diff --git a/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContext.java b/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContext.java
index ff871c96e1ad9..6580b0e0085ef 100644
--- a/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContext.java
+++ b/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContext.java
@@ -161,7 +161,7 @@ public StoredContext stashContext() {
             );
         }
 
-        final Map<String, Object> transientHeaders = propagateTransients(context.transientHeaders);
+        final Map<String, Object> transientHeaders = propagateTransients(context.transientHeaders, context.isSystemContext);
         if (!transientHeaders.isEmpty()) {
             threadContextStruct = threadContextStruct.putTransient(transientHeaders);
         }
@@ -182,7 +182,7 @@ public StoredContext stashContext() {
     public Writeable captureAsWriteable() {
         final ThreadContextStruct context = threadLocal.get();
         return out -> {
-            final Map<String, String> propagatedHeaders = propagateHeaders(context.transientHeaders);
+            final Map<String, String> propagatedHeaders = propagateHeaders(context.transientHeaders, context.isSystemContext);
             context.writeTo(out, defaultHeader, propagatedHeaders);
         };
     }
@@ -245,7 +245,7 @@ public StoredContext newStoredContext(boolean preserveResponseHeaders, Collectio
         final Map<String, Object> newTransientHeaders = new HashMap<>(originalContext.transientHeaders);
 
         boolean transientHeadersModified = false;
-        final Map<String, Object> transientHeaders = propagateTransients(originalContext.transientHeaders);
+        final Map<String, Object> transientHeaders = propagateTransients(originalContext.transientHeaders, originalContext.isSystemContext);
         if (!transientHeaders.isEmpty()) {
             newTransientHeaders.putAll(transientHeaders);
             transientHeadersModified = true;
@@ -322,7 +322,7 @@ public Supplier<StoredContext> wrapRestorable(StoredContext storedContext) {
     @Override
     public void writeTo(StreamOutput out) throws IOException {
         final ThreadContextStruct context = threadLocal.get();
-        final Map<String, String> propagatedHeaders = propagateHeaders(context.transientHeaders);
+        final Map<String, String> propagatedHeaders = propagateHeaders(context.transientHeaders, context.isSystemContext);
         context.writeTo(out, defaultHeader, propagatedHeaders);
     }
 
@@ -534,17 +534,7 @@ boolean isDefaultContext() {
      * by the system itself rather than by a user action.
      */
     public void markAsSystemContext() {
-        ThreadContextStruct threadContextStruct = threadLocal.get();
-        final Map<String, Object> transients = new HashMap<>();
-        propagators.forEach(p -> transients.putAll(p.transientsForSystemContext(threadContextStruct.transientHeaders)));
-        ThreadContextStruct newThreadContextStruct = new ThreadContextStruct(
-            threadContextStruct.requestHeaders,
-            threadContextStruct.responseHeaders,
-            transients,
-            threadContextStruct.persistentHeaders,
-            threadContextStruct.isSystemContext
-        );
-        threadLocal.set(newThreadContextStruct.setSystemContext());
+        threadLocal.set(threadLocal.get().setSystemContext(propagators));
     }
 
     /**
@@ -583,15 +573,15 @@ public static Map<String, String> buildDefaultHeaders(Settings settings) {
         }
     }
 
-    private Map<String, Object> propagateTransients(Map<String, Object> source) {
+    private Map<String, Object> propagateTransients(Map<String, Object> source, boolean isSystemContext) {
         final Map<String, Object> transients = new HashMap<>();
-        propagators.forEach(p -> transients.putAll(p.transients(source)));
+        propagators.forEach(p -> transients.putAll(p.transients(source, isSystemContext)));
         return transients;
     }
 
-    private Map<String, String> propagateHeaders(Map<String, Object> source) {
+    private Map<String, String> propagateHeaders(Map<String, Object> source, boolean isSystemContext) {
         final Map<String, String> headers = new HashMap<>();
-        propagators.forEach(p -> headers.putAll(p.headers(source)));
+        propagators.forEach(p -> headers.putAll(p.headers(source, isSystemContext)));
         return headers;
     }
 
@@ -613,11 +603,13 @@ private static final class ThreadContextStruct {
         // saving current warning headers' size not to recalculate the size with every new warning header
         private final long warningHeadersSize;
 
