diff --git a/.github/workflows/ci.yaml b/.github/workflows/ci.yaml
index 5b7c0985d7..dbe5ab6ddd 100644
--- a/.github/workflows/ci.yaml
+++ b/.github/workflows/ci.yaml
@@ -28,7 +28,7 @@ jobs:
           uv run pytest tests -m 'not integration'
 
   goose:
-    runs-on: ubuntu-latest 
+    runs-on: ubuntu-latest
 
     steps:
       - uses: actions/checkout@v4
@@ -48,27 +48,6 @@ jobs:
         run: |
           uv run pytest tests -m 'not integration'
 
-  langfuse-wrapper:
-    runs-on: ubuntu-latest
-
-    steps:
-      - uses: actions/checkout@v4
-
-      - name: Install UV
-        run: curl -LsSf https://astral.sh/uv/install.sh | sh
-
-      - name: Source Cargo Environment
-        run: source $HOME/.cargo/env
-
-      - name: Ruff
-        run: |
-          uvx ruff check packages/langfuse-wrapper
-          uvx ruff format packages/langfuse-wrapper --check
-
-      - name: Run tests
-        working-directory: ./packages/langfuse-wrapper
-        run: |
-          uv run pytest tests -m 'not integration'
 
   # This runs integration tests of the OpenAI API, using Ollama to host models.
   # This lets us test PRs from forks which can't access secrets like API keys.
diff --git a/.gitignore b/.gitignore
index e002e6176a..f799b72216 100644
--- a/.gitignore
+++ b/.gitignore
@@ -125,6 +125,3 @@ docs/docs/reference
 
 # uv lock file
 uv.lock
-
-# langfuse docker file
-**/packages/langfuse-wrapper/scripts/docker-compose.yaml
diff --git a/packages/exchange/pyproject.toml b/packages/exchange/pyproject.toml
index caadef9759..502e224c36 100644
--- a/packages/exchange/pyproject.toml
+++ b/packages/exchange/pyproject.toml
@@ -13,8 +13,6 @@ dependencies = [
     "tiktoken>=0.7.0",
     "httpx>=0.27.0",
     "tenacity>=9.0.0",
-    "python-dotenv>=1.0.1",
-    "langfuse-wrapper"   
 ]
 
 [tool.hatch.build.targets.wheel]
@@ -49,10 +47,3 @@ ai-exchange = "exchange:module_name"
 markers = [
     "integration: marks tests that need to authenticate (deselect with '-m \"not integration\"')",
 ]
-
-[tool.uv.sources]
-langfuse-wrapper = { workspace = true}
-
-[tool.uv.workspace]
-members = ["../langfuse-wrapper"]
-
diff --git a/packages/exchange/src/exchange/exchange.py b/packages/exchange/src/exchange/exchange.py
index 31acaf2cfe..b2fdbc5ec8 100644
--- a/packages/exchange/src/exchange/exchange.py
+++ b/packages/exchange/src/exchange/exchange.py
@@ -14,7 +14,6 @@ from exchange.moderators.truncate import ContextTruncate
 from exchange.providers import Provider, Usage
 from exchange.tool import Tool
 from exchange.token_usage_collector import _token_usage_collector
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper
 
 
 def validate_tool_output(output: str) -> None:
@@ -128,7 +127,6 @@ class Exchange:
 
         return response
 
-    @observe_wrapper()
     def call_function(self, tool_use: ToolUse) -> ToolResult:
         """Call the function indicated by the tool use"""
         tool = self._toolmap.get(tool_use.name)
diff --git a/packages/exchange/src/exchange/providers/anthropic.py b/packages/exchange/src/exchange/providers/anthropic.py
index b6c0df71a5..84ecd12fb4 100644
--- a/packages/exchange/src/exchange/providers/anthropic.py
+++ b/packages/exchange/src/exchange/providers/anthropic.py
@@ -8,7 +8,6 @@ from exchange.content import Text, ToolResult, ToolUse
 from exchange.providers.base import Provider, Usage
 from tenacity import retry, wait_fixed, stop_after_attempt
 from exchange.providers.utils import retry_if_status, raise_for_status
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper
 
