diff --git a/.github/workflows/core_contrib_test_0.yml b/.github/workflows/core_contrib_test_0.yml
index bbc43ce736..6a70ce8380 100644
--- a/.github/workflows/core_contrib_test_0.yml
+++ b/.github/workflows/core_contrib_test_0.yml
@@ -1075,6 +1075,28 @@ jobs:
       - name: Run tests
         run: tox -e py38-test-instrumentation-psycopg2 -- -ra
 
+  py38-test-instrumentation-psycopg2-binary:
+    name: instrumentation-psycopg2-binary 
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout contrib repo @ SHA - ${{ env.CONTRIB_REPO_SHA }}
+        uses: actions/checkout@v4
+        with:
+          repository: open-telemetry/opentelemetry-python-contrib
+          ref: ${{ env.CONTRIB_REPO_SHA }}
+
+      - name: Set up Python 3.8
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.8"
+          architecture: "x64"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py38-test-instrumentation-psycopg2-binary -- -ra
+
   py38-test-instrumentation-psycopg:
     name: instrumentation-psycopg 
     runs-on: ubuntu-latest
diff --git a/.github/workflows/test_1.yml b/.github/workflows/test_1.yml
index c1712a5367..b27fe28466 100644
--- a/.github/workflows/test_1.yml
+++ b/.github/workflows/test_1.yml
@@ -1222,6 +1222,114 @@ jobs:
       - name: Run tests
         run: tox -e py313-test-instrumentation-psycopg2 -- -ra
 
+  py38-test-instrumentation-psycopg2-binary_ubuntu-latest:
+    name: instrumentation-psycopg2-binary 3.8 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.8
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.8"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py38-test-instrumentation-psycopg2-binary -- -ra
+
+  py39-test-instrumentation-psycopg2-binary_ubuntu-latest:
+    name: instrumentation-psycopg2-binary 3.9 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.9
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.9"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py39-test-instrumentation-psycopg2-binary -- -ra
+
+  py310-test-instrumentation-psycopg2-binary_ubuntu-latest:
+    name: instrumentation-psycopg2-binary 3.10 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.10
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.10"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py310-test-instrumentation-psycopg2-binary -- -ra
+
+  py311-test-instrumentation-psycopg2-binary_ubuntu-latest:
+    name: instrumentation-psycopg2-binary 3.11 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.11
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.11"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py311-test-instrumentation-psycopg2-binary -- -ra
+
+  py312-test-instrumentation-psycopg2-binary_ubuntu-latest:
+    name: instrumentation-psycopg2-binary 3.12 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.12
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.12"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py312-test-instrumentation-psycopg2-binary -- -ra
+
+  py313-test-instrumentation-psycopg2-binary_ubuntu-latest:
+    name: instrumentation-psycopg2-binary 3.13 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.13
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.13"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py313-test-instrumentation-psycopg2-binary -- -ra
+
   py38-test-instrumentation-psycopg_ubuntu-latest:
     name: instrumentation-psycopg 3.8 Ubuntu
     runs-on: ubuntu-latest
@@ -4407,111 +4515,3 @@ jobs:
 
