diff --git a/device-discovery/device_discovery/client.py b/device-discovery/device_discovery/client.py
index af416a81..feac83d6 100644
--- a/device-discovery/device_discovery/client.py
+++ b/device-discovery/device_discovery/client.py
@@ -4,8 +4,9 @@
 
 import logging
 import threading
+from typing import Any
 
-from netboxlabs.diode.sdk import DiodeClient, DiodeDryRunClient
+from netboxlabs.diode.sdk import DiodeClient, DiodeDryRunClient, DiodeOTLPClient
 
 from device_discovery.translate import translate_data
 from device_discovery.version import version_semver
@@ -82,7 +83,7 @@ def init_client(
                     app_name=f"{prefix}/{APP_NAME}" if prefix else APP_NAME,
                     output_dir=dry_run_output_dir,
                 )
-            else:
+            elif client_id is not None and client_secret is not None:
                 self.diode_client = DiodeClient(
                     target=target,
                     app_name=f"{prefix}/{APP_NAME}" if prefix else APP_NAME,
@@ -90,14 +91,21 @@ def init_client(
                     client_id=client_id,
                     client_secret=client_secret,
                 )
+            else:
+                logger.debug("Initializing Diode OTLP client")
+                self.diode_client = DiodeOTLPClient(
+                    target=target,
+                    app_name=f"{prefix}/{APP_NAME}" if prefix else APP_NAME,
+                    app_version=APP_VERSION,
+                )
 
-    def ingest(self, hostname: str, data: dict):
+    def ingest(self, metadata: dict[str, Any] | None, data: dict):
         """
         Ingest data using the Diode client after translating it.
 
         Args:
         ----
-            hostname (str): The device hostname.
+            metadata (dict[str, Any] | None): Metadata to attach to the ingestion request.
             data (dict): The data to be ingested.
 
         Raises:
@@ -109,9 +117,17 @@ def ingest(self, hostname: str, data: dict):
             raise ValueError("Diode client not initialized")
 
         with self._lock:
-            response = self.diode_client.ingest(translate_data(data))
+            translated_entities = translate_data(data)
+            request_metadata = metadata or {}
+            response = self.diode_client.ingest(
+                entities=translated_entities, metadata=request_metadata
+            )
+
+        hostname = request_metadata.get("hostname") or "unknown-host"
 