 ANTHROPIC_HOST = "https://api.anthropic.com/v1/messages"
 
@@ -124,7 +123,6 @@ class AnthropicProvider(Provider):
             messages_spec.append(converted)
         return messages_spec
 
-    @observe_wrapper(as_type="generation")
     def complete(
         self,
         model: str,
diff --git a/packages/exchange/src/exchange/providers/bedrock.py b/packages/exchange/src/exchange/providers/bedrock.py
index ad5734266a..6c32d7cb3d 100644
--- a/packages/exchange/src/exchange/providers/bedrock.py
+++ b/packages/exchange/src/exchange/providers/bedrock.py
@@ -15,7 +15,6 @@ from exchange.providers import Provider, Usage
 from tenacity import retry, wait_fixed, stop_after_attempt
 from exchange.providers.utils import raise_for_status, retry_if_status
 from exchange.tool import Tool
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper
 
 SERVICE = "bedrock-runtime"
 UTC = timezone.utc
@@ -176,7 +175,6 @@ class BedrockProvider(Provider):
         )
         return cls(client=client)
 
-    @observe_wrapper(as_type="generation")
     def complete(
         self,
         model: str,
diff --git a/packages/exchange/src/exchange/providers/databricks.py b/packages/exchange/src/exchange/providers/databricks.py
index 56d41ee01a..9bd582dc58 100644
--- a/packages/exchange/src/exchange/providers/databricks.py
+++ b/packages/exchange/src/exchange/providers/databricks.py
@@ -13,7 +13,7 @@ from exchange.providers.utils import (
     tools_to_openai_spec,
 )
 from exchange.tool import Tool
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper
+
 
 retry_procedure = retry(
     wait=wait_fixed(2),
@@ -69,7 +69,6 @@ class DatabricksProvider(Provider):
             total_tokens=total_tokens,
         )
 
-    @observe_wrapper(as_type="generation")
     def complete(
         self,
         model: str,
diff --git a/packages/exchange/src/exchange/providers/google.py b/packages/exchange/src/exchange/providers/google.py
index 388b0be0fa..fe83cd6051 100644
--- a/packages/exchange/src/exchange/providers/google.py
+++ b/packages/exchange/src/exchange/providers/google.py
@@ -8,7 +8,6 @@ from exchange.content import Text, ToolResult, ToolUse
 from exchange.providers.base import Provider, Usage
 from tenacity import retry, wait_fixed, stop_after_attempt
 from exchange.providers.utils import raise_for_status, retry_if_status
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper
 
 GOOGLE_HOST = "https://generativelanguage.googleapis.com/v1beta"
 
@@ -122,7 +121,6 @@ class GoogleProvider(Provider):
 
         return messages_spec
 
-    @observe_wrapper(as_type="generation")
     def complete(
         self,
         model: str,
diff --git a/packages/exchange/src/exchange/providers/openai.py b/packages/exchange/src/exchange/providers/openai.py
index 6bf02d0117..b25c5a70aa 100644
--- a/packages/exchange/src/exchange/providers/openai.py
+++ b/packages/exchange/src/exchange/providers/openai.py
@@ -15,7 +15,6 @@ from exchange.providers.utils import (
 from exchange.tool import Tool
 from tenacity import retry, wait_fixed, stop_after_attempt
 from exchange.providers.utils import retry_if_status
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper
 
 OPENAI_HOST = "https://api.openai.com/"
 
@@ -66,7 +65,6 @@ class OpenAiProvider(Provider):
             total_tokens=total_tokens,
         )
 
