diff --git a/pkg/services/authn/grpcutils/grpc_authenticator.go b/pkg/services/authn/grpcutils/grpc_authenticator.go
index bc718b5cc9a..bb3256955a1 100644
--- a/pkg/services/authn/grpcutils/grpc_authenticator.go
+++ b/pkg/services/authn/grpcutils/grpc_authenticator.go
@@ -66,6 +66,8 @@ func NewGrpcAuthenticator(cfg *setting.Cfg, tracer tracing.Tracer) (*authnlib.Gr
 	)
 }
 
+type contextFallbackKey struct{}
+
 type AuthenticatorWithFallback struct {
 	authenticator *authnlib.GrpcAuthenticator
 	fallback      interceptors.Authenticator
@@ -96,6 +98,10 @@ func NewGrpcAuthenticatorWithFallback(cfg *setting.Cfg, reg prometheus.Registere
 	}, nil
 }
 
+func FallbackUsed(ctx context.Context) bool {
+	return ctx.Value(contextFallbackKey{}) != nil
+}
+
 func (f *AuthenticatorWithFallback) Authenticate(ctx context.Context) (context.Context, error) {
 	ctx, span := f.tracer.Start(ctx, "grpcutils.AuthenticatorWithFallback.Authenticate")
 	defer span.End()
@@ -107,6 +113,7 @@ func (f *AuthenticatorWithFallback) Authenticate(ctx context.Context) (context.C
 		newCtx, err = f.fallback.Authenticate(ctx)
 		f.metrics.fallbackCounter.WithLabelValues(fmt.Sprintf("%t", err == nil)).Inc()
 		span.SetAttributes(attribute.Bool("fallback_used", true))
+		newCtx = context.WithValue(newCtx, contextFallbackKey{}, true)
 	}
 	return newCtx, err
 }
diff --git a/pkg/storage/unified/resource/access.go b/pkg/storage/unified/resource/access.go
index 97781a7c9d8..97a8082373e 100644
--- a/pkg/storage/unified/resource/access.go
+++ b/pkg/storage/unified/resource/access.go
@@ -7,6 +7,10 @@ import (
 
 	"github.com/grafana/authlib/authz"
 	"github.com/grafana/authlib/claims"
+	"github.com/grafana/grafana/pkg/services/authn/grpcutils"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/trace"
+	"go.opentelemetry.io/otel/trace/noop"
 )
 
 type staticAuthzClient struct {
@@ -38,11 +42,19 @@ type authzLimitedClient struct {
 	// whitelist is a map of group to resources that are compatible with RBAC.
 	whitelist groupResource
 	logger    *slog.Logger
+	tracer    trace.Tracer
+}
+
+type AuthzOptions struct {
+	Tracer trace.Tracer
 }
 
 // NewAuthzLimitedClient creates a new authzLimitedClient.
-func NewAuthzLimitedClient(client authz.AccessChecker) authz.AccessClient {
+func NewAuthzLimitedClient(client authz.AccessChecker, opts AuthzOptions) authz.AccessClient {
 	logger := slog.Default().With("logger", "limited-authz-client")
+	if opts.Tracer == nil {
+		opts.Tracer = noop.NewTracerProvider().Tracer("limited-authz-client")
+	}
 	return &authzLimitedClient{
 		client: client,
 		whitelist: groupResource{
@@ -50,31 +62,57 @@ func NewAuthzLimitedClient(client authz.AccessChecker) authz.AccessClient {
 			"folder.grafana.app":    map[string]interface{}{"folders": nil},
 		},
 		logger: logger,
+		tracer: opts.Tracer,
 	}
 }
 
 // Check implements authz.AccessClient.
 func (c authzLimitedClient) Check(ctx context.Context, id claims.AuthInfo, req authz.CheckRequest) (authz.CheckResponse, error) {
+	ctx, span := c.tracer.Start(ctx, "authzLimitedClient.Check", trace.WithAttributes(
+		attribute.String("group", req.Group),
+		attribute.String("resource", req.Resource),
+		attribute.Bool("fallback", grpcutils.FallbackUsed(ctx)),
+	))
+	defer span.End()
+	if grpcutils.FallbackUsed(ctx) {
+		c.logger.Debug("Check", "group", req.Group, "resource", req.Resource, "fallback", true, "rbac", false, "allowed", true)
+		return authz.CheckResponse{Allowed: true}, nil
+	}
 	if !c.IsCompatibleWithRBAC(req.Group, req.Resource) {
-		c.logger.Debug("Check", "group", req.Group, "resource", req.Resource, "rbac", false, "allowed", true)
+		c.logger.Debug("Check", "group", req.Group, "resource", req.Resource, "fallback", false, "rbac", false, "allowed", true)
 		return authz.CheckResponse{Allowed: true}, nil
 	}
 	t := time.Now()
 	resp, err := c.client.Check(ctx, id, req)
 	if err != nil {
-		c.logger.Error("Check", "group", req.Group, "resource", req.Resource, "rbac", true, "error", err, "duration", time.Since(t))
+		c.logger.Error("Check", "group", req.Group, "resource", req.Resource, "fallback", false, "rbac", true, "error", err, "duration", time.Since(t))
 		return resp, err
 	}
-	c.logger.Debug("Check", "group", req.Group, "resource", req.Resource, "rbac", true, "allowed", resp.Allowed, "duration", time.Since(t))
+	c.logger.Debug("Check", "group", req.Group, "resource", req.Resource, "fallback", false, "rbac", true, "allowed", resp.Allowed, "duration", time.Since(t))
 	return resp, nil
 }
 
