diff --git a/ddtrace/_trace/tracer.py b/ddtrace/_trace/tracer.py
index 502e12ece07..9752d82ff83 100644
--- a/ddtrace/_trace/tracer.py
+++ b/ddtrace/_trace/tracer.py
@@ -775,8 +775,7 @@ def _start_span(
         service = config.service_mapping.get(service, service)
 
         links = context._span_links if not parent else []
-
-        if trace_id:
+        if trace_id or links or context._baggage:
             # child_of a non-empty context, so either a local child span or from a remote context
             span = Span(
                 name=name,
diff --git a/ddtrace/contrib/trace_utils.py b/ddtrace/contrib/trace_utils.py
index db8509d8c35..644475b02ab 100644
--- a/ddtrace/contrib/trace_utils.py
+++ b/ddtrace/contrib/trace_utils.py
@@ -565,9 +565,9 @@ def activate_distributed_headers(tracer, int_config=None, request_headers=None,
         context = HTTPPropagator.extract(request_headers)
 
         # Only need to activate the new context if something was propagated
-        if not context.trace_id:
+        # The new context must have one of these values in order for it to be activated
+        if not context.trace_id and not context._baggage and not context._span_links:
             return None
-
         # Do not reactivate a context with the same trace id
         # DEV: An example could be nested web frameworks, when one layer already
         #      parsed request headers and activated them.
@@ -577,7 +577,14 @@ def activate_distributed_headers(tracer, int_config=None, request_headers=None,
         #     app = Flask(__name__)  # Traced via Flask instrumentation
         #     app = DDWSGIMiddleware(app)  # Extra layer on top for WSGI
         current_context = tracer.current_trace_context()
-        if current_context and current_context.trace_id == context.trace_id:
+
+        # We accept incoming contexts with only baggage or only span_links, however if we
+        # already have a current_context then an incoming context not
+        # containing a trace_id or containing the same trace_id
+        # should not be activated.
+        if current_context and (
+            not context.trace_id or (context.trace_id and context.trace_id == current_context.trace_id)
+        ):
             log.debug(
                 "will not activate extracted Context(trace_id=%r, span_id=%r), a context with that trace id is already active",  # noqa: E501
                 context.trace_id,
diff --git a/ddtrace/internal/constants.py b/ddtrace/internal/constants.py
index 4efdc754ef3..c4255035c41 100644
--- a/ddtrace/internal/constants.py
+++ b/ddtrace/internal/constants.py
@@ -19,6 +19,10 @@
     _PROPAGATION_STYLE_NONE,
     _PROPAGATION_STYLE_BAGGAGE,
 )
+_PROPAGATION_BEHAVIOR_CONTINUE = "continue"
+_PROPAGATION_BEHAVIOR_IGNORE = "ignore"
+_PROPAGATION_BEHAVIOR_RESTART = "restart"
+_PROPAGATION_BEHAVIOR_DEFAULT = _PROPAGATION_BEHAVIOR_CONTINUE
 W3C_TRACESTATE_KEY = "tracestate"
 W3C_TRACEPARENT_KEY = "traceparent"
 W3C_TRACESTATE_PARENT_ID_KEY = "p"
diff --git a/ddtrace/propagation/http.py b/ddtrace/propagation/http.py
index 563ee838d84..0cd5b69db46 100644
--- a/ddtrace/propagation/http.py
+++ b/ddtrace/propagation/http.py
@@ -40,6 +40,7 @@
 from ..internal._tagset import decode_tagset_string
 from ..internal._tagset import encode_tagset_values
 from ..internal.compat import ensure_text
+from ..internal.constants import _PROPAGATION_BEHAVIOR_RESTART
 from ..internal.constants import _PROPAGATION_STYLE_BAGGAGE
 from ..internal.constants import _PROPAGATION_STYLE_NONE
 from ..internal.constants import _PROPAGATION_STYLE_W3C_TRACECONTEXT
@@ -974,12 +975,12 @@ class HTTPPropagator(object):
     """
 