-    @observe_wrapper(as_type="generation")
     def complete(
         self,
         model: str,
diff --git a/packages/langfuse-wrapper/.ruff.toml b/packages/langfuse-wrapper/.ruff.toml
deleted file mode 100644
index 9accb3c354..0000000000
--- a/packages/langfuse-wrapper/.ruff.toml
+++ /dev/null
@@ -1,2 +0,0 @@
-lint.select = ["E", "W", "F", "N"]
-line-length = 120
diff --git a/packages/langfuse-wrapper/README.md b/packages/langfuse-wrapper/README.md
deleted file mode 100644
index ae28c87139..0000000000
--- a/packages/langfuse-wrapper/README.md
+++ /dev/null
@@ -1,28 +0,0 @@
-# Langfuse Wrapper
-
-This package provides a wrapper for [Langfuse](https://langfuse.com/). The wrapper serves to initialize Langfuse appropriately if the Langfuse server is running locally and otherwise to skip applying the Langfuse observe descorators.
-
-**Note: This Langfuse integration is experimental and we don't currently have integration tests for it.**
-
-
-## Usage
-
-### Start your local Langfuse server
-
-Run `setup_langfuse.sh` to start your local Langfuse server. It requires Docker.
-
-Read more about local Langfuse deployments [here](https://langfuse.com/docs/deployment/local).
-
-### Exchange and Goose integration
-
-Import `from langfuse_wrapper.langfuse_wrapper import observe_wrapper` and use the `observe_wrapper()` decorator on functions you wish to enable tracing for. `observe_wrapper` functions the same way as Langfuse's observe decorator.
-
-Read more about Langfuse's decorator-based tracing [here](https://langfuse.com/docs/sdk/python/decorators).
-
-In Goose, initialization requires certain environment variables to be present:
-
-- `LANGFUSE_PUBLIC_KEY`: Your Langfuse public key
-- `LANGFUSE_SECRET_KEY`: Your Langfuse secret key
-- `LANGFUSE_BASE_URL`: The base URL of your Langfuse instance 
-
-By default your local deployment and Goose will use the values in `env/.env.langfuse.local`.
diff --git a/packages/langfuse-wrapper/env/.env.langfuse.local b/packages/langfuse-wrapper/env/.env.langfuse.local
deleted file mode 100644
index 98056309e9..0000000000
--- a/packages/langfuse-wrapper/env/.env.langfuse.local
+++ /dev/null
@@ -1,16 +0,0 @@
-# These variables are default initialization variables for the Langfuse server
-LANGFUSE_INIT_PROJECT_NAME=goose-local
-LANGFUSE_INIT_PROJECT_PUBLIC_KEY=publickey-local
-LANGFUSE_INIT_PROJECT_SECRET_KEY=secretkey-local
-LANGFUSE_INIT_USER_EMAIL=local@block.xyz
-LANGFUSE_INIT_USER_NAME=localdev
-LANGFUSE_INIT_USER_PASSWORD=localpwd
-
-LANGFUSE_INIT_ORG_ID=local-id
-LANGFUSE_INIT_ORG_NAME=local-org
-LANGFUSE_INIT_PROJECT_ID=goose
-
-# These variables are used by Goose
-LANGFUSE_PUBLIC_KEY=publickey-local
-LANGFUSE_SECRET_KEY=secretkey-local
-LANGFUSE_HOST=http://localhost:3000
diff --git a/packages/langfuse-wrapper/pyproject.toml b/packages/langfuse-wrapper/pyproject.toml
deleted file mode 100644
index 7fda9f4efe..0000000000
--- a/packages/langfuse-wrapper/pyproject.toml
+++ /dev/null
@@ -1,28 +0,0 @@
-[project]
-name = "langfuse-wrapper"
-version = "0.1.0"
-description = "A wrapper for Langfuse integration"
-readme = "README.md"
-requires-python = ">=3.10"
-author = [{ name = "Block", email = "ai-oss-tools@block.xyz" }]
-packages = [{ include = "langfuse_wrapper", from = "src" }]
-
-dependencies = [
-    "langfuse>=2.38.2",
-    "python-dotenv>=1.0.1"
-]
-
-[tool.hatch.build.targets.wheel]
-packages = ["src/langfuse_wrapper"]
-
-[build-system]
-requires = ["hatchling"]
-build-backend = "hatchling.build"
-
-[tool.uv]
-dev-dependencies = ["pytest>=8.3.2"]
-
-[tool.pytest.ini_options]
-markers = [
-    "integration: marks tests that need to authenticate (deselect with '-m \"not integration\"')",
-]
diff --git a/packages/langfuse-wrapper/scripts/setup_langfuse.sh b/packages/langfuse-wrapper/scripts/setup_langfuse.sh
deleted file mode 100755
index 6b340a41fc..0000000000
--- a/packages/langfuse-wrapper/scripts/setup_langfuse.sh
+++ /dev/null
@@ -1,99 +0,0 @@
-#!/bin/bash
-
-# setup_langfuse.sh
-#
-# This script sets up and runs Langfuse locally for development and testing purposes.
-#
-# Key functionalities:
-# 1. Downloads the latest docker-compose.yaml from the Langfuse repository
