diff --git a/libs/arcade-serve/arcade_serve/fastapi/telemetry.py b/libs/arcade-serve/arcade_serve/fastapi/telemetry.py
index aee48a73..77357b4a 100644
--- a/libs/arcade-serve/arcade_serve/fastapi/telemetry.py
+++ b/libs/arcade-serve/arcade_serve/fastapi/telemetry.py
@@ -20,6 +20,8 @@ from opentelemetry.sdk.trace.export import BatchSpanProcessor
 from opentelemetry.semconv._incubating.attributes import deployment_attributes
 from opentelemetry.semconv.attributes import service_attributes
 
+EXCLUDED_URLS = "/worker/health"
+
 
 class ShutdownError(Exception):
     pass
@@ -53,7 +55,7 @@ class OTELHandler:
             self._init_tracer()
             self._init_metrics()
             self._init_logging(self.log_level)
-            FastAPIInstrumentor().instrument_app(app)
+            FastAPIInstrumentor().instrument_app(app, excluded_urls=EXCLUDED_URLS)
 
     def _init_tracer(self) -> None:
         self._tracer_provider = TracerProvider(resource=self.resource)
diff --git a/libs/arcade-serve/pyproject.toml b/libs/arcade-serve/pyproject.toml
index 093110d8..b61593d1 100644
--- a/libs/arcade-serve/pyproject.toml
+++ b/libs/arcade-serve/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "arcade-serve"
-version = "3.1.1"
+version = "3.1.2"
 description = "Arcade Serve - Serving infrastructure for Arcade tools and workers"
 readme = "README.md"
 license = {text = "MIT"}
diff --git a/libs/tests/worker/test_telemetry.py b/libs/tests/worker/test_telemetry.py
index f772de4f..b45b0c2f 100644
--- a/libs/tests/worker/test_telemetry.py
+++ b/libs/tests/worker/test_telemetry.py
@@ -50,7 +50,7 @@ def test_init_with_enable_true(
     assert handler._log_processor is not None
 
     # Verify that FastAPIInstrumentor is used
-    mock_instrumentor.return_value.instrument_app.assert_called_once_with(app)
+    mock_instrumentor.return_value.instrument_app.assert_called_once_with(app, excluded_urls="/worker/health")
 
 
 @patch("arcade_serve.fastapi.telemetry.logging")