diff --git a/python/langsmith/run_helpers.py b/python/langsmith/run_helpers.py
index 9dee2191d..f9e3f9bb5 100644
--- a/python/langsmith/run_helpers.py
+++ b/python/langsmith/run_helpers.py
@@ -698,6 +698,7 @@ def trace(
             f"{sorted(kwargs.keys())}.",
             DeprecationWarning,
         )
+    old_ctx = get_tracing_context()
     outer_tags = _TAGS.get()
     outer_metadata = _METADATA.get()
     outer_project = _PROJECT_NAME.get() or utils.get_tracer_project()
@@ -739,6 +740,7 @@ def trace(
     new_run.post()
     _PARENT_RUN_TREE.set(new_run)
     _PROJECT_NAME.set(project_name_)
+
     try:
         yield new_run
     except (Exception, KeyboardInterrupt, BaseException) as e:
@@ -751,10 +753,8 @@ def trace(
         new_run.patch()
         raise e
     finally:
-        _PARENT_RUN_TREE.set(parent_run_)
-        _PROJECT_NAME.set(outer_project)
-        _TAGS.set(outer_tags)
-        _METADATA.set(outer_metadata)
+        # Reset the old context
+        _set_tracing_context(old_ctx)
     new_run.patch()
 
 
diff --git a/python/langsmith/utils.py b/python/langsmith/utils.py
index 72607b8b1..2c0152e0f 100644
--- a/python/langsmith/utils.py
+++ b/python/langsmith/utils.py
@@ -67,11 +67,19 @@ class LangSmithConnectionError(LangSmithError):
 
 def tracing_is_enabled() -> bool:
     """Return True if tracing is enabled."""
-    from langsmith.run_helpers import get_tracing_context
+    from langsmith.run_helpers import get_current_run_tree, get_tracing_context
 
     tc = get_tracing_context()
+    # You can manually override the environment using context vars.
+    # Check that first.
+    # Doing this before checking the run tree lets us
+    # disable a branch within a trace.
     if tc["enabled"] is not None:
         return tc["enabled"]
+    # Next check if we're mid-trace
+    if get_current_run_tree():
+        return True
+    # Finally, check the global environment
     var_result = get_env_var("TRACING_V2", default=get_env_var("TRACING", default=""))
     return var_result == "true"
 
diff --git a/python/pyproject.toml b/python/pyproject.toml
index 9e7061a3a..9b8436ecd 100644
--- a/python/pyproject.toml
+++ b/python/pyproject.toml
@@ -1,6 +1,6 @@
 [tool.poetry]
 name = "langsmith"
-version = "0.1.74"
+version = "0.1.75"
 description = "Client library to connect to the LangSmith LLM Tracing and Evaluation Platform."
 authors = ["LangChain <support@langchain.dev>"]
 license = "MIT"
diff --git a/python/tests/unit_tests/test_client.py b/python/tests/unit_tests/test_client.py
index 5e07ac147..f08e17864 100644
--- a/python/tests/unit_tests/test_client.py
+++ b/python/tests/unit_tests/test_client.py
@@ -343,7 +343,7 @@ def test_create_run_mutate() -> None:
         trace_id=id_,
         dotted_order=run_dict["dotted_order"],
     )
-    for _ in range(7):
+    for _ in range(10):
         time.sleep(0.1)  # Give the background thread time to stop
         payloads = [
             json.loads(call[2]["data"])
diff --git a/python/tests/unit_tests/test_utils.py b/python/tests/unit_tests/test_utils.py
index 29e4b4720..8fa74992a 100644
--- a/python/tests/unit_tests/test_utils.py
+++ b/python/tests/unit_tests/test_utils.py
@@ -7,7 +7,7 @@
 from datetime import datetime
 from enum import Enum
 from typing import Any, NamedTuple, Optional
-from unittest.mock import patch
+from unittest.mock import MagicMock, patch
 
 import attr
 import dataclasses_json
@@ -15,6 +15,7 @@
 from pydantic import BaseModel
 
 import langsmith.utils as ls_utils
+from langsmith import Client, traceable
 from langsmith.run_helpers import tracing_context
 
 
@@ -87,7 +88,9 @@ def test_correct_get_tracer_project(self):
 
 
 def test_tracing_enabled():
-    with patch.dict("os.environ", {"LANGCHAIN_TRACING_V2": "false"}):
+    with patch.dict(
+        "os.environ", {"LANGCHAIN_TRACING_V2": "false", "LANGSMITH_TRACING": "false"}
+    ):
         assert not ls_utils.tracing_is_enabled()
         with tracing_context(enabled=True):
             assert ls_utils.tracing_is_enabled()
@@ -97,9 +100,39 @@ def test_tracing_enabled():
             assert not ls_utils.tracing_is_enabled()
         assert not ls_utils.tracing_is_enabled()
 
+    @traceable
+    def child_function():
+        assert ls_utils.tracing_is_enabled()
+        return 1
+
+    @traceable
+    def untraced_child_function():
+        assert not ls_utils.tracing_is_enabled()
+        return 1
+
+    @traceable
+    def parent_function():
+        with patch.dict(
+            "os.environ",
+            {"LANGCHAIN_TRACING_V2": "false", "LANGSMITH_TRACING": "false"},
+        ):
+            assert ls_utils.tracing_is_enabled()
+            child_function()
+        with tracing_context(enabled=False):
+            assert not ls_utils.tracing_is_enabled()
+            return untraced_child_function()
+
+    with patch.dict(
+        "os.environ", {"LANGCHAIN_TRACING_V2": "true", "LANGSMITH_TRACING": "true"}
+    ):
+        mock_client = MagicMock(spec=Client)
+        parent_function(langsmith_extra={"client": mock_client})
+
 
 def test_tracing_disabled():
-    with patch.dict("os.environ", {"LANGCHAIN_TRACING_V2": "true"}):
+    with patch.dict(
+        "os.environ", {"LANGCHAIN_TRACING_V2": "true", "LANGSMITH_TRACING": "true"}
+    ):
         assert ls_utils.tracing_is_enabled()
         with tracing_context(enabled=False):
             assert not ls_utils.tracing_is_enabled()