         if response.errors:
-            logger.error(f"ERROR ingestion failed for {hostname} : {response.errors}")
+            logger.error(
+                f"ERROR ingestion failed for {hostname} : {response.errors}"
+            )
         else:
             logger.info(f"Hostname {hostname}: Successful ingestion")
diff --git a/device-discovery/device_discovery/main.py b/device-discovery/device_discovery/main.py
index c59a25f3..794f22ac 100644
--- a/device-discovery/device_discovery/main.py
+++ b/device-discovery/device_discovery/main.py
@@ -136,8 +136,6 @@ def main():
                 name
                 for name, val in [
                     ("--diode-target", args.diode_target),
-                    ("--diode-client-id", args.diode_client_id),
-                    ("--diode-client-secret", args.diode_client_secret),
                 ]
                 if not val
             ]
diff --git a/device-discovery/device_discovery/policy/runner.py b/device-discovery/device_discovery/policy/runner.py
index e9bdcae1..b3bf9be2 100644
--- a/device-discovery/device_discovery/policy/runner.py
+++ b/device-discovery/device_discovery/policy/runner.py
@@ -187,7 +187,8 @@ def _collect_device_data(
                 logger.error(
                     f"Policy {self.name}, Hostname {sanitized_hostname}: Error getting VLANs: {e}"
                 )
-            Client().ingest(scope.hostname, data)
+            metadata = {"policy_name": self.name, "hostname": sanitized_hostname}
+            Client().ingest(metadata, data)
             discovery_success = get_metric("discovery_success")
             if discovery_success:
                 discovery_success.add(1, {"policy": self.name})
diff --git a/device-discovery/pyproject.toml b/device-discovery/pyproject.toml
index dc3a9929..39388129 100644
--- a/device-discovery/pyproject.toml
+++ b/device-discovery/pyproject.toml
@@ -30,7 +30,7 @@ dependencies = [
     "fastapi~=0.115",
     "httpx~=0.27",
     "napalm~=5.0",
-    "netboxlabs-diode-sdk~=1.1",
+    "netboxlabs-diode-sdk~=1.6",
     "pydantic~=2.9",
     "python-dotenv~=1.0",
     "uvicorn~=0.32",
diff --git a/device-discovery/tests/policy/test_runner.py b/device-discovery/tests/policy/test_runner.py
index 32641199..b3d2d18e 100644
--- a/device-discovery/tests/policy/test_runner.py
+++ b/device-discovery/tests/policy/test_runner.py
@@ -155,7 +155,11 @@ def test_run_device_with_discovered_driver(policy_runner, sample_scopes, sample_
         # Verify driver discovery and ingestion
         mock_discover.assert_called_once_with(sample_scopes[0])
         mock_ingest.assert_called_once()
-        data = mock_ingest.call_args[0][1]
+        metadata_arg, data = mock_ingest.call_args[0]
+        assert metadata_arg == {
+            "policy_name": policy_runner.name,
+            "hostname": sample_scopes[0].hostname,
+        }
         assert data["driver"] == "ios"
         assert data["device"] == {"model": "SampleModel"}
         assert data["interface"] == {"eth0": "up"}
diff --git a/device-discovery/tests/test_client.py b/device-discovery/tests/test_client.py
index ded814ac..f9e66265 100644
--- a/device-discovery/tests/test_client.py
+++ b/device-discovery/tests/test_client.py
@@ -59,6 +59,12 @@ def sample_data():
     }
 
 
+@pytest.fixture
+def sample_metadata():
+    """Sample metadata for testing ingestion."""
+    return {"policy_name": "test-policy", "hostname": "router1"}
+
+
 @pytest.fixture
 def mock_version_semver():
     """Mock the version_semver function."""
@@ -73,6 +79,13 @@ def mock_diode_client_class():
         yield mock
 
 
+@pytest.fixture
+def mock_diode_otlp_client_class():
+    """Mock the DiodeOTLPClient class."""
+    with patch("device_discovery.client.DiodeOTLPClient") as mock:
+        yield mock
+
+
 def test_init_client(mock_diode_client_class, mock_version_semver):
     """Test the initialization of the Diode client."""
     client = Client()
@@ -92,7 +105,7 @@ def test_init_client(mock_diode_client_class, mock_version_semver):
     )
 
 
-def test_ingest_success(mock_diode_client_class, sample_data):
+def test_ingest_success(mock_diode_client_class, sample_data, sample_metadata):
     """Test successful data ingestion."""
     client = Client()
     client.init_client(
@@ -101,18 +114,20 @@ def test_ingest_success(mock_diode_client_class, sample_data):
 
     mock_diode_instance = mock_diode_client_class.return_value
     mock_diode_instance.ingest.return_value.errors = []
-    hostname = sample_data["device"]["hostname"]
-
+    metadata = sample_metadata
     with patch(
         "device_discovery.client.translate_data",
         return_value=translate_data(sample_data),
     ) as mock_translate_data:
-        client.ingest(hostname, sample_data)
+        client.ingest(metadata, sample_data)
         mock_translate_data.assert_called_once_with(sample_data)
-        mock_diode_instance.ingest.assert_called_once()
+        mock_diode_instance.ingest.assert_called_once_with(
+            entities=mock_translate_data.return_value,
+            metadata=metadata,
+        )
 
