diff --git a/lib/datadog/core/configuration/components.rb b/lib/datadog/core/configuration/components.rb
index 9a182213288..da956f915b0 100644
--- a/lib/datadog/core/configuration/components.rb
+++ b/lib/datadog/core/configuration/components.rb
@@ -177,6 +177,11 @@ def initialize(settings)
 
           # Configure non-privileged components.
           Datadog::Tracing::Contrib::Component.configure(settings)
+
+          # Load the core Rails Railtie when Rails is present so all products benefit from Rails-specific setup.
+          if defined?(::Rails::Railtie)
+            require_relative '../contrib/rails/railtie'
+          end
         end
 
         # Called when a fork is detected
diff --git a/lib/datadog/core/contrib/rails/railtie.rb b/lib/datadog/core/contrib/rails/railtie.rb
new file mode 100644
index 00000000000..ae0f2f2a413
--- /dev/null
+++ b/lib/datadog/core/contrib/rails/railtie.rb
@@ -0,0 +1,28 @@
+# frozen_string_literal: true
+
+require_relative 'utils'
+require_relative '../../environment/process'
+
+module Datadog
+  module Core
+    module Contrib
+      module Rails
+        # Railtie for core Rails setup that benefits all Datadog products.
+        class Railtie < ::Rails::Railtie
+          def self.after_initialize
+            return unless Datadog.configuration.experimental_propagate_process_tags_enabled
+
+            Datadog::Core::Environment::Process.rails_application_name =
+              Datadog::Core::Contrib::Rails::Utils.app_name
+          end
+
+          # Registered after the method definition so the method exists if on_load fires immediately
+          # (which happens when the Railtie is loaded into an already-initialized Rails app).
+          ::ActiveSupport.on_load(:after_initialize) do
+            Datadog::Core::Contrib::Rails::Railtie.after_initialize
+          end
+        end
+      end
+    end
+  end
+end
diff --git a/lib/datadog/core/contrib/rails/utils.rb b/lib/datadog/core/contrib/rails/utils.rb
index 864f8ab3c9f..b951322c4c0 100644
--- a/lib/datadog/core/contrib/rails/utils.rb
+++ b/lib/datadog/core/contrib/rails/utils.rb
@@ -7,11 +7,15 @@ module Rails
         # common utilities for Rails
         module Utils
           def self.app_name
-            if ::Rails::VERSION::MAJOR >= 6
-              ::Rails.application.class.module_parent_name.underscore
+            application_name = if ::Rails::VERSION::MAJOR >= 6
+              ::Rails.application.class.module_parent_name
             else
-              ::Rails.application.class.parent_name.underscore
+              ::Rails.application.class.parent_name
             end
+            application_name&.underscore
+          rescue => e
+            Datadog.logger.debug("Failed to extract Rails application name: #{e.class}: #{e}")
+            nil
           end
 
           def self.railtie_supported?
diff --git a/lib/datadog/core/environment/ext.rb b/lib/datadog/core/environment/ext.rb
index fd4579e1f97..8959e7f2559 100644
--- a/lib/datadog/core/environment/ext.rb
+++ b/lib/datadog/core/environment/ext.rb
@@ -41,6 +41,7 @@ module Ext
         TAG_ENTRYPOINT_NAME = "entrypoint.name"
         TAG_ENTRYPOINT_WORKDIR = "entrypoint.workdir"
         TAG_ENTRYPOINT_TYPE = "entrypoint.type"
+        TAG_RAILS_APPLICATION = "rails.application"
         TAG_PROCESS_TAGS = "_dd.tags.process"
         TAG_SERVICE = 'service'
         TAG_VERSION = 'version'
diff --git a/lib/datadog/core/environment/process.rb b/lib/datadog/core/environment/process.rb
index 7e3c6ca772b..61c5aa23cfc 100644
--- a/lib/datadog/core/environment/process.rb
+++ b/lib/datadog/core/environment/process.rb
@@ -35,6 +35,9 @@ def self.tags
 
           tags << "#{Environment::Ext::TAG_ENTRYPOINT_TYPE}:#{TagNormalizer.normalize(entrypoint_type, remove_digit_start_char: false)}"
 
+          rails_application_name = TagNormalizer.normalize_process_value(@rails_application_name.to_s)
+          tags << "#{Environment::Ext::TAG_RAILS_APPLICATION}:#{rails_application_name}" unless rails_application_name.empty?
+
           @tags = tags.freeze
         end
 
@@ -80,6 +83,15 @@ def self.entrypoint_basedir
           File.basename(File.expand_path(File.dirname($0)))
         end
 
