diff --git a/build.sbt b/build.sbt
index 0243958c7..f9a440cad 100644
--- a/build.sbt
+++ b/build.sbt
@@ -118,6 +118,7 @@ val instrumentationProjects = Seq[ProjectReference](
   `kamon-scalaz-future`,
   `kamon-cats-io`,
   `kamon-cats-io-3`,
+  `kamon-zio-2`,
   `kamon-logback`,
   `kamon-jdbc`,
   `kamon-kafka`,
@@ -268,6 +269,21 @@ lazy val `kamon-cats-io-3` = (project in file("instrumentation/kamon-cats-io-3")
 
   ).dependsOn(`kamon-core`, `kamon-executors`, `kamon-testkit` % "test")
 
+lazy val `kamon-zio-2` = (project in file("instrumentation/kamon-zio-2"))
+  .disablePlugins(AssemblyPlugin)
+  .enablePlugins(JavaAgent)
+  .settings(instrumentationSettings)
+  .settings(
+    crossScalaVersions := Seq(`scala_2.12_version`, `scala_2.13_version`, scala_3_version),
+    libraryDependencies ++= Seq(
+      kanelaAgent % "provided",
+      "dev.zio" %% "zio" % "2.0.21" % "provided",
+      scalatest % "test",
+      logbackClassic % "test"
+    ),
+
+  ).dependsOn(`kamon-core`, `kamon-executors`, `kamon-testkit` % "test")
+
 
 lazy val `kamon-logback` = (project in file("instrumentation/kamon-logback"))
   .disablePlugins(AssemblyPlugin)
@@ -1028,6 +1044,7 @@ lazy val `kamon-bundle-dependencies-2-12-and-up` = (project in file("bundle/kamo
     `kamon-bundle-dependencies-all`,
     `kamon-akka-grpc`,
     `kamon-cats-io-3`,
+    `kamon-zio-2`,
     `kamon-finagle`,
     `kamon-pekko`,
     `kamon-pekko-http`,
@@ -1066,6 +1083,7 @@ lazy val `kamon-bundle-dependencies-3` = (project in file("bundle/kamon-bundle-d
     `kamon-caffeine`,
     `kamon-aws-sdk`,
     `kamon-cats-io-3`,
+    `kamon-zio-2`,
     `kamon-pekko`,
     `kamon-pekko-http`,
     `kamon-pekko-grpc`
diff --git a/instrumentation/kamon-zio-2/src/main/java/kamon/instrumentation/zio2/SupervisorAdvice.java b/instrumentation/kamon-zio-2/src/main/java/kamon/instrumentation/zio2/SupervisorAdvice.java
new file mode 100644
index 000000000..ca13edd19
--- /dev/null
+++ b/instrumentation/kamon-zio-2/src/main/java/kamon/instrumentation/zio2/SupervisorAdvice.java
@@ -0,0 +1,14 @@
+package kamon.instrumentation.zio2;
+
+import kanela.agent.libs.net.bytebuddy.asm.Advice;
+import zio.Supervisor;
+
+public class SupervisorAdvice {
+
+    public static class OverrideDefaultSupervisor {
+        @Advice.OnMethodExit(suppress = Throwable.class)
+        public static void onExit(@Advice.Return(readOnly = false) Supervisor<?> supervisor) {
+            supervisor = supervisor.$plus$plus(new NewSupervisor());
+        }
+    }
+}
diff --git a/instrumentation/kamon-zio-2/src/main/resources/reference.conf b/instrumentation/kamon-zio-2/src/main/resources/reference.conf
new file mode 100644
index 000000000..e600a9095
--- /dev/null
+++ b/instrumentation/kamon-zio-2/src/main/resources/reference.conf
@@ -0,0 +1,20 @@
+#############################################
+#   Kamon ZIO 2 Reference Configuration     #
+#############################################
+kanela.modules {
+  zio-2 {
+    name  = "ZIO 2 Instrumentation"
+    description = "Provides instrumentation for ZIO"
+
+    instrumentations = [
+      "kamon.instrumentation.zio2.ZIO2Instrumentation"
+    ]
+
+    within = [
+      "zio.internal.FiberRuntime",
+      "zio\\.Runtime.*",
+    ]
+  }
+
+
+}
diff --git a/instrumentation/kamon-zio-2/src/main/scala/kamon/instrumentation/zio2/ZIO2Instrumentation.scala b/instrumentation/kamon-zio-2/src/main/scala/kamon/instrumentation/zio2/ZIO2Instrumentation.scala
new file mode 100644
index 000000000..4e779edb4
--- /dev/null
+++ b/instrumentation/kamon-zio-2/src/main/scala/kamon/instrumentation/zio2/ZIO2Instrumentation.scala
@@ -0,0 +1,81 @@
+package kamon.instrumentation.zio2
+
+import kamon.Kamon
+import kamon.context.Storage
+import kamon.instrumentation.context.HasContext
+import kanela.agent.api.instrumentation.InstrumentationBuilder
+import zio.{Exit, Fiber, Supervisor, UIO, Unsafe, ZEnvironment, ZIO}
+
+
+/**
+ * This works as follows.
