diff --git a/api/Gemfile b/api/Gemfile
index 9268620935..5fdde68a5f 100644
--- a/api/Gemfile
+++ b/api/Gemfile
@@ -11,5 +11,6 @@ gemspec
 eval_gemfile '../contrib/Gemfile.shared'
 
 group :test, :development do
+  gem 'opentelemetry-sdk', path: '../sdk', require: false
   gem 'opentelemetry-test-helpers', path: '../test_helpers', require: false
 end
diff --git a/api/Rakefile b/api/Rakefile
index d202bf4c43..a6ac35404c 100644
--- a/api/Rakefile
+++ b/api/Rakefile
@@ -29,3 +29,18 @@ default_tasks =
   end
 
 task default: default_tasks
+
+namespace :bench do
+  bench_files = FileList['benchmarks/*_bench.rb']
+
+  bench_files.each do |file|
+    name = File.basename(file, '_bench.rb')
+    desc "Run #{name} benchmarks"
+    task name do
+      sh "bundle exec ruby #{file}"
+    end
+  end
+
+  desc 'Run all benchmarks'
+  task all: bench_files.map { |f| File.basename(f, '_bench.rb') }
+end
diff --git a/api/benchmarks/README.md b/api/benchmarks/README.md
new file mode 100644
index 0000000000..22657d0735
--- /dev/null
+++ b/api/benchmarks/README.md
@@ -0,0 +1,133 @@
+# Trace API Benchmarks
+
+This directory contains [benchmark-ips](https://github.com/evanphx/benchmark-ips) benchmarks for the OpenTelemetry Ruby API and SDK.
+
+## Running the Benchmarks
+
+Run from the `api/` directory:
+
+```bash
+# Run all benchmarks
+rake bench:all
+
+# Or run individual benchmarks:
+bundle exec ruby benchmarks/context_bench.rb
+bundle exec ruby benchmarks/id_generation_bench.rb
+bundle exec ruby benchmarks/span_bench.rb
+bundle exec ruby benchmarks/tracer_bench.rb
+```
+
+## Benchmark Files
+
+| File | What it measures |
+| ---- | --------------- |
+| `context_bench.rb` | Context storage implementations — standard and fiber-local variants with both single and recursive value operations |
+| `id_generation_bench.rb` | ID generation performance — trace IDs, span IDs, and random byte generation |
+| `span_bench.rb` | Span operations — setting name, attributes, and adding events |
+| `tracer_bench.rb` | Span creation performance — basic, with parent context, with attributes, and with links |
+
+## Sample Run
+
+### System Specifications
+
+**OS Information:**
+
+- Distribution: Ubuntu 24.04.3 LTS (Noble Numbat)
+- Kernel: Linux 6.14.0-1018-aws
+- Architecture: x86_64
+
+**Memory:**
+
+- Total: ~3.91 GB (4,006,000 kB)
+- Available: ~3.40 GB (3,470,496 kB)
+- Free: ~3.13 GB (3,195,972 kB)
+
+**CPU:**
+
+- Processor: Intel(R) Xeon(R) CPU E5-2686 v4 @ 2.30GHz
+- Cores: 2
+- Threads: 2
+- Virtualization: Xen (Full)
+- Cache: L1d 64 KiB × 2 | L1i 64 KiB × 2 | L2 512 KiB × 2 | L3 45 MiB
+
+**Runtime:**
+
+- Ruby: 3.4.0dev (2024-12-25 master f450108330) +PRISM [x86_64-linux]
+
+### Benchmark Results
+
+#### Context Operations
+
+`bundle exec ruby benchmarks/context_bench.rb`
+
+**Standard with_value Operations:**
+
+| Context Type | Throughput | Time/Op | Relative Performance |
+| --- | --- | --- | --- |
+| FiberLocalArrayContext.with_value | 756,047.3 i/s | 1.32 μs/i | **Fastest** |
+| FiberLocalLinkedListContext.with_value | 689,024.1 i/s | 1.45 μs/i | 1.10x slower |
+| FiberAttributeContext.with_value | 651,214.4 i/s | 1.54 μs/i | 1.16x slower |
+| ArrayContext.with_value | 633,636.0 i/s | 1.58 μs/i | 1.19x slower |
