diff --git a/dd-trace-propagation/Cargo.toml b/dd-trace-propagation/Cargo.toml
index e52da14..c528160 100644
--- a/dd-trace-propagation/Cargo.toml
+++ b/dd-trace-propagation/Cargo.toml
@@ -35,6 +35,10 @@ dd-trace-propagation = { path = ".", features = ["test-utils"] }
 name = "inject_benchmark"
 harness = false
 
+[[bench]]
+name = "extract_benchmark"
+harness = false
+
 [features]
 default = ["opentelemetry"]
 serde_config = ["serde", "serde_json"]
diff --git a/dd-trace-propagation/benches/extract_benchmark.rs b/dd-trace-propagation/benches/extract_benchmark.rs
new file mode 100644
index 0000000..a4e1ef8
--- /dev/null
+++ b/dd-trace-propagation/benches/extract_benchmark.rs
@@ -0,0 +1,231 @@
+// Copyright 2025-Present Datadog, Inc. https://www.datadoghq.com/
+// SPDX-License-Identifier: Apache-2.0
+
+use criterion::{black_box, criterion_group, criterion_main, BatchSize, Criterion};
+use dd_trace::{
+    configuration::TracePropagationStyle,
+    test_utils::benchmarks::{memory_allocated_measurement, MeasurementName, ReportingAllocator},
+    Config,
+};
+use dd_trace_propagation::{carrier::Extractor, DatadogCompositePropagator};
+use std::{collections::HashMap, sync::Arc};
+
+#[global_allocator]
+static GLOBAL: ReportingAllocator<std::alloc::System> = ReportingAllocator::new(std::alloc::System);
+
+struct BenchExtractor {
+    headers: HashMap<String, String>,
+}
+
+impl BenchExtractor {
+    fn with_headers(headers: HashMap<String, String>) -> Self {
+        Self { headers }
+    }
+}
+
+impl Extractor for BenchExtractor {
+    fn get(&self, key: &str) -> Option<&str> {
+        let k = if key.chars().any(char::is_uppercase) {
+            &key.to_lowercase()
+        } else {
+            key
+        };
+        self.headers.get(k).map(String::as_str)
+    }
+
+    fn keys(&self) -> Vec<&str> {
+        self.headers.keys().map(String::as_str).collect()
+    }
+}
+
+fn create_simple_datadog_headers() -> HashMap<String, String> {
+    let mut headers = HashMap::new();
+    headers.insert(
+        "x-datadog-trace-id".to_string(),
+        "1234567890123456789".to_string(),
+    );
+    headers.insert(
+        "x-datadog-parent-id".to_string(),
+        "9876543210987654321".to_string(),
+    );
+    headers.insert("x-datadog-sampling-priority".to_string(), "1".to_string());
+    headers.insert("x-datadog-origin".to_string(), "synthetics".to_string());
+    headers.insert(
+        "x-datadog-tags".to_string(),
+        "_dd.p.upstream_services=service1,_dd.p.dm=-1,user.id=12345".to_string(),
+    );
+    headers
+}
+
+fn create_complex_datadog_headers() -> HashMap<String, String> {
+    let mut headers = HashMap::new();
+    headers.insert(
+        "x-datadog-trace-id".to_string(),
+        "1234567890123456789".to_string(),
+    );
+    headers.insert(
+        "x-datadog-parent-id".to_string(),
+        "9876543210987654321".to_string(),
+    );
+    headers.insert("x-datadog-sampling-priority".to_string(), "2".to_string());
+    headers.insert("x-datadog-origin".to_string(), "lambda".to_string());
+
+    // Build complex tags with many propagation tags
+    let mut tags = Vec::new();
+    tags.push("_dd.p.upstream_services=service1,service2,service3".to_string());
+    tags.push("_dd.p.dm=-1".to_string());
+    tags.push("_dd.p.tid=1234567890abcdef".to_string());
+
+    // Add many custom propagation tags
+    for i in 0..20 {
+        tags.push(format!("_dd.p.custom_tag_{i}=value_with_some_content_{i}"));
+    }
+
+    headers.insert("x-datadog-tags".to_string(), tags.join(","));
+    headers
+}
+
+fn create_simple_tracecontext_headers() -> HashMap<String, String> {
+    let mut headers = HashMap::new();
+    headers.insert(
+        "traceparent".to_string(),
+        "00-1234567890abcdef1234567890abcdef-9876543210987654-01".to_string(),
+    );
+    headers.insert("tracestate".to_string(), "dd=s:1;o:synthetics;p:9876543210987654321;t._dd.p.upstream_services:service1;t.user.id:12345".to_string());
+    headers
+}
+
+fn create_complex_tracecontext_headers() -> HashMap<String, String> {
+    let mut headers = HashMap::new();
+    headers.insert(
+        "traceparent".to_string(),
+        "00-1234567890abcdef1234567890abcdef-9876543210987654-01".to_string(),
+    );
+