-# 2. Starts Langfuse using Docker Compose with default initialization variables
-# 3. Waits for the service to be available
-# 4. Launches a browser to open the local Langfuse UI
-# 5. Prints login credentials from the environment file
-#
-# Usage:
-#   ./setup_langfuse.sh
-#
-# Requirements:
-#   - Docker 
-#   - curl
-#   - A .env.langfuse.local file in the env directory
-#
-# Note: This script is intended for local development use only.
-
-set -e
-
-SCRIPT_DIR=$(realpath "$(dirname "${BASH_SOURCE[0]}")")
-LANGFUSE_DOCKER_COMPOSE_URL="https://raw.githubusercontent.com/langfuse/langfuse/main/docker-compose.yml"
-LANGFUSE_DOCKER_COMPOSE_FILE="docker-compose.yaml"
-LANGFUSE_ENV_FILE="$SCRIPT_DIR/../env/.env.langfuse.local"
-
-check_dependencies() {
-    local dependencies=("curl" "docker")
-    local missing_dependencies=()
-
-    for cmd in "${dependencies[@]}"; do
-        if ! command -v "$cmd" &> /dev/null; then
-            missing_dependencies+=("$cmd")
-        fi
-    done
-
-    if [ ${#missing_dependencies[@]} -ne 0 ]; then
-        echo "Missing dependencies: ${missing_dependencies[*]}"
-        exit 1 
-    fi
-}
-
-download_docker_compose() {
-    if ! curl --fail --location --output "$SCRIPT_DIR/docker-compose.yaml" "$LANGFUSE_DOCKER_COMPOSE_URL"; then
-        echo "Failed to download docker-compose file from $LANGFUSE_DOCKER_COMPOSE_URL"
-        exit 1
-    fi
-}
-
-start_docker_compose() {
-    docker compose --env-file "$LANGFUSE_ENV_FILE" -f "$LANGFUSE_DOCKER_COMPOSE_FILE" up --detach
-}
-
-wait_for_service() {
-    echo "Waiting for Langfuse to start..."
-    local retries=10
-    local count=0
-    until curl --silent http://localhost:3000 > /dev/null; do
-        ((count++))
-        if [ "$count" -ge "$retries" ]; then
-            echo "Max retries reached. Langfuse did not start in time."
-            exit 1 
-        fi
-        sleep 1
-    done
-    echo "Langfuse is now available!"
-}
-
-launch_browser() {
-    if [[ "$OSTYPE" == "linux-gnu"* ]]; then
-        xdg-open "http://localhost:3000"
-    elif [[ "$OSTYPE" == "darwin"* ]]; then
-        open "http://localhost:3000"
-    else
-        echo "Please open http://localhost:3000 to view Langfuse traces."
-    fi
-}
-
-print_login_variables() {
-    if [ -f "$LANGFUSE_ENV_FILE" ]; then
-        echo "If not already logged in use the following credentials to log in:"
-        grep -E "LANGFUSE_INIT_USER_EMAIL|LANGFUSE_INIT_USER_PASSWORD" "$LANGFUSE_ENV_FILE"
-    else
-        echo "Langfuse environment file with local credentials not found."
-    fi
-}
-
-check_dependencies
-pushd "$SCRIPT_DIR" > /dev/null
-download_docker_compose
-start_docker_compose
-wait_for_service
-print_login_variables
-launch_browser
-popd > /dev/null
diff --git a/packages/langfuse-wrapper/src/langfuse_wrapper/__init__.py b/packages/langfuse-wrapper/src/langfuse_wrapper/__init__.py
deleted file mode 100644
index f0816138cc..0000000000
--- a/packages/langfuse-wrapper/src/langfuse_wrapper/__init__.py
+++ /dev/null
@@ -1,3 +0,0 @@
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper  # noqa
-
-module_name = "langfuse-wrapper"
diff --git a/packages/langfuse-wrapper/src/langfuse_wrapper/langfuse_wrapper.py b/packages/langfuse-wrapper/src/langfuse_wrapper/langfuse_wrapper.py
deleted file mode 100644
index 4f464be6e1..0000000000
--- a/packages/langfuse-wrapper/src/langfuse_wrapper/langfuse_wrapper.py
+++ /dev/null
@@ -1,84 +0,0 @@
-"""
-Langfuse Integration Module
-
-This module provides integration with Langfuse, a tool for monitoring and tracing LLM applications.
-
-Usage:
-    Import this module to enable Langfuse integration.
-    It automatically checks for Langfuse credentials in the .env.langfuse file and for a running Langfuse server.
-    If these are found, it will set up the necessary client and context for tracing.
-
-Note:
-    Run setup_langfuse.sh which automates the steps for running local Langfuse.
-"""
-
-import os
-from typing import Callable
-from dotenv import load_dotenv
-from langfuse.decorators import langfuse_context
-import sys
-from io import StringIO
-from pathlib import Path
-from functools import wraps  # Add this import
-
-
-def find_package_root(start_path: Path, marker_file="pyproject.toml") -> Path:
-    while start_path != start_path.parent:
-        if (start_path / marker_file).exists():
-            return start_path
-        start_path = start_path.parent
-    return None
-
-
-def auth_check() -> bool:
-    # Temporarily redirect stdout and stderr to suppress print statements from Langfuse
-    temp_stderr = StringIO()
-    sys.stderr = temp_stderr
-
-    # Load environment variables
-    load_dotenv(LANGFUSE_ENV_FILE, override=True)
-
-    auth_val = langfuse_context.auth_check()
-
-    # Restore stderr
-    sys.stderr = sys.__stderr__
-    return auth_val
-
-
-CURRENT_DIR = Path(__file__).parent
-PACKAGE_ROOT = find_package_root(CURRENT_DIR)
-
-LANGFUSE_ENV_FILE = os.path.join(PACKAGE_ROOT, "env", ".env.langfuse.local")
-HAS_LANGFUSE_CREDENTIALS = False
-load_dotenv(LANGFUSE_ENV_FILE, override=True)
-
-HAS_LANGFUSE_CREDENTIALS = auth_check()
-
-
-def observe_wrapper(*args, **kwargs) -> Callable:  # noqa
-    """
-    A decorator that wraps a function with Langfuse context observation if credentials are available.
-
-    If Langfuse credentials were found, the function will be wrapped with Langfuse's observe method.
-    Otherwise, the function will be returned as-is.
-
-    Args:
-        *args: Positional arguments to pass to langfuse_context.observe.
-        **kwargs: Keyword arguments to pass to langfuse_context.observe.
-
-    Returns:
-        Callable: The wrapped function if credentials are available, otherwise the original function.
-    """
-
-    def _wrapper(fn: Callable) -> Callable:
-        if HAS_LANGFUSE_CREDENTIALS:
-
-            @wraps(fn)
-            def wrapped_fn(*fargs, **fkwargs):
-                return langfuse_context.observe(*args, **kwargs)(fn)(*fargs, **fkwargs)
-
-            return wrapped_fn
-        else:
-            return fn
-
-    return _wrapper
diff --git a/packages/langfuse-wrapper/tests/test_observe.py b/packages/langfuse-wrapper/tests/test_observe.py
deleted file mode 100644
index 752719ea14..0000000000
--- a/packages/langfuse-wrapper/tests/test_observe.py
+++ /dev/null
@@ -1,46 +0,0 @@
-import pytest
-from unittest.mock import patch, MagicMock
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper
-
-
-@pytest.fixture
-def mock_langfuse_context():
-    with patch("langfuse_wrapper.langfuse_wrapper.langfuse_context") as mock:
-        yield mock
-
-
-@patch("langfuse_wrapper.langfuse_wrapper.HAS_LANGFUSE_CREDENTIALS", True)
-def test_function_is_wrapped(mock_langfuse_context):
-    mock_observe = MagicMock(side_effect=lambda *args, **kwargs: lambda fn: fn)
-    mock_langfuse_context.observe = mock_observe
-
-    def original_function(x: int, y: int) -> int:
-        return x + y
-
-    # test function before we decorate it with
-    # @observe_wrapper("arg1", kwarg1="kwarg1")
-    assert not hasattr(original_function, "__wrapped__")
-
-    # ensure we args get passed along (e.g. @observe(capture_input=False, capture_output=False))
-    decorated_function = observe_wrapper("arg1", kwarg1="kwarg1")(original_function)
-    assert hasattr(decorated_function, "__wrapped__")
-    assert decorated_function.__wrapped__ is original_function, "Function is not properly wrapped"
-
-    assert decorated_function(2, 3) == 5
-    mock_observe.assert_called_once()
-    mock_observe.assert_called_with("arg1", kwarg1="kwarg1")
-
-
-@patch("langfuse_wrapper.langfuse_wrapper.HAS_LANGFUSE_CREDENTIALS", False)
-def test_function_is_not_wrapped(mock_langfuse_context):
-    mock_observe = MagicMock(return_value=lambda f: f)
-    mock_langfuse_context.observe = mock_observe
-
-    @observe_wrapper("arg1", kwarg1="kwarg1")
-    def hello() -> str:
-        return "Hello"
-
-    assert not hasattr(hello, "__wrapped__")
-    assert hello() == "Hello"
-
-    mock_observe.assert_not_called()
diff --git a/pyproject.toml b/pyproject.toml
index 3ee11275f2..08ad006123 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -12,9 +12,7 @@ dependencies = [
     "click>=8.1.7",
     "prompt-toolkit>=3.0.47",
     "keyring>=25.4.1",
-    "langfuse-wrapper",
 ]
-
 author = [{ name = "Block", email = "ai-oss-tools@block.xyz" }]
 packages = [{ include = "goose", from = "src" }]
 
