add/fix(langfuse): log levels

integrations/langfuse/src/haystack_integrations/tracing/langfuse/tracer.py

@@ -4,6 +4,7 @@
 
 import contextlib
 import os
+import sys
 from abc import ABC, abstractmethod
 from collections import Counter
 from collections.abc import Iterator
@@ -299,7 +300,9 @@ def create_span(self, context: SpanContext) -> LangfuseSpan:
             )
             # Create a new trace when there's no parent span
             span_context_manager = self.tracer.start_as_current_observation(
-                name=context.trace_name, version=tracing_ctx.get("version"), as_type=root_span_type
+                name=context.trace_name,
+                version=tracing_ctx.get("version"),
+                as_type=root_span_type,
             )
 
             # Create LangfuseSpan which will handle entering the context manager
@@ -466,16 +469,50 @@ def trace(
 
         try:
             yield span
-        finally:
-            # Always clean up context, even if nested operations fail
+        except Exception:
+            # Exception occurred - capture exception info and pass to __exit__
+            # This allows Langfuse/OpenTelemetry to properly mark the span with ERROR level
+            exc_info = sys.exc_info()
             try:
                 # Process span data (may fail with nested pipeline exceptions)
                 self._span_handler.handle(span, component_type)
 
-                # End span (may fail if span data is corrupted)
+                # End span with exception info (may fail if span data is corrupted)
+                raw_span = span.raw_span()
+                if span._context_manager is not None:
+                    # Pass actual exception info to mark span as failed with ERROR level
+                    span._context_manager.__exit__(*exc_info)
+                elif hasattr(raw_span, "end"):
+                    # Only call end() if it's not a context manager
+                    raw_span.end()
+            except Exception as cleanup_error:
+                # Log cleanup errors but don't let them corrupt context
+                logger.warning(
+                    "Error during span cleanup for {operation_name}: {cleanup_error}",
+                    operation_name=operation_name,
+                    cleanup_error=cleanup_error,
+                )
+            finally:
+                # Restore previous span stack using saved token - ensures proper cleanup
+                span_stack_var.reset(token)
+
+            if self.enforce_flush:
+                self.flush()
+
+            # Re-raise the original exception
+            raise
+        else:
+            # No exception - clean exit with success status
+            # This preserves any manually-set log levels (WARNING, DEBUG)
+            try:
+                # Process span data
+                self._span_handler.handle(span, component_type)
+
+                # End span successfully
                 raw_span = span.raw_span()
                 # In v3, we need to properly exit context managers
                 if span._context_manager is not None:
+                    # No exception - pass None to indicate success
                     span._context_manager.__exit__(None, None, None)
                 elif hasattr(raw_span, "end"):
                     # Only call end() if it's not a context manager

integrations/langfuse/tests/test_tracer.py

@@ -690,3 +690,54 @@ async def run_concurrent_traces():
         assert task2_spans[1][2] == task2_inner  # current_span during inner
         assert task2_spans[2][2] == task2_outer  # current_span after inner
         assert task2_spans[3][2] is None  # current_span after outer
+
+    def test_trace_exception_handling(self):
+        """
+        Test that exceptions are properly captured and passed to span __exit__.
+
+        This verifies the new exception handling behavior where:
+        - Exception case: __exit__() receives (exc_type, exc_val, exc_tb)
+        - Success case: __exit__() receives (None, None, None)
+        """
+        # Create a mock context manager that tracks how __exit__ was called
+        mock_exit_calls = []
+
+        class TrackingContextManager:
+            def __init__(self):
+                self._span = MockSpan()
+
+            def __enter__(self):
+                return self._span
+
+            def __exit__(self, exc_type, exc_val, exc_tb):
+                # Track what was passed to __exit__
+                mock_exit_calls.append((exc_type, exc_val, exc_tb))
+                return False  # Don't suppress exceptions
+
+        mock_client = MockLangfuseClient()
+        mock_client._mock_context_manager = TrackingContextManager()
+
+        tracer = LangfuseTracer(tracer=mock_client, name="Test", public=False)
+
+        # Test 1: Exception case - __exit__ should receive exception info
+        mock_exit_calls.clear()
+        error_msg = "test error"
+        with pytest.raises(ValueError, match="test error"):
+            with tracer.trace("test_operation"):
+                raise ValueError(error_msg)
+
+        assert len(mock_exit_calls) == 1
+        assert mock_exit_calls[0][0] is ValueError  # exc_type
+        assert str(mock_exit_calls[0][1]) == error_msg  # exc_val
+        assert mock_exit_calls[0][2] is not None  # exc_tb (traceback)
+
+        # Test 2: Success case - __exit__ should receive (None, None, None)
+        mock_exit_calls.clear()
+        with tracer.trace("test_operation"):
+            pass  # No exception
+
+        assert len(mock_exit_calls) == 1
+        assert mock_exit_calls[0] == (None, None, None)
+
+        # Test 3: Verify span stack is cleaned up after exception
+        assert tracer.current_span() is None