diff --git a/Makefile b/Makefile
index 8b2058bb39d..833de83550b 100644
--- a/Makefile
+++ b/Makefile
@@ -1,6 +1,7 @@
 # Lint rules to ignore
 LINTIGNORESINGLEFIGHT='internal/sync/singleflight/singleflight.go:.+error should be the last type'
 LINT_IGNORE_S3MANAGER_INPUT='feature/s3/manager/upload.go:.+struct field SSEKMSKeyId should be SSEKMSKeyID'
+LINT_IGNORE_RECURSIONDETECTIONTEST='aws/middleware/recursion_detection_test.go:.+should not use basic type untyped string as key in context.WithValue'
 # Names of these are tied to endpoint rules and they're internal so ignore them
 LINT_IGNORE_AWSRULESFN_ARN='internal/endpoints/awsrulesfn/arn.go'
 LINT_IGNORE_AWSRULESFN_PARTITION='internal/endpoints/awsrulesfn/partition.go'
@@ -430,6 +431,7 @@ lint:
 	dolint=`echo "$$lint" | grep -E -v \
 	-e ${LINT_IGNORE_S3MANAGER_INPUT} \
 	-e ${LINTIGNORESINGLEFIGHT} \
+	-e ${LINT_IGNORE_RECURSIONDETECTIONTEST} \
 	-e ${LINT_IGNORE_AWSRULESFN_ARN} \
 	-e ${LINT_IGNORE_AWSRULESFN_PARTITION} \
 	-e ${LINT_IGNORE_PRIVATE_METRICS}`; \
diff --git a/aws/middleware/recursion_detection.go b/aws/middleware/recursion_detection.go
index 3f6aaf231e1..7a079083508 100644
--- a/aws/middleware/recursion_detection.go
+++ b/aws/middleware/recursion_detection.go
@@ -10,6 +10,7 @@ import (
 
 const envAwsLambdaFunctionName = "AWS_LAMBDA_FUNCTION_NAME"
 const envAmznTraceID = "_X_AMZN_TRACE_ID"
+const ctxKeyAmznTraceID = "x-amzn-trace-id"
 const amznTraceIDHeader = "X-Amzn-Trace-Id"
 
 // AddRecursionDetection adds recursionDetection to the middleware stack
@@ -39,9 +40,12 @@ func (m *RecursionDetection) HandleBuild(
 
