diff --git a/framework/.changeset/v0.14.2.md b/framework/.changeset/v0.14.2.md
new file mode 100644
index 000000000..18f1e0cf6
--- /dev/null
+++ b/framework/.changeset/v0.14.2.md
@@ -0,0 +1 @@
+- Observability stack: update Tempo version to latest, enable traces-to-profiles, run Pyroscope with bigger and higher resolution profiles
\ No newline at end of file
diff --git a/framework/components/blockchain/anvil.go b/framework/components/blockchain/anvil.go
index f8fac1a7e..c96439a08 100644
--- a/framework/components/blockchain/anvil.go
+++ b/framework/components/blockchain/anvil.go
@@ -36,7 +36,7 @@ func defaultAnvil(in *Input) {
 		in.Port = "8545"
 	}
 	if in.ContainerName == "" {
-		in.ContainerName = "anvil"
+		in.ContainerName = "anvil-" + in.ChainID
 	}
 }
 
diff --git a/framework/components/clnode/default.go b/framework/components/clnode/default.go
index 7ed8f5383..206cf65db 100644
--- a/framework/components/clnode/default.go
+++ b/framework/components/clnode/default.go
@@ -22,6 +22,7 @@ Level = 'debug'
 [Pyroscope]
 ServerAddress = 'http://host.docker.internal:4040'
 Environment = 'local'
+LinkTracesToProfiles = true
 
 [WebServer]
 HTTPWriteTimeout = '30s'
diff --git a/framework/observability/compose/conf/provisioning/datasources/loki.yaml b/framework/observability/compose/conf/provisioning/datasources/loki.yaml
index 5e8cc01bb..a176bc3bb 100644
--- a/framework/observability/compose/conf/provisioning/datasources/loki.yaml
+++ b/framework/observability/compose/conf/provisioning/datasources/loki.yaml
@@ -3,22 +3,46 @@ apiVersion: 1
 datasources:
   - name: Tempo
     type: tempo
+    uid: tempo
     access: proxy
     url: http://tempo:3200
     isDefault: false
+    jsonData:
+      tracesToLogsV2:
+        datasourceUid: P8E80F9AEF21F6940
+        spanStartTimeShift: '-1h'
+        spanEndTimeShift: '1h'
+        filterByTraceID: true
+        filterBySpanID: true
+      tracesToProfiles:
+        datasourceUid: pyroscope
+        profileTypeId: 'process_cpu:cpu:nanoseconds:cpu:nanoseconds'
+        customQuery: true
+        query: '{service_name="chainlink-node"}'
+      serviceMap:
+        datasourceUid: PBFA97CFB590B2093
+      nodeGraph:
+        enabled: true
   - name: Loki
     type: loki
+    uid: P8E80F9AEF21F6940
     isDefault: true
     access: proxy
     url: http://loki:3100
     jsonData:
       maxLines: 5000
+      derivedFields:
+        - datasourceUid: tempo
+          matcherRegex: '"traceID":"([a-f0-9]+)"'
+          name: TraceID
+          url: '$${__value.raw}'
   - name: Prometheus
     type: prometheus
+    uid: PBFA97CFB590B2093
     access: proxy
-    url: http://prometheus:9090 # Replace with your Prometheus URL
+    url: http://prometheus:9090
     jsonData:
-      timeInterval: 5s # Adjust this interval as needed
+      timeInterval: 5s
 
   - name: PostgreSQL 0
     type: postgres
@@ -82,8 +106,11 @@ datasources:
 
