diff --git a/config/esp32/components/chip/CMakeLists.txt b/config/esp32/components/chip/CMakeLists.txt
index 6aa824bdcba6f3..027e5ce1569013 100644
--- a/config/esp32/components/chip/CMakeLists.txt
+++ b/config/esp32/components/chip/CMakeLists.txt
@@ -363,6 +363,13 @@ target_include_directories(${COMPONENT_LIB} INTERFACE
     "${CHIP_ROOT}/config/esp32/${CONFIG_CHIP_EXTERNAL_PLATFORM_DIR}/../../"
 )
 
+if (CONFIG_ENABLE_ESP_INSIGHTS_TRACE)
+    target_include_directories(${COMPONENT_LIB} INTERFACE "${CHIP_ROOT}/src/tracing/esp32_trace/include")
+else()
+    target_include_directories(${COMPONENT_LIB} INTERFACE "${CHIP_ROOT}/src/tracing/none/include")
+endif()
+
+
 idf_component_get_property(mbedtls_lib mbedtls COMPONENT_LIB)
 
 idf_build_get_property(idf_target IDF_TARGET)
@@ -418,6 +425,11 @@ if (CONFIG_SEC_CERT_DAC_PROVIDER)
     list(APPEND chip_libraries $<TARGET_FILE:${esp32_secure_cert_mgr_lib}>)
 endif()
 
+if (CONFIG_ENABLE_ESP_INSIGHTS_TRACE)
+    idf_component_get_property(esp_insights_lib espressif__esp_insights COMPONENT_LIB)
+    list(APPEND chip_libraries $<TARGET_FILE:${esp_insights_lib}>)
+endif()
+
 idf_component_get_property(lwip_lib lwip COMPONENT_LIB)
 list(APPEND chip_libraries $<TARGET_FILE:${lwip_lib}>)
 
@@ -481,7 +493,7 @@ target_link_libraries(${COMPONENT_LIB} INTERFACE -Wl,--start-group
 # Make the component dependent on our CHIP build
 add_dependencies(${COMPONENT_LIB} chip_gn)
 
-if(CONFIG_ENABLE_PW_RPC)
+if(CONFIG_ENABLE_PW_RPC AND NOT CONFIG_ENABLE_ESP_INSIGHTS_TRACE)
     set(WRAP_FUNCTIONS esp_log_write esp_log_writev)
     foreach(func ${WRAP_FUNCTIONS})
         target_link_libraries(${COMPONENT_LIB} INTERFACE "-Wl,--wrap=${func}")
diff --git a/config/esp32/components/chip/Kconfig b/config/esp32/components/chip/Kconfig
index 5c871c2d043a30..a42d8b24298627 100644
--- a/config/esp32/components/chip/Kconfig
+++ b/config/esp32/components/chip/Kconfig
@@ -806,6 +806,13 @@ menu "CHIP Device Layer"
                 then this option gets enabled.
                 Also, please disable ESP_SECURE_CERT_DS_PERIPHERAL from the menuconfig when this option is disabled
 
+       config ENABLE_ESP_INSIGHTS_TRACE
+           bool "Enables the Tracing Functionality defined for ESP32."
+           depends on ESP_INSIGHTS_ENABLED
+           default y
+           help
+               Enables ESP32 Custom Tracing functionality with esp-insights.
+
     endmenu
 
 
diff --git a/config/esp32/components/chip/idf_component.yml b/config/esp32/components/chip/idf_component.yml
index 82c7fe3fc81338..337ee410954d78 100644
--- a/config/esp32/components/chip/idf_component.yml
+++ b/config/esp32/components/chip/idf_component.yml
@@ -15,3 +15,6 @@ dependencies:
         version: "2.0.3"
         rules:
             - if: "idf_version >=4.4"
+
+    espressif/esp_insights:
+        version: "1.0.0"
diff --git a/examples/lighting-app/esp32/README.md b/examples/lighting-app/esp32/README.md
index b84deeaf9d3fbd..c53ef98ce384b5 100644
--- a/examples/lighting-app/esp32/README.md
+++ b/examples/lighting-app/esp32/README.md
@@ -8,6 +8,25 @@ and refer
 [building and commissioning](../../../docs/guides/esp32/build_app_and_commission.md)
 guides to get started.
 