 // Compile implements authz.AccessClient.
 func (c authzLimitedClient) Compile(ctx context.Context, id claims.AuthInfo, req authz.ListRequest) (authz.ItemChecker, error) {
+	ctx, span := c.tracer.Start(ctx, "authzLimitedClient.Compile", trace.WithAttributes(
+		attribute.String("group", req.Group),
+		attribute.String("resource", req.Resource),
+	))
+	defer span.End()
 	return func(namespace string, name, folder string) bool {
+		ctx, span := c.tracer.Start(ctx, "authzLimitedClient.Compile.Check", trace.WithAttributes(
+			attribute.String("group", req.Group),
+			attribute.String("resource", req.Resource),
+			attribute.Bool("fallback", grpcutils.FallbackUsed(ctx)),
+		))
+		defer span.End()
+		if grpcutils.FallbackUsed(ctx) {
+			c.logger.Debug("Check", "group", req.Group, "resource", req.Resource, "fallback", true, "rbac", false, "allowed", true)
+			return true
+		}
 		// TODO: Implement For now we perform the check for each item.
 		if !c.IsCompatibleWithRBAC(req.Group, req.Resource) {
-			c.logger.Debug("Compile.Check", "group", req.Group, "resource", req.Resource, "namespace", namespace, "name", name, "folder", folder, "rbac", false, "allowed", true)
+			c.logger.Debug("Compile.Check", "group", req.Group, "resource", req.Resource, "namespace", namespace, "name", name, "folder", folder, "fallback", false, "rbac", false, "allowed", true)
 			return true
 		}
 		t := time.Now()
@@ -87,10 +125,10 @@ func (c authzLimitedClient) Compile(ctx context.Context, id claims.AuthInfo, req
 			Folder:    folder,
 		})
 		if err != nil {
-			c.logger.Error("Compile.Check", "group", req.Group, "resource", req.Resource, "namespace", namespace, "name", name, "folder", folder, "rbac", true, "error", err, "duration", time.Since(t))
+			c.logger.Error("Compile.Check", "group", req.Group, "resource", req.Resource, "namespace", namespace, "name", name, "folder", folder, "fallback", false, "rbac", true, "error", err, "duration", time.Since(t))
 			return false
 		}
-		c.logger.Debug("Compile.Check", "group", req.Group, "resource", req.Resource, "namespace", namespace, "name", name, "folder", folder, "rbac", true, "allowed", r.Allowed, "duration", time.Since(t))
+		c.logger.Debug("Compile.Check", "group", req.Group, "resource", req.Resource, "namespace", namespace, "name", name, "folder", folder, "fallback", false, "rbac", true, "allowed", r.Allowed, "duration", time.Since(t))
 		return r.Allowed
 	}, nil
 }
diff --git a/pkg/storage/unified/resource/access_test.go b/pkg/storage/unified/resource/access_test.go
index 129dd28f696..95192bd80c8 100644
--- a/pkg/storage/unified/resource/access_test.go
+++ b/pkg/storage/unified/resource/access_test.go
@@ -10,7 +10,7 @@ import (
 
 func TestAuthzLimitedClient_Check(t *testing.T) {
 	mockClient := &staticAuthzClient{allowed: false}
-	client := NewAuthzLimitedClient(mockClient)
+	client := NewAuthzLimitedClient(mockClient, AuthzOptions{})
 
 	tests := []struct {
 		group    string
@@ -35,7 +35,7 @@ func TestAuthzLimitedClient_Check(t *testing.T) {
 
 func TestAuthzLimitedClient_Compile(t *testing.T) {
 	mockClient := &staticAuthzClient{allowed: false}
-	client := NewAuthzLimitedClient(mockClient)
+	client := NewAuthzLimitedClient(mockClient, AuthzOptions{})
 
 	tests := []struct {
 		group    string
diff --git a/pkg/storage/unified/sql/server.go b/pkg/storage/unified/sql/server.go
index 796793f2a79..60e604e9209 100644
--- a/pkg/storage/unified/sql/server.go
+++ b/pkg/storage/unified/sql/server.go
@@ -31,7 +31,7 @@ func NewResourceServer(ctx context.Context, db infraDB.DB, cfg *setting.Cfg,
 		Reg: reg,
 	}
 	if ac != nil {
-		opts.AccessClient = resource.NewAuthzLimitedClient(ac)
+		opts.AccessClient = resource.NewAuthzLimitedClient(ac, resource.AuthzOptions{Tracer: tracer})
 	}
 	// Support local file blob
 	if strings.HasPrefix(opts.Blob.URL, "./data/") {