+ *  - patches the defaultSupervisor val from Runtime to add our own supervisor.
+ *  - Mixes in the [[HasContext.Mixin]] class so we don't have to keep a separate map of Fiber -> Context
+ *  - Performs context shifting based on starting/suspending of fibers.
+ *
+ */
+class ZIO2Instrumentation extends InstrumentationBuilder {
+
+  onType("zio.internal.FiberRuntime")
+    .mixin(classOf[HasContext.Mixin])
+    .mixin(classOf[HasStorage.Mixin])
+
+  onType("zio.Runtime$")
+    .advise(method("defaultSupervisor"), classOf[SupervisorAdvice.OverrideDefaultSupervisor])
+}
+
+/**
+ * Mixin that exposes access to the scope captured by an instrumented instance. The interface exposes means of getting and more importantly
+ * closing of the scope.
+ */
+trait HasStorage {
+
+  /**
+   * Returns the [[Storage.Scope]] stored in the instrumented instance.
+   */
+  def kamonScope: Storage.Scope
+
+  /**
+   * Updates the [[Storage.Scope]] stored in the instrumented instance
+   */
+  def setKamonScope(scope: Storage.Scope): Unit
+
+}
+
+object HasStorage {
+
+  /**
+   * [[HasStorage]] implementation that keeps the scope in a mutable field.
+   */
+  class Mixin(@transient private var _scope: Storage.Scope) extends HasStorage {
+
+    override def kamonScope: Storage.Scope = if (_scope != null) _scope else Storage.Scope.Empty
+
+    override def setKamonScope(scope: Storage.Scope): Unit = _scope = scope
+  }
+}
+
+
+class NewSupervisor extends Supervisor[Any] {
+
+  override def value(implicit trace: zio.Trace): UIO[Any] = ZIO.unit
+
+  override def onStart[R, E, A_](environment: ZEnvironment[R], effect: ZIO[R, E, A_], parent: Option[Fiber.Runtime[Any, Any]], fiber: Fiber.Runtime[E, A_])(implicit unsafe: Unsafe): Unit = {
+    fiber.asInstanceOf[HasContext].setContext(Kamon.currentContext())
+  }
+
+  override def onSuspend[E, A_](fiber: Fiber.Runtime[E, A_])(implicit unsafe: Unsafe): Unit = {
+    fiber.asInstanceOf[HasContext].setContext(Kamon.currentContext())
+  }
+
+  override def onResume[E, A_](fiber: Fiber.Runtime[E, A_])(implicit unsafe: Unsafe): Unit = {
+    val fiberInstance = fiber.asInstanceOf[HasContext with HasStorage]
+    val ctx = fiberInstance.context
+    fiberInstance.setKamonScope(Kamon.storeContext(ctx))
+  }
+
+  override def onEnd[R, E, A_](value: Exit[E, A_], fiber: Fiber.Runtime[E, A_])(implicit unsafe: Unsafe): Unit = {
+    val fiberInstance = fiber.asInstanceOf[HasContext with HasStorage]
+    fiberInstance.kamonScope.close()
+  }
+}
diff --git a/instrumentation/kamon-zio-2/src/test/scala/kamon/instrumentation/zio2/ZIO2InstrumentationSpec.scala b/instrumentation/kamon-zio-2/src/test/scala/kamon/instrumentation/zio2/ZIO2InstrumentationSpec.scala
new file mode 100644
index 000000000..3d62b3ff1
--- /dev/null
+++ b/instrumentation/kamon-zio-2/src/test/scala/kamon/instrumentation/zio2/ZIO2InstrumentationSpec.scala
@@ -0,0 +1,190 @@
+package kamon.instrumentation.zio2
+
+
+import kamon.Kamon
+import kamon.context.Context
+import kamon.tag.Lookups.plain
+import org.scalatest.{Assertion, BeforeAndAfterEach, OptionValues}
+import org.scalatest.concurrent.{Eventually, PatienceConfiguration, ScalaFutures}
+import org.scalatest.matchers.should.Matchers
+import org.scalatest.wordspec.AnyWordSpec
+
+import java.util.concurrent.{Executors, TimeUnit}
+import scala.concurrent.{Await, ExecutionContext, Future}
+import kamon.trace.Identifier.Scheme
+import kamon.trace.{Identifier, Span, Trace}
+import zio._
+
+import scala.concurrent.duration.FiniteDuration
+
+class ZIO2InstrumentationSpec extends AnyWordSpec with Matchers with ScalaFutures with PatienceConfiguration
+  with OptionValues with Eventually with BeforeAndAfterEach {
+
+  protected implicit val zioRuntime: Runtime[Any] =
+    Runtime.default
+
