diff --git a/dev-packages/e2e-tests/test-applications/supabase-nextjs/package.json b/dev-packages/e2e-tests/test-applications/supabase-nextjs/package.json
index c5c86c0d31ae..d5c4c2114b90 100644
--- a/dev-packages/e2e-tests/test-applications/supabase-nextjs/package.json
+++ b/dev-packages/e2e-tests/test-applications/supabase-nextjs/package.json
@@ -7,7 +7,7 @@
     "build": "next build",
     "start": "next start",
     "clean": "npx rimraf node_modules pnpm-lock.yaml .next",
-    "start-local-supabase": "supabase stop --no-backup 2>/dev/null || true && supabase init --force --workdir . && supabase start -o env && supabase db reset",
+    "start-local-supabase": "supabase stop --no-backup 2>/dev/null || true && supabase start -o env && supabase db reset",
     "test:prod": "TEST_ENV=production playwright test",
     "test:build": "pnpm install && pnpm start-local-supabase && pnpm build",
     "test:assert": "pnpm test:prod"
diff --git a/dev-packages/e2e-tests/test-applications/supabase-nextjs/supabase/config.toml b/dev-packages/e2e-tests/test-applications/supabase-nextjs/supabase/config.toml
index 35dcff35bec4..c898d44da1bb 100644
--- a/dev-packages/e2e-tests/test-applications/supabase-nextjs/supabase/config.toml
+++ b/dev-packages/e2e-tests/test-applications/supabase-nextjs/supabase/config.toml
@@ -288,7 +288,7 @@ inspector_port = 8083
 # secret_key = "env(SECRET_VALUE)"
 
 [analytics]
-enabled = true
+enabled = false
 port = 54327
 # Configure one of the supported backends: `postgres`, `bigquery`.
 backend = "postgres"
diff --git a/dev-packages/node-integration-tests/suites/tracing/envelope-header/error-active-span-unsampled/test.ts b/dev-packages/node-integration-tests/suites/tracing/envelope-header/error-active-span-unsampled/test.ts
index 9fe5f34ef8e5..131c5b208239 100644
--- a/dev-packages/node-integration-tests/suites/tracing/envelope-header/error-active-span-unsampled/test.ts
+++ b/dev-packages/node-integration-tests/suites/tracing/envelope-header/error-active-span-unsampled/test.ts
@@ -14,6 +14,7 @@ test('envelope header for error event during active unsampled span is correct',
           sample_rate: '0',
           sampled: 'false',
           sample_rand: expect.any(String),
+          transaction: 'test span',
         },
       },
     })
diff --git a/packages/node/src/sdk/index.ts b/packages/node/src/sdk/index.ts
index 25577a7df213..bcf8f48bd44b 100644
--- a/packages/node/src/sdk/index.ts
+++ b/packages/node/src/sdk/index.ts
@@ -15,11 +15,7 @@ import {
   requestDataIntegration,
   stackParserFromStackParserOptions,
 } from '@sentry/core';
-import {
-  enhanceDscWithOpenTelemetryRootSpanName,
-  setOpenTelemetryContextAsyncContextStrategy,
-  setupEventContextTrace,
-} from '@sentry/opentelemetry';
+import { setOpenTelemetryContextAsyncContextStrategy, setupEventContextTrace } from '@sentry/opentelemetry';
 import { isMainThread, parentPort } from 'node:worker_threads';
 import { detectOrchestrionSetup } from '@sentry/server-utils/orchestrion';
 import { registerDiagnosticsChannelInjection } from '@sentry/server-utils/orchestrion/register';
@@ -206,7 +202,6 @@ function _init(
 
   updateScopeFromEnvVariables();
 
-  enhanceDscWithOpenTelemetryRootSpanName(client);
   setupEventContextTrace(client);
 
   // Ensure we flush events when vercel functions are ended
diff --git a/packages/opentelemetry/src/index.ts b/packages/opentelemetry/src/index.ts
index 2a06eeee940a..1ae4dff6fa7b 100644
--- a/packages/opentelemetry/src/index.ts
+++ b/packages/opentelemetry/src/index.ts
@@ -1,7 +1,5 @@
 export { getScopesFromContext } from './utils/contextData';
 