 
-def test_ingest_failure(mock_diode_client_class, sample_data):
+def test_ingest_failure(mock_diode_client_class, sample_data, sample_metadata):
     """Test data ingestion with errors."""
     client = Client()
     client.init_client(
@@ -124,25 +139,27 @@ def test_ingest_failure(mock_diode_client_class, sample_data):
 
     mock_diode_instance = mock_diode_client_class.return_value
     mock_diode_instance.ingest.return_value.errors = ["Error1", "Error2"]
-    hostname = sample_data["device"]["hostname"]
-
+    metadata = sample_metadata
     with patch(
         "device_discovery.client.translate_data",
         return_value=translate_data(sample_data),
     ) as mock_translate_data:
-        client.ingest(hostname, sample_data)
+        client.ingest(metadata, sample_data)
         mock_translate_data.assert_called_once_with(sample_data)
-        mock_diode_instance.ingest.assert_called_once()
+        mock_diode_instance.ingest.assert_called_once_with(
+            entities=mock_translate_data.return_value,
+            metadata=metadata,
+        )
 
     assert len(mock_diode_instance.ingest.return_value.errors) > 0
 
 
-def test_ingest_without_initialization():
+def test_ingest_without_initialization(sample_metadata):
     """Test ingestion without client initialization raises ValueError."""
     Client._instance = None  # Reset the Client singleton instance
     client = Client()
     with pytest.raises(ValueError, match="Diode client not initialized"):
-        client.ingest("", {})
+        client.ingest(sample_metadata, {})
 
 
 def test_client_dry_run(tmp_path, sample_data):
@@ -154,7 +171,8 @@ def test_client_dry_run(tmp_path, sample_data):
         dry_run_output_dir=tmp_path,
     )
     hostname = sample_data["device"]["hostname"]
-    client.ingest(hostname, sample_data)
+    metadata = {"policy_name": "dry-run-policy", "hostname": hostname}
+    client.ingest(metadata, sample_data)
     files = list(tmp_path.glob("prefix_device-discovery*.json"))
 
     assert len(files) == 1
@@ -174,8 +192,24 @@ def test_client_dry_run_stdout(capsys, sample_data):
     )
 
     hostname = sample_data["device"]["hostname"]
-    client.ingest(hostname, sample_data)
+    metadata = {"policy_name": "dry-run-policy", "hostname": hostname}
+    client.ingest(metadata, sample_data)
 
     captured = capsys.readouterr()
     assert sample_data["device"]["hostname"] in captured.out
     assert sample_data["interface"]["GigabitEthernet0/0"]["mac_address"] in captured.out
+
+
+def test_init_client_uses_otlp_when_credentials_missing(
+    mock_diode_client_class, mock_diode_otlp_client_class, mock_version_semver
+):
+    """Ensure init_client falls back to DiodeOTLPClient when credentials are not provided."""
+    client = Client()
+    client.init_client(prefix="prefix", target="https://example.com")
+
+    assert not mock_diode_client_class.called
+    mock_diode_otlp_client_class.assert_called_once_with(
+        target="https://example.com",
+        app_name="prefix/device-discovery",
+        app_version=mock_version_semver(),
+    )
diff --git a/worker/pyproject.toml b/worker/pyproject.toml
index 3eded638..1e16a330 100644
--- a/worker/pyproject.toml
+++ b/worker/pyproject.toml
@@ -29,7 +29,7 @@ dependencies = [
     "croniter~=5.0",
     "fastapi~=0.115",
     "httpx~=0.27",
-    "netboxlabs-diode-sdk~=1.1",
+    "netboxlabs-diode-sdk~=1.6",
     "pydantic~=2.9",
     "uvicorn~=0.32",
     "PyYAML~=6.0",
diff --git a/worker/tests/policy/test_runner.py b/worker/tests/policy/test_runner.py
index 244d61e8..947b4845 100644
--- a/worker/tests/policy/test_runner.py
+++ b/worker/tests/policy/test_runner.py
@@ -16,7 +16,11 @@
 @pytest.fixture
 def policy_runner():
     """Fixture to create a PolicyRunner instance."""
-    return PolicyRunner()
+    runner = PolicyRunner()
+    runner.metadata = Metadata(
+        name="test_backend", app_name="test_app", app_version="1.0"
+    )
+    return runner
 
