diff --git a/packages/dd-trace/src/opentracing/propagation/text_map.js b/packages/dd-trace/src/opentracing/propagation/text_map.js
index c404cfc5b6a..d09d86154fd 100644
--- a/packages/dd-trace/src/opentracing/propagation/text_map.js
+++ b/packages/dd-trace/src/opentracing/propagation/text_map.js
@@ -171,6 +171,14 @@ class TextMapPropagator {
     carrier[traceparentKey] = spanContext.toTraceparent()
 
     ts.forVendor('dd', state => {
+      if (!spanContext._isRemote) {
+        // SpanContext was created by a ddtrace span.
+        // Last datadog span id should be set to the current span.
+        state.set('p', spanContext._spanId)
+      } else if (spanContext._trace.tags['_dd.parent_id']) {
+        // Propagate the last Datadog span id set on the remote span.
+        state.set('p', spanContext._trace.tags['_dd.parent_id'])
+      }
       state.set('s', priority)
       if (mechanism) {
         state.set('t.dm', `-${mechanism}`)
@@ -339,6 +347,10 @@ class TextMapPropagator {
       tracestate.forVendor('dd', state => {
         for (const [key, value] of state.entries()) {
           switch (key) {
+            case 'p': {
+              spanContext._trace.tags['_dd.parent_id'] = value
+              break
+            }
             case 's': {
               const priority = parseInt(value, 10)
               if (!Number.isInteger(priority)) continue
@@ -369,6 +381,10 @@ class TextMapPropagator {
         }
       })
 
+      if (!spanContext._trace.tags['_dd.parent_id']) {
+        spanContext._trace.tags['_dd.parent_id'] = '0000000000000000'
+      }
+
       this._extractBaggageItems(carrier, spanContext)
       return spanContext
     }
diff --git a/packages/dd-trace/test/opentracing/propagation/text_map.spec.js b/packages/dd-trace/test/opentracing/propagation/text_map.spec.js
index 4f2e927bac9..8f792375879 100644
--- a/packages/dd-trace/test/opentracing/propagation/text_map.spec.js
+++ b/packages/dd-trace/test/opentracing/propagation/text_map.spec.js
@@ -23,7 +23,7 @@ describe('TextMapPropagator', () => {
     const spanContext = new SpanContext({
       traceId: id('123', 10),
       spanId: id('456', 10),
-      isRemote: true,
+      isRemote: params.isRemote === undefined ? true : params.isRemote,
       baggageItems,
       ...params,
       trace: {
@@ -257,7 +257,8 @@ describe('TextMapPropagator', () => {
           priority: USER_KEEP,
           mechanism: SAMPLING_MECHANISM_MANUAL
         },
-        tracestate: TraceState.fromString('other=bleh,dd=s:2;o:foo_bar_;t.dm:-4')
+        tracestate: TraceState.fromString('other=bleh,dd=s:2;o:foo_bar_;t.dm:-4'),
+        isRemote: false
       })
       // Include invalid characters to verify underscore conversion
       spanContext._trace.origin = 'foo,bar='
@@ -266,11 +267,12 @@ describe('TextMapPropagator', () => {
       config.tracePropagationStyle.inject = ['tracecontext']
 
       propagator.inject(spanContext, carrier)
+      expect(spanContext._isRemote).to.equal(false)
 
       expect(carrier).to.have.property('traceparent', '00-1111aaaa2222bbbb3333cccc4444dddd-5555eeee6666ffff-01')
       expect(carrier).to.have.property(
         'tracestate',
-        'dd=t.foo_bar_baz_:abc_!@#$%^&*()_+`-~;s:2;o:foo_bar~;t.dm:-4,other=bleh'
+        'dd=t.foo_bar_baz_:abc_!@#$%^&*()_+`-~;p:5555eeee6666ffff;s:2;o:foo_bar~;t.dm:-4,other=bleh'
       )
     })
 
@@ -477,6 +479,27 @@ describe('TextMapPropagator', () => {
       expect(spanContext._tracestate.get('other')).to.equal('bleh')
     })
 
+    it('should extract the last datadog parent id from tracestate when p dd member is availible', () => {
+      textMap['traceparent'] = '00-0000000000000000000000000000007B-0000000000000456-01'
+      textMap['tracestate'] = 'other=bleh,dd=s:2;o:foo;p:2244eeee6666aaaa'
+      config.tracePropagationStyle.extract = ['tracecontext']
+
+      const carrier = textMap
+      const spanContext = propagator.extract(carrier)
+
+      expect(spanContext._trace.tags).to.have.property('_dd.parent_id', '2244eeee6666aaaa')
+    })
+
+    it('should set the last datadog parent id to zero when p: is NOT in the tracestate', () => {
+      textMap['traceparent'] = '00-0000000000000000000000000000007B-0000000000000456-01'
+      textMap['tracestate'] = 'other=gg,dd=s:-1;'
+      config.tracePropagationStyle.extract = ['tracecontext']
+
+      const carrier = textMap
+      const spanContext = propagator.extract(carrier)
+      expect(spanContext._trace.tags).to.have.property('_dd.parent_id', '0000000000000000')
+    })
+
     it(`should not extract tracestate from tracecontext when trace IDs don't match`, () => {
       textMap['traceparent'] = '00-00000000000000000000000000000789-0000000000000456-01'
       textMap['tracestate'] = 'other=bleh,dd=t.foo_bar_baz_:abc_!@#$%^&*()_+`-~;s:2;o:foo;t.dm:-4'
@@ -795,6 +818,21 @@ describe('TextMapPropagator', () => {
         expect(carrier['tracestate']).to.include('other=bleh')
       })
 
+      it('should propagate last datadog id', () => {
+        textMap['traceparent'] = '01-1111aaaa2222bbbb3333cccc4444dddd-5555eeee6666ffff-01'
+        textMap['tracestate'] = 'other=bleh,dd=s:2;o:foo;t.dm:-4;p:4444eeee6666aaaa'
+        config.tracePropagationStyle.extract = ['tracecontext']
+
+        const carrier = {}
+        const spanContext = propagator.extract(textMap)
+        // Ensure the span context is marked as remote (i.e. not generated by the current process)
+        expect(spanContext._isRemote).to.equal(true)
+
+        propagator.inject(spanContext, carrier)
+
+        expect(carrier['tracestate']).to.include('p:4444eeee6666aaaa')
+      })
+
       it('should fix _dd.p.dm if invalid (non-hyphenated) input is received', () => {
         textMap['traceparent'] = '01-1111aaaa2222bbbb3333cccc4444dddd-5555eeee6666ffff-01'
         textMap['tracestate'] = 'other=bleh,dd=t.foo_bar_baz_:abc_!@#$%^&*()_+`-~;s:2;o:foo;t.dm:4'