diff --git a/modules/lambda-edge/README.md b/modules/lambda-edge/README.md
new file mode 100644
index 0000000..5af5d25
--- /dev/null
+++ b/modules/lambda-edge/README.md
@@ -0,0 +1,42 @@
+# Lambda@Edge
+
+This module deploys a Lambda@Edge function (published version) with IAM role for CloudFront association.
+
+### Usage
+
+```tf
+module "edge_security_headers" {
+  source = "github.com/escaletech/terraform-modules/modules/lambda-edge"
+
+  lambda_file           = "path/to/handler.js"
+  lambda_edge_role_name = "my-edge-role"
+  lambda_function_name  = "my-edge-headers"
+
+  tags = {
+    Name        = "my-edge-headers"
+    Environment = "production"
+  }
+}
+```
+
+### X-Ray tracing and cost
+
+Lambda@Edge runs on every CloudFront request that triggers the associated event. X-Ray charges per trace recorded (~$5 per million after the 100k/month free tier).
+
+| Mode | Default | Behavior | X-Ray cost |
+|------|---------|----------|------------|
+| `PassThrough` | yes | Propagates trace context; does not create segments | ~zero |
+| `Off` | no | Tracing disabled | zero |
+| `Active` | no | Creates sampled segments (1 req/s + 5%) | scales with traffic |
+
+**Recommendation:** keep the default `PassThrough` for edge functions (e.g. security headers). Use `Active` only when end-to-end distributed tracing at the edge is required.
+
+```tf
+# Explicit opt-in to active tracing (higher X-Ray cost on high-traffic distributions)
+lambda_tracing_mode = "Active"
+
+# Fully disable tracing
+lambda_tracing_mode = "Off"
+```
+
+IAM permissions for X-Ray are attached only when `lambda_tracing_mode = "Active"`.
diff --git a/modules/lambda-edge/main.tf b/modules/lambda-edge/main.tf
index ef82ad4..1491cd7 100644
--- a/modules/lambda-edge/main.tf
+++ b/modules/lambda-edge/main.tf
@@ -11,7 +11,7 @@ data "archive_file" "lambda_zip" {
 resource "aws_iam_role" "lambda_edge_role" {
   name = var.lambda_edge_role_name
 
-  assume_role_policy = <<EOF
+  assume_role_policy = <<EOF_ASSUME_ROLE
 {
   "Version": "2012-10-17",
   "Statement": [
@@ -28,11 +28,35 @@ resource "aws_iam_role" "lambda_edge_role" {
     }
   ]
 }
-EOF
+EOF_ASSUME_ROLE
 
   tags = var.tags
 }
 
+resource "aws_iam_role_policy" "lambda_edge_xray" {
+  count = var.lambda_tracing_mode == "Active" ? 1 : 0
+
+  name = "${var.lambda_edge_role_name}-xray"
+  role = aws_iam_role.lambda_edge_role.id
+
+  policy = jsonencode({
+    Version = "2012-10-17"
+    Statement = [
+      {
+        Effect = "Allow"
+        Action = [
+          "xray:PutTraceSegments",
+          "xray:PutTelemetryRecords",
+          "xray:GetSamplingRules",
+          "xray:GetSamplingTargets",
+          "xray:GetSamplingStatisticSummaries"
+        ]
+        Resource = "*"
+      }
+    ]
+  })
+}
+
 resource "aws_lambda_function" "edge_security_headers_lambda" {
   function_name    = var.lambda_function_name
   filename         = data.archive_file.lambda_zip.output_path
@@ -42,4 +66,11 @@ resource "aws_lambda_function" "edge_security_headers_lambda" {
   source_code_hash = data.archive_file.lambda_zip.output_base64sha256 // Should only update when Lambda code changes
   role             = aws_iam_role.lambda_edge_role.arn
   tags             = var.tags
+
+  dynamic "tracing_config" {
+    for_each = var.lambda_tracing_mode == "Off" ? [] : [var.lambda_tracing_mode]
+    content {
+      mode = tracing_config.value
+    }
+  }
 }
diff --git a/modules/lambda-edge/variables.tf b/modules/lambda-edge/variables.tf
index 04db689..3bfe9c4 100644
--- a/modules/lambda-edge/variables.tf
+++ b/modules/lambda-edge/variables.tf
@@ -29,3 +29,14 @@ variable "lambda_function_name" {
     error_message = "The lambda_function_name is required."
   }
 }
+
+variable "lambda_tracing_mode" {
+  type        = string
+  description = "AWS Lambda X-Ray tracing mode. PassThrough (default) propagates trace context without creating segments — recommended for Lambda@Edge to minimize X-Ray cost. Active creates sampled trace segments (1 req/s + 5%). Off disables tracing entirely."
+  default     = "PassThrough"
+
+  validation {
+    condition     = contains(["Active", "PassThrough", "Off"], var.lambda_tracing_mode)
+    error_message = "The lambda_tracing_mode must be Active, PassThrough, or Off."
+  }
+}