+| LinkedListContext.with_value | 543,032.7 i/s | 1.84 μs/i | 1.39x slower |
+| FiberLocalImmutableArrayContext.with_value | 488,004.8 i/s | 2.05 μs/i | 1.55x slower |
+| FiberLocalVarContext.with_value | 477,231.8 i/s | 2.10 μs/i | 1.58x slower |
+| ImmutableArrayContext.with_value | 473,185.9 i/s | 2.11 μs/i | 1.60x slower |
+
+**Recursive with_value Operations:**
+
+| Context Type | Throughput | Time/Op | Relative Performance |
+| --- | --- | --- | --- |
+| FiberLocalArrayContext.with_value | 79,682.3 i/s | 12.55 μs/i | **Fastest** |
+| FiberLocalLinkedListContext.with_value | 70,142.6 i/s | 14.26 μs/i | 1.14x slower |
+| FiberAttributeContext.with_value | 69,806.8 i/s | 14.33 μs/i | 1.14x slower |
+| ArrayContext.with_value | 66,249.2 i/s | 15.09 μs/i | 1.20x slower |
+| LinkedListContext.with_value | 57,670.2 i/s | 17.34 μs/i | 1.38x slower |
+| FiberLocalVarContext.with_value | 49,221.0 i/s | 20.32 μs/i | 1.62x slower |
+| FiberLocalImmutableArrayContext.with_value | 48,464.7 i/s | 20.63 μs/i | 1.64x slower |
+| ImmutableArrayContext.with_value | 47,063.2 i/s | 21.25 μs/i | 1.69x slower |
+
+#### ID Generation
+
+`bundle exec ruby benchmarks/id_generation_bench.rb`
+
+**Trace ID Generation:**
+
+| Method | Throughput | Time/Op | Relative Performance |
+| --- | --- | --- | --- |
+| generate_trace_id_while | 3,620,066.2 i/s | 276.24 ns/i | **Fastest** |
+| generate_trace_id | 2,052,539.5 i/s | 487.20 ns/i | 1.76x slower |
+
+**Span ID Generation:**
+
+| Method | Throughput | Time/Op | Relative Performance |
+| --- | --- | --- | --- |
+| generate_span_id_while | 3,797,911.0 i/s | 263.30 ns/i | **Fastest** |
+| generate_span_id | 1,963,041.8 i/s | 509.41 ns/i | 1.93x slower |
+
+**Random Bytes Generation:**
+
+| Method | Throughput | Time/Op | Relative Performance |
+| --- | --- | --- | --- |
+| generate_r_in_place | 1,712,273.8 i/s | 584.02 ns/i | **Fastest** |
+| generate_r | 1,348,496.2 i/s | 741.57 ns/i | 1.27x slower |
+
+#### Span Operations
+
+`bundle exec ruby benchmarks/span_bench.rb`
+
+| Operation | Throughput | Time/Op | Relative Performance |
+| --- | --- | --- | --- |
+| name= | 3,642,110.6 i/s | 274.57 ns/i | **Fastest** |
+| set_attribute | 1,996,785.3 i/s | 500.80 ns/i | 1.82x slower |
+| add_event | 268,851.5 i/s | 3.72 μs/i | 13.55x slower |
+
+#### Tracer Span Creation
+
+`bundle exec ruby benchmarks/tracer_bench.rb`
+
+| Operation | Throughput | Time/Op | Relative Performance |
+| --- | --- | --- | --- |
+| start span with parent context | 2,619,109.2 i/s | 381.81 ns/i | **Fastest** |
+| start span | 2,269,594.3 i/s | 440.61 ns/i | 1.15x slower |
+| start span with attributes | 2,007,011.5 i/s | 498.25 ns/i | 1.30x slower |
+| start span with links | 1,991,015.3 i/s | 502.26 ns/i | 1.32x slower |
diff --git a/api/benchmarks/context_bench.rb b/api/benchmarks/context_bench.rb
index 185d393567..73d2e45461 100644
--- a/api/benchmarks/context_bench.rb
+++ b/api/benchmarks/context_bench.rb
@@ -4,7 +4,7 @@
 #
 # SPDX-License-Identifier: Apache-2.0
 
-require 'benchmark/ipsa'
+require 'benchmark/ips'
 require 'concurrent-ruby'
 require 'opentelemetry'
 
@@ -784,7 +784,7 @@ def set_values(values) # rubocop:disable Naming/AccessorMethodName:
   ROOT = empty.freeze
 end
 