+  protected def unsafeRunZIO[E, A](r: ZIO[Any, E, A])(implicit trace: zio.Trace): A = {
+    Unsafe.unsafe(implicit unsafe => zioRuntime.unsafe.run(r)) match {
+      case Exit.Success(value)     => value
+      case f @ Exit.Failure(cause) => fail(cause.squashWith(_ => new Exception(f.toString)))
+    }
+  }
+
+  java.lang.System.setProperty("kamon.context.debug", "true")
+
+  "a ZIO created when instrumentation is active" should {
+    "capture the active span available when created" which {
+
+      "must capture the current context when creating and running fibers" in {
+
+        val context = Context.of("tool", "kamon")
+
+        val effect = for {
+          contextOnAnotherThread <- ZIO.succeed(Kamon.currentContext())
+          _ <- ZIO.succeed(Seq("hello", "world"))
+          _ <- ZIO.sleep(Duration(10, TimeUnit.MILLISECONDS))
+          contextAnother <- ZIO.attemptBlocking(Kamon.currentContext())
+        } yield {
+          val currentContext = Kamon.currentContext()
+          currentContext shouldBe context
+          contextOnAnotherThread shouldBe context
+          currentContext
+        }
+
+        val contextInsideYield = Kamon.runWithContext(context) {
+          // This is what would happen at the edges of the system, when Kamon has already
+          // started a Span in an outer layer (usually the HTTP server instrumentation) and
+          // when processing gets to user-level code, the users want to run their business
+          // logic as an effect. We should always propagate the context that was available
+          // at this point to the moment when the effect runs.
+
+          unsafeRunZIO(effect)
+        }
+
+        context shouldBe contextInsideYield
+      }
+
+      "must allow the context to be cleaned" in {
+        val anotherExecutor = Executor.fromExecutionContext(ExecutionContext.fromExecutorService(Executors.newFixedThreadPool(10)))
+        val context = Context.of("key", "value")
+
+        val test =
+          for {
+            _ <- ZIO.succeed(Kamon.storeContext(context))
+            _ <- ZIO.onExecutor(anotherExecutor)(ZIO.sleep(10.millis))
+            beforeCleaning <- ZIO.succeed(Kamon.currentContext())
+            _ <- ZIO.succeed(Kamon.storeContext(Context.Empty))
+            _ <- ZIO.onExecutor(anotherExecutor)(ZIO.sleep(10.millis))
+            afterCleaning <- ZIO.succeed(Kamon.currentContext())
+          } yield {
+            afterCleaning shouldBe Context.Empty
+            beforeCleaning shouldBe context
+          }
+
+        unsafeRunZIO(test)
+      }
+
+      "must be available across asynchronous boundaries" in {
+        val anotherExecutor: Executor = Executor.fromExecutionContext(ExecutionContext.fromExecutorService(Executors.newFixedThreadPool(1))) //pool 7
+        val context = Context.of("key", "value")
+        val test =
+          for {
+            scope <- ZIO.succeed(Kamon.storeContext(context))
+            len <- ZIO.succeed("Hello Kamon!").map(_.length)
+            _ <- ZIO.succeed(len.toString)
+            beforeChanging <- getKey
+            evalOnGlobalRes <-ZIO.sleep(Duration.Zero) *> getKey
+            outerSpanIdBeginning <- ZIO.succeed(Kamon.currentSpan().id.string)
+            innerSpan <- ZIO.succeed(Kamon.clientSpanBuilder("Foo", "attempt").context(context).start())
+            innerSpanId1 <- ZIO.onExecutor(anotherExecutor)(ZIO.succeed(Kamon.currentSpan()))
+            innerSpanId2 <- ZIO.succeed(Kamon.currentSpan())
+            _ <- ZIO.succeed(innerSpan.finish())
+            outerSpanIdEnd <- ZIO.succeed(Kamon.currentSpan().id.string)
+            evalOnAnotherEx <-ZIO.onExecutor(anotherExecutor)(ZIO.sleep(Duration.Zero).flatMap(_ => getKey))
+          } yield {
+            scope.close()
+            withClue("before changing")(beforeChanging shouldBe "value")