@@ -67,12 +65,11 @@ dev-dependencies = [
     "mkdocstrings-python>=1.11.1",
     "mkdocstrings>=0.26.1",
     "pytest-mock>=3.14.0",
-    "pytest>=8.3.2",
+    "pytest>=8.3.2"
 ]
 
 [tool.uv.sources]
 ai-exchange = { workspace = true }
-langfuse-wrapper = { workspace = true }
 
 [tool.uv.workspace]
 members = ["packages/*"]
diff --git a/src/goose/cli/main.py b/src/goose/cli/main.py
index 7527b0adca..7d13598898 100644
--- a/src/goose/cli/main.py
+++ b/src/goose/cli/main.py
@@ -136,10 +136,7 @@ def get_session_files() -> dict[str, Path]:
 @click.option("--profile")
 @click.option("--plan", type=click.Path(exists=True))
 @click.option("--log-level", type=click.Choice(["DEBUG", "INFO", "WARNING", "ERROR", "CRITICAL"]), default="INFO")
-@click.option("--tracing", is_flag=True, required=False)
-def session_start(
-    name: Optional[str], profile: str, log_level: str, plan: Optional[str] = None, tracing: bool = False
-) -> None:
+def session_start(name: Optional[str], profile: str, log_level: str, plan: Optional[str] = None) -> None:
     """Start a new goose session"""
     if plan:
         yaml = YAML()
@@ -147,12 +144,8 @@ def session_start(
             _plan = yaml.load(f)
     else:
         _plan = None
-
-    try:
-        session = Session(name=name, profile=profile, plan=_plan, log_level=log_level, tracing=tracing)
-        session.run()
-    except RuntimeError as e:
-        print(f"[red]Error: {e}")
+    session = Session(name=name, profile=profile, plan=_plan, log_level=log_level)
+    session.run()
 
