diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5ec6fd7db..7cb52ec0d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,13 @@
 ### Features
 
 - Make `:value` in `SingleExceptionInterface` writable, so that it can be modified in `before_send` under `event.exception.values[n].value` [#2072](https://github.com/getsentry/sentry-ruby/pull/2072)
+- Add new `config.trace_propagation_targets` option to set targets for which headers are propagated in outgoing HTTP requests [#2079](https://github.com/getsentry/sentry-ruby/pull/2079)
+
+  ```rb
+  # takes an array of strings or regexps
+  config.trace_propagation_targets = [/.*/]  # default is to all targets
+  config.trace_propagation_targets = [/example.com/, 'foobar.org/api/v2']
+  ```
 
 ## 5.10.0
 
diff --git a/sentry-ruby/lib/sentry/configuration.rb b/sentry-ruby/lib/sentry/configuration.rb
index fb619adcb..11c2ce3bd 100644
--- a/sentry-ruby/lib/sentry/configuration.rb
+++ b/sentry-ruby/lib/sentry/configuration.rb
@@ -243,6 +243,11 @@ def capture_exception_frame_locals=(value)
     # @return [Boolean]
     attr_accessor :auto_session_tracking
 
+    # Allowlist of outgoing request targets to which sentry-trace and baggage headers are attached.
+    # Default is all (/.*/)
+    # @return [Array<String, Regexp>]
+    attr_accessor :trace_propagation_targets
+
     # The instrumenter to use, :sentry or :otel
     # @return [Symbol]
     attr_reader :instrumenter
@@ -290,6 +295,8 @@ def capture_exception_frame_locals=(value)
 
     INSTRUMENTERS = [:sentry, :otel]
 
+    PROPAGATION_TARGETS_MATCH_ALL = /.*/.freeze
+
     class << self
       # Post initialization callbacks are called at the end of initialization process
       # allowing extending the configuration of sentry-ruby by multiple extensions
@@ -332,6 +339,7 @@ def initialize
       self.dsn = ENV['SENTRY_DSN']
       self.server_name = server_name_from_env
       self.instrumenter = :sentry
+      self.trace_propagation_targets = [PROPAGATION_TARGETS_MATCH_ALL]
 
       self.before_send = nil
       self.before_send_transaction = nil
diff --git a/sentry-ruby/lib/sentry/net/http.rb b/sentry-ruby/lib/sentry/net/http.rb
index 470d1a796..989d8f393 100644
--- a/sentry-ruby/lib/sentry/net/http.rb
+++ b/sentry-ruby/lib/sentry/net/http.rb
@@ -30,13 +30,13 @@ def request(req, body = nil, &block)
         return super if from_sentry_sdk?
 
         Sentry.with_child_span(op: OP_NAME, start_timestamp: Sentry.utc_now.to_f) do |sentry_span|
-          set_sentry_trace_header(req, sentry_span)
+          request_info = extract_request_info(req)
+          set_sentry_trace_header(req, sentry_span, request_info)
 
           super.tap do |res|
-            record_sentry_breadcrumb(req, res)
+            record_sentry_breadcrumb(request_info, res)
 
             if sentry_span
-              request_info = extract_request_info(req)
               sentry_span.set_description("#{request_info[:method]} #{request_info[:url]}")
               sentry_span.set_data('url', request_info[:url])
               sentry_span.set_data('http.method', request_info[:method])
@@ -49,10 +49,11 @@ def request(req, body = nil, &block)
 
       private
 
-      def set_sentry_trace_header(req, sentry_span)
+      def set_sentry_trace_header(req, sentry_span, request_info)
         return unless sentry_span
 
         client = Sentry.get_current_client
+        return unless propagate_trace?(request_info[:url], client.configuration.trace_propagation_targets)
 
         trace = client.generate_sentry_trace(sentry_span)
         req[SENTRY_TRACE_HEADER_NAME] = trace if trace
@@ -61,11 +62,9 @@ def set_sentry_trace_header(req, sentry_span)
         req[BAGGAGE_HEADER_NAME] = baggage if baggage && !baggage.empty?
       end
 
-      def record_sentry_breadcrumb(req, res)
+      def record_sentry_breadcrumb(request_info, res)
         return unless Sentry.initialized? && Sentry.configuration.breadcrumbs_logger.include?(:http_logger)
 