     @staticmethod
-    def _extract_configured_contexts_avail(normalized_headers):
+    def _extract_configured_contexts_avail(normalized_headers: Dict[str, str]) -> Tuple[List[Context], List[str]]:
         contexts = []
         styles_w_ctx = []
         for prop_style in config._propagation_style_extract:
             propagator = _PROP_STYLES[prop_style]
-            context = propagator._extract(normalized_headers)
+            context = propagator._extract(normalized_headers)  # type: ignore
             # baggage is handled separately
             if prop_style == _PROPAGATION_STYLE_BAGGAGE:
                 continue
@@ -988,6 +989,24 @@ def _extract_configured_contexts_avail(normalized_headers):
                 styles_w_ctx.append(prop_style)
         return contexts, styles_w_ctx
 
+    @staticmethod
+    def _context_to_span_link(context: Context, style: str, reason: str) -> Optional[SpanLink]:
+        # encoding expects at least trace_id and span_id
+        if context.span_id and context.trace_id:
+            return SpanLink(
+                context.trace_id,
+                context.span_id,
+                flags=1 if context.sampling_priority and context.sampling_priority > 0 else 0,
+                tracestate=(
+                    context._meta.get(W3C_TRACESTATE_KEY, "") if style == _PROPAGATION_STYLE_W3C_TRACECONTEXT else None
+                ),
+                attributes={
+                    "reason": reason,
+                    "context_headers": style,
+                },
+            )
+        return None
+
     @staticmethod
     def _resolve_contexts(contexts, styles_w_ctx, normalized_headers):
         primary_context = contexts[0]
@@ -996,23 +1015,14 @@ def _resolve_contexts(contexts, styles_w_ctx, normalized_headers):
         for context in contexts[1:]:
             style_w_ctx = styles_w_ctx[contexts.index(context)]
             # encoding expects at least trace_id and span_id
-            if context.span_id and context.trace_id and context.trace_id != primary_context.trace_id:
-                links.append(
-                    SpanLink(
-                        context.trace_id,
-                        context.span_id,
-                        flags=1 if context.sampling_priority and context.sampling_priority > 0 else 0,
-                        tracestate=(
-                            context._meta.get(W3C_TRACESTATE_KEY, "")
-                            if style_w_ctx == _PROPAGATION_STYLE_W3C_TRACECONTEXT
-                            else None
-                        ),
-                        attributes={
-                            "reason": "terminated_context",
-                            "context_headers": style_w_ctx,
-                        },
-                    )
+            if context.trace_id and context.trace_id != primary_context.trace_id:
+                link = HTTPPropagator._context_to_span_link(
+                    context,
+                    style_w_ctx,
+                    "terminated_context",
                 )
+                if link:
+                    links.append(link)
             # if trace_id matches and the propagation style is tracecontext
             # add the tracestate to the primary context
             elif style_w_ctx == _PROPAGATION_STYLE_W3C_TRACECONTEXT:
@@ -1130,17 +1140,19 @@ def my_controller(url, headers):
         :param dict headers: HTTP headers to extract tracing attributes.
         :return: New `Context` with propagated attributes.
         """
+        context = Context()
         if not headers:
-            return Context()
+            return context
         try:
+            style = ""
             normalized_headers = {name.lower(): v for name, v in headers.items()}
-            context = Context()
             # tracer configured to extract first only
             if config._propagation_extract_first:
                 # loop through the extract propagation styles specified in order, return whatever context we get first
                 for prop_style in config._propagation_style_extract:
                     propagator = _PROP_STYLES[prop_style]
                     context = propagator._extract(normalized_headers)
+                    style = prop_style
                     if config.propagation_http_baggage_enabled is True:
                         _attach_baggage_to_context(normalized_headers, context)
                     break
@@ -1148,6 +1160,9 @@ def my_controller(url, headers):
             # loop through all extract propagation styles
             else:
                 contexts, styles_w_ctx = HTTPPropagator._extract_configured_contexts_avail(normalized_headers)
+                # check that styles_w_ctx is not empty
+                if styles_w_ctx:
+                    style = styles_w_ctx[0]
 