   - name: Pyroscope
     type: grafana-pyroscope-datasource
+    uid: pyroscope
     access: proxy
     url: http://pyroscope:4040
     isDefault: false
     version: 1
     editable: true
+    jsonData:
+      maxNodes: 100000
diff --git a/framework/observability/compose/docker-compose.yaml b/framework/observability/compose/docker-compose.yaml
index 11175ba8b..8daf27cb7 100644
--- a/framework/observability/compose/docker-compose.yaml
+++ b/framework/observability/compose/docker-compose.yaml
@@ -1,6 +1,7 @@
 services:
   tempo:
-    image: grafana/tempo:2.3.1
+    image: grafana/tempo:2.7.1
+    user: '0:0'
     command: [ "-config.file=/etc/tempo.yaml" ]
     volumes:
       - ./tempo.yaml:/etc/tempo.yaml
@@ -10,7 +11,11 @@ services:
       - "9411:9411"   # zipkin
       - "14268:14268" # jaeger ingest
       - "14250:14250" # jaeger grpc
-      - "14400:55680" # otlp http legacy
+    deploy:
+      resources:
+        limits:
+          memory: 2G
+    restart: unless-stopped
   otel-collector:
     image: otel/opentelemetry-collector-contrib:0.123.0
     volumes:
@@ -40,6 +45,10 @@ services:
   prometheus:
     image: prom/prometheus:v3.4.1
     user: '0:0'
+    command:
+      - '--config.file=/etc/prometheus/prometheus.yml'
+      - '--web.enable-remote-write-receiver'
+      - '--enable-feature=exemplar-storage'
     volumes:
       - /var/run/docker.sock:/var/run/docker.sock
       - ./conf/prometheus.yml:/etc/prometheus/prometheus.yml
@@ -88,8 +97,9 @@ services:
     ports:
       - '4040:4040'
     command:
-      - 'server'
+      - '-config.file=/etc/pyroscope/config.yaml'
     volumes:
+      - ./pyroscope-config.yaml:/etc/pyroscope/config.yaml
       - pyroscope-storage:/var/lib/pyroscope
 
   postgres_exporter_0:
diff --git a/framework/observability/compose/pyroscope-config.yaml b/framework/observability/compose/pyroscope-config.yaml
new file mode 100644
index 000000000..6492bf3e6
--- /dev/null
+++ b/framework/observability/compose/pyroscope-config.yaml
@@ -0,0 +1,22 @@
+# Pyroscope server configuration
+# Increased limits to preserve more profile data for comparison analysis
+
+limits:
+  # Ingestion rate limits (default: 4 MiB/s rate, 2 MiB burst)
+  ingestion_rate_mb: 100
+  ingestion_burst_size_mb: 50
+  
+  # Disable sample limit to prevent profile rejection (default: 16000)
+  max_profile_stacktrace_samples: 0
+  
+  # Increase max stacktrace depth (default: 1000)
+  max_profile_stacktrace_depth: 2000
+  
+  # Increase default flame graph nodes shown (default: 8192)
+  max_flamegraph_nodes_default: 100000
+  
+  # Disable max flame graph nodes limit (default: 1048576)
+  max_flamegraph_nodes_max: 0
+  
+  # Increase max profile size (default: 4MB)
+  max_profile_size_bytes: 16777216
diff --git a/framework/observability/compose/tempo.yaml b/framework/observability/compose/tempo.yaml
index 0cffaae26..6925ab742 100644
--- a/framework/observability/compose/tempo.yaml
+++ b/framework/observability/compose/tempo.yaml
@@ -6,10 +6,54 @@ distributor:
     otlp:
       protocols:
         grpc:
+          endpoint: 0.0.0.0:4317
         http:
+          endpoint: 0.0.0.0:4318
+
+# Query frontend for TraceQL metrics
+query_frontend:
+  search:
+    duration_slo: 5s
+    throughput_bytes_slo: 1.073741824e+09
+  metrics:
+    max_duration: 0s
+
+# Querier configuration
+querier:
+  search:
+    prefer_self: 10
+
+# Metrics generator for Grafana Drilldown (RED metrics from traces)
+metrics_generator:
+  registry:
+    external_labels:
+      source: tempo
+  storage:
+    path: /tmp/tempo/generator/wal
+    remote_write:
+      - url: http://prometheus:9090/api/v1/write
+        send_exemplars: true
+  processor:
+    service_graphs:
+      dimensions:
+        - service.name
+        - service.namespace
+    span_metrics:
+      dimensions:
+        - service.name
+        - span.name
+        - span.kind
+        - status.code
+    local_blocks:
+      flush_to_storage: false
+      max_block_bytes: 100000000  # 100MB max block size for metrics generator
 
 overrides:
   max_traces_per_user: 50000
+  metrics_generator_processors:
+    - service-graphs
+    - span-metrics
+    - local-blocks
 
 storage:
   trace: