diff --git a/src/gp_debug.c b/src/gp_debug.c
index cfc50c40c..499055ecd 100644
--- a/src/gp_debug.c
+++ b/src/gp_debug.c
@@ -9,7 +9,16 @@
 
 /* global debug switch */
 int gp_debug = 0;
+bool gp_env_trace = false;
 
+/* determine if we can set KRB5_TRACE or the user already set it.
+ * we do not override a user's setting */
+void gp_debug_check_env_(void)
+{
+    if (getenv("KRB5_TRACE")) {
+        gp_env_trace = true;
+    }
+}
 
 void (*gp_debug_setup_k5_trace_fn)(int) = NULL;
 
@@ -27,24 +36,26 @@ void gp_debug_set_krb5_tracing_fn(void (*fn)(int))
      * initial debug level is set via configuration.
      * Make sure to immedaiately call it if debug level is
      * already above 3 */
-    if (gp_debug >= 3 && !getenv("KRB5_TRACE")) {
+    if (gp_debug >= 3 && !gp_env_trace) {
         gp_debug_setup_k5_trace_fn(1);
     }
 }
 
 void gp_debug_toggle(int level)
 {
-    if (level >= 3 && !getenv("KRB5_TRACE")) {
-        if (gp_debug_setup_k5_trace_fn) {
-            gp_debug_setup_k5_trace_fn(1);
-        } else {
-            setenv("KRB5_TRACE", "/dev/stderr", 1);
-        }
-    } else if (level < 3) {
-        if (gp_debug_setup_k5_trace_fn) {
-            gp_debug_setup_k5_trace_fn(0);
-        } else {
-            unsetenv("KRB5_TRACE");
+    if (!gp_env_trace) {
+        if (level >= 3) {
+            if (gp_debug_setup_k5_trace_fn) {
+                gp_debug_setup_k5_trace_fn(1);
+            } else {
+                setenv("KRB5_TRACE", "/dev/stderr", 1);
+            }
+        } else if (level < 3) {
+            if (gp_debug_setup_k5_trace_fn) {
+                gp_debug_setup_k5_trace_fn(0);
+            } else {
+                unsetenv("KRB5_TRACE");
+            }
         }
     }
 
diff --git a/src/gp_debug.h b/src/gp_debug.h
index 04265b0eb..fc811d71f 100644
--- a/src/gp_debug.h
+++ b/src/gp_debug.h
@@ -12,6 +12,7 @@
 
 extern int gp_debug;
 
+void gp_debug_check_env_(void);
 void gp_debug_toggle(int);
 void gp_debug_printf(const char *format, ...);
 void gp_debug_time_printf(const char *format, ...);
diff --git a/src/gssproxy.c b/src/gssproxy.c
index 3e5326ccf..e6f44fa4c 100644
--- a/src/gssproxy.c
+++ b/src/gssproxy.c
@@ -86,14 +86,18 @@ int main(int argc, const char *argv[])
         goto cleanup;
     }
 
-    /* set tracing function before handling debug level */
-    gp_debug_set_krb5_tracing_fn(&gp_krb5_tracing_setup);
+    gp_debug_check_env_();
 
     if (opt_debug || opt_debug_level > 0) {
         if (opt_debug_level == 0) opt_debug_level = 1;
         gp_debug_toggle(opt_debug_level);
     }
 
+    /* if we are in interactive mode set up tracing immediately */
+    if (opt_interactive) {
+        gp_debug_set_krb5_tracing_fn(&gp_krb5_tracing_setup);
+    }
+
     if (opt_extract_ccache) {
         ret = extract_ccache(opt_extract_ccache, opt_dest_ccache);
         goto cleanup;
@@ -141,6 +145,12 @@ int main(int argc, const char *argv[])
 
     init_server(gpctx->config->daemonize, opt_userproxy, &wait_fd);
 
+    if (!opt_interactive) {
+        /* set tracing function *after* demonizing, or we kill the
+         * trace reader thread */
+        gp_debug_set_krb5_tracing_fn(&gp_krb5_tracing_setup);
+    }
+
     if (!gpctx->userproxymode) {
         write_pid();
     }