                 if contexts:
                     context = HTTPPropagator._resolve_contexts(contexts, styles_w_ctx, normalized_headers)
@@ -1159,9 +1174,12 @@ def my_controller(url, headers):
                 baggage_context = _BaggageHeader._extract(normalized_headers)
                 if baggage_context._baggage != {}:
                     if context:
-                        context._baggage = baggage_context._baggage
+                        context._baggage = baggage_context.get_all_baggage_items()
                     else:
                         context = baggage_context
+            if config._propagation_behavior_extract == _PROPAGATION_BEHAVIOR_RESTART:
+                link = HTTPPropagator._context_to_span_link(context, style, "propagation_behavior_extract")
+                context = Context(baggage=context.get_all_baggage_items(), span_links=[link] if link else [])
 
             return context
 
diff --git a/ddtrace/settings/config.py b/ddtrace/settings/config.py
index 65baf99ccb3..6ee75fbe6d8 100644
--- a/ddtrace/settings/config.py
+++ b/ddtrace/settings/config.py
@@ -20,7 +20,10 @@
 from ddtrace.vendor.debtcollector import deprecate
 
 from ..internal import gitmetadata
+from ..internal.constants import _PROPAGATION_BEHAVIOR_DEFAULT
+from ..internal.constants import _PROPAGATION_BEHAVIOR_IGNORE
 from ..internal.constants import _PROPAGATION_STYLE_DEFAULT
+from ..internal.constants import _PROPAGATION_STYLE_NONE
 from ..internal.constants import DEFAULT_BUFFER_SIZE
 from ..internal.constants import DEFAULT_MAX_PAYLOAD_SIZE
 from ..internal.constants import DEFAULT_PROCESSING_INTERVAL
@@ -529,11 +532,23 @@ def __init__(self):
         # Propagation styles
         # DD_TRACE_PROPAGATION_STYLE_EXTRACT and DD_TRACE_PROPAGATION_STYLE_INJECT
         #  take precedence over DD_TRACE_PROPAGATION_STYLE
-        self._propagation_style_extract = _parse_propagation_styles(
-            _get_config(
-                ["DD_TRACE_PROPAGATION_STYLE_EXTRACT", "DD_TRACE_PROPAGATION_STYLE"], _PROPAGATION_STYLE_DEFAULT
-            )
+        # if DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT is set to ignore
+        # we set DD_TRACE_PROPAGATION_STYLE_EXTRACT to [_PROPAGATION_STYLE_NONE] since no extraction will heeded
+        self._propagation_behavior_extract = _get_config(
+            ["DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT"], _PROPAGATION_BEHAVIOR_DEFAULT, self._lower
         )
+        if self._propagation_behavior_extract != _PROPAGATION_BEHAVIOR_IGNORE:
+            self._propagation_style_extract = _parse_propagation_styles(
+                _get_config(
+                    ["DD_TRACE_PROPAGATION_STYLE_EXTRACT", "DD_TRACE_PROPAGATION_STYLE"], _PROPAGATION_STYLE_DEFAULT
+                )
+            )
+        else:
+            log.debug(
+                """DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT is set to ignore,
+                setting DD_TRACE_PROPAGATION_STYLE_EXTRACT to empty list"""
+            )
+            self._propagation_style_extract = [_PROPAGATION_STYLE_NONE]
         self._propagation_style_inject = _parse_propagation_styles(
             _get_config(["DD_TRACE_PROPAGATION_STYLE_INJECT", "DD_TRACE_PROPAGATION_STYLE"], _PROPAGATION_STYLE_DEFAULT)
         )
@@ -978,3 +993,6 @@ def convert_rc_trace_sampling_rules(self, rc_rules: List[Dict[str, Any]]) -> Opt
             return json.dumps(rc_rules)
         else:
             return None
+
+    def _lower(self, value):
+        return value.lower()
diff --git a/docs/configuration.rst b/docs/configuration.rst
index 35bb63fac20..455272f318d 100644
--- a/docs/configuration.rst
+++ b/docs/configuration.rst
@@ -368,6 +368,26 @@ Trace Context propagation
      version_added:
        v1.7.0: The ``b3multi`` propagation style was added and ``b3`` was deprecated in favor it.
 