       - name: Run tests
         run: tox -e py38-test-util-http -- -ra
-
-  py39-test-util-http_ubuntu-latest:
-    name: util-http 3.9 Ubuntu
-    runs-on: ubuntu-latest
-    steps:
-      - name: Checkout repo @ SHA - ${{ github.sha }}
-        uses: actions/checkout@v4
-
-      - name: Set up Python 3.9
-        uses: actions/setup-python@v5
-        with:
-          python-version: "3.9"
-
-      - name: Install tox
-        run: pip install tox-uv
-
-      - name: Run tests
-        run: tox -e py39-test-util-http -- -ra
-
-  py310-test-util-http_ubuntu-latest:
-    name: util-http 3.10 Ubuntu
-    runs-on: ubuntu-latest
-    steps:
-      - name: Checkout repo @ SHA - ${{ github.sha }}
-        uses: actions/checkout@v4
-
-      - name: Set up Python 3.10
-        uses: actions/setup-python@v5
-        with:
-          python-version: "3.10"
-
-      - name: Install tox
-        run: pip install tox-uv
-
-      - name: Run tests
-        run: tox -e py310-test-util-http -- -ra
-
-  py311-test-util-http_ubuntu-latest:
-    name: util-http 3.11 Ubuntu
-    runs-on: ubuntu-latest
-    steps:
-      - name: Checkout repo @ SHA - ${{ github.sha }}
-        uses: actions/checkout@v4
-
-      - name: Set up Python 3.11
-        uses: actions/setup-python@v5
-        with:
-          python-version: "3.11"
-
-      - name: Install tox
-        run: pip install tox-uv
-
-      - name: Run tests
-        run: tox -e py311-test-util-http -- -ra
-
-  py312-test-util-http_ubuntu-latest:
-    name: util-http 3.12 Ubuntu
-    runs-on: ubuntu-latest
-    steps:
-      - name: Checkout repo @ SHA - ${{ github.sha }}
-        uses: actions/checkout@v4
-
-      - name: Set up Python 3.12
-        uses: actions/setup-python@v5
-        with:
-          python-version: "3.12"
-
-      - name: Install tox
-        run: pip install tox-uv
-
-      - name: Run tests
-        run: tox -e py312-test-util-http -- -ra
-
-  py313-test-util-http_ubuntu-latest:
-    name: util-http 3.13 Ubuntu
-    runs-on: ubuntu-latest
-    steps:
-      - name: Checkout repo @ SHA - ${{ github.sha }}
-        uses: actions/checkout@v4
-
-      - name: Set up Python 3.13
-        uses: actions/setup-python@v5
-        with:
-          python-version: "3.13"
-
-      - name: Install tox
-        run: pip install tox-uv
-
-      - name: Run tests
-        run: tox -e py313-test-util-http -- -ra
-
-  pypy3-test-util-http_ubuntu-latest:
-    name: util-http pypy-3.8 Ubuntu
-    runs-on: ubuntu-latest
-    steps:
-      - name: Checkout repo @ SHA - ${{ github.sha }}
-        uses: actions/checkout@v4
-
-      - name: Set up Python pypy-3.8
-        uses: actions/setup-python@v5
-        with:
-          python-version: "pypy-3.8"
-
-      - name: Install tox
-        run: pip install tox-uv
-
-      - name: Run tests
-        run: tox -e pypy3-test-util-http -- -ra
diff --git a/.github/workflows/test_2.yml b/.github/workflows/test_2.yml
index bc52c4eba4..d9b622c5c3 100644
--- a/.github/workflows/test_2.yml
+++ b/.github/workflows/test_2.yml
@@ -16,6 +16,114 @@ env:
 
 jobs:
 
+  py39-test-util-http_ubuntu-latest:
+    name: util-http 3.9 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.9
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.9"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py39-test-util-http -- -ra
+
+  py310-test-util-http_ubuntu-latest:
+    name: util-http 3.10 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.10
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.10"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py310-test-util-http -- -ra
+
+  py311-test-util-http_ubuntu-latest:
+    name: util-http 3.11 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.11
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.11"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py311-test-util-http -- -ra
+
+  py312-test-util-http_ubuntu-latest:
+    name: util-http 3.12 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.12
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.12"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py312-test-util-http -- -ra
+
+  py313-test-util-http_ubuntu-latest:
+    name: util-http 3.13 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python 3.13
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.13"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e py313-test-util-http -- -ra
+
+  pypy3-test-util-http_ubuntu-latest:
+    name: util-http pypy-3.8 Ubuntu
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repo @ SHA - ${{ github.sha }}
+        uses: actions/checkout@v4
+
+      - name: Set up Python pypy-3.8
+        uses: actions/setup-python@v5
+        with:
+          python-version: "pypy-3.8"
+
+      - name: Install tox
+        run: pip install tox-uv
+
+      - name: Run tests
+        run: tox -e pypy3-test-util-http -- -ra
+
   py38-test-propagator-aws-xray-0_ubuntu-latest:
     name: propagator-aws-xray-0 3.8 Ubuntu
     runs-on: ubuntu-latest
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 39e3fcdba8..3838bd844f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -39,6 +39,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
   ([#3129](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/3129))
 - `opentelemetry-util-http` Add `py.typed` file to enable PEP 561
   ([#3127](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/3127))
+- `opentelemetry-instrumentation-psycopg2` Add support for psycopg2-binary
+  ([#3186](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/3186))
 - `opentelemetry-opentelemetry-botocore` Add basic support for GenAI attributes for AWS Bedrock Converse API
   ([#3161](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/3161))
 