+            withClue("on the global exec context")(evalOnGlobalRes shouldBe "value")
+            withClue("on a different exec context")(evalOnAnotherEx shouldBe "value")
+            withClue("final result")(evalOnAnotherEx shouldBe "value")
+            withClue("inner span should be the same on different exec")(innerSpanId1 shouldBe innerSpan)
+            withClue("inner span should be the same on same exec")(innerSpanId2 shouldBe innerSpan)
+            withClue("inner and outer should be different")(outerSpanIdBeginning should not equal innerSpan)
+          }
+
+          unsafeRunZIO(test)
+
+      }
+
+      "must allow complex Span topologies to be created" in {
+        val parentSpan = Span.Remote(
+          Scheme.Single.spanIdFactory.generate(),
+          Identifier.Empty,
+          Trace.create(Scheme.Single.traceIdFactory.generate(), Trace.SamplingDecision.Sample)
+        )
+        val context = Context.of(Span.Key, parentSpan)
+        implicit val ec = ExecutionContext.global
+        /**
+         * test
+         *   - nestedLevel0
+         *   - nestedUpToLevel2
+         *       - nestedUpToLevel2._2._1
+         *   - fiftyInParallel
+         */
+        val test = for {
+          span <- ZIO.succeed(Kamon.currentSpan())
+          nestedLevel0 <- meteredWithSpanCapture("level1-A")(ZIO.sleep(100.millis))
+          nestedUpToLevel2 <- meteredWithSpanCapture("level1-B")(meteredWithSpanCapture("level2-B")(ZIO.sleep(100.millis)))
+          fiftyInParallel <- ZIO.foreachPar((0 to 49).toList)(i => meteredWithSpanCapture(s"operation$i")(ZIO.sleep(100.millis)))
+          afterCede <- meteredWithSpanCapture("yieldNow")(ZIO.yieldNow.as(Kamon.currentSpan()))
+          afterEverything <- ZIO.succeed(Kamon.currentSpan())
+        } yield {
+          span.id.string should not be empty
+          span.id.string shouldBe nestedLevel0._1.parentId.string
+          span.id.string shouldBe nestedUpToLevel2._1.parentId.string
+          nestedUpToLevel2._1.id.string shouldBe nestedUpToLevel2._2._1.parentId.string
+          fiftyInParallel.map(_._1.parentId.string).toSet shouldBe Set(span.id.string)
+          fiftyInParallel.map(_._1.id.string).toSet should have size 50
+          afterCede._1.id.string shouldBe afterCede._2.id.string //A cede should not cause the span to be lost
+          afterEverything.id.string shouldBe span.id.string
+        }
+
+
+
+        val result = scala.concurrent.Future.sequence(
+          (1 to 100).toList.map { _ =>
+            Unsafe.unsafe { implicit unsafe =>
+              zioRuntime.unsafe.runToFuture {
+                (ZIO.succeed(Kamon.init()) *> ZIO.succeed(Kamon.storeContext(context)) *> test)
+              }: Future[Assertion]
+            }
+          }
+        )
+        Await.result(result, FiniteDuration(100, "seconds"))
+      }
+    }
+  }
+
+  private def getKey: UIO[String] = {
+    ZIO.succeed(Kamon.currentContext().getTag(plain("key")))
+  }
+
+  private def meteredWithSpanCapture[A](operation: String)(io: UIO[A]): UIO[(Span, A)] = {
+    ZIO.scoped {
+      ZIO.acquireRelease {
+          for {
+            initialCtx <- ZIO.succeed(Kamon.currentContext())
+            parentSpan <- ZIO.succeed(Kamon.currentSpan())
+            newSpan    <- ZIO.succeed(Kamon.spanBuilder(operation).context(initialCtx).asChildOf(parentSpan).start())
+            _          <- ZIO.succeed(Kamon.storeContext(initialCtx.withEntry(Span.Key, newSpan)))
+          } yield (initialCtx, newSpan)
+        }{
+          case (initialCtx, span) =>
+            for {
+              _ <- ZIO.succeed(span.finish())
+              _ <- ZIO.succeed(Kamon.storeContext(initialCtx))
+            } yield ()
+        } *> ZIO.succeed(Kamon.currentSpan()).zipPar(io)
+      }
+  }
+}