diff --git a/samples/dapr/ServiceA/DaprServiceA.csproj b/samples/dapr/ServiceA/DaprServiceA.csproj
index db4fe8dab7c..7bb2583264f 100644
--- a/samples/dapr/ServiceA/DaprServiceA.csproj
+++ b/samples/dapr/ServiceA/DaprServiceA.csproj
@@ -12,4 +12,8 @@
     <PackageReference Include="Swashbuckle.AspNetCore" />
   </ItemGroup>
 
+  <ItemGroup>
+    <ProjectReference Include="..\..\ServiceDefaults\ServiceDefaults.csproj" />
+  </ItemGroup>
+
 </Project>
diff --git a/samples/dapr/ServiceA/Program.cs b/samples/dapr/ServiceA/Program.cs
index b3fe47699f3..78d800cad97 100644
--- a/samples/dapr/ServiceA/Program.cs
+++ b/samples/dapr/ServiceA/Program.cs
@@ -5,6 +5,8 @@
 
 var builder = WebApplication.CreateBuilder(args);
 
+builder.AddServiceDefaults();
+
 // Add services to the container.
 // Learn more about configuring Swagger/OpenAPI at https://aka.ms/aspnetcore/swashbuckle
 builder.Services.AddEndpointsApiExplorer();
diff --git a/samples/dapr/ServiceB/DaprServiceB.csproj b/samples/dapr/ServiceB/DaprServiceB.csproj
index db4fe8dab7c..7bb2583264f 100644
--- a/samples/dapr/ServiceB/DaprServiceB.csproj
+++ b/samples/dapr/ServiceB/DaprServiceB.csproj
@@ -12,4 +12,8 @@
     <PackageReference Include="Swashbuckle.AspNetCore" />
   </ItemGroup>
 
+  <ItemGroup>
+    <ProjectReference Include="..\..\ServiceDefaults\ServiceDefaults.csproj" />
+  </ItemGroup>
+
 </Project>
diff --git a/samples/dapr/ServiceB/Program.cs b/samples/dapr/ServiceB/Program.cs
index 43d9a74f39d..642612f1b82 100644
--- a/samples/dapr/ServiceB/Program.cs
+++ b/samples/dapr/ServiceB/Program.cs
@@ -3,6 +3,8 @@
 
 var builder = WebApplication.CreateBuilder(args);
 
+builder.AddServiceDefaults();
+
 // Add services to the container.
 // Learn more about configuring Swagger/OpenAPI at https://aka.ms/aspnetcore/swashbuckle
 builder.Services.AddEndpointsApiExplorer();
diff --git a/src/Aspire.Dashboard/Otlp/Model/OtlpApplication.cs b/src/Aspire.Dashboard/Otlp/Model/OtlpApplication.cs
index 943c1bf6fb6..be34c0ad031 100644
--- a/src/Aspire.Dashboard/Otlp/Model/OtlpApplication.cs
+++ b/src/Aspire.Dashboard/Otlp/Model/OtlpApplication.cs
@@ -53,7 +53,11 @@ public OtlpApplication(Resource resource, IReadOnlyDictionary<string, OtlpApplic
         }
         if (string.IsNullOrEmpty(InstanceId))
         {
-            throw new ArgumentException("Resource needs to include a 'service.instance.id'");
+            //
+            // NOTE: The service.instance.id value is a recommended attribute, but not required.
+            //       See: https://github.com/open-telemetry/opentelemetry-specification/blob/main/specification/resource/semantic_conventions/README.md#service-experimental
+            //
+            InstanceId = ApplicationName;
         }
         Suffix = applications.Where(a => a.Value.ApplicationName == ApplicationName).Count();
         _logger = logger;
diff --git a/src/Aspire.Dashboard/Otlp/Model/OtlpHelpers.cs b/src/Aspire.Dashboard/Otlp/Model/OtlpHelpers.cs
index dd6fc0bd51f..416405a44cc 100644
--- a/src/Aspire.Dashboard/Otlp/Model/OtlpHelpers.cs
+++ b/src/Aspire.Dashboard/Otlp/Model/OtlpHelpers.cs
@@ -16,6 +16,8 @@ public static class OtlpHelpers
 {
     public static string? GetServiceId(this Resource resource)
     {
+        string? serviceName = null;
+
         for (var i = 0; i < resource.Attributes.Count; i++)
         {
             var attribute = resource.Attributes[i];
@@ -23,9 +25,17 @@ public static class OtlpHelpers
             {
                 return attribute.Value.GetString();
             }
+            if (attribute.Key == OtlpApplication.SERVICE_NAME)
+            {
+                serviceName = attribute.Value.GetString();
+            }
         }
 