 
 def parse_args(ctx: click.Context, param: click.Parameter, value: str) -> dict[str, str]:
diff --git a/src/goose/cli/session.py b/src/goose/cli/session.py
index fdf9a8d2a0..cf9dab700e 100644
--- a/src/goose/cli/session.py
+++ b/src/goose/cli/session.py
@@ -1,11 +1,8 @@
 import traceback
 from pathlib import Path
 from typing import Any, Optional
-import logging
-from langfuse.decorators import langfuse_context
 
-from exchange import Message, ToolResult, ToolUse, Text
-from langfuse_wrapper.langfuse_wrapper import observe_wrapper, auth_check
+from exchange import Message, Text, ToolResult, ToolUse
 from rich import print
 from rich.markdown import Markdown
 from rich.panel import Panel
@@ -65,7 +62,6 @@ class Session:
         profile: Optional[str] = None,
         plan: Optional[dict] = None,
         log_level: Optional[str] = "INFO",
-        tracing: bool = False,
         **kwargs: dict[str, Any],
     ) -> None:
         if name is None:
@@ -76,20 +72,10 @@ class Session:
         self.prompt_session = GoosePromptSession()
         self.status_indicator = Status("", spinner="dots")
         self.notifier = SessionNotifier(self.status_indicator)
-        if not tracing:
-            logging.getLogger("langfuse").setLevel(logging.ERROR)
-        else:
-            langfuse_auth = auth_check()
-            if langfuse_auth:
-                print("Local Langfuse initialized. View your traces at http://localhost:3000")
-            else:
-                raise RuntimeError(
-                    "You passed --tracing, but a Langfuse object was not found in the current context. "
-                    "Please initialize the local Langfuse server and restart Goose."
-                )
-        langfuse_context.configure(enabled=tracing)
+
         self.exchange = create_exchange(profile=load_profile(profile), notifier=self.notifier)
         setup_logging(log_file_directory=LOG_PATH, log_level=log_level)
+
         self.exchange.messages.extend(self._get_initial_messages())
 
         if len(self.exchange.messages) == 0 and plan:
@@ -200,7 +186,6 @@ class Session:
         self._remove_empty_session()
         self._log_cost()
 
-    @observe_wrapper()
     def reply(self) -> None:
         """Reply to the last user message, calling tools as needed"""
         self.status_indicator.update("responding")
diff --git a/tests/cli/test_main.py b/tests/cli/test_main.py
index 38b38920f5..9f6f2f66ff 100644
--- a/tests/cli/test_main.py
+++ b/tests/cli/test_main.py
@@ -34,9 +34,7 @@ def test_session_start_command_with_session_name(mock_session):
     mock_session_class, mock_session_instance = mock_session
     runner = CliRunner()
     runner.invoke(goose_cli, ["session", "start", "session1", "--profile", "default"])
-    mock_session_class.assert_called_once_with(
-        name="session1", profile="default", plan=None, log_level="INFO", tracing=False
-    )
+    mock_session_class.assert_called_once_with(name="session1", profile="default", plan=None, log_level="INFO")
     mock_session_instance.run.assert_called_once()