diff --git a/src/cli/index.ts b/src/cli/index.ts
index 0c6cad6..de8f47b 100644
--- a/src/cli/index.ts
+++ b/src/cli/index.ts
@@ -14,15 +14,13 @@ import { login } from "./login.js";
 import { logout } from "./logout.js";
 import chalk from "chalk";
 import * as Sentry from "@sentry/node";
-import "@sentry/tracing";
-import stripAnsi from "strip-ansi";
-import { productionProvisionHost, provisionHost } from "./lib/config.js";
-import { convexImport } from "./convexImport.js";
+import { initSentry } from "./lib/utils/sentry.js";
 import { dev } from "./dev.js";
 import { deploy } from "./deploy.js";
 import { logs } from "./logs.js";
 import { networkTest } from "./network_test.js";
 import { convexExport } from "./convexExport.js";
+import { convexImport } from "./convexImport.js";
 import { env } from "./env.js";
 import { data } from "./data.js";
 import inquirer from "inquirer";
@@ -40,28 +38,10 @@ function logToStderr(...args: unknown[]) {
 }
 
 async function main() {
-  // If you want to use `@sentry/tracing` in your project directly, use a named import instead:
-  // import * as SentryTracing from "@sentry/tracing"
-  // Unused named imports are not guaranteed to patch the global hub.
-
   // Use ipv4 first for 127.0.0.1 in tests
   dns.setDefaultResultOrder("ipv4first");
 
-  if (!process.env.CI && provisionHost === productionProvisionHost) {
-    Sentry.init({
-      dsn: "https://f9fa0306e3d540079cf40ce8c2ad9644@o1192621.ingest.sentry.io/6390839",
-      release: "cli@" + version,
-      tracesSampleRate: 0.2,
-      beforeBreadcrumb: (breadcrumb) => {
-        // Strip ANSI color codes from log lines that are sent as breadcrumbs.
-        if (breadcrumb.message) {
-          breadcrumb.message = stripAnsi(breadcrumb.message);
-        }
-        return breadcrumb;
-      },
-    });
-  }
-
+  initSentry();
   inquirer.registerPrompt("search-list", inquirerSearchList);
 
   const nodeVersion = process.versions.node;
diff --git a/src/cli/lib/localDeployment/run.ts b/src/cli/lib/localDeployment/run.ts
index c24e3e3..c61a1c4 100644
--- a/src/cli/lib/localDeployment/run.ts
+++ b/src/cli/lib/localDeployment/run.ts
@@ -13,7 +13,8 @@ import { promisify } from "util";
 import { Readable } from "stream";
 import { nodeFs } from "../../../bundler/fs.js";
 import detect from "detect-port";
-
+import { SENTRY_DSN } from "../utils/sentry.js";
+import { createHash } from "crypto";
 const LOCAL_BACKEND_INSTANCE_SECRET =
   "4361726e697461732c206c69746572616c6c79206d65616e696e6720226c6974";
 
@@ -137,11 +138,16 @@ export async function runLocalBackend(
   const { ports } = args;
   const deploymentDir = deploymentStateDir(args.deploymentName);
   ctx.fs.mkdir(deploymentDir, { recursive: true });
+  const deploymentNameSha = createHash("sha256")
+    .update(args.deploymentName)
+    .digest("hex");
   const commandArgs = [
     "--port",
     ports.cloud.toString(),
     "--site-proxy-port",
     ports.site.toString(),
+    "--sentry-identifier",
+    deploymentNameSha,
     "--instance-name",
     args.deploymentName,
     "--instance-secret",
@@ -153,7 +159,13 @@ export async function runLocalBackend(
   const commandStr = `${args.binaryPath} ${commandArgs.join(" ")}`;
   logVerbose(ctx, `Starting local backend: \`${commandStr}\``);
   const p = child_process
-    .spawn(args.binaryPath, commandArgs, { stdio: "ignore" })
+    .spawn(args.binaryPath, commandArgs, {
+      stdio: "ignore",
+      env: {
+        ...process.env,
+        SENTRY_DSN: SENTRY_DSN,
+      },
+    })
     .on("exit", (code) => {
       logVerbose(
         ctx,
diff --git a/src/cli/lib/utils/sentry.ts b/src/cli/lib/utils/sentry.ts
new file mode 100644
index 0000000..a931390
--- /dev/null
+++ b/src/cli/lib/utils/sentry.ts
@@ -0,0 +1,25 @@
+import "@sentry/tracing";
+import { productionProvisionHost, provisionHost } from "../config.js";
+import stripAnsi from "strip-ansi";
+import * as Sentry from "@sentry/node";
+import { version } from "../../../index.js";
+
+export const SENTRY_DSN =
+  "https://f9fa0306e3d540079cf40ce8c2ad9644@o1192621.ingest.sentry.io/6390839";
+
+export function initSentry() {
+  if (!process.env.CI && provisionHost === productionProvisionHost) {
+    Sentry.init({
+      dsn: SENTRY_DSN,
+      release: "cli@" + version,
+      tracesSampleRate: 0.2,
+      beforeBreadcrumb: (breadcrumb) => {
+        // Strip ANSI color codes from log lines that are sent as breadcrumbs.
+        if (breadcrumb.message) {
+          breadcrumb.message = stripAnsi(breadcrumb.message);
+        }
+        return breadcrumb;
+      },
+    });
+  }
+}