diff --git a/extension/observer/ecsobserver/extension.go b/extension/observer/ecsobserver/extension.go
index b3f832544f84..02db6fff56cc 100644
--- a/extension/observer/ecsobserver/extension.go
+++ b/extension/observer/ecsobserver/extension.go
@@ -15,31 +15,31 @@ var _ extension.Extension = (*ecsObserver)(nil)
 
 // ecsObserver implements component.ServiceExtension interface.
 type ecsObserver struct {
-	logger *zap.Logger
-	sd     *serviceDiscovery
+	telemetrySettings component.TelemetrySettings
+	sd                *serviceDiscovery
 
 	// for Shutdown
 	cancel func()
 }
 
 // Start runs the service discovery in background
-func (e *ecsObserver) Start(_ context.Context, host component.Host) error {
-	e.logger.Info("Starting ECSDiscovery")
+func (e *ecsObserver) Start(_ context.Context, _ component.Host) error {
+	e.telemetrySettings.Logger.Info("Starting ECSDiscovery")
 	// Ignore the ctx parameter as it is not for long running operation
 	ctx, cancel := context.WithCancel(context.Background())
 	e.cancel = cancel
 	go func() {
 		if err := e.sd.runAndWriteFile(ctx); err != nil {
-			e.logger.Error("ECSDiscovery stopped by error", zap.Error(err))
+			e.telemetrySettings.Logger.Error("ECSDiscovery stopped by error", zap.Error(err))
 			// Stop the collector
-			host.ReportFatalError(err)
+			_ = e.telemetrySettings.ReportComponentStatus(component.NewFatalErrorEvent(err))
 		}
 	}()
 	return nil
 }
 
 func (e *ecsObserver) Shutdown(_ context.Context) error {
-	e.logger.Info("Stopping ECSDiscovery")
+	e.telemetrySettings.Logger.Info("Stopping ECSDiscovery")
 	e.cancel()
 	return nil
 }
diff --git a/extension/observer/ecsobserver/extension_test.go b/extension/observer/ecsobserver/extension_test.go
index 28b69ea3b628..72db6137f30b 100644
--- a/extension/observer/ecsobserver/extension_test.go
+++ b/extension/observer/ecsobserver/extension_test.go
@@ -97,12 +97,23 @@ func TestExtensionStartStop(t *testing.T) {
 
 	t.Run("critical error", func(t *testing.T) {
 		c := ecsmock.NewClusterWithName("different than default config")
-		ext := createTestExt(c, "testdata/ut_ext_critical_error.actual.yaml")
-		host := newInspectErrorHost()
-		require.NoError(t, ext.Start(context.TODO(), host))
-		time.Sleep(waitDuration)
-		err := host.(*inspectErrorHost).getError()
-		require.Error(t, err)
-		require.Error(t, hasCriticalError(zap.NewExample(), err))
+		f := newTestTaskFetcher(t, c)
+		cfg := createDefaultConfig()
+		sdCfg := cfg.(*Config)
+		sdCfg.RefreshInterval = 100 * time.Millisecond
+		sdCfg.ResultFile = "testdata/ut_ext_critical_error.actual.yaml"
+		cs := extensiontest.NewNopCreateSettings()
+		statusEventChan := make(chan *component.StatusEvent)
+		cs.TelemetrySettings.ReportComponentStatus = func(e *component.StatusEvent) error {
+			statusEventChan <- e
+			return nil
+		}
+		ext, err := createExtensionWithFetcher(cs, sdCfg, f)
+		require.NoError(t, err)
+		err = ext.Start(context.Background(), componenttest.NewNopHost())
+		require.NoError(t, err)
+		e := <-statusEventChan
+		require.Error(t, e.Err())
+		require.Error(t, hasCriticalError(zap.NewExample(), e.Err()))
 	})
 }
diff --git a/extension/observer/ecsobserver/factory.go b/extension/observer/ecsobserver/factory.go
index 7e444f7c3c82..615136d0f6f8 100644
--- a/extension/observer/ecsobserver/factory.go
+++ b/extension/observer/ecsobserver/factory.go
@@ -44,7 +44,7 @@ func createExtensionWithFetcher(params extension.CreateSettings, sdCfg *Config,
 		return nil, err
 	}
 	return &ecsObserver{
-		logger: params.Logger,
-		sd:     sd,
+		telemetrySettings: params.TelemetrySettings,
+		sd:                sd,
 	}, nil
 }