-export { enhanceDscWithOpenTelemetryRootSpanName } from './utils/enhanceDscWithOpenTelemetryRootSpanName';
-
 export { getTraceContextForScope } from './trace';
 
 export { setupEventContextTrace } from './setupEventContextTrace';
diff --git a/packages/opentelemetry/src/propagator.ts b/packages/opentelemetry/src/propagator.ts
index d76418a36ac3..9db3fa6ea995 100644
--- a/packages/opentelemetry/src/propagator.ts
+++ b/packages/opentelemetry/src/propagator.ts
@@ -21,11 +21,17 @@ import {
   shouldPropagateTraceForUrl,
   spanToJSON,
 } from '@sentry/core';
-import { SENTRY_BAGGAGE_HEADER, SENTRY_TRACE_HEADER, SENTRY_TRACE_STATE_URL } from './constants';
+import {
+  SENTRY_BAGGAGE_HEADER,
+  SENTRY_TRACE_HEADER,
+  SENTRY_TRACE_STATE_DSC,
+  SENTRY_TRACE_STATE_URL,
+} from './constants';
 import { DEBUG_BUILD } from './debug-build';
 import { getScopesFromContext, setScopesOnContext } from './utils/contextData';
 import { getSampledForPropagation, getSamplingDecision } from './utils/getSamplingDecision';
 import { makeTraceState } from './utils/makeTraceState';
+import { reconcileDscSampled } from './utils/reconcileDscSampled';
 
 /**
  * Injects and extracts `sentry-trace` and `baggage` headers from carriers.
@@ -149,13 +155,22 @@ export function getInjectionData(
   // Instead, we use a virtual (generated) spanId for propagation
   if (span?.spanContext().isRemote) {
     const spanContext = span.spanContext();
-    const dynamicSamplingContext = getDynamicSamplingContextFromSpan(span);
+    const sampled = getSamplingDecision(spanContext);
+    const dsc = getDynamicSamplingContextFromSpan(span);
+
+    // When the incoming trace froze its DSC on the trace state, `getDynamicSamplingContextFromSpan`
+    // returns that DSC verbatim; per the propagation spec it is immutable, so we must not rewrite
+    // `sampled` or strip `transaction` on it. We only reconcile the DSC that core freshly derives
+    // from the (binary) span trace flags, which is the sole case that can misrepresent a deferred
+    // decision as unsampled.
+    const hasIncomingFrozenDsc = !!spanContext.traceState?.get(SENTRY_TRACE_STATE_DSC);
+    const dynamicSamplingContext = hasIncomingFrozenDsc ? dsc : reconcileDscSampled(dsc, sampled);
 
     return {
       dynamicSamplingContext,
       traceId: spanContext.traceId,
       spanId: undefined,
-      sampled: getSamplingDecision(spanContext), // TODO: Do we need to change something here?
+      sampled,
     };
   }
 
diff --git a/packages/opentelemetry/src/trace.ts b/packages/opentelemetry/src/trace.ts
index c1b49bb35094..2239127b62fe 100644
--- a/packages/opentelemetry/src/trace.ts
+++ b/packages/opentelemetry/src/trace.ts
@@ -26,11 +26,13 @@ import {
   spanToJSON,
   spanToTraceContext,
 } from '@sentry/core';
+import { SENTRY_TRACE_STATE_DSC } from './constants';
 import { continueTraceAsRemoteSpan } from './propagator';
 import type { OpenTelemetrySpanContext } from './types';
 import { getContextFromScope } from './utils/contextData';
 import { getSamplingDecision } from './utils/getSamplingDecision';
 import { makeTraceState } from './utils/makeTraceState';
+import { reconcileDscSampled } from './utils/reconcileDscSampled';
 
 /**
  * Internal helper for starting spans and manual spans. See {@link startSpan} and {@link startSpanManual} for the public APIs.
@@ -257,7 +259,15 @@ function getContext(scope: Scope | undefined, forceTransaction: boolean | undefi
   // In this case, when we are forcing a transaction, we want to treat this like continuing an incoming trace
   // so we set the traceState according to the root span
   const rootSpan = getRootSpan(parentSpan);
-  const dsc = getDynamicSamplingContextFromSpan(rootSpan);
+  const rawDsc = getDynamicSamplingContextFromSpan(rootSpan);
+
+  // When the root carried a frozen incoming DSC on its trace state, `getDynamicSamplingContextFromSpan`
+  // returns it verbatim and it is immutable per the propagation spec. Otherwise core freshly derived the
+  // DSC from the root's (binary) trace flags, which cannot tell a deferred decision apart from a
+  // definitive unsampled one — reconcile `sampled` against the authoritative OTel decision so a deferred
+  // parent (e.g. a `startNewTrace` remote parent with `traceFlags: NONE`) does not bake in `sampled=false`.
+  const hasIncomingFrozenDsc = !!rootSpan.spanContext().traceState?.get(SENTRY_TRACE_STATE_DSC);
+  const dsc = hasIncomingFrozenDsc ? rawDsc : reconcileDscSampled(rawDsc, sampled);
 