+        # Sets the rails application name from other places in code
+        # @param name [String] the rails application name
+        # @return [void]
+        def self.rails_application_name=(name)
+          @rails_application_name = name
+          remove_instance_variable(:@tags) if instance_variable_defined?(:@tags)
+          remove_instance_variable(:@serialized) if instance_variable_defined?(:@serialized)
+        end
+
         private_class_method :entrypoint_workdir, :entrypoint_type, :entrypoint_name, :entrypoint_basedir
       end
     end
diff --git a/lib/datadog/tracing/contrib/rails/patcher.rb b/lib/datadog/tracing/contrib/rails/patcher.rb
index 26a1f80e33b..d0c4f5151b7 100644
--- a/lib/datadog/tracing/contrib/rails/patcher.rb
+++ b/lib/datadog/tracing/contrib/rails/patcher.rb
@@ -6,7 +6,6 @@
 require_relative 'log_injection'
 require_relative 'middlewares'
 require_relative 'runner'
-require_relative '../../../core/contrib/rails/utils'
 require_relative '../semantic_logger/patcher'
 
 module Datadog
diff --git a/sig/datadog/core/contrib/rails/railtie.rbs b/sig/datadog/core/contrib/rails/railtie.rbs
new file mode 100644
index 00000000000..dc7d79ee7b2
--- /dev/null
+++ b/sig/datadog/core/contrib/rails/railtie.rbs
@@ -0,0 +1,11 @@
+module Datadog
+  module Core
+    module Contrib
+      module Rails
+        class Railtie < ::Rails::Railtie
+          def self.after_initialize: () -> void
+        end
+      end
+    end
+  end
+end
diff --git a/sig/datadog/core/contrib/rails/utils.rbs b/sig/datadog/core/contrib/rails/utils.rbs
index 49db36402bc..29d9e3e2977 100644
--- a/sig/datadog/core/contrib/rails/utils.rbs
+++ b/sig/datadog/core/contrib/rails/utils.rbs
@@ -3,7 +3,7 @@ module Datadog
     module Contrib
       module Rails
         module Utils
-          def self.app_name: () -> String
+          def self.app_name: () -> String?
 
           def self.railtie_supported?: () -> bool
         end
diff --git a/sig/datadog/core/environment/ext.rbs b/sig/datadog/core/environment/ext.rbs
index c47790adffd..56e1b7016a0 100644
--- a/sig/datadog/core/environment/ext.rbs
+++ b/sig/datadog/core/environment/ext.rbs
@@ -50,6 +50,8 @@ module Datadog
 
         TAG_ENTRYPOINT_TYPE: ::String
 
+        TAG_RAILS_APPLICATION: ::String
+
         TAG_PROCESS_TAGS: ::String
       end
     end
diff --git a/sig/datadog/core/environment/process.rbs b/sig/datadog/core/environment/process.rbs
index 494cf77cf84..06a54577d05 100644
--- a/sig/datadog/core/environment/process.rbs
+++ b/sig/datadog/core/environment/process.rbs
@@ -4,11 +4,14 @@ module Datadog
       module Process
         self.@serialized: ::String
         self.@tags: ::Array[::String]
+        self.@rails_application_name: ::String?
 
         def self.serialized: () -> ::String
 
         def self.tags: () -> ::Array[::String]
 
+        def self.rails_application_name=: (::String? name) -> void
+
         private
 
         def self.entrypoint_workdir: () -> ::String
diff --git a/spec/datadog/core/contrib/rails/railtie_spec.rb b/spec/datadog/core/contrib/rails/railtie_spec.rb
new file mode 100644
index 00000000000..0357f2bfed1
--- /dev/null
+++ b/spec/datadog/core/contrib/rails/railtie_spec.rb
@@ -0,0 +1,48 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+require 'active_support/lazy_load_hooks'
+
+# Provide a minimal stub base class for testing without loading the full Rails framework.
+# utils_spec.rb uses the same pattern (stub_const '::Rails') for the same reason.
+module Rails
+  class Railtie; end unless defined?(Railtie)
+end
+
+require 'lib/datadog/core/contrib/rails/railtie'
+
+RSpec.describe Datadog::Core::Contrib::Rails::Railtie do
+  describe '.after_initialize' do
+    subject(:after_initialize) { described_class.after_initialize }
+
+    before do
+      allow(Datadog::Core::Contrib::Rails::Utils).to receive(:app_name).and_return('test_app')
+    end
+
+    after do
+      Datadog::Core::Environment::Process.rails_application_name = nil
+    end
+
+    context 'when experimental_propagate_process_tags_enabled is true' do
+      before do
+        allow(Datadog.configuration).to receive(:experimental_propagate_process_tags_enabled).and_return(true)
+      end
+
+      it 'includes the rails application name in process tags' do
+        after_initialize
+        expect(Datadog::Core::Environment::Process.tags).to include('rails.application:test_app')
+      end
+    end
+
+    context 'when experimental_propagate_process_tags_enabled is false' do
+      before do
+        allow(Datadog.configuration).to receive(:experimental_propagate_process_tags_enabled).and_return(false)
+      end
+
+      it 'does not include the rails application name in process tags' do
+        after_initialize
+        expect(Datadog::Core::Environment::Process.tags).not_to include(a_string_starting_with('rails.application:'))
+      end
+    end
+  end
+end
diff --git a/spec/datadog/core/contrib/rails/utils_spec.rb b/spec/datadog/core/contrib/rails/utils_spec.rb
index b3f04ed32bc..0a8e64748c7 100644
--- a/spec/datadog/core/contrib/rails/utils_spec.rb
+++ b/spec/datadog/core/contrib/rails/utils_spec.rb
@@ -1,7 +1,58 @@
 require 'lib/datadog/core/contrib/rails/utils'
 require 'rails/version'
+require 'active_support/core_ext/string/inflections'
 
