diff --git a/src/libraries/System.Diagnostics.DiagnosticSource/ref/System.Diagnostics.DiagnosticSourceActivity.cs b/src/libraries/System.Diagnostics.DiagnosticSource/ref/System.Diagnostics.DiagnosticSourceActivity.cs
index fd218a7dbf9df..2a1c68004026a 100644
--- a/src/libraries/System.Diagnostics.DiagnosticSource/ref/System.Diagnostics.DiagnosticSourceActivity.cs
+++ b/src/libraries/System.Diagnostics.DiagnosticSource/ref/System.Diagnostics.DiagnosticSourceActivity.cs
@@ -214,6 +214,7 @@ public readonly struct ActivityEvent
         public string? TraceState  { get { throw null; } }
         public bool IsRemote { get { throw null; } }
         public static bool TryParse(string? traceParent, string? traceState, out System.Diagnostics.ActivityContext context) { throw null; }
+        public static bool TryParse(string? traceParent, string? traceState, bool isRemote, out System.Diagnostics.ActivityContext context) { throw null; }
         public static System.Diagnostics.ActivityContext Parse(string traceParent, string? traceState) { throw null; }
         public static bool operator ==(System.Diagnostics.ActivityContext left, System.Diagnostics.ActivityContext right) { throw null; }
         public static bool operator !=(System.Diagnostics.ActivityContext left, System.Diagnostics.ActivityContext right) { throw null; }
diff --git a/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/Activity.cs b/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/Activity.cs
index 72c8a20bb7745..e71b79e9b93a5 100644
--- a/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/Activity.cs
+++ b/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/Activity.cs
@@ -920,7 +920,7 @@ private static bool IsW3CId(string id)
 #if ALLOW_PARTIALLY_TRUSTED_CALLERS
         [System.Security.SecuritySafeCriticalAttribute]
 #endif
-        internal static bool TryConvertIdToContext(string traceParent, string? traceState, out ActivityContext context)
+        internal static bool TryConvertIdToContext(string traceParent, string? traceState, bool isRemote, out ActivityContext context)
         {
             context = default;
             if (!IsW3CId(traceParent))
@@ -941,7 +941,8 @@ internal static bool TryConvertIdToContext(string traceParent, string? traceStat
                             new ActivityTraceId(traceIdSpan.ToString()),
                             new ActivitySpanId(spanIdSpan.ToString()),
                             (ActivityTraceFlags) ActivityTraceId.HexByteFromChars(traceParent[53], traceParent[54]),
-                            traceState);
+                            traceState,
+                            isRemote);
 
             return true;
         }
diff --git a/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/ActivityContext.cs b/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/ActivityContext.cs
index 93661f5d84135..55cacc67053ea 100644
--- a/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/ActivityContext.cs
+++ b/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/ActivityContext.cs
@@ -65,8 +65,9 @@ public ActivityContext(ActivityTraceId traceId, ActivitySpanId spanId, ActivityT
         /// </summary>
         /// <param name="traceParent">W3C trace parent header.</param>
         /// <param name="traceState">W3C trace state.</param>
+        /// <param name="isRemote">Indicate the context is propagated from remote parent.</param>
         /// <param name="context">The ActivityContext object created from the parsing operation.</param>
-        public static bool TryParse(string? traceParent, string? traceState, out ActivityContext context)
+        public static bool TryParse(string? traceParent, string? traceState, bool isRemote, out ActivityContext context)
         {
             if (traceParent is null)
             {
@@ -74,9 +75,17 @@ public static bool TryParse(string? traceParent, string? traceState, out Activit
                 return false;
             }
 
-            return Activity.TryConvertIdToContext(traceParent, traceState, out context);
+            return Activity.TryConvertIdToContext(traceParent, traceState, isRemote, out context);
         }
 
+        /// <summary>
+        /// Parse W3C trace context headers to ActivityContext object.
+        /// </summary>
+        /// <param name="traceParent">W3C trace parent header.</param>
+        /// <param name="traceState">W3C trace state.</param>
+        /// <param name="context">The ActivityContext object created from the parsing operation.</param>
+        public static bool TryParse(string? traceParent, string? traceState, out ActivityContext context) => TryParse(traceParent, traceState, isRemote: false, out context);
+
         /// <summary>
         /// Parse W3C trace context headers to ActivityContext object.
         /// </summary>
@@ -92,7 +101,7 @@ public static ActivityContext Parse(string traceParent, string? traceState)
                 throw new ArgumentNullException(nameof(traceParent));
             }
 
