diff --git a/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/actuator/tracing.adoc b/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/actuator/tracing.adoc
index 26d90052026..e0cccc30931 100644
--- a/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/actuator/tracing.adoc
+++ b/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/actuator/tracing.adoc
@@ -231,6 +231,7 @@ The baggage is automatically propagated over the network if you're using W3C pro
 If you're using B3 propagation, baggage is not automatically propagated.
 To manually propagate baggage over the network, use the configprop:management.tracing.baggage.remote-fields[] configuration property (this works for W3C, too).
 For the example above, setting this property to `baggage1` results in an HTTP header `baggage1: value1`.
+Baggage is propagated wherever Micrometer Observation instruments the transport, for example xref:io/grpc.adoc#io.grpc.server.observability[gRPC metadata] as well as HTTP headers.
 
 If you want to propagate the baggage to the MDC, use the configprop:management.tracing.baggage.correlation.fields[] configuration property.
 For the example above, setting this property to `baggage1` results in an MDC entry named `baggage1`.
diff --git a/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/io/grpc.adoc b/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/io/grpc.adoc
index 1fb8c80d88e..84b84d6d7e5 100644
--- a/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/io/grpc.adoc
+++ b/documentation/spring-boot-docs/src/docs/antora/modules/reference/pages/io/grpc.adoc
@@ -484,6 +484,21 @@ For details of how to configure an OAuth2 Resource Server to use with your gRPC
 
 
 
+[[io.grpc.server.observability]]
+=== Observability
+
+Spring Boot provides auto-configuration of the javadoc:io.micrometer.core.instrument.binder.grpc.ObservationGrpcServerInterceptor[] whenever Micrometer is available.
+This interceptor provides observability into your gRPC server applications.
+
+When Micrometer Tracing is also available, the observation carries the trace context and any xref:actuator/tracing.adoc#actuator.micrometer-tracing.baggage[baggage] found in the incoming gRPC metadata.
+This includes the W3C `baggage` header as well as the individual metadata keys listed in configprop:management.tracing.baggage.remote-fields[], so no additional interceptor is required to propagate baggage over gRPC.
+
+NOTE: The interceptor is provided by `micrometer-core`, so it is only auto-configured when that dependency is on the classpath (for example through `spring-boot-starter-actuator`).
+
+TIP: If you use Micrometer, but prefer to not to use it for gRPC, you can set configprop:spring.grpc.server.observation.enabled[] to `false`.
+
+
+
 [[io.grpc.client]]
 == Writing a gRPC Client Application
 
@@ -683,6 +698,10 @@ TIP: To disable the in-process channel factory, you can set the configprop:sprin
 Spring Boot provides auto-configuration of the javadoc:io.micrometer.core.instrument.binder.grpc.ObservationGrpcClientInterceptor[] whenever Micrometer is available.
 This interceptor provides observability into your gRPC client applications.
 
+When Micrometer Tracing is also available, the trace context and the current xref:actuator/tracing.adoc#actuator.micrometer-tracing.baggage[baggage] are written to the metadata of outgoing calls, using the W3C `baggage` header as well as the individual metadata keys listed in configprop:management.tracing.baggage.remote-fields[].
+
+NOTE: The interceptor is provided by `micrometer-core`, so it is only auto-configured when that dependency is on the classpath (for example through `spring-boot-starter-actuator`).
+
 TIP: If you use Micrometer, but prefer to not to use it for gRPC, you can set configprop:spring.grpc.client.observation.enabled[] to `false`.