+### Enabling ESP-Insights:
+
+-   Before building the app, enable the option: ESP_INSIGHTS_ENABLED through
+    menuconfig.
+
+-   Create a file named insights_auth_key.txt in the main directory of the
+    example.
+
+-   Follow the steps
+    present[here](https://github.com/espressif/esp-insights/blob/main/examples/README.md#set-up-esp-insights-account)
+    to set up an insights_account and the auth key created while setting it up
+    willbe used in the example.
+
+-   Download the auth key and copy Auth Key to the example
+
+```
+cp /path/to/auth/key.txt path/to/connectedhomeip/examples/lighting-app/esp32/main/insights_auth_key.txt
+```
+
 ---
 
 -   [Cluster Control](#cluster-control)
diff --git a/examples/lighting-app/esp32/main/CMakeLists.txt b/examples/lighting-app/esp32/main/CMakeLists.txt
index fcb0121d9f6d78..ed3fd2a6ab44f4 100644
--- a/examples/lighting-app/esp32/main/CMakeLists.txt
+++ b/examples/lighting-app/esp32/main/CMakeLists.txt
@@ -67,7 +67,7 @@ set(SRC_DIRS_LIST
                       "${CMAKE_SOURCE_DIR}/third_party/connectedhomeip/src/app/clusters/scenes-server"
 )
 
-set(PRIV_REQUIRES_LIST chip QRCode bt led_strip app_update openthread driver nvs_flash spi_flash)
+set(PRIV_REQUIRES_LIST chip QRCode bt led_strip app_update openthread driver nvs_flash spi_flash espressif__esp_insights)
 
 if(${IDF_TARGET} STREQUAL "esp32")
     list(APPEND PRIV_REQUIRES_LIST spidriver screen-framework)
@@ -96,6 +96,10 @@ set(SRC_DIRS_LIST  "${SRC_DIRS_LIST}"
 )
 endif (CONFIG_ENABLE_PW_RPC)
 
+if (CONFIG_HAVE_DISPLAY)
+    list(APPEND PRIV_REQUIRES_LIST tft screen-framework)
+endif()
+
 idf_component_register(PRIV_INCLUDE_DIRS ${PRIV_INCLUDE_DIRS_LIST}
                        SRC_DIRS ${SRC_DIRS_LIST}
                        PRIV_REQUIRES ${PRIV_REQUIRES_LIST})
@@ -106,6 +110,10 @@ include("${CHIP_ROOT}/build/chip/esp32/esp32_codegen.cmake")
 chip_app_component_codegen("${CHIP_ROOT}/examples/lighting-app/lighting-common/lighting-app.matter")
 chip_app_component_zapgen("${CHIP_ROOT}/examples/lighting-app/lighting-common/lighting-app.zap")
 
+if (CONFIG_ENABLE_ESP_INSIGHTS_TRACE)
+    target_add_binary_data(${COMPONENT_TARGET} "insights_auth_key.txt" TEXT)
+endif()
+
 set_property(TARGET ${COMPONENT_LIB} PROPERTY CXX_STANDARD 17)
 target_compile_options(${COMPONENT_LIB} PRIVATE "-DCHIP_HAVE_CONFIG_H")
 target_compile_options(${COMPONENT_LIB} PUBLIC
diff --git a/examples/lighting-app/esp32/main/main.cpp b/examples/lighting-app/esp32/main/main.cpp
index a33d783a98439c..bda921b3261bca 100644
--- a/examples/lighting-app/esp32/main/main.cpp
+++ b/examples/lighting-app/esp32/main/main.cpp
@@ -63,11 +63,20 @@
 #include <platform/ESP32/ESP32SecureCertDACProvider.h>
 #endif
 
+#if CONFIG_ENABLE_ESP_INSIGHTS_TRACE
+#include <esp_insights.h>
+#endif
+
 using namespace ::chip;
 using namespace ::chip::Credentials;
 using namespace ::chip::DeviceManager;
 using namespace ::chip::DeviceLayer;
 
+#if CONFIG_ENABLE_ESP_INSIGHTS_TRACE
+extern const char insights_auth_key_start[] asm("_binary_insights_auth_key_txt_start");
+extern const char insights_auth_key_end[] asm("_binary_insights_auth_key_txt_end");
+#endif
+
 static const char * TAG = "light-app";
 
 static AppDeviceCallbacks EchoCallbacks;
@@ -129,6 +138,20 @@ extern "C" void app_main()
     chip::rpc::Init();
 #endif
 