diff --git a/instrumentation/README.md b/instrumentation/README.md
index 75341dad9a..a229951b4b 100644
--- a/instrumentation/README.md
+++ b/instrumentation/README.md
@@ -32,7 +32,7 @@
 | [opentelemetry-instrumentation-mysqlclient](./opentelemetry-instrumentation-mysqlclient) | mysqlclient < 3 | No | experimental
 | [opentelemetry-instrumentation-pika](./opentelemetry-instrumentation-pika) | pika >= 0.12.0 | No | experimental
 | [opentelemetry-instrumentation-psycopg](./opentelemetry-instrumentation-psycopg) | psycopg >= 3.1.0 | No | experimental
-| [opentelemetry-instrumentation-psycopg2](./opentelemetry-instrumentation-psycopg2) | psycopg2 >= 2.7.3.1 | No | experimental
+| [opentelemetry-instrumentation-psycopg2](./opentelemetry-instrumentation-psycopg2) | psycopg2 >= 2.7.3.1,psycopg2-binary >= 2.7.3.1 | No | experimental
 | [opentelemetry-instrumentation-pymemcache](./opentelemetry-instrumentation-pymemcache) | pymemcache >= 1.3.5, < 5 | No | experimental
 | [opentelemetry-instrumentation-pymongo](./opentelemetry-instrumentation-pymongo) | pymongo >= 3.1, < 5.0 | No | experimental
 | [opentelemetry-instrumentation-pymysql](./opentelemetry-instrumentation-pymysql) | PyMySQL < 2 | No | experimental
diff --git a/instrumentation/opentelemetry-instrumentation-psycopg2/pyproject.toml b/instrumentation/opentelemetry-instrumentation-psycopg2/pyproject.toml
index c8ce3e8dfa..54f5bf6f3e 100644
--- a/instrumentation/opentelemetry-instrumentation-psycopg2/pyproject.toml
+++ b/instrumentation/opentelemetry-instrumentation-psycopg2/pyproject.toml
@@ -34,6 +34,7 @@ dependencies = [
 [project.optional-dependencies]
 instruments = [
   "psycopg2 >= 2.7.3.1",
+  "psycopg2-binary >= 2.7.3.1",
 ]
 
 [project.entry-points.opentelemetry_instrumentor]
diff --git a/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/__init__.py b/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/__init__.py
index f03ad1de0d..022c59f031 100644
--- a/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/__init__.py
+++ b/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/__init__.py
@@ -139,6 +139,7 @@
 
 import logging
 import typing
+from importlib.metadata import PackageNotFoundError, distribution
 from typing import Collection
 
 import psycopg2
@@ -149,7 +150,11 @@
 
 from opentelemetry.instrumentation import dbapi
 from opentelemetry.instrumentation.instrumentor import BaseInstrumentor
-from opentelemetry.instrumentation.psycopg2.package import _instruments
+from opentelemetry.instrumentation.psycopg2.package import (
+    _instruments,
+    _instruments_psycopg2,
+    _instruments_psycopg2_binary,
+)
 from opentelemetry.instrumentation.psycopg2.version import __version__
 
 _logger = logging.getLogger(__name__)
@@ -167,6 +172,21 @@ class Psycopg2Instrumentor(BaseInstrumentor):
     _DATABASE_SYSTEM = "postgresql"
 
     def instrumentation_dependencies(self) -> Collection[str]:
+        # Determine which package of psycopg2 is installed
+        # Right now there are two packages, psycopg2 and psycopg2-binary
+        # The latter is a binary wheel package that does not require a compiler
+        try:
+            distribution("psycopg2")
+            return (_instruments_psycopg2,)
+        except PackageNotFoundError:
+            pass
+
+        try:
+            distribution("psycopg2-binary")
+            return (_instruments_psycopg2_binary,)
+        except PackageNotFoundError:
+            pass
+
         return _instruments
 
     def _instrument(self, **kwargs):
diff --git a/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/package.py b/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/package.py
index 9757a8df79..b1bf92901a 100644
--- a/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/package.py
+++ b/instrumentation/opentelemetry-instrumentation-psycopg2/src/opentelemetry/instrumentation/psycopg2/package.py
@@ -13,4 +13,10 @@
 # limitations under the License.
 