-        request_info = extract_request_info(req)
-
         crumb = Sentry::Breadcrumb.new(
           level: :info,
           category: BREADCRUMB_CATEGORY,
@@ -96,6 +95,10 @@ def extract_request_info(req)
 
         result
       end
+
+      def propagate_trace?(url, trace_propagation_targets)
+        url && trace_propagation_targets.any? { |target| url.match?(target) }
+      end
     end
   end
 end
diff --git a/sentry-ruby/spec/sentry/configuration_spec.rb b/sentry-ruby/spec/sentry/configuration_spec.rb
index ac49db207..6cd571600 100644
--- a/sentry-ruby/spec/sentry/configuration_spec.rb
+++ b/sentry-ruby/spec/sentry/configuration_spec.rb
@@ -511,6 +511,17 @@ class SentryConfigurationSample < Sentry::Configuration
     end
   end
 
+  describe "#trace_propagation_targets" do
+    it "returns match all by default" do
+      expect(subject.trace_propagation_targets).to eq([/.*/])
+    end
+
+    it "accepts array of strings or regexps" do
+      subject.trace_propagation_targets = ["example.com", /foobar.org\/api\/v2/]
+      expect(subject.trace_propagation_targets).to eq(["example.com", /foobar.org\/api\/v2/])
+    end
+  end
+
   describe "#instrumenter" do
     it "returns :sentry by default" do
       expect(subject.instrumenter).to eq(:sentry)
diff --git a/sentry-ruby/spec/sentry/net/http_spec.rb b/sentry-ruby/spec/sentry/net/http_spec.rb
index 35279ad81..dc4605ffc 100644
--- a/sentry-ruby/spec/sentry/net/http_spec.rb
+++ b/sentry-ruby/spec/sentry/net/http_spec.rb
@@ -216,6 +216,76 @@
       end
     end
 
+    context "with custom trace_propagation_targets" do
+      before do
+        Sentry.configuration.trace_propagation_targets = ["example.com", /foobar.org\/api\/v2/]
+      end
+
+      it "doesn't add sentry headers to outgoing requests to different target" do
+        stub_normal_response
+
+        uri = URI("http://google.com/path")
+        http = Net::HTTP.new(uri.host, uri.port)
+        request = Net::HTTP::Get.new(uri.request_uri)
+
+        transaction = Sentry.start_transaction
+        Sentry.get_current_scope.set_span(transaction)
+
+        http.request(request)
+
+        expect(request.key?("sentry-trace")).to eq(false)
+        expect(request.key?("baggage")).to eq(false)
+      end
+
+      it "doesn't add sentry headers to outgoing requests to different target path" do
+        stub_normal_response
+
+        uri = URI("http://foobar.org/api/v1/path")
+        http = Net::HTTP.new(uri.host, uri.port)
+        request = Net::HTTP::Get.new(uri.request_uri)
+
+        transaction = Sentry.start_transaction
+        Sentry.get_current_scope.set_span(transaction)
+
+        http.request(request)
+
+        expect(request.key?("sentry-trace")).to eq(false)
+        expect(request.key?("baggage")).to eq(false)
+      end
+
+      it "adds sentry headers to outgoing requests matching string" do
+        stub_normal_response
+
+        uri = URI("http://example.com/path")
+        http = Net::HTTP.new(uri.host, uri.port)
+        request = Net::HTTP::Get.new(uri.request_uri)
+
+        transaction = Sentry.start_transaction
+        Sentry.get_current_scope.set_span(transaction)
+
+        http.request(request)
+
+        expect(request.key?("sentry-trace")).to eq(true)
+        expect(request.key?("baggage")).to eq(true)
+      end
+
+      it "adds sentry headers to outgoing requests matching regexp" do
+        stub_normal_response
+
+        uri = URI("http://foobar.org/api/v2/path")
+        http = Net::HTTP.new(uri.host, uri.port)
+        request = Net::HTTP::Get.new(uri.request_uri)
+
+        transaction = Sentry.start_transaction
+        Sentry.get_current_scope.set_span(transaction)
+
+        http.request(request)
+
+        expect(request.key?("sentry-trace")).to eq(true)
+        expect(request.key?("baggage")).to eq(true)
+      end
+    end
+
     it "doesn't record span for the SDK's request" do
       stub_sentry_response