   const traceState = makeTraceState({
     dsc,
diff --git a/packages/opentelemetry/src/utils/enhanceDscWithOpenTelemetryRootSpanName.ts b/packages/opentelemetry/src/utils/enhanceDscWithOpenTelemetryRootSpanName.ts
deleted file mode 100644
index 95b886218e6f..000000000000
--- a/packages/opentelemetry/src/utils/enhanceDscWithOpenTelemetryRootSpanName.ts
+++ /dev/null
@@ -1,42 +0,0 @@
-import type { Client } from '@sentry/core';
-import { hasSpansEnabled, SEMANTIC_ATTRIBUTE_SENTRY_SOURCE, spanToJSON } from '@sentry/core';
-import { getSampledForPropagation } from './getSamplingDecision';
-
-/**
- * Setup a DSC handler on the passed client,
- * ensuring that the transaction name is inferred from the span correctly.
- */
-export function enhanceDscWithOpenTelemetryRootSpanName(client: Client): void {
-  client.on('createDsc', (dsc, rootSpan) => {
-    if (!rootSpan) {
-      return;
-    }
-
-    const jsonSpan = spanToJSON(rootSpan);
-    const attributes = jsonSpan.data;
-    const source = attributes[SEMANTIC_ATTRIBUTE_SENTRY_SOURCE];
-    const description = jsonSpan.description;
-
-    const sampled = getSampledForPropagation(rootSpan, client);
-
-    // We want to overwrite the transaction on the DSC that is created by default in core, so that we
-    // infer the span name (e.g. "GET /foo" instead of "GET"); `parseSpanDescription` reads the span
-    // attributes. This mutates the passed-in DSC.
-    // A negatively sampled trace carries no transaction name in its DSC, matching the OTel SDK whose
-    // unsampled spans are nameless non-recording spans. Core derives one from the span name, so we
-    // drop it here for native (SentryTracerProvider) spans that do have a name.
-    if (sampled === false) {
-      delete dsc.transaction;
-    } else if (description) {
-      if (source !== 'url') {
-        dsc.transaction = description;
-      }
-    }
-
-    // Only write the sampling decision in tracing mode. In TwP mode it is deferred (read from the
-    // scope/incoming trace state), so we leave any value core already resolved untouched.
-    if (hasSpansEnabled()) {
-      dsc.sampled = sampled == undefined ? undefined : String(sampled);
-    }
-  });
-}
diff --git a/packages/opentelemetry/src/utils/reconcileDscSampled.ts b/packages/opentelemetry/src/utils/reconcileDscSampled.ts
new file mode 100644
index 000000000000..724a065f37f2
--- /dev/null
+++ b/packages/opentelemetry/src/utils/reconcileDscSampled.ts
@@ -0,0 +1,30 @@
+import type { DynamicSamplingContext } from '@sentry/core';
+
+/**
+ * Reconcile a freshly-derived DSC's `sampled` flag with the OTel sampling decision.
+ *
+ * Only applies to a DSC that core generated from the span's (binary) trace flags — never to a frozen
+ * incoming DSC from the trace state, which the caller leaves untouched per the propagation spec.
+ * Trace flags cannot tell a *deferred* decision (an incoming remote span whose decision lives in the
+ * trace state) apart from a definitive *unsampled* one — both read as `traceFlags: NONE`.
+ * `getSamplingDecision` resolves this via the OTel trace state, so we let it win here: drop `sampled`
+ * when the decision is deferred (`undefined`), and — matching the OTel SDK, whose unsampled spans are
+ * nameless non-recording spans — drop the transaction name when the trace is definitively unsampled.
+ */
+export function reconcileDscSampled(
+  dsc: Partial<DynamicSamplingContext>,
+  sampled: boolean | undefined,
+): Partial<DynamicSamplingContext> {
+  const reconciled = { ...dsc };
+
+  if (sampled === undefined) {
+    delete reconciled.sampled;
+  } else {
+    reconciled.sampled = String(sampled);
+    if (sampled === false) {
+      delete reconciled.transaction;
+    }
+  }
+
+  return reconciled;
+}
diff --git a/packages/opentelemetry/test/helpers/initOtel.ts b/packages/opentelemetry/test/helpers/initOtel.ts
index c5dabe409a10..39a0ee237eb2 100644
--- a/packages/opentelemetry/test/helpers/initOtel.ts
+++ b/packages/opentelemetry/test/helpers/initOtel.ts
@@ -4,7 +4,6 @@ import { DEBUG_BUILD } from '../../src/debug-build';
 import { SentryPropagator } from '../../src/propagator';
 import { getSentryResource } from '../../src/resource';
 import { setupEventContextTrace } from '../../src/setupEventContextTrace';
-import { enhanceDscWithOpenTelemetryRootSpanName } from '../../src/utils/enhanceDscWithOpenTelemetryRootSpanName';
 import type { TestClient } from './TestClient';
 import { SentryTracerProvider } from '../../src/tracerProvider';
 