 	_, hasLambdaEnv := os.LookupEnv(envAwsLambdaFunctionName)
 	xAmznTraceID, hasTraceID := os.LookupEnv(envAmznTraceID)
+	if !hasTraceID {
+		xAmznTraceID, hasTraceID = ctx.Value(ctxKeyAmznTraceID).(string)
+	}
 	value := req.Header.Get(amznTraceIDHeader)
 	// only set the X-Amzn-Trace-Id header when it is not set initially, the
-	// current environment is Lambda and the _X_AMZN_TRACE_ID env variable exists
+	// current environment is Lambda and the x-amzn-trace-id value is present in the context
 	if value != "" || !hasLambdaEnv || !hasTraceID {
 		return next.HandleBuild(ctx, in)
 	}
diff --git a/aws/middleware/recursion_detection_test.go b/aws/middleware/recursion_detection_test.go
index 0f4122231a2..3c457f4bfe2 100644
--- a/aws/middleware/recursion_detection_test.go
+++ b/aws/middleware/recursion_detection_test.go
@@ -11,33 +11,58 @@ import (
 func TestRecursionDetection(t *testing.T) {
 	cases := map[string]struct {
 		LambdaFuncName string
-		TraceID        string
+		EnvTraceID     string
+		CtxTraceID     string
 		HeaderBefore   string
 		HeaderAfter    string
 	}{
 		"non lambda env and no trace ID header before": {},
-		"with lambda env but no trace ID env variable, no trace ID header before": {
+		"with lambda env but no trace ID env value, no trace ID header before": {
 			LambdaFuncName: "some-function1",
 		},
-		"with lambda env and trace ID env variable, no trace ID header before": {
+		"with lambda env and trace ID env value, no trace ID header before": {
 			LambdaFuncName: "some-function2",
-			TraceID:        "traceID1",
+			EnvTraceID:     "traceID1",
 			HeaderAfter:    "traceID1",
 		},
-		"with lambda env and trace ID env variable, has trace ID header before": {
+		"with lambda env and trace ID env value, has trace ID header before": {
 			LambdaFuncName: "some-function3",
-			TraceID:        "traceID2",
+			EnvTraceID:     "traceID2",
 			HeaderBefore:   "traceID1",
 			HeaderAfter:    "traceID1",
 		},
-		"with lambda env and trace ID (needs encoding) env variable, no trace ID header before": {
+		"with lambda env and trace ID (needs encoding) env value, no trace ID header before": {
 			LambdaFuncName: "some-function4",
-			TraceID:        "traceID3\n",
+			EnvTraceID:     "traceID3\n",
 			HeaderAfter:    "traceID3%0A",
 		},
-		"with lambda env and trace ID (contains chars must not be encoded) env variable, no trace ID header before": {
+		"with lambda env and trace ID (contains chars must not be encoded) env value, no trace ID header before": {
 			LambdaFuncName: "some-function5",
-			TraceID:        "traceID4-=;:+&[]{}\"'",
+			EnvTraceID:     "traceID4-=;:+&[]{}\"'",
+			HeaderAfter:    "traceID4-=;:+&[]{}\"'",
+		},
+		"with lambda env but no trace ID env value, no trace ID header before, with fallback trace ID in ctx": {
+			LambdaFuncName: "some-function1",
+			CtxTraceID:     "traceIDEnv",
+			HeaderAfter:    "traceIDEnv",
+		},
+		"with lambda env and trace ID env value, has trace ID header before, with fallback trace ID in ctx": {
+			LambdaFuncName: "some-function3",
+			EnvTraceID:     "traceID2",
+			CtxTraceID:     "traceIDEnv",
+			HeaderBefore:   "traceID1",
+			HeaderAfter:    "traceID1",
+		},
+		"with lambda env and trace ID (needs encoding) env value, no trace ID header before, with fallback trace ID in ctx": {
+			LambdaFuncName: "some-function4",
+			EnvTraceID:     "traceID3\n",
+			CtxTraceID:     "traceIDEnv",
+			HeaderAfter:    "traceID3%0A",
+		},
+		"with lambda env and trace ID (contains chars must not be encoded) env value, no trace ID header before, with fallback trace ID in ctx": {
+			LambdaFuncName: "some-function5",
+			EnvTraceID:     "traceID4-=;:+&[]{}\"'",
+			CtxTraceID:     "traceIDEnv",
 			HeaderAfter:    "traceID4-=;:+&[]{}\"'",
 		},
 	}
@@ -49,7 +74,11 @@ func TestRecursionDetection(t *testing.T) {
 			defer restoreEnv()
 
 			setEnvVar(t, envAwsLambdaFunctionName, c.LambdaFuncName)
-			setEnvVar(t, envAmznTraceID, c.TraceID)
+			setEnvVar(t, envAmznTraceID, c.EnvTraceID)
+			ctx := context.Background()
+			if c.CtxTraceID != "" {
+				ctx = context.WithValue(context.Background(), ctxKeyAmznTraceID, c.CtxTraceID)
+			}
 
 			req := smithyhttp.NewStackRequest().(*smithyhttp.Request)
 			if c.HeaderBefore != "" {
@@ -57,7 +86,7 @@ func TestRecursionDetection(t *testing.T) {
 			}
 			var updatedRequest *smithyhttp.Request
 			m := RecursionDetection{}
-			_, _, err := m.HandleBuild(context.Background(),
+			_, _, err := m.HandleBuild(ctx,
 				smithymiddleware.BuildInput{Request: req},
 				smithymiddleware.BuildHandlerFunc(func(ctx context.Context, input smithymiddleware.BuildInput) (
 					out smithymiddleware.BuildOutput, metadata smithymiddleware.Metadata, err error) {