 RSpec.describe Datadog::Core::Contrib::Rails::Utils do
+  describe 'app_name' do
+    subject(:app_name) { described_class.app_name }
+
+    let(:namespace_name) { 'custom_app' }
+    let(:application_class) { double('custom rails class', module_parent_name: namespace_name) }
+
+    let(:application) { double('custom rails', class: application_class) }
+
+    # TODO: This can be refactored in the future to use a real Rails application class instead of stubs.
+    let(:rails_module) do
+      version_major = 7
+      application_instance = application
+      Module.new do
+        version_module = Module.new do
+          const_set(:MAJOR, version_major)
+        end
+
+        const_set(:VERSION, version_module)
+        define_singleton_method(:application) { application_instance }
+      end
+    end
+
+    before do
+      stub_const('::Rails', rails_module)
+    end
+
+    context 'when namespace is available' do
+      it { is_expected.to eq('custom_app') }
+    end
+
+    context 'when namespace is nil' do
+      let(:namespace_name) { nil }
+
+      it { is_expected.to be_nil }
+    end
+
+    context 'when Rails lookup raises an error' do
+      before do
+        allow(rails_module).to receive(:application).and_raise(StandardError)
+      end
+
+      it { is_expected.to be_nil }
+
+      it 'returns nil and logs a debug message' do
+        expect(Datadog.logger).to receive(:debug).with(/Failed to extract Rails application name/)
+        expect(app_name).to be_nil
+      end
+    end
+  end
+
   describe 'railtie_supported?' do
     subject(:railtie_supported?) { described_class.railtie_supported? }
 
diff --git a/spec/datadog/core/environment/process_spec.rb b/spec/datadog/core/environment/process_spec.rb
index 7c4f681a024..1c261fb775f 100644
--- a/spec/datadog/core/environment/process_spec.rb
+++ b/spec/datadog/core/environment/process_spec.rb
@@ -74,6 +74,23 @@
         expect(described_class.serialized).to include('entrypoint.type:script')
       end
     end
+
+    context 'when Rails application name is available' do
+      include_context 'with mocked process environment'
+      let(:program_name) { 'bin/rails' }
+
+      before do
+        described_class.rails_application_name = 'Test::App'
+      end
+
+      after do
+        described_class.rails_application_name = nil
+      end
+
+      it 'includes rails.application in serialized tags' do
+        expect(serialized).to include('rails.application:test_app')
+      end
+    end
   end
 