+    // Build complex tracestate with many values
+    let mut tracestate_parts = Vec::new();
+    tracestate_parts.push("s:2".to_string());
+    tracestate_parts.push("o:lambda".to_string());
+    tracestate_parts.push("p:9876543210987654321".to_string());
+
+    // Add many propagation tags
+    for i in 0..15 {
+        tracestate_parts.push(format!("t._dd.p.custom_tag_{i}:value_with_content_{i}"));
+    }
+
+    headers.insert(
+        "tracestate".to_string(),
+        format!("dd={}", tracestate_parts.join(";")),
+    );
+    headers
+}
+
+fn create_both_propagation_headers() -> HashMap<String, String> {
+    let mut headers = create_simple_datadog_headers();
+    let tracecontext_headers = create_simple_tracecontext_headers();
+    headers.extend(tracecontext_headers);
+    headers
+}
+
+fn bench_datadog_only_extract<
+    M: criterion::measurement::Measurement + MeasurementName + 'static,
+>(
+    c: &mut Criterion<M>,
+) {
+    let config = Config::builder()
+        .set_trace_propagation_style_extract(vec![TracePropagationStyle::Datadog])
+        .build();
+    let propagator = DatadogCompositePropagator::new(Arc::new(config));
+
+    c.bench_function(&format!("extract_datadog_only_simple/{}", M::name()), |b| {
+        b.iter_batched(
+            || BenchExtractor::with_headers(create_simple_datadog_headers()),
+            |carrier| black_box(propagator.extract(black_box(&carrier))),
+            BatchSize::LargeInput,
+        )
+    });
+
+    c.bench_function(
+        &format!("extract_datadog_only_complex/{}", M::name()),
+        |b| {
+            b.iter_batched(
+                || BenchExtractor::with_headers(create_complex_datadog_headers()),
+                |carrier| black_box(propagator.extract(black_box(&carrier))),
+                BatchSize::LargeInput,
+            )
+        },
+    );
+}
+
+fn bench_tracecontext_only_extract<
+    M: criterion::measurement::Measurement + MeasurementName + 'static,
+>(
+    c: &mut Criterion<M>,
+) {
+    let config = Config::builder()
+        .set_trace_propagation_style_extract(vec![TracePropagationStyle::TraceContext])
+        .build();
+    let propagator = DatadogCompositePropagator::new(Arc::new(config));
+
+    c.bench_function(
+        &format!("extract_tracecontext_only_simple/{}", M::name()),
+        |b| {
+            b.iter_batched(
+                || BenchExtractor::with_headers(create_simple_tracecontext_headers()),
+                |carrier| black_box(propagator.extract(black_box(&carrier))),
+                BatchSize::LargeInput,
+            )
+        },
+    );
+
+    c.bench_function(
+        &format!("extract_tracecontext_only_complex/{}", M::name()),
+        |b| {
+            b.iter_batched(
+                || BenchExtractor::with_headers(create_complex_tracecontext_headers()),
+                |carrier| black_box(propagator.extract(black_box(&carrier))),
+                BatchSize::LargeInput,
+            )
+        },
+    );
+}
+
+fn bench_both_propagation_extract<
+    M: criterion::measurement::Measurement + MeasurementName + 'static,
+>(
+    c: &mut Criterion<M>,
+) {
+    let config = Config::builder()
+        .set_trace_propagation_style_extract(vec![
+            TracePropagationStyle::Datadog,
+            TracePropagationStyle::TraceContext,
+        ])
+        .build();
+    let propagator = DatadogCompositePropagator::new(Arc::new(config));
+
+    c.bench_function(&format!("extract_both_propagation/{}", M::name()), |b| {
+        b.iter_batched(
+            || BenchExtractor::with_headers(create_both_propagation_headers()),
+            |carrier| black_box(propagator.extract(black_box(&carrier))),
+            BatchSize::LargeInput,
+        )
+    });
+}
+
+criterion_group! {
+    name = memory_benches;
+    config = memory_allocated_measurement(&GLOBAL);
+    targets = bench_datadog_only_extract,
+              bench_tracecontext_only_extract,
+              bench_both_propagation_extract
+}
+
+criterion_group! {
+    name = wall_time_benches;
+    config = Criterion::default();
+    targets = bench_datadog_only_extract,
+              bench_tracecontext_only_extract,
+              bench_both_propagation_extract
+}
+
+criterion_main!(memory_benches, wall_time_benches);