diff --git a/src/server/Logger.ts b/src/server/Logger.ts
index 25be2683e..bf83fe249 100644
--- a/src/server/Logger.ts
+++ b/src/server/Logger.ts
@@ -24,8 +24,9 @@ if (config.otelEnabled()) {
   console.log("OTEL enabled");
   // Configure OpenTelemetry endpoint with basic auth (if provided)
   const headers: Record<string, string> = {};
-  headers["Authorization"] = config.otelAuthHeader();
-
+  // Remove "Basic" prefix from the auth header for backwards compatibility
+  headers["Authorization"] =
+    `Basic ${config.otelAuthHeader().replace("Basic", "").trim()}`;
   // Add OTLP exporter for logs
   const logExporter = new OTLPLogExporter({
     url: `${config.otelEndpoint()}/v1/logs`,