diff --git a/client/subscribe.go b/client/subscribe.go
index 4bfa48d9..aa17ad22 100644
--- a/client/subscribe.go
+++ b/client/subscribe.go
@@ -25,6 +25,7 @@ import (
 
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/status"
+	"google.golang.org/protobuf/types/known/structpb"
 
 	pb "github.com/dapr/dapr/pkg/proto/runtime/v1"
 	"github.com/dapr/go-sdk/service/common"
@@ -195,6 +196,8 @@ func (s *Subscription) Receive() (*SubscriptionMessage, error) {
 			RawData:         event.GetData(),
 			Topic:           event.GetTopic(),
 			PubsubName:      event.GetPubsubName(),
+			TraceID:         getStringValueFromExtension(event.GetExtensions(), "traceid"),
+			TraceParent:     getStringValueFromExtension(event.GetExtensions(), "traceparent"),
 		}
 
 		return &SubscriptionMessage{
@@ -297,3 +300,18 @@ func (s *Subscription) closeStreamOnly() error {
 	}
 	return nil
 }
+
+func getStringValueFromExtension(extension *structpb.Struct, key string) string {
+	if extension == nil {
+		return ""
+	}
+	value, ok := extension.GetFields()[key]
+	if !ok {
+		return ""
+	}
+	typed, ok := value.GetKind().(*structpb.Value_StringValue)
+	if !ok {
+		return ""
+	}
+	return typed.StringValue
+}
diff --git a/service/grpc/topic.go b/service/grpc/topic.go
index b3ef4dcc..3ed08673 100644
--- a/service/grpc/topic.go
+++ b/service/grpc/topic.go
@@ -23,6 +23,7 @@ import (
 
 	"google.golang.org/grpc/metadata"
 	"google.golang.org/protobuf/types/known/emptypb"
+	"google.golang.org/protobuf/types/known/structpb"
 
 	runtimev1pb "github.com/dapr/dapr/pkg/proto/runtime/v1"
 	"github.com/dapr/go-sdk/service/common"
@@ -139,6 +140,8 @@ func (s *Server) OnTopicEvent(ctx context.Context, in *runtimev1pb.TopicEventReq
 			Topic:           in.GetTopic(),
 			PubsubName:      in.GetPubsubName(),
 			Metadata:        getCustomMetadataFromContext(ctx),
+			TraceID:         getStringValueFromExtension(in.GetExtensions(), "traceid"),
+			TraceParent:     getStringValueFromExtension(in.GetExtensions(), "traceparent"),
 		}
 		h := sub.DefaultHandler
 		if in.GetPath() != "" {
@@ -183,3 +186,18 @@ func getCustomMetadataFromContext(ctx context.Context) map[string]string {
 func (s *Server) OnBulkTopicEventAlpha1(ctx context.Context, in *runtimev1pb.TopicEventBulkRequest) (*runtimev1pb.TopicEventBulkResponse, error) {
 	panic("This API callback is not supported.")
 }
+
+func getStringValueFromExtension(extension *structpb.Struct, key string) string {
+	if extension == nil {
+		return ""
+	}
+	value, ok := extension.GetFields()[key]
+	if !ok {
+		return ""
+	}
+	typed, ok := value.GetKind().(*structpb.Value_StringValue)
+	if !ok {
+		return ""
+	}
+	return typed.StringValue
+}
diff --git a/service/grpc/topic_test.go b/service/grpc/topic_test.go
index 854362ec..94c4c0c0 100644
--- a/service/grpc/topic_test.go
+++ b/service/grpc/topic_test.go
@@ -20,6 +20,7 @@ import (
 
 	"github.com/stretchr/testify/require"
 	"google.golang.org/grpc/metadata"
+	"google.golang.org/protobuf/types/known/structpb"
 
 	"github.com/stretchr/testify/assert"
 	"google.golang.org/protobuf/types/known/emptypb"
@@ -163,6 +164,42 @@ func TestTopic(t *testing.T) {
 		require.NoError(t, err)
 	})
 
+	t.Run("topic event with traceid and traceparent", func(t *testing.T) {
+		sub2 := &common.Subscription{
+			PubsubName: "messages",
+			Topic:      "test2",
+		}
+
+		err := server.AddTopicEventHandler(sub2,
+			func(ctx context.Context, e *common.TopicEvent) (retry bool, err error) {
+				assert.Equal(t, "expected-traceid-value", e.TraceID)
+				assert.Equal(t, "expected-traceparent-value", e.TraceParent)
+				return false, nil
+			})
+		require.NoError(t, err)
+
+		extensions, err := structpb.NewStruct(map[string]any{
+			"traceid":     "expected-traceid-value",
+			"traceparent": "expected-traceparent-value",
+		})
+		require.NoError(t, err)
+
+		in := &runtime.TopicEventRequest{
+			Id:              "a123",
+			Source:          "test",
+			Type:            "test",
+			SpecVersion:     "v1.0",
+			DataContentType: "text/plain",
+			Data:            []byte("test"),
+			Topic:           sub2.Topic,
+			PubsubName:      sub2.PubsubName,
+			Extensions:      extensions,
+		}
+		ctx := context.Background()
+		_, err = server.OnTopicEvent(ctx, in)
+		require.NoError(t, err)
+	})
+
 	stopTestServer(t, server)
 }