diff --git a/CHANGELOG.md b/CHANGELOG.md
index 44a3a939aa3..fe6a4ae3035 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,7 @@ This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
 ### Added
 
 - `otelhttp.{Get,Head,Post,PostForm}` convenience wrappers for their `http` counterparts. (#390)
+- Add propagator for AWS X-Ray (#248)
 
 ### Changed
 
diff --git a/propagators/awsxray/awsxray_propagator.go b/propagators/awsxray/awsxray_propagator.go
new file mode 100644
index 00000000000..eb87690d050
--- /dev/null
+++ b/propagators/awsxray/awsxray_propagator.go
@@ -0,0 +1,181 @@
+// Copyright The OpenTelemetry Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package aws
+
+import (
+	"context"
+	"errors"
+	"strings"
+
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/api/trace"
+)
+
+const (
+	traceHeaderKey       = "X-Amzn-Trace-Id"
+	traceHeaderDelimiter = ";"
+	kvDelimiter          = "="
+	traceIDKey           = "Root"
+	sampleFlagKey        = "Sampled"
+	parentIDKey          = "Parent"
+	traceIDVersion       = "1"
+	traceIDDelimiter     = "-"
+	isSampled            = "1"
+	notSampled           = "0"
+
+	traceFlagNone           = 0x0
+	traceFlagSampled        = 0x1 << 0
+	traceIDLength           = 35
+	traceIDDelimitterIndex1 = 1
+	traceIDDelimitterIndex2 = 10
+	traceIDFirstPartLength  = 8
+	sampledFlagLength       = 1
+)
+
+var (
+	empty                  = trace.EmptySpanContext()
+	errInvalidTraceHeader  = errors.New("invalid X-Amzn-Trace-Id header value, should contain 3 different part separated by ;")
+	errMalformedTraceID    = errors.New("cannot decode trace id from header, should be a string of hex, lowercase trace id can't be all zero")
+	errInvalidSpanIDLength = errors.New("invalid span id length, must be 16")
+)
+
+// AWS X-Ray propagator serializes Span Context to/from AWS X-Ray headers
+//
+// AWS X-Ray format
+//
+// X-Amzn-Trace-Id: Root={traceId};Parent={parentId};Sampled={samplingFlag}
+type Xray struct{}
+
+// Asserts that the propagator implements the otel.textMapPropagator interface
+var _ otel.TextMapPropagator = &Xray{}
+
+// Inject injects a context to the carrier following AWS X-Ray format.
+func (awsxray Xray) Inject(ctx context.Context, carrier otel.TextMapCarrier) {
+	sc := trace.SpanFromContext(ctx).SpanContext()
+	headers := []string{}
+	if !sc.TraceID.IsValid() || !sc.SpanID.IsValid() {
+		return
+	}
+	otTraceID := sc.TraceID.String()
+	xrayTraceID := traceIDVersion + traceIDDelimiter + otTraceID[0:traceIDFirstPartLength] +
+		traceIDDelimiter + otTraceID[traceIDFirstPartLength:]
+	parentID := sc.SpanID
+	samplingFlag := notSampled
+	if sc.TraceFlags == traceFlagSampled {
+		samplingFlag = isSampled
+	}
+
+	headers = append(headers, traceIDKey, kvDelimiter, xrayTraceID, traceHeaderDelimiter, parentIDKey,
+		kvDelimiter, parentID.String(), traceHeaderDelimiter, sampleFlagKey, kvDelimiter, samplingFlag)
+
+	carrier.Set(traceHeaderKey, strings.Join(headers, ""))
+}
+
+// Extract gets a context from the carrier if it contains AWS X-Ray headers.
+func (awsxray Xray) Extract(ctx context.Context, carrier otel.TextMapCarrier) context.Context {
+	// extract tracing information
+	if header := carrier.Get(traceHeaderKey); header != "" {
+		sc, err := extract(header)
+		if err == nil && sc.IsValid() {
+			return trace.ContextWithRemoteSpanContext(ctx, sc)
+		}
+	}
+	return ctx
+}
+
+//extracts Span Context from context
+func extract(headerVal string) (trace.SpanContext, error) {
+	var (
+		sc             = trace.SpanContext{}
+		err            error
+		delimiterIndex int
+		part           string
+	)
+	pos := 0
+	for pos < len(headerVal) {
+		delimiterIndex = indexOf(headerVal, traceHeaderDelimiter, pos)
+		if delimiterIndex >= 0 {
+			part = headerVal[pos:delimiterIndex]
+			pos = delimiterIndex + 1
+		} else {
+			//last part
+			part = strings.TrimSpace(headerVal[pos:])
+			pos = len(headerVal)
+		}
+		equalsIndex := strings.Index(part, kvDelimiter)
+		if equalsIndex < 0 {
+			return empty, errInvalidTraceHeader
+		}
+		value := part[equalsIndex+1:]
+		if strings.HasPrefix(part, traceIDKey) {
+			sc.TraceID, err = parseTraceID(value)
+			if err != nil {
+				return empty, errMalformedTraceID
+			}
+		} else if strings.HasPrefix(part, parentIDKey) {