-            if (!Activity.TryConvertIdToContext(traceParent, traceState, out ActivityContext context))
+            if (!Activity.TryConvertIdToContext(traceParent, traceState, isRemote: false, out ActivityContext context))
             {
                 throw new ArgumentException(SR.InvalidTraceParent);
             }
diff --git a/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/PassThroughPropagator.cs b/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/PassThroughPropagator.cs
index 12515555fcf46..a8aec1bb72cfc 100644
--- a/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/PassThroughPropagator.cs
+++ b/src/libraries/System.Diagnostics.DiagnosticSource/src/System/Diagnostics/PassThroughPropagator.cs
@@ -52,7 +52,7 @@ private static void GetRootId(out string? parentId, out string? traceState, out
 
             traceState = activity?.TraceStateString;
             parentId = activity?.ParentId ?? activity?.Id;
-            isW3c = parentId is not null ? Activity.TryConvertIdToContext(parentId, traceState, out _) : false;
+            isW3c = parentId is not null ? Activity.TryConvertIdToContext(parentId, traceState, isRemote: false, out _) : false;
             baggage = activity?.Baggage;
         }
     }
diff --git a/src/libraries/System.Diagnostics.DiagnosticSource/tests/ActivitySourceTests.cs b/src/libraries/System.Diagnostics.DiagnosticSource/tests/ActivitySourceTests.cs
index edc695503c373..8468ce541c1b3 100644
--- a/src/libraries/System.Diagnostics.DiagnosticSource/tests/ActivitySourceTests.cs
+++ b/src/libraries/System.Diagnostics.DiagnosticSource/tests/ActivitySourceTests.cs
@@ -470,15 +470,32 @@ public void TestActivityContextParsing()
             Assert.Equal("e82825765f051b47", context.SpanId.ToHexString());
             Assert.Equal(ActivityTraceFlags.Recorded, context.TraceFlags);
             Assert.Equal("k=v", context.TraceState);
+            Assert.False(context.IsRemote);
+
+            Assert.True(ActivityContext.TryParse(w3cId, "k=v", isRemote: true, out context));
+            Assert.Equal("99d43cb30a4cdb4fbeee3a19c29201b0", context.TraceId.ToHexString());
+            Assert.Equal("e82825765f051b47", context.SpanId.ToHexString());
+            Assert.Equal(ActivityTraceFlags.Recorded, context.TraceFlags);
+            Assert.Equal("k=v", context.TraceState);
+            Assert.True(context.IsRemote);
+
+            Assert.True(ActivityContext.TryParse(w3cId, "k=v", isRemote: false, out context));
+            Assert.Equal("99d43cb30a4cdb4fbeee3a19c29201b0", context.TraceId.ToHexString());
+            Assert.Equal("e82825765f051b47", context.SpanId.ToHexString());
+            Assert.Equal(ActivityTraceFlags.Recorded, context.TraceFlags);
+            Assert.Equal("k=v", context.TraceState);
+            Assert.False(context.IsRemote);
 
             context = ActivityContext.Parse(w3cId, "k=v");
             Assert.Equal("99d43cb30a4cdb4fbeee3a19c29201b0", context.TraceId.ToHexString());
             Assert.Equal("e82825765f051b47", context.SpanId.ToHexString());
             Assert.Equal(ActivityTraceFlags.Recorded, context.TraceFlags);
             Assert.Equal("k=v", context.TraceState);
+            Assert.False(context.IsRemote);
 
             context = ActivityContext.Parse(w3cId, null);
             Assert.Null(context.TraceState);
+            Assert.False(context.IsRemote);
 
             Assert.False(ActivityContext.TryParse(null, "k=v", out context));
             Assert.Throws<ArgumentNullException>(() => ActivityContext.Parse(null, null));
@@ -486,6 +503,8 @@ public void TestActivityContextParsing()
 
             const string invalidW3CContext = "00-Z9d43cb30a4cdb4fbeee3a19c29201b0-e82825765f051b47-01";
             Assert.False(ActivityContext.TryParse(invalidW3CContext, null, out context));
+            Assert.False(ActivityContext.TryParse(invalidW3CContext, null, isRemote: true, out context));
+            Assert.False(ActivityContext.TryParse(invalidW3CContext, null, isRemote: false, out context));
         }
 
         [ConditionalFact(typeof(RemoteExecutor), nameof(RemoteExecutor.IsSupported))]