diff --git a/.chloggen/new-service-instance-id.yaml b/.chloggen/new-service-instance-id.yaml
new file mode 100755
index 0000000000..8ee2e35402
--- /dev/null
+++ b/.chloggen/new-service-instance-id.yaml
@@ -0,0 +1,16 @@
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: enhancement
+
+# The name of the component, or a single word describing the area of concern, (e.g. operator, target allocator, github action)
+component: Operator
+
+# A brief description of the change. Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Added the service.instance.id as the pod.UID into the traces resource Env.
+
+# One or more tracking issues related to the change
+issues: [1921]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext: ""
diff --git a/pkg/instrumentation/podmutator_test.go b/pkg/instrumentation/podmutator_test.go
index bbe8397f1b..54f8a762b4 100644
--- a/pkg/instrumentation/podmutator_test.go
+++ b/pkg/instrumentation/podmutator_test.go
@@ -2991,7 +2991,7 @@ func TestMutatePod(t *testing.T) {
 								},
 								{
 									Name:  "OTEL_RESOURCE_ATTRIBUTES",
-									Value: "k8s.container.name=nginx,k8s.namespace.name=req-namespace,k8s.node.name=$(OTEL_RESOURCE_ATTRIBUTES_NODE_NAME),k8s.pod.name=my-nginx-6c44bcbdd",
+									Value: "k8s.container.name=nginx,k8s.namespace.name=req-namespace,k8s.node.name=$(OTEL_RESOURCE_ATTRIBUTES_NODE_NAME),k8s.pod.name=my-nginx-6c44bcbdd,service.instance.id=req-namespace.my-nginx-6c44bcbdd.nginx",
 								},
 							},
 						},
diff --git a/pkg/instrumentation/sdk.go b/pkg/instrumentation/sdk.go
index 8d945339a8..0f6de945fe 100644
--- a/pkg/instrumentation/sdk.go
+++ b/pkg/instrumentation/sdk.go
@@ -23,6 +23,10 @@ import (
 	"unsafe"
 
 	"github.com/go-logr/logr"
+
+	"github.com/open-telemetry/opentelemetry-operator/apis/v1alpha1"
+	"github.com/open-telemetry/opentelemetry-operator/pkg/constants"
+
 	"go.opentelemetry.io/otel/attribute"
 	semconv "go.opentelemetry.io/otel/semconv/v1.7.0"
 	appsv1 "k8s.io/api/apps/v1"
@@ -33,9 +37,6 @@ import (
 	"k8s.io/apimachinery/pkg/util/wait"
 	"k8s.io/client-go/util/retry"
 	"sigs.k8s.io/controller-runtime/pkg/client"
-
-	"github.com/open-telemetry/opentelemetry-operator/apis/v1alpha1"
-	"github.com/open-telemetry/opentelemetry-operator/pkg/constants"
 )
 
 const (
@@ -401,6 +402,17 @@ func chooseServiceVersion(pod corev1.Pod, index int) string {
 	return tag
 }
 
+// creates the service.instance.id following the semantic defined by
+// https://github.com/open-telemetry/semantic-conventions/pull/312.
+func createServiceInstanceId(namespaceName, podName, containerName string) string {
+	var serviceInstanceId string
+	if namespaceName != "" && podName != "" && containerName != "" {
+		resNames := []string{namespaceName, podName, containerName}
+		serviceInstanceId = strings.Join(resNames, ".")
+	}
+	return serviceInstanceId
+}
+
 // createResourceMap creates resource attribute map.
 // User defined attributes (in explicitly set env var) have higher precedence.
 func (i *sdkInjector) createResourceMap(ctx context.Context, otelinst v1alpha1.Instrumentation, ns corev1.Namespace, pod corev1.Pod, index int) map[string]string {
@@ -424,7 +436,6 @@ func (i *sdkInjector) createResourceMap(ctx context.Context, otelinst v1alpha1.I
 			res[k] = v
 		}
 	}
-
 	k8sResources := map[attribute.Key]string{}
 	k8sResources[semconv.K8SNamespaceNameKey] = ns.Name
 	k8sResources[semconv.K8SContainerNameKey] = pod.Spec.Containers[index].Name
@@ -433,6 +444,7 @@ func (i *sdkInjector) createResourceMap(ctx context.Context, otelinst v1alpha1.I
 	k8sResources[semconv.K8SPodNameKey] = pod.Name
 	k8sResources[semconv.K8SPodUIDKey] = string(pod.UID)
 	k8sResources[semconv.K8SNodeNameKey] = pod.Spec.NodeName
+	k8sResources[semconv.ServiceInstanceIDKey] = createServiceInstanceId(ns.Name, pod.Name, pod.Spec.Containers[index].Name)
 	i.addParentResourceLabels(ctx, otelinst.Spec.Resource.AddK8sUIDAttributes, ns, pod.ObjectMeta, k8sResources)
 	for k, v := range k8sResources {
 		if !existingRes[string(k)] && v != "" {
diff --git a/pkg/instrumentation/sdk_test.go b/pkg/instrumentation/sdk_test.go
index af34d0df34..b5817e28d6 100644
--- a/pkg/instrumentation/sdk_test.go
+++ b/pkg/instrumentation/sdk_test.go
@@ -201,7 +201,7 @@ func TestSDKInjection(t *testing.T) {
 								},
 								{
 									Name:  "OTEL_RESOURCE_ATTRIBUTES",
-									Value: "k8s.container.name=application-name,k8s.deployment.name=my-deployment,k8s.deployment.uid=depuid,k8s.namespace.name=project1,k8s.node.name=$(OTEL_RESOURCE_ATTRIBUTES_NODE_NAME),k8s.pod.name=app,k8s.pod.uid=pod-uid,k8s.replicaset.name=my-replicaset,k8s.replicaset.uid=rsuid,service.version=latest",
+									Value: "k8s.container.name=application-name,k8s.deployment.name=my-deployment,k8s.deployment.uid=depuid,k8s.namespace.name=project1,k8s.node.name=$(OTEL_RESOURCE_ATTRIBUTES_NODE_NAME),k8s.pod.name=app,k8s.pod.uid=pod-uid,k8s.replicaset.name=my-replicaset,k8s.replicaset.uid=rsuid,service.instance.id=project1.app.application-name,service.version=latest",
 								},
 							},
 						},
@@ -369,7 +369,7 @@ func TestSDKInjection(t *testing.T) {
 								},
 								{
 									Name:  "OTEL_RESOURCE_ATTRIBUTES",
-									Value: "k8s.container.name=application-name,k8s.deployment.name=my-deployment,k8s.namespace.name=project1,k8s.node.name=$(OTEL_RESOURCE_ATTRIBUTES_NODE_NAME),k8s.pod.name=app,k8s.pod.uid=pod-uid,k8s.replicaset.name=my-replicaset,service.version=latest",
+									Value: "k8s.container.name=application-name,k8s.deployment.name=my-deployment,k8s.namespace.name=project1,k8s.node.name=$(OTEL_RESOURCE_ATTRIBUTES_NODE_NAME),k8s.pod.name=app,k8s.pod.uid=pod-uid,k8s.replicaset.name=my-replicaset,service.instance.id=project1.app.application-name,service.version=latest",
 								},
 							},
 						},