-        private ThreadContextStruct setSystemContext() {
+        private ThreadContextStruct setSystemContext(final List<ThreadContextStatePropagator> propagators) {
             if (isSystemContext) {
                 return this;
             }
-            return new ThreadContextStruct(requestHeaders, responseHeaders, transientHeaders, persistentHeaders, true);
+            final Map<String, Object> transients = new HashMap<>();
+            propagators.forEach(p -> transients.putAll(p.transients(transientHeaders, true)));
+            return new ThreadContextStruct(requestHeaders, responseHeaders, transients, persistentHeaders, true);
         }
 
         private ThreadContextStruct(
diff --git a/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContextStatePropagator.java b/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContextStatePropagator.java
index 73346cdca256b..d6b65b4c0bdf9 100644
--- a/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContextStatePropagator.java
+++ b/server/src/main/java/org/opensearch/common/util/concurrent/ThreadContextStatePropagator.java
@@ -10,7 +10,6 @@
 
 import org.opensearch.common.annotation.PublicApi;
 
-import java.util.HashMap;
 import java.util.Map;
 
 /**
@@ -23,24 +22,19 @@
 public interface ThreadContextStatePropagator {
     /**
      * Returns the list of transient headers that needs to be propagated from current context to new thread context.
-     * @param source current context transient headers
+     *
+     * @param source          current context transient headers
+     * @param isSystemContext if the propagation is for system context.
      * @return the list of transient headers that needs to be propagated from current context to new thread context
      */
-    Map<String, Object> transients(Map<String, Object> source);
-
-    /**
-     * Returns the list of transient headers that need to be propagated to the child system context.
-     * @param source current context transient headers
-     * @return the list of transient headers that needs to be propagated from current context to new thread context
-     */
-    default Map<String, Object> transientsForSystemContext(Map<String, Object> source) {
-        return new HashMap<>();
-    }
+    Map<String, Object> transients(Map<String, Object> source, boolean isSystemContext);
 
     /**
      * Returns the list of request headers that needs to be propagated from current context to request.
-     * @param source current context headers
+     *
+     * @param source          current context headers
+     * @param isSystemContext if the propagation is for system context.
      * @return the list of request headers that needs to be propagated from current context to request
      */
-    Map<String, String> headers(Map<String, Object> source);
+    Map<String, String> headers(Map<String, Object> source, boolean isSystemContext);
 }
diff --git a/server/src/main/java/org/opensearch/tasks/TaskThreadContextStatePropagator.java b/server/src/main/java/org/opensearch/tasks/TaskThreadContextStatePropagator.java
index 73b9123df3cc3..b7ed5e620b73b 100644
--- a/server/src/main/java/org/opensearch/tasks/TaskThreadContextStatePropagator.java
+++ b/server/src/main/java/org/opensearch/tasks/TaskThreadContextStatePropagator.java
@@ -21,7 +21,7 @@
  */
 public class TaskThreadContextStatePropagator implements ThreadContextStatePropagator {
     @Override
-    public Map<String, Object> transients(Map<String, Object> source) {
+    public Map<String, Object> transients(Map<String, Object> source, boolean isSystemContext) {
         final Map<String, Object> transients = new HashMap<>();
 
         if (source.containsKey(TASK_ID)) {
@@ -32,12 +32,7 @@ public Map<String, Object> transients(Map<String, Object> source) {
     }
 
     @Override
-    public Map<String, Object> transientsForSystemContext(Map<String, Object> source) {
-        return transients(source);
-    }
-
-    @Override
-    public Map<String, String> headers(Map<String, Object> source) {
+    public Map<String, String> headers(Map<String, Object> source, boolean isSystemContext) {
         return Collections.emptyMap();
     }
 }
diff --git a/server/src/main/java/org/opensearch/telemetry/tracing/ThreadContextBasedTracerContextStorage.java b/server/src/main/java/org/opensearch/telemetry/tracing/ThreadContextBasedTracerContextStorage.java
index 863f56d9fbe94..756d364cfb80d 100644
--- a/server/src/main/java/org/opensearch/telemetry/tracing/ThreadContextBasedTracerContextStorage.java
+++ b/server/src/main/java/org/opensearch/telemetry/tracing/ThreadContextBasedTracerContextStorage.java
@@ -50,21 +50,19 @@ public void put(String key, Span span) {
     }
 
     @Override
-    public Map<String, Object> transients(Map<String, Object> source) {
+    public Map<String, Object> transients(Map<String, Object> source, boolean isSystemContext) {
         final Map<String, Object> transients = new HashMap<>();
-
-        if (source.containsKey(CURRENT_SPAN)) {
+        if (isSystemContext == false && source.containsKey(CURRENT_SPAN)) {
             final SpanReference current = (SpanReference) source.get(CURRENT_SPAN);
             if (current != null) {
                 transients.put(CURRENT_SPAN, new SpanReference(current.getSpan()));
             }
         }
-
         return transients;
     }
 
     @Override
-    public Map<String, String> headers(Map<String, Object> source) {
+    public Map<String, String> headers(Map<String, Object> source, boolean isSystemContext) {
         final Map<String, String> headers = new HashMap<>();
 
         if (source.containsKey(CURRENT_SPAN)) {