@@ -38,7 +37,6 @@ export function initOtel(): void {
   }
 
   setupEventContextTrace(client);
-  enhanceDscWithOpenTelemetryRootSpanName(client);
 
   const provider = new SentryTracerProvider({ resource: getSentryResource('node') });
 
diff --git a/packages/opentelemetry/test/propagator.test.ts b/packages/opentelemetry/test/propagator.test.ts
index 3b3ed8c01be0..706396ddea53 100644
--- a/packages/opentelemetry/test/propagator.test.ts
+++ b/packages/opentelemetry/test/propagator.test.ts
@@ -381,6 +381,48 @@ describe('SentryPropagator', () => {
         );
       });
 
+      it('preserves a frozen incoming DSC on a directly-injected unsampled remote span', () => {
+        const carrier: Record<string, string> = {};
+        context.with(
+          trace.setSpanContext(ROOT_CONTEXT, {
+            traceId: 'd4cda95b652f4a1592b449d5929fda1b',
+            spanId: '6e0c63257de34c92',
+            traceFlags: TraceFlags.NONE,
+            isRemote: true,
+            // A definitively-unsampled incoming trace that froze its own DSC, including a transaction name.
+            traceState: makeTraceState({
+              sampled: false,
+              dsc: {
+                transaction: 'incoming-transaction',
+                sampled: 'false',
+                trace_id: 'd4cda95b652f4a1592b449d5929fda1b',
+                public_key: 'incoming_public_key',
+                environment: 'incoming_environment',
+                release: 'incoming_release',
+                sample_rate: '0.5',
+              },
+            }),
+          }),
+          () => {
+            propagator.inject(context.active(), carrier, defaultTextMapSetter);
+
+            // The frozen incoming DSC is immutable, so its `transaction` must survive even though the
+            // trace is unsampled — we must not strip it the way we do for a freshly-derived DSC.
+            expect(baggageToArray(carrier[SENTRY_BAGGAGE_HEADER])).toEqual(
+              [
+                'sentry-environment=incoming_environment',
+                'sentry-release=incoming_release',
+                'sentry-public_key=incoming_public_key',
+                'sentry-trace_id=d4cda95b652f4a1592b449d5929fda1b',
+                'sentry-transaction=incoming-transaction',
+                'sentry-sampled=false',
+                'sentry-sample_rate=0.5',
+              ].sort(),
+            );
+          },
+        );
+      });
+
       it('uses remote span over propagation context', () => {
         const carrier: Record<string, string> = {};
         context.with(
diff --git a/packages/opentelemetry/test/trace.test.ts b/packages/opentelemetry/test/trace.test.ts
index 7073850d7690..16ac9aebc40b 100644
--- a/packages/opentelemetry/test/trace.test.ts
+++ b/packages/opentelemetry/test/trace.test.ts
@@ -2191,6 +2191,19 @@ describe('startNewTrace', () => {
     });
   });
 
+  it('samples a forced transaction based on tracesSampleRate', () => {
+    // `startNewTrace` injects a remote parent with `traceFlags: NONE` and no trace state, i.e. a
+    // *deferred* decision. A forced transaction under it runs through `getContext`'s simulated-root
+    // branch, which derives a DSC from that parent. Core naively reads `sampled=false` off the binary
+    // trace flags; without reconciliation that gets baked into the trace state and the transaction
+    // wrongly inherits a negative decision despite `tracesSampleRate: 1`.
+    startNewTrace(() => {
+      const span = startInactiveSpan({ name: 'forced-transaction', forceTransaction: true });
+      expect(spanIsSampled(span)).toBe(true);
+      span.end();
+    });
+  });
+
   it('does not leak the new traceId to the outer scope', () => {
     const outerScope = getCurrentScope();
     const outerTraceId = outerScope.getPropagationContext().traceId;
diff --git a/packages/vercel-edge/src/sdk.ts b/packages/vercel-edge/src/sdk.ts
index 9f8699e208de..903f3492648a 100644
--- a/packages/vercel-edge/src/sdk.ts
+++ b/packages/vercel-edge/src/sdk.ts
@@ -17,7 +17,6 @@ import {
   stackParserFromStackParserOptions,
 } from '@sentry/core';
 import {
-  enhanceDscWithOpenTelemetryRootSpanName,
   getSentryResource,
   SentryPropagator,
   SentryTracerProvider,
@@ -104,7 +103,6 @@ export function init(options: VercelEdgeOptions = {}): Client {
     setupOtel(client);
   }
 
-  enhanceDscWithOpenTelemetryRootSpanName(client);
   setupEventContextTrace(client);
 
   return client;