diff --git a/src/init/features/genkit/index.ts b/src/init/features/genkit/index.ts
index 9a2ac77d09f..8b9302d3130 100644
--- a/src/init/features/genkit/index.ts
+++ b/src/init/features/genkit/index.ts
@@ -382,7 +382,23 @@ export async function genkitSetup(
       default: true,
     }))
   ) {
-    generateSampleFile(modelOptions[model].plugin, plugins, projectDir, genkitInfo.templateVersion);
+    logger.info(
+      "Telemetry data can be used to monitor and gain insights into your AI features. There may be a cost associated with using this feature. See https://firebase.google.com/docs/genkit/observability/telemetry-collection.",
+    );
+    const enableTelemetry =
+      options.nonInteractive ||
+      (await confirm({
+        message: "Would like you to enable telemetry collection?",
+        default: true,
+      }));
+
+    generateSampleFile(
+      modelOptions[model].plugin,
+      plugins,
+      projectDir,
+      genkitInfo.templateVersion,
+      enableTelemetry,
+    );
   }
 }
 
@@ -507,6 +523,7 @@ function generateSampleFile(
   configPlugins: string[],
   projectDir: string,
   templateVersion: string,
+  enableTelemetry: boolean,
 ): void {
   let modelImport = "";
   if (modelPlugin && pluginToInfo[modelPlugin].model) {
@@ -534,6 +551,7 @@ function generateSampleFile(
           ? pluginToInfo[modelPlugin].model || pluginToInfo[modelPlugin].modelStr || ""
           : "'' /* TODO: Set a model. */",
       ),
+    enableTelemetry,
   );
   logLabeledBullet("genkit", "Generating sample file");
   try {
@@ -622,7 +640,7 @@ async function updatePackageJson(nonInteractive: boolean, projectDir: string): P
   }
 }
 
-function renderConfig(pluginNames: string[], template: string): string {
+function renderConfig(pluginNames: string[], template: string, enableTelemetry: boolean): string {
   const imports = pluginNames
     .map((pluginName) => generateImportStatement(pluginToInfo[pluginName].imports, pluginName))
     .join("\n");
@@ -631,7 +649,8 @@ function renderConfig(pluginNames: string[], template: string): string {
     "    /* Add your plugins here. */";
   return template
     .replace("$GENKIT_CONFIG_IMPORTS", imports)
-    .replace("$GENKIT_CONFIG_PLUGINS", plugins);
+    .replace("$GENKIT_CONFIG_PLUGINS", plugins)
+    .replace("$GENKIT_ENABLE_TELEMETRY", enableTelemetry.toString());
 }
 
 function generateImportStatement(imports: string, name: string): string {
diff --git a/templates/genkit/firebase.1.0.0.template b/templates/genkit/firebase.1.0.0.template
index 4b0e939d73f..21c3755240b 100644
--- a/templates/genkit/firebase.1.0.0.template
+++ b/templates/genkit/firebase.1.0.0.template
@@ -1,5 +1,6 @@
 // Import the Genkit core libraries and plugins.
 import {genkit, z} from "genkit";
+import {enableFirebaseTelemetry} from "@genkit-ai/firebase";
 $GENKIT_CONFIG_IMPORTS
 $GENKIT_MODEL_IMPORT
 
@@ -21,6 +22,13 @@ $GENKIT_CONFIG_PLUGINS
   ],
 });
 
+// The Firebase telemetry plugin exports a combination of metrics, traces, and logs to Google Cloud
+// Observability. See https://firebase.google.com/docs/genkit/observability/telemetry-collection.
+const enableTelemetry = $GENKIT_ENABLE_TELEMETRY;
+if (enableTelemetry) {
+  enableFirebaseTelemetry();
+}
+
 // Define a simple flow that prompts an LLM to generate menu suggestions.
 const menuSuggestionFlow = ai.defineFlow({
     name: "menuSuggestionFlow",