diff --git a/backend/app/api/routes/threads.py b/backend/app/api/routes/threads.py
index 2019d0e85..818d2db08 100644
--- a/backend/app/api/routes/threads.py
+++ b/backend/app/api/routes/threads.py
@@ -20,6 +20,9 @@
 logger = logging.getLogger(__name__)
 router = APIRouter(tags=["threads"])
 
+from pydantic import BaseModel
+from typing import Optional
+
 
 class StartThreadRequest(BaseModel):
     question: str = Field(..., description="The user's input question.")
@@ -243,6 +246,8 @@ async def threads(
     _current_user: UserOrganization = Depends(get_current_user_org),
 ):
     """Asynchronous endpoint that processes requests in background."""
+
+    # Fetch OpenAI credentials (required)
     credentials = get_provider_credential(
         session=_session,
         org_id=_current_user.organization_id,
@@ -251,6 +256,9 @@ async def threads(
     )
     client, success = configure_openai(credentials)
     if not success:
+        logging.error(
+            f"Failed to configure OpenAI API for organization { _current_user.organization_id }"
+        )
         return APIResponse.failure_response(
             error="OpenAI API key not configured for this organization."
         )
@@ -261,15 +269,17 @@ async def threads(
         provider="langfuse",
         project_id=request.get("project_id"),
     )
-    if not langfuse_credentials:
-        raise HTTPException(404, "LANGFUSE keys not configured for this organization.")
 
-    # Configure Langfuse
-    _, success = configure_langfuse(langfuse_credentials)
-    if not success:
-        return APIResponse.failure_response(
-            error="Failed to configure Langfuse client."
+    if langfuse_credentials:
+        logging.info(
+            f"Langfuse credentials found for organization {_current_user.organization_id}. Enabling tracing."
+        )
+        _, success = configure_langfuse(langfuse_credentials, enabled=True)
+    else:
+        logging.info(
+            f"Langfuse credentials not found for organization {_current_user.organization_id}. Disabling tracing."
         )
+        _, success = configure_langfuse({}, enabled=False)
 
     # Validate thread
     is_valid, error_message = validate_thread(client, request.get("thread_id"))
diff --git a/backend/app/core/util.py b/backend/app/core/util.py
index c3cd4c934..eb35b2f70 100644
--- a/backend/app/core/util.py
+++ b/backend/app/core/util.py
@@ -37,37 +37,50 @@ def post_callback(url: HttpUrl, payload: BaseModel):
     return not errno
 
 
-def configure_langfuse(credentials: dict) -> tuple[Langfuse, bool]:
+def configure_langfuse(credentials: dict, enabled: bool) -> tuple[Langfuse, bool]:
     """
-    Configure Langfuse client and context with the provided credentials.
+    Configure Langfuse client and context with the provided credentials and tracing status.
 
     Args:
         credentials: Dictionary containing Langfuse credentials (public_key, secret_key, host)
+        enabled: Boolean to enable/disable Langfuse tracing.
 
     Returns:
         Tuple of (Langfuse client instance, success boolean)
     """
-    if not credentials:
-        return None, False
-
     try:
-        # Configure Langfuse client
-        langfuse = Langfuse(
-            public_key=credentials["public_key"],
-            secret_key=credentials["secret_key"],
-            host=credentials.get("host", "https://cloud.langfuse.com"),
-        )
-
-        # Configure Langfuse context
-        langfuse_context.configure(
-            secret_key=credentials["secret_key"],
-            public_key=credentials["public_key"],
-            host=credentials.get("host", "https://cloud.langfuse.com"),
-        )
+        if credentials:
+            # If credentials exist, configure Langfuse client and enable tracing
+            # Configure Langfuse client
+            langfuse = Langfuse(
+                public_key=credentials["public_key"],
+                secret_key=credentials["secret_key"],
+                host=credentials.get("host", "https://cloud.langfuse.com"),
+            )
+
+            # Configure Langfuse context with tracing status
+            langfuse_context.configure(
+                secret_key=credentials["secret_key"],
+                public_key=credentials["public_key"],
+                host=credentials.get("host", "https://cloud.langfuse.com"),
+                enabled=enabled,
+            )
+
+            return langfuse, True
+
+        else:
+            # If no credentials, disable tracing
+            # Disable Langfuse context if no credentials are provided
+            langfuse_context.configure(
+                secret_key=None,
+                public_key=None,
+                host=None,
+                enabled=False,
+            )
+
+            return None, False
 
-        return langfuse, True
     except Exception as e:
-        warnings.warn(f"Failed to configure Langfuse: {str(e)}")
         return None, False