AWS Lambda has revolutionized application development by abstracting away the underlying infrastructure and allowing developers to focus on solving customer problems. However, serverless applications face new challenges for monitoring, requiring insights into function-level performance and usage. Datadog APM provides comprehensive visibility into the performance of serverless functions through native support for distributed tracing in AWS serverless services. The Lambda extension collects diagnostic data from serverless environments and pushes enhanced metrics, logs, and traces asynchronously to Datadog APM. This enables developers to get end-to-end visibility into requests that flow across Lambda functions, hosts, containers, and other infrastructure components, helping them identify errors and slowdowns impacting their applications.