diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2edb6df..42ed12a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## Unreleased Changes
 
+### Fixed
+
+- Suppress stack trace when telemetry is disabled via `DT_MCP_DISABLE_TELEMETRY=true`; now logs a concise message instead of throwing an error
+
 ### Tools
 
 - `find_entities_by_name` now uses `smartscapeNode` DQL command under the hood, and will fall back to `fetch dt.entity.${entityType}`.
diff --git a/src/utils/telemetry-openkit.ts b/src/utils/telemetry-openkit.ts
index aae8bd2..d8d3c13 100644
--- a/src/utils/telemetry-openkit.ts
+++ b/src/utils/telemetry-openkit.ts
@@ -203,8 +203,8 @@ export function createTelemetry(): Telemetry {
   try {
     return new DynatraceMcpTelemetry();
   } catch (e) {
-    // Failed to initialize
-    console.error(e);
+    // Failed to initialize (unexpected). Log concise message without stack trace spam.
+    console.error('Dynatrace Telemetry initialization failed:', (e as Error).message);
     // fallback to NoOp Telemetry
     return new NoOpTelemetry();
   }