diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/InstanceConfig.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/InstanceConfig.java
index 88e18173a8..dd918939ea 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/InstanceConfig.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/InstanceConfig.java
@@ -5,7 +5,6 @@ import com.appsmith.server.helpers.InstanceConfigHelper;
 import com.appsmith.server.repositories.CacheableRepositoryHelper;
 import com.appsmith.server.services.ConfigService;
 import io.micrometer.observation.annotation.Observed;
-import io.sentry.Sentry;
 import lombok.RequiredArgsConstructor;
 import lombok.extern.slf4j.Slf4j;
 import org.springframework.boot.context.event.ApplicationReadyEvent;
@@ -71,7 +70,6 @@ public class InstanceConfig implements ApplicationListener<ApplicationReadyEvent
             startupProcess.block();
         } catch (Exception e) {
             log.debug("Application start up encountered an error: {}", e.getMessage());
-            Sentry.captureException(e);
         }
     }
 
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java
index 5356b2e190..3327222e56 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java
@@ -35,7 +35,7 @@ import java.nio.file.Path;
 import java.util.HashMap;
 import java.util.Map;
 
-import static com.appsmith.server.exceptions.util.SentryLogger.doLog;
+import static com.appsmith.server.exceptions.util.ObservabilityLogger.doLog;
 
 /**
  * This class catches all the Exceptions and formats them into a proper ResponseDTO<ErrorDTO> object before
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/util/ObservabilityLogger.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/util/ObservabilityLogger.java
new file mode 100644
index 0000000000..fac8e458a9
--- /dev/null
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/util/ObservabilityLogger.java
@@ -0,0 +1,39 @@
+package com.appsmith.server.exceptions.util;
+
+import com.appsmith.external.exceptions.AppsmithErrorAction;
+import com.appsmith.external.exceptions.BaseException;
+import lombok.extern.slf4j.Slf4j;
+
+import java.io.PrintWriter;
+import java.io.StringWriter;
+
+@Slf4j
+public class ObservabilityLogger {
+    public static void doLog(Throwable error) {
+        if (error instanceof BaseException baseException && baseException.isHideStackTraceInLogs()) {
+            log.error(baseException.getClass().getSimpleName() + ": " + baseException.getMessage());
+        } else {
+            log.error("", error);
+        }
+
+        StringWriter stringWriter = new StringWriter();
+        PrintWriter printWriter = new PrintWriter(stringWriter);
+        error.printStackTrace(printWriter);
+        String stringStackTrace = stringWriter.toString();
+
+        // Log stack trace for debugging
+        log.error("Stack Trace: {}", stringStackTrace);
+
+        if (error instanceof BaseException) {
+            BaseException baseError = (BaseException) error;
+            if (baseError.getErrorAction() == AppsmithErrorAction.LOG_EXTERNALLY) {
+                // Log additional context for external logging
+                log.error(
+                        "Downstream Error - Message: {}, Code: {}",
+                        baseError.getDownstreamErrorMessage(),
+                        baseError.getDownstreamErrorCode());
+                baseError.getContextMap().forEach((key, value) -> log.error("Context - {}: {}", key, value));
+            }
+        }
+    }
+}
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/util/SentryLogger.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/util/SentryLogger.java
deleted file mode 100644
index 9e07c04216..0000000000
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/util/SentryLogger.java
+++ /dev/null
@@ -1,55 +0,0 @@
-package com.appsmith.server.exceptions.util;
-
-import com.appsmith.external.constants.MDCConstants;
-import com.appsmith.external.exceptions.AppsmithErrorAction;
-import com.appsmith.external.exceptions.BaseException;
-import io.sentry.Sentry;
-import io.sentry.SentryLevel;
-import io.sentry.protocol.User;
-import lombok.extern.slf4j.Slf4j;
-
-import java.io.PrintWriter;
-import java.io.StringWriter;
-
-@Slf4j
-public class SentryLogger {
-    public static void doLog(Throwable error) {
-        if (error instanceof BaseException baseException && baseException.isHideStackTraceInLogs()) {
-            log.error(baseException.getClass().getSimpleName() + ": " + baseException.getMessage());
-        } else {
-            log.error("", error);
-        }
-
-        StringWriter stringWriter = new StringWriter();
-        PrintWriter printWriter = new PrintWriter(stringWriter);
-        error.printStackTrace(printWriter);
-        String stringStackTrace = stringWriter.toString();
-
-        Sentry.configureScope(scope -> {
-            /**
-             * Send stack trace as a string message. This is a work around till it is figured out why raw
-             * stack trace is not visible on Sentry dashboard.
-             * */
-            scope.setExtra("Stack Trace", stringStackTrace);
-            scope.setLevel(SentryLevel.ERROR);
-            scope.setTag("source", "appsmith-internal-server");
-        });
-
-        if (error instanceof BaseException) {
-            BaseException baseError = (BaseException) error;
-            if (baseError.getErrorAction() == AppsmithErrorAction.LOG_EXTERNALLY) {
-                Sentry.configureScope(scope -> {
-                    baseError.getContextMap().forEach(scope::setTag);
-                    scope.setExtra("downstreamErrorMessage", baseError.getDownstreamErrorMessage());
-                    scope.setExtra("downstreamErrorCode", baseError.getDownstreamErrorCode());
-                });
-                final User user = new User();
-                user.setEmail(baseError.getContextMap().getOrDefault(MDCConstants.USER_EMAIL, "unknownUser"));
-                Sentry.setUser(user);
-                Sentry.captureException(error);
-            }
-        } else {
-            Sentry.captureException(error);
-        }
-    }
-}