the parallel pool takes some time to start up.
diff --git a/examples/parallel/parfor_example.m b/examples/parallel/parfor_example.m
new file mode 100644
index 0000000..acf0baf
--- /dev/null
+++ b/examples/parallel/parfor_example.m
@@ -0,0 +1,65 @@
+function a = parfor_example
+% This example creates a trace through a parfor loop, by creating a span in
+% each iteration and propagating context.
+%
+% Copyright 2024 The MathWorks, Inc.
+
+% initialize tracing
+runOnce(@initTracer);
+
+% start the top level span and make it current
+tr = opentelemetry.trace.getTracer("parfor_example"); 
+sp = startSpan(tr, "main function"); 
+scope = makeCurrent(sp); %#ok<*NASGU>
+
+n = 80;
+A = 500;
+a = zeros(1,n);  % initialize the output
+nworkers = 4;    % maximum number of workers
+
+% propagate the current context by extracting and passing it in headers
+carrier = opentelemetry.context.propagation.injectContext(); 
+headers = carrier.Headers;
+
+parfor (i = 1:n, nworkers)
+    % parfor block needs its own initialization 
+    runOnce(@initTracer);
+
+    % extract context from headers and make it current
+    carrier = opentelemetry.context.propagation.TextMapCarrier(headers);
+    newcontext = opentelemetry.context.propagation.extractContext(carrier);
+    scope_i = setCurrentContext(newcontext); 
+
+    % start a span for this iteration
+    tr_i = opentelemetry.trace.getTracer("parfor_example");     
+    sp_i = startSpan(tr_i, "Iteration" + i);
+    
+    % compute the maximum eigenvalue of a random matrix
+    a(i) = max(abs(eig(rand(A)))); 
+
+    % end the scope and the span
+    scope_i = []; 
+    endSpan(sp_i);
+end
+end
+
+function initTracer
+% set up global TracerProvider
+resource = dictionary("service.name", "OpenTelemetry-Matlab_examples");
+tp = opentelemetry.sdk.trace.TracerProvider(...
+    opentelemetry.sdk.trace.SimpleSpanProcessor, Resource=resource);
+setTracerProvider(tp);
+
+% set up global propagator
+prop = opentelemetry.trace.propagation.TraceContextPropagator();
+setTextMapPropagator(prop);
+end
+
+% This helper ensures the input function is only run once
+function runOnce(fh)
+persistent hasrun
+if isempty(hasrun)
+    feval(fh);
+    hasrun = 1;
+end
+end