+			//extract parentId
+			sc.SpanID, err = trace.SpanIDFromHex(value)
+			if err != nil {
+				return empty, errInvalidSpanIDLength
+			}
+		} else if strings.HasPrefix(part, sampleFlagKey) {
+			//extract traceflag
+			sc.TraceFlags = parseTraceFlag(value)
+		}
+	}
+	return sc, nil
+}
+
+//returns position of the first occurrence of a substring starting at pos index
+func indexOf(str string, substr string, pos int) int {
+	index := strings.Index(str[pos:], substr)
+	if index > -1 {
+		index += pos
+	}
+	return index
+}
+
+//returns trace Id if  valid else return invalid trace Id
+func parseTraceID(xrayTraceID string) (trace.ID, error) {
+	if len(xrayTraceID) != traceIDLength {
+		return empty.TraceID, errMalformedTraceID
+	}
+	if !strings.HasPrefix(xrayTraceID, traceIDVersion) {
+		return empty.TraceID, errMalformedTraceID
+	}
+
+	if xrayTraceID[traceIDDelimitterIndex1:traceIDDelimitterIndex1+1] != traceIDDelimiter ||
+		xrayTraceID[traceIDDelimitterIndex2:traceIDDelimitterIndex2+1] != traceIDDelimiter {
+		return empty.TraceID, errMalformedTraceID
+	}
+
+	epochPart := xrayTraceID[traceIDDelimitterIndex1+1 : traceIDDelimitterIndex2]
+	uniquePart := xrayTraceID[traceIDDelimitterIndex2+1 : traceIDLength]
+
+	result := epochPart + uniquePart
+	return trace.IDFromHex(result)
+}
+
+//returns traceFlag
+func parseTraceFlag(xraySampledFlag string) byte {
+	if len(xraySampledFlag) == sampledFlagLength && xraySampledFlag != isSampled {
+		return traceFlagNone
+	}
+	return trace.FlagsSampled
+}
+
+func (awsxray Xray) Fields() []string {
+	return []string{traceHeaderKey}
+}
diff --git a/propagators/awsxray/awsxray_propagator_test.go b/propagators/awsxray/awsxray_propagator_test.go
new file mode 100644
index 00000000000..17ac45a3cb7
--- /dev/null
+++ b/propagators/awsxray/awsxray_propagator_test.go
@@ -0,0 +1,104 @@
+// Copyright The OpenTelemetry Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package aws
+
+import (
+	"strings"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+
+	"go.opentelemetry.io/otel/api/trace"
+)
+
+var (
+	traceID                   = trace.ID{0x8a, 0x3c, 0x60, 0xf7, 0xd1, 0x88, 0xf8, 0xfa, 0x79, 0xd4, 0x8a, 0x39, 0x1a, 0x77, 0x8f, 0xa6}
+	xrayTraceID               = "1-8a3c60f7-d188f8fa79d48a391a778fa6"
+	parentID64Str             = "53995c3f42cd8ad8"
+	parentSpanID              = trace.SpanID{0x53, 0x99, 0x5c, 0x3f, 0x42, 0xcd, 0x8a, 0xd8}
+	zeroSpanIDStr             = "0000000000000000"
+	zeroTraceIDStr            = "1-00000000-000000000000000000000000"
+	invalidTraceHeaderID      = "1b00000000b000000000000000000000000"
+	wrongVersionTraceHeaderID = "5b00000000b000000000000000000000000"
+)
+
+func TestAwsXrayExtract(t *testing.T) {
+	testData := []struct {
+		traceID      string
+		parentSpanID string
+		samplingFlag string
+		expected     trace.SpanContext
+		err          error
+	}{
+		{
+			xrayTraceID, parentID64Str, notSampled,
+			trace.SpanContext{
+				TraceID:    traceID,
+				SpanID:     parentSpanID,
+				TraceFlags: traceFlagNone,
+			},
+			nil,
+		},
+		{
+			xrayTraceID, parentID64Str, isSampled,
+			trace.SpanContext{
+				TraceID:    traceID,
+				SpanID:     parentSpanID,
+				TraceFlags: traceFlagSampled,
+			},
+			nil,
+		},
+		{
+			zeroTraceIDStr, parentID64Str, isSampled,
+			trace.SpanContext{},
+			errMalformedTraceID,
+		},
+		{
+			xrayTraceID, zeroSpanIDStr, isSampled,
+			trace.SpanContext{},
+			errInvalidSpanIDLength,
+		},
+		{
+			invalidTraceHeaderID, parentID64Str, isSampled,
+			trace.SpanContext{},
+			errMalformedTraceID,
+		},
+		{
+			wrongVersionTraceHeaderID, parentID64Str, isSampled,
+			trace.SpanContext{},
+			errMalformedTraceID,
+		},
+	}
+
+	for _, test := range testData {
+		headerVal := strings.Join([]string{traceIDKey, kvDelimiter, test.traceID, traceHeaderDelimiter, parentIDKey, kvDelimiter,
+			test.parentSpanID, traceHeaderDelimiter, sampleFlagKey, kvDelimiter, test.samplingFlag}, "")
+
+		sc, err := extract(headerVal)
+
+		info := []interface{}{
+			"trace ID: %q, parent span ID: %q, sampling flag: %q",
+			test.traceID,
+			test.parentSpanID,
+			test.samplingFlag,
+		}
+
+		if !assert.Equal(t, test.err, err, info...) {
+			continue
+		}
+
+		assert.Equal(t, test.expected, sc, info...)
+	}
+}