 
-_instruments = ("psycopg2 >= 2.7.3.1",)
+_instruments_psycopg2 = "psycopg2 >= 2.7.3.1"
+_instruments_psycopg2_binary = "psycopg2-binary >= 2.7.3.1"
+
+_instruments = (
+    _instruments_psycopg2,
+    _instruments_psycopg2_binary,
+)
diff --git a/instrumentation/opentelemetry-instrumentation-psycopg2/test-requirements-binary.txt b/instrumentation/opentelemetry-instrumentation-psycopg2/test-requirements-binary.txt
new file mode 100644
index 0000000000..80fa036b99
--- /dev/null
+++ b/instrumentation/opentelemetry-instrumentation-psycopg2/test-requirements-binary.txt
@@ -0,0 +1,15 @@
+asgiref==3.8.1
+Deprecated==1.2.14
+iniconfig==2.0.0
+packaging==24.0
+pluggy==1.5.0
+psycopg2-binary==2.9.10
+py-cpuinfo==9.0.0
+pytest==7.4.4
+tomli==2.0.1
+typing_extensions==4.12.2
+wrapt==1.16.0
+zipp==3.19.2
+-e opentelemetry-instrumentation
+-e instrumentation/opentelemetry-instrumentation-dbapi
+-e instrumentation/opentelemetry-instrumentation-psycopg2
diff --git a/opentelemetry-instrumentation/src/opentelemetry/instrumentation/bootstrap_gen.py b/opentelemetry-instrumentation/src/opentelemetry/instrumentation/bootstrap_gen.py
index 071abe2ad7..cea9e3e11f 100644
--- a/opentelemetry-instrumentation/src/opentelemetry/instrumentation/bootstrap_gen.py
+++ b/opentelemetry-instrumentation/src/opentelemetry/instrumentation/bootstrap_gen.py
@@ -144,6 +144,10 @@
         "library": "psycopg2 >= 2.7.3.1",
         "instrumentation": "opentelemetry-instrumentation-psycopg2==0.51b0.dev",
     },
+    {
+        "library": "psycopg2-binary >= 2.7.3.1",
+        "instrumentation": "opentelemetry-instrumentation-psycopg2==0.51b0.dev",
+    },
     {
         "library": "pymemcache >= 1.3.5, < 5",
         "instrumentation": "opentelemetry-instrumentation-pymemcache==0.51b0.dev",
diff --git a/tox.ini b/tox.ini
index 70c6ae6a28..806c74b426 100644
--- a/tox.ini
+++ b/tox.ini
@@ -212,6 +212,7 @@ envlist =
 
     ; opentelemetry-instrumentation-psycopg2
     py3{8,9,10,11,12,13}-test-instrumentation-psycopg2
+    py3{8,9,10,11,12,13}-test-instrumentation-psycopg2-binary
     ; ext-psycopg2 intentionally excluded from pypy3
     lint-instrumentation-psycopg2
 
@@ -574,6 +575,9 @@ deps =
   psycopg2: {[testenv]test_deps}
   psycopg2: -r {toxinidir}/instrumentation/opentelemetry-instrumentation-psycopg2/test-requirements.txt
 
+  psycopg2-binary: {[testenv]test_deps}
+  psycopg2-binary: -r {toxinidir}/instrumentation/opentelemetry-instrumentation-psycopg2/test-requirements-binary.txt
+
   pymysql: {[testenv]test_deps}
   pymysql: -r {toxinidir}/instrumentation/opentelemetry-instrumentation-pymysql/test-requirements.txt
 
@@ -813,6 +817,9 @@ commands =
   test-instrumentation-psycopg2: pytest {toxinidir}/instrumentation/opentelemetry-instrumentation-psycopg2/tests {posargs}
   lint-instrumentation-psycopg2: sh -c "cd instrumentation && pylint --rcfile ../.pylintrc opentelemetry-instrumentation-psycopg2"
 
+   ; Test only for psycopg2-binary instrumentation as the only difference between psycopg2 and psycopg2-binary is the install method
+  test-instrumentation-psycopg2-binary: pytest {toxinidir}/instrumentation/opentelemetry-instrumentation-psycopg2/tests {posargs}
+
   test-instrumentation-pymemcache: pytest {toxinidir}/instrumentation/opentelemetry-instrumentation-pymemcache/tests {posargs}
   lint-instrumentation-pymemcache: sh -c "cd instrumentation && pylint --rcfile ../.pylintrc opentelemetry-instrumentation-pymemcache"