-        return null;
+        //
+        // NOTE: The service.instance.id value is a recommended attribute, but not required.
+        //       See: https://github.com/open-telemetry/opentelemetry-specification/blob/main/specification/resource/semantic_conventions/README.md#service-experimental
+        //
+        return serviceName;
     }
 
     public static string ToShortenedId(string id) =>
diff --git a/src/Aspire.Hosting.Dapr/DaprDistributedApplicationLifecycleHook.cs b/src/Aspire.Hosting.Dapr/DaprDistributedApplicationLifecycleHook.cs
index 74cc34eee59..b0805ec646d 100644
--- a/src/Aspire.Hosting.Dapr/DaprDistributedApplicationLifecycleHook.cs
+++ b/src/Aspire.Hosting.Dapr/DaprDistributedApplicationLifecycleHook.cs
@@ -3,6 +3,7 @@
 
 using Aspire.Hosting.ApplicationModel;
 using Aspire.Hosting.Lifecycle;
+using Microsoft.Extensions.Configuration;
 using System.Globalization;
 using System.Net.Sockets;
 using static Aspire.Hosting.Dapr.CommandLineArgs;
@@ -11,6 +12,7 @@ namespace Aspire.Hosting.Dapr;
 
 internal sealed class DaprDistributedApplicationLifecycleHook : IDistributedApplicationLifecycleHook
 {
+    private readonly IConfiguration _configuration;
     private readonly DaprOptions _options;
     private readonly DaprPortManager _portManager;
 
@@ -20,9 +22,12 @@ internal sealed class DaprDistributedApplicationLifecycleHook : IDistributedAppl
             : Path.Combine("/usr", "local", "bin", "dapr");
 
     private const int DaprHttpPortStartRange = 50001;
+    private const string DashboardOtlpUrlVariableName = "DOTNET_DASHBOARD_OTLP_ENDPOINT_URL";
+    private const string DashboardOtlpUrlDefaultValue = "http://localhost:18889";
 
-    public DaprDistributedApplicationLifecycleHook(DaprOptions options, DaprPortManager portManager)
+    public DaprDistributedApplicationLifecycleHook(IConfiguration configuration, DaprOptions options, DaprPortManager portManager)
     {
+        _configuration = configuration;
         this._options = options;
         this._portManager = portManager;
     }
@@ -126,6 +131,27 @@ public Task BeforeStartAsync(DistributedApplicationModel appModel, CancellationT
             component.Annotations.Add(new NameAnnotation { Name = sidecarOptions?.AppId ?? "Unknown" });
             component.Annotations.AddRange(ports.Select(port => new ServiceBindingAnnotation(ProtocolType.Tcp, name: port.Key, port: port.Value.Port)));
 
+            // NOTE: Telemetry is enabled by default.
+            if (this._options.EnableTelemetry != false)
+            {
+                component.Annotations.Add(
+                    new EnvironmentCallbackAnnotation(
+                        env =>
+                        {
+
+                            //
+                            // NOTE: Setting OTEL_EXPORTER_OTLP_ENDPOINT will not override any explicit OTLP configuration in a specified Dapr sidecar configuration file.
+                            //       The ambient Dapr sidecar configuration file does not configure an OTLP exporter (but could have been updated by the user to do so).
+                            //
+                            // TODO: It would be nice, at some point, to consolidate determination of the OTLP endpoint as it's now repeated in a few places.
+                            //
+
+                            env["OTEL_EXPORTER_OTLP_ENDPOINT"] = this._configuration[DashboardOtlpUrlVariableName] ?? DashboardOtlpUrlDefaultValue;
+                            env["OTEL_EXPORTER_OTLP_INSECURE"] = "true";
+                            env["OTEL_EXPORTER_OTLP_PROTOCOL"] = "grpc";
+                        }));
+            }
+
             component.Annotations.Add(
                 new ExecutableArgsCallbackAnnotation(
                     updatedArgs =>
diff --git a/src/Aspire.Hosting.Dapr/DaprOptions.cs b/src/Aspire.Hosting.Dapr/DaprOptions.cs
index b4f871c35af..e1726471991 100644
--- a/src/Aspire.Hosting.Dapr/DaprOptions.cs
+++ b/src/Aspire.Hosting.Dapr/DaprOptions.cs
@@ -12,4 +12,12 @@ public sealed record DaprOptions
     /// Gets or sets the path to the Dapr CLI.
     /// </summary>
     public string? DaprPath { get; init; }
+
+    /// <summary>
+    /// Gets or sets whether Dapr sidecars export telemetry to the Aspire dashboard.
+    /// </summary>
+    /// <remarks>
+    /// Telemetry is enabled by default.
+    /// </remarks>
+    public bool? EnableTelemetry { get; init; }
 }