 
 @pytest.fixture
@@ -71,6 +75,15 @@ def mock_diode_client():
         mock_diode_client.return_value = mock_instance
         yield mock_diode_client
 
+
+@pytest.fixture
+def mock_diode_otlp_client():
+    """Fixture to mock the DiodeOTLPClient constructor."""
+    with patch("worker.policy.runner.DiodeOTLPClient") as mock_diode_otlp_client:
+        mock_instance = MagicMock()
+        mock_diode_otlp_client.return_value = mock_instance
+        yield mock_diode_otlp_client
+
 @pytest.fixture
 def mock_diode_dry_run_client():
     """Fixture to mock the DiodeDryRunClient constructor."""
@@ -138,6 +151,28 @@ def test_setup_policy_runner_with_one_time_run(
         assert mock_start.called
         assert policy_runner.status == Status.RUNNING
 
+
+def test_setup_policy_runner_uses_otlp_client(
+    policy_runner,
+    sample_policy,
+    mock_load_class,
+    mock_diode_client,
+    mock_diode_otlp_client,
+):
+    """Ensure setup falls back to DiodeOTLPClient when credentials are missing."""
+    otlp_config = DiodeConfig(target="http://localhost:8080", prefix="test-prefix")
+    with patch.object(policy_runner.scheduler, "start") as mock_start, patch.object(
+        policy_runner.scheduler, "add_job"
+    ) as mock_add_job:
+        policy_runner.setup("policy1", otlp_config, sample_policy)
+
+        mock_start.assert_called_once()
+        mock_add_job.assert_called_once()
+
+    mock_load_class.assert_called_once()
+    assert not mock_diode_client.called
+    mock_diode_otlp_client.assert_called_once()
+
 def test_setup_policy_runner_dry_run(
     policy_runner,
     sample_diode_dry_run_config,
@@ -185,6 +220,29 @@ def test_run_success(policy_runner, sample_policy, mock_diode_client, mock_backe
     assert len(call_args) == 3
 
 
+def test_run_passes_metadata_to_ingest(
+    policy_runner, sample_policy, mock_diode_client, mock_backend
+):
+    """Ensure run forwards policy/backend metadata to the Diode client."""
+    policy_runner.name = "policy-meta"
+    policy_runner.metadata = Metadata(
+        name="custom_backend", app_name="custom", app_version="0.1"
+    )
+
+    entity = ingester_pb2.Entity()
+    entity.device.name = "device-1"
+    mock_backend.run.return_value = [entity]
+    mock_diode_client.ingest.return_value.errors = []
+
+    policy_runner.run(mock_diode_client, mock_backend, sample_policy)
+
+    _, kwargs = mock_diode_client.ingest.call_args
+    assert kwargs["metadata"] == {
+        "policy_name": "policy-meta",
+        "worker_backend": "custom_backend",
+    }
+
+
 def test_run_ingestion_errors(
     policy_runner,
     sample_policy,
diff --git a/worker/tests/test_main.py b/worker/tests/test_main.py
index 119f4a2c..4a7cc334 100644
--- a/worker/tests/test_main.py
+++ b/worker/tests/test_main.py
@@ -7,7 +7,7 @@
 