   describe 'Scenario: Real applications' do
@@ -98,8 +115,9 @@
               file.puts "gem 'datadog', path: '#{project_root_directory}', require: false"
             end
             File.write("test@_app/config/initializers/process_initializer.rb", <<-RUBY)
-                        Rails.application.config.after_initialize do
-                            require 'datadog/core/environment/process'
+                        require 'datadog'
+                        Datadog.configure { }
+                        ActiveSupport.on_load(:after_initialize) do
                             STDERR.puts "_dd.tags.process:\#{Datadog::Core::Environment::Process.serialized}"
                             STDERR.flush
                             Thread.new { Process.kill('TERM', Process.pid) }
@@ -114,6 +132,7 @@
                 expect(err).to include('entrypoint.type:script')
                 expect(err).to include('entrypoint.name:rails')
                 expect(err).to include('entrypoint.basedir:bin')
+                expect(err).to include('rails.application:test_app')
               end
             end
           end
@@ -201,5 +220,43 @@
         expect(described_class.tags).to include('entrypoint.type:script')
       end
     end
+
+    context 'when Rails application name is available' do
+      include_context 'with mocked process environment'
+      let(:program_name) { 'bin/rails' }
+
+      before { described_class.rails_application_name = 'test_app' }
+      after { described_class.rails_application_name = nil }
+
+      it 'includes rails.application in tag array' do
+        expect(tags.length).to eq(5)
+        expect(tags).to include('rails.application:test_app')
+      end
+    end
+  end
+  describe '::rails_application_name=' do
+    include_context 'with mocked process environment'
+    let(:program_name) { 'bin/rails' }
+
+    after do
+      described_class.rails_application_name = nil
+    end
+
+    it 'includes the rails app name in the tags' do
+      described_class.rails_application_name = "Test::App"
+      expect(described_class.tags).to include('rails.application:test_app')
+    end
+
+    it 'invalidates the cached tags' do
+      described_class.tags
+      described_class.rails_application_name = "Test::App"
+      expect(described_class.tags).to include('rails.application:test_app')
+    end
+
+    it 'invalidates the serialized cache' do
+      described_class.serialized
+      described_class.rails_application_name = "Test::App"
+      expect(described_class.serialized).to include('rails.application:test_app')
+    end
   end
 end
diff --git a/spec/datadog/core/runtime/metrics_spec.rb b/spec/datadog/core/runtime/metrics_spec.rb
index 88dc5ad4130..81adeb9861f 100644
--- a/spec/datadog/core/runtime/metrics_spec.rb
+++ b/spec/datadog/core/runtime/metrics_spec.rb
@@ -277,7 +277,8 @@
       before do
         allow(runtime_metrics).to receive(:statsd).and_return(statsd)
         allow(statsd).to receive(:gauge)
-        allow(Datadog::Core::Environment::Process).to receive(:tags).and_return(['entrypoint.workdir:test'])
+        allow(Datadog::Core::Environment::Process).to receive(:tags)
+          .and_return(['entrypoint.workdir:test', 'rails.application:test_app'])
         runtime_metrics.enabled = true
       end
 
@@ -285,6 +286,7 @@
         flush
 
         expect(statsd).to have_received(:gauge).with(anything, anything, hash_including(tags: array_including('entrypoint.workdir:test'))).at_least(:once)
+        expect(statsd).to have_received(:gauge).with(anything, anything, hash_including(tags: array_including('rails.application:test_app'))).at_least(:once)
       end
     end
   end
@@ -328,12 +330,13 @@
       context 'when :experimental_propagate_process_tags_enabled is true' do
         before do
           allow(Datadog::Core::Environment::Process).to receive(:tags)
-            .and_return(['entrypoint.workdir:test', 'entrypoint.name:test_script'])
+            .and_return(['entrypoint.workdir:test', 'entrypoint.name:test_script', 'rails.application:test_app'])
         end
 
         it 'includes process tags by default' do
           is_expected.to include('entrypoint.workdir:test')
           is_expected.to include('entrypoint.name:test_script')
+          is_expected.to include('rails.application:test_app')
         end
       end
 
@@ -373,7 +376,7 @@
         let(:options) { super().merge(experimental_propagate_process_tags_enabled: true) }
 
         before do
-          expect(Datadog::Core::Environment::Process).to receive(:tags).and_return(['entrypoint.workdir:test', 'entrypoint.name:test_script', 'entrypoint.basedir:test', 'entrypoint.type:script'])
+          expect(Datadog::Core::Environment::Process).to receive(:tags).and_return(['entrypoint.workdir:test', 'entrypoint.name:test_script', 'entrypoint.basedir:test', 'entrypoint.type:script', 'rails.application:test_app'])
         end
 
         it 'includes process tags when enabled' do
@@ -381,6 +384,7 @@
           is_expected.to include('entrypoint.name:test_script')
           is_expected.to include('entrypoint.basedir:test')
           is_expected.to include('entrypoint.type:script')
+          is_expected.to include('rails.application:test_app')
         end
       end
 
diff --git a/spec/datadog/tracing/contrib/rails/patcher_spec.rb b/spec/datadog/tracing/contrib/rails/patcher_spec.rb
new file mode 100644
index 00000000000..a1876895b09
--- /dev/null
+++ b/spec/datadog/tracing/contrib/rails/patcher_spec.rb
@@ -0,0 +1,28 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+require 'datadog/tracing/contrib/rails/patcher'
+
+RSpec.describe Datadog::Tracing::Contrib::Rails::Patcher do
+  describe '.after_initialize' do
+    let(:app) { double('application') }
+
+    before do
+      described_class::AFTER_INITIALIZE_ONLY_ONCE_PER_APP.delete(app)
+      allow(described_class).to receive(:setup_tracer)
+    end
+
+    it 'sets up the tracer' do
+      described_class.after_initialize(app)
+
+      expect(described_class).to have_received(:setup_tracer)
+    end
+
+    it 'only sets up the tracer once per app' do
+      described_class.after_initialize(app)
+      described_class.after_initialize(app)
+
+      expect(described_class).to have_received(:setup_tracer).once
+    end
+  end
+end