+#if CONFIG_ENABLE_ESP_INSIGHTS_TRACE
+    esp_insights_config_t config = {
+        .log_type = ESP_DIAG_LOG_TYPE_ERROR | ESP_DIAG_LOG_TYPE_WARNING | ESP_DIAG_LOG_TYPE_EVENT,
+        .auth_key = insights_auth_key_start,
+    };
+
+    esp_err_t ret = esp_insights_init(&config);
+
+    if (ret != ESP_OK)
+    {
+        ESP_LOGE(TAG, "Failed to initialize ESP Insights, err:0x%x", ret);
+    }
+#endif
+
     ESP_LOGI(TAG, "==================================================");
     ESP_LOGI(TAG, "chip-esp32-light-example starting");
     ESP_LOGI(TAG, "==================================================");
diff --git a/src/tracing/esp32_trace/BUILD.gn b/src/tracing/esp32_trace/BUILD.gn
new file mode 100644
index 00000000000000..d7580a3e68ac2a
--- /dev/null
+++ b/src/tracing/esp32_trace/BUILD.gn
@@ -0,0 +1,27 @@
+#
+#Copyright (c) 2023 Project CHIP Authors
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+# http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import("//build_overrides/build.gni")
+import("//build_overrides/chip.gni")
+
+config("tracing") {
+  include_dirs = [ "include" ]
+}
+
+source_set("esp32_trace") {
+  public = [ "include/matter/tracing/macros_impl.h" ]
+  sources = [ "include/matter/tracing/macros_impl.cpp" ]
+  public_configs = [ ":tracing" ]
+}
diff --git a/src/tracing/esp32_trace/include/matter/tracing/macros_impl.cpp b/src/tracing/esp32_trace/include/matter/tracing/macros_impl.cpp
new file mode 100644
index 00000000000000..13c443b18e7ea2
--- /dev/null
+++ b/src/tracing/esp32_trace/include/matter/tracing/macros_impl.cpp
@@ -0,0 +1,44 @@
+/*
+ *    Copyright (c) 2023 Project CHIP Authors
+ *
+ *    Licensed under the Apache License, Version 2.0 (the "License");
+ *    you may not use this file except in compliance with the License.
+ *    You may obtain a copy of the License at
+ *
+ *        http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *    Unless required by applicable law or agreed to in writing, software
+ *    distributed under the License is distributed on an "AS IS" BASIS,
+ *    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *    See the License for the specific language governing permissions and
+ *    limitations under the License.
+ */
+
+#include "macros_impl.h"
+#include <esp_heap_caps.h>
+#include <esp_insights.h>
+namespace Insights {
+
+ESP32Backend::ESP32Backend(const char * str, ...)
+{
+    va_list args;
+    va_start(args, str);
+    var1 = str;
+    var2 = va_arg(args, const char *);
+
+    size_t start_min_heap     = heap_caps_get_minimum_free_size(MALLOC_CAP_8BIT);
+    size_t largest_free_block = heap_caps_get_largest_free_block(MALLOC_CAP_INTERNAL | MALLOC_CAP_8BIT);
+    size_t start_free_heap    = heap_caps_get_free_size(MALLOC_CAP_8BIT);
+    ESP_DIAG_EVENT("MTR_TRC", "Entry - %s - %s - Start Min Free heap - %u -  Largest Free Block - %u  Start free heap -%u", var1,
+                   var2, start_min_heap, largest_free_block, start_free_heap);
+}
+
+ESP32Backend::~ESP32Backend()
+{
+    size_t end_minimum_free_heap  = heap_caps_get_minimum_free_size(MALLOC_CAP_8BIT);
+    size_t end_largest_free_block = heap_caps_get_largest_free_block(MALLOC_CAP_INTERNAL | MALLOC_CAP_8BIT);
+    size_t end_free_heap          = heap_caps_get_free_size(MALLOC_CAP_8BIT);
+    ESP_DIAG_EVENT("MTR_TRC", "Exit - %s - %s - End Min Free heap - %u - End Largest Free Block %u - End free Heap - %u", var1,
+                   var2, end_minimum_free_heap, end_largest_free_block, end_free_heap);
+}
+} // namespace Insights
diff --git a/src/tracing/esp32_trace/include/matter/tracing/macros_impl.h b/src/tracing/esp32_trace/include/matter/tracing/macros_impl.h
new file mode 100644
index 00000000000000..3135b9b43b985d
--- /dev/null
+++ b/src/tracing/esp32_trace/include/matter/tracing/macros_impl.h
@@ -0,0 +1,50 @@
+/*
+ *    Copyright (c) 2023 Project CHIP Authors
+ *    All rights reserved.
+ *