 import pytest
 
-from worker.main import main
+from worker.main import main, resolve_env_var
 
 
 @pytest.fixture
@@ -169,3 +169,16 @@ def test_main_missing_policy(mock_parse_args):
             main()
         except Exception as e:
             assert str(e) == "Test Exit"
+
+
+def test_resolve_env_var_expands_environment(monkeypatch):
+    """Ensure resolve_env_var expands placeholders using environment variables."""
+    monkeypatch.setenv("MY_ENDPOINT", "grpc://localhost:4317")
+    assert resolve_env_var("${MY_ENDPOINT}") == "grpc://localhost:4317"
+
+
+def test_resolve_env_var_returns_original(monkeypatch):
+    """Ensure resolve_env_var returns original string when expansion is not possible."""
+    monkeypatch.delenv("NOT_DEFINED", raising=False)
+    assert resolve_env_var("plain-value") == "plain-value"
+    assert resolve_env_var("${NOT_DEFINED}") == "${NOT_DEFINED}"
diff --git a/worker/worker/main.py b/worker/worker/main.py
index 4a991ace..6220ec45 100644
--- a/worker/worker/main.py
+++ b/worker/worker/main.py
@@ -136,8 +136,6 @@ def main():
                 name
                 for name, val in [
                     ("--diode-target", args.diode_target),
-                    ("--diode-client-id", args.diode_client_id),
-                    ("--diode-client-secret", args.diode_client_secret),
                 ]
                 if not val
             ]
@@ -174,7 +172,7 @@ def main():
         )
 
         try:
-            if not config.dry_run:
+            if not config.dry_run and client_id is not None and client_secret is not None:
                 DiodeClient(
                     target=config.target,
                     app_name="validate",
diff --git a/worker/worker/policy/runner.py b/worker/worker/policy/runner.py
index 2c9d34db..3872eeff 100644
--- a/worker/worker/policy/runner.py
+++ b/worker/worker/policy/runner.py
@@ -9,7 +9,7 @@
 from apscheduler.schedulers.background import BackgroundScheduler
 from apscheduler.triggers.cron import CronTrigger
 from apscheduler.triggers.date import DateTrigger
-from netboxlabs.diode.sdk import DiodeClient, DiodeDryRunClient
+from netboxlabs.diode.sdk import DiodeClient, DiodeDryRunClient, DiodeOTLPClient
 from netboxlabs.diode.sdk.diode.v1 import ingester_pb2
 
 from worker.backend import Backend, load_class
@@ -63,7 +63,7 @@ def setup(self, name: str, diode_config: DiodeConfig, policy: Policy):
                 app_name=app_name,
                 output_dir=diode_config.dry_run_output_dir,
             )
-        else:
+        elif diode_config.client_id is not None and diode_config.client_secret is not None:
             client = DiodeClient(
                 target=diode_config.target,
                 app_name=app_name,
@@ -71,6 +71,13 @@ def setup(self, name: str, diode_config: DiodeConfig, policy: Policy):
                 client_id=diode_config.client_id,
                 client_secret=diode_config.client_secret,
             )
+        else:
+            logger.debug("Initializing Diode OTLP client")
+            client = DiodeOTLPClient(
+                target=diode_config.target,
+                app_name=app_name,
+                app_version=metadata.app_version,
+            )
 
         self.metadata = metadata
         self.policy = policy
@@ -120,13 +127,17 @@ def run(
         exec_start_time = time.perf_counter()
         try:
             entities = backend.run(self.name, policy)
+            metadata = {
+                "policy_name": self.name,
+                "worker_backend": self.metadata.name,
+            }
 
             for chunk_num, entity_chunk in enumerate(self._create_message_chunks(entities), 1):
                 chunk_size_mb = self._estimate_message_size(entity_chunk) / (1024 * 1024)
                 logger.debug(
                     f"Ingesting chunk {chunk_num} with {len(entity_chunk)} entities (~{chunk_size_mb:.2f} MB)"
                 )
-                response = client.ingest(entities=entity_chunk)
+                response = client.ingest(entities=entity_chunk, metadata=metadata)
                 if response.errors:
                     raise RuntimeError(f"Chunk {chunk_num} ingestion failed: {response.errors}")
                 logger.debug(f"Chunk {chunk_num} ingested successfully")