-Benchmark.ipsa do |x|
+Benchmark.ips do |x|
   x.report 'FiberAttributeContext.with_value' do
     FiberAttributeContext.with_value('key', 'value') { |ctx, _| ctx }
   end
@@ -820,7 +820,7 @@ def set_values(values) # rubocop:disable Naming/AccessorMethodName:
   x.compare!
 end
 
-Benchmark.ipsa do |x| # rubocop:disable Metrics/BlockLength
+Benchmark.ips do |x| # rubocop:disable Metrics/BlockLength
   x.report 'LinkedListContext.with_value recursive' do
     LinkedListContext.with_value('key', 'value') do
       LinkedListContext.with_value('key', 'value') do
diff --git a/api/benchmarks/id_generation_bench.rb b/api/benchmarks/id_generation_bench.rb
index 9036d0f8e7..7ab5c0aeb6 100644
--- a/api/benchmarks/id_generation_bench.rb
+++ b/api/benchmarks/id_generation_bench.rb
@@ -4,7 +4,7 @@
 #
 # SPDX-License-Identifier: Apache-2.0
 
-require 'benchmark/ipsa'
+require 'benchmark/ips'
 
 INVALID_SPAN_ID = ("\0" * 8).b
 INVALID_TRACE_ID = ("\0" * 16).b
@@ -45,19 +45,19 @@ def generate_r_in_place(trace_id)
   64 - x.bit_length
 end
 
-Benchmark.ipsa do |x|
+Benchmark.ips do |x|
   x.report('generate_trace_id') { generate_trace_id }
   x.report('generate_trace_id_while') { generate_trace_id_while }
   x.compare!
 end
 
-Benchmark.ipsa do |x|
+Benchmark.ips do |x|
   x.report('generate_span_id') { generate_span_id }
   x.report('generate_span_id_while') { generate_span_id_while }
   x.compare!
 end
 
-Benchmark.ipsa do |x|
+Benchmark.ips do |x|
   trace_id = generate_trace_id
   x.report('generate_r') { generate_r(trace_id) }
   x.report('generate_r_in_place') { generate_r_in_place(trace_id) }
diff --git a/api/benchmarks/span_bench.rb b/api/benchmarks/span_bench.rb
index 69db10ae12..f115e8ca20 100644
--- a/api/benchmarks/span_bench.rb
+++ b/api/benchmarks/span_bench.rb
@@ -4,7 +4,7 @@
 #
 # SPDX-License-Identifier: Apache-2.0
 
-require 'benchmark/ipsa'
+require 'benchmark/ips'
 require 'opentelemetry/sdk'
 
 OpenTelemetry::SDK.configure
@@ -18,7 +18,7 @@
   'http.url' => 'blogs/index'
 }
 
-Benchmark.ipsa do |x|
+Benchmark.ips do |x|
   x.report 'name=' do
     span.name = 'new_name'
   end
diff --git a/api/benchmarks/tracer_bench.rb b/api/benchmarks/tracer_bench.rb
index a6e72ef583..8622cc16cb 100644
--- a/api/benchmarks/tracer_bench.rb
+++ b/api/benchmarks/tracer_bench.rb
@@ -4,7 +4,7 @@
 #
 # SPDX-License-Identifier: Apache-2.0
 
-require 'benchmark/ipsa'
+require 'benchmark/ips'
 require 'opentelemetry'
 
 tracer = OpenTelemetry::Trace::Tracer.new
@@ -26,7 +26,7 @@
   )
 end
 
-Benchmark.ipsa do |x|
+Benchmark.ips do |x|
   x.report 'start span' do
     span = tracer.start_span('test_span')
     span.finish
diff --git a/api/opentelemetry-api.gemspec b/api/opentelemetry-api.gemspec
index e0d709e236..ebc8932165 100644
--- a/api/opentelemetry-api.gemspec
+++ b/api/opentelemetry-api.gemspec
@@ -26,7 +26,7 @@ Gem::Specification.new do |spec|
   spec.required_ruby_version = '>= 3.3'
   spec.add_dependency 'logger'
 
-  spec.add_development_dependency 'benchmark-ipsa', '~> 0.2.0'
+  spec.add_development_dependency 'benchmark-ips', '~> 2.14.0'
   spec.add_development_dependency 'concurrent-ruby', '~> 1.3'
   spec.add_development_dependency 'minitest', '~> 5.0'
   spec.add_development_dependency 'opentelemetry-test-helpers'