+ *    Licensed under the Apache License, Version 2.0 (the "License");
+ *    you may not use this file except in compliance with the License.
+ *    You may obtain a copy of the License at
+ *
+ *        http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *    Unless required by applicable law or agreed to in writing, software
+ *    distributed under the License is distributed on an "AS IS" BASIS,
+ *    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *    See the License for the specific language governing permissions and
+ *    limitations under the License.
+ */
+#pragma once
+
+/* Ensure we do not have double tracing macros defined */
+#if defined(MATTER_TRACE_BEGIN)
+#error "Tracing macros seem to be double defined"
+#endif
+
+namespace Insights {
+class ESP32Backend
+{
+public:
+    ESP32Backend(const char * str, ...);
+    ~ESP32Backend();
+
+private:
+    const char * var1;
+    const char * var2;
+};
+} // namespace Insights
+
+#define MATTER_TRACE_SCOPE(...)                                                                                                    \
+    do                                                                                                                             \
+    {                                                                                                                              \
+        Insights::ESP32Backend backend(__VA_ARGS__);                                                                               \
+    } while (0)
+
+#define _MATTER_TRACE_DISABLE(...)                                                                                                 \
+    do                                                                                                                             \
+    {                                                                                                                              \
+    } while (false)
+
+#define MATTER_TRACE_BEGIN(...) _MATTER_TRACE_DISABLE(__VA_ARGS__)
+#define MATTER_TRACE_END(...) _MATTER_TRACE_DISABLE(__VA_ARGS__)
+#define MATTER_TRACE_INSTANT(...) _MATTER_TRACE_DISABLE(__VA_ARGS__)
diff --git a/src/tracing/macros.h b/src/tracing/macros.h
index 5f836e44d373bc..e68e2fa113d9ad 100644
--- a/src/tracing/macros.h
+++ b/src/tracing/macros.h
@@ -26,6 +26,7 @@
 //    MATTER_TRACE_END(label, group)
 //    MATTER_TRACE_INSTANT(label, group)
 //    MATTER_TRACE_SCOPE(label, group)
+
 #include <matter/tracing/macros_impl.h>
 #include <tracing/log_declares.h>
 #include <tracing/registry.h>
diff --git a/src/tracing/tracing_args.gni b/src/tracing/tracing_args.gni
index 7c27f9ecaba39a..ae0b60346e9393 100644
--- a/src/tracing/tracing_args.gni
+++ b/src/tracing/tracing_args.gni
@@ -14,6 +14,7 @@
 import("//build_overrides/build.gni")
 import("//build_overrides/chip.gni")
 import("${build_root}/config/compiler/compiler.gni")
+import("${chip_root}/src/platform/device.gni")
 
 declare_args() {
   # Tracing can have a non-zero size impact to binaries. We try to make
@@ -22,7 +23,8 @@ declare_args() {
   #
   # Additionally, if tracing is enabled, the main() function has to add
   # backends explicitly
-  matter_enable_tracing_support = current_os == "android"
+  matter_enable_tracing_support =
+      current_os == "android" || chip_device_platform == "esp32"
 
   # Defines the trace backend. Current matter tracing splits the logic
   # into two parts:
@@ -43,8 +45,11 @@ declare_args() {
   # since tracing is very noisy, we generally expect it to be explicitly
   # set up.
   #
-  if (current_os == "linux" || current_os == "android") {
+  if ((current_os == "linux" || current_os == "android") &&
+      cpp_standard == "gnu++17") {
     matter_trace_config = "${chip_root}/src/tracing/perfetto:perfetto_tracing"
+  } else if (chip_device_platform == "esp32") {
+    matter_trace_config = "${chip_root}/src/tracing/esp32_trace"
   } else {
     matter_trace_config = "${chip_root}/src/tracing/none"
   }