diff --git a/src/DurableTask.Core/History/SubOrchestrationInstanceCreatedEvent.cs b/src/DurableTask.Core/History/SubOrchestrationInstanceCreatedEvent.cs
index 646070933..1931d2d8d 100644
--- a/src/DurableTask.Core/History/SubOrchestrationInstanceCreatedEvent.cs
+++ b/src/DurableTask.Core/History/SubOrchestrationInstanceCreatedEvent.cs
@@ -13,6 +13,7 @@
 
 namespace DurableTask.Core.History
 {
+    using System.Collections.Generic;
     using System.Runtime.Serialization;
 
     /// <summary>
@@ -47,6 +48,7 @@ internal SubOrchestrationInstanceCreatedEvent(SubOrchestrationInstanceCreatedEve
             InstanceId = other.InstanceId;
             Input = other.Input;
             ClientSpanId = other.ClientSpanId;
+            Tags = other.Tags;
         }
 
         /// <summary>
@@ -83,5 +85,11 @@ internal SubOrchestrationInstanceCreatedEvent(SubOrchestrationInstanceCreatedEve
         /// </summary>
         [DataMember]
         public string ClientSpanId { get; set; }
+
+        /// <summary>
+        /// Gets or sets a dictionary of tags of string, string
+        /// </summary>
+        [DataMember]
+        public IDictionary<string, string> Tags { get; set; }
     }
 }
\ No newline at end of file
diff --git a/src/DurableTask.Core/OrchestrationRuntimeState.cs b/src/DurableTask.Core/OrchestrationRuntimeState.cs
index 3c10fe693..ab7d76044 100644
--- a/src/DurableTask.Core/OrchestrationRuntimeState.cs
+++ b/src/DurableTask.Core/OrchestrationRuntimeState.cs
@@ -389,6 +389,7 @@ HistoryEvent GenerateAbridgedEvent(HistoryEvent evt)
                     Version = subOrchestrationInstanceCreatedEvent.Version,
                     Input = "[..snipped..]",
                     ClientSpanId = subOrchestrationInstanceCreatedEvent.ClientSpanId,
+                    Tags = subOrchestrationInstanceCreatedEvent.Tags,
                 };
             }
             else if (evt is SubOrchestrationInstanceCompletedEvent subOrchestrationInstanceCompletedEvent)
diff --git a/src/DurableTask.Core/TaskOrchestrationDispatcher.cs b/src/DurableTask.Core/TaskOrchestrationDispatcher.cs
index b81cbae50..ad0d43230 100644
--- a/src/DurableTask.Core/TaskOrchestrationDispatcher.cs
+++ b/src/DurableTask.Core/TaskOrchestrationDispatcher.cs
@@ -1221,11 +1221,14 @@ TaskMessage ProcessCreateSubOrchestrationInstanceDecision(
             bool includeParameters,
             Activity? parentTraceActivity)
         {
+            IDictionary<string, string> mergedTags = OrchestrationTags.MergeTags(createSubOrchestrationAction.Tags, runtimeState.Tags);
+
             var historyEvent = new SubOrchestrationInstanceCreatedEvent(createSubOrchestrationAction.Id)
             {
                 Name = createSubOrchestrationAction.Name,
                 Version = createSubOrchestrationAction.Version,
                 InstanceId = createSubOrchestrationAction.InstanceId,
+                Tags = mergedTags,
             };
             if (includeParameters)
             {
@@ -1238,7 +1241,6 @@ TaskMessage ProcessCreateSubOrchestrationInstanceDecision(
 
             var startedEvent = new ExecutionStartedEvent(-1, createSubOrchestrationAction.Input)
             {
-                Tags = OrchestrationTags.MergeTags(createSubOrchestrationAction.Tags, runtimeState.Tags),
                 OrchestrationInstance = new OrchestrationInstance
                 {
                     InstanceId = createSubOrchestrationAction.InstanceId,
@@ -1252,7 +1254,8 @@ TaskMessage ProcessCreateSubOrchestrationInstanceDecision(
                     TaskScheduleId = createSubOrchestrationAction.Id
                 },
                 Name = createSubOrchestrationAction.Name,
-                Version = createSubOrchestrationAction.Version
+                Version = createSubOrchestrationAction.Version,
+                Tags = mergedTags,
             };
 
             // If a parent trace context was provided via the CreateSubOrchestrationAction.Tags, we will use this as the parent trace context of the suborchestration execution Activity rather than Activity.Current.Context.