+   DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT:
+     default: |
+         ``continue``
+     
+     description: |
+         String for how to handle incoming request headers that are extracted for propagation of trace info.
+
+         The supported values are ``continue``, ``restart``, and ``ignore``.
+
+         After extracting the headers for propagation, this configuration determines what is done with them.
+
+         The default value is ``continue`` which always propagates valid headers.
+         ``ignore`` ignores all incoming headers and ``restart`` turns the first extracted valid propagation header 
+         into a span link and propagates baggage if present.
+
+         Example: ``DD_TRACE_PROPAGATION_STYLE_EXTRACT="ignore"`` to ignore all incoming headers and to start a root span without a parent.
+
+     version_added:
+       v2.20.0:
+
    DD_TRACE_PROPAGATION_STYLE_INJECT:
      default: |
          ``tracecontext,datadog``
diff --git a/releasenotes/notes/propagation_behavior_extract-3d16765cfd07485b.yaml b/releasenotes/notes/propagation_behavior_extract-3d16765cfd07485b.yaml
new file mode 100644
index 00000000000..6e1def89993
--- /dev/null
+++ b/releasenotes/notes/propagation_behavior_extract-3d16765cfd07485b.yaml
@@ -0,0 +1,13 @@
+---
+features:
+  - |
+    propagation: Introduces the environment variable ``DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT`` 
+    to control the behavior of the extraction of distributed tracing headers. The values, ``continue`` (default),
+    ``ignore``, and ``restart``, are supported. The default value is ``continue`` which has no change from the current behavior of always propagating valid headers.
+    ``ignore`` ignores all incoming headers, never propagating the incoming trace information
+    and ``restart`` turns the first extracted propagation style into a span link and propagates baggage if extracted.
+
+fixes:
+  - |
+    propagation: Fixes an issue where the baggage header was not being propagated when the baggage header was the only header extracted.
+    With this fix, the baggage header is now propagated when it is the only header extracted.
diff --git a/tests/telemetry/test_writer.py b/tests/telemetry/test_writer.py
index 69fe7969fc7..8d4030c84a9 100644
--- a/tests/telemetry/test_writer.py
+++ b/tests/telemetry/test_writer.py
@@ -268,7 +268,9 @@ def test_app_started_event_configuration_override(test_agent_session, run_python
     env["DD_SPAN_SAMPLING_RULES_FILE"] = str(file)
     env["DD_TRACE_PARTIAL_FLUSH_ENABLED"] = "false"
     env["DD_TRACE_PARTIAL_FLUSH_MIN_SPANS"] = "3"
+    env["DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT"] = "restart"
     env["DD_SITE"] = "datadoghq.com"
+
     # By default telemetry collection is enabled after 10 seconds, so we either need to
     # to sleep for 10 seconds or manually call _app_started() to generate the app started event.
     # This delay allows us to collect start up errors and dynamic configurations
@@ -446,6 +448,7 @@ def test_app_started_event_configuration_override(test_agent_session, run_python
         {"name": "DD_TRACE_OTEL_ENABLED", "origin": "env_var", "value": True},
         {"name": "DD_TRACE_PARTIAL_FLUSH_ENABLED", "origin": "env_var", "value": False},
         {"name": "DD_TRACE_PARTIAL_FLUSH_MIN_SPANS", "origin": "env_var", "value": 3},
+        {"name": "DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT", "origin": "env_var", "value": "restart"},
         {"name": "DD_TRACE_PROPAGATION_EXTRACT_FIRST", "origin": "default", "value": False},
         {"name": "DD_TRACE_PROPAGATION_HTTP_BAGGAGE_ENABLED", "origin": "default", "value": False},
         {"name": "DD_TRACE_PROPAGATION_STYLE_EXTRACT", "origin": "env_var", "value": "tracecontext"},
diff --git a/tests/tracer/test_propagation.py b/tests/tracer/test_propagation.py
index 0d4c5d7c01d..c15439ae825 100644
--- a/tests/tracer/test_propagation.py
+++ b/tests/tracer/test_propagation.py
@@ -16,6 +16,8 @@
 from ddtrace.constants import AUTO_REJECT
 from ddtrace.constants import USER_KEEP
 from ddtrace.constants import USER_REJECT
+from ddtrace.internal.constants import _PROPAGATION_BEHAVIOR_IGNORE
+from ddtrace.internal.constants import _PROPAGATION_BEHAVIOR_RESTART
 from ddtrace.internal.constants import _PROPAGATION_STYLE_BAGGAGE
 from ddtrace.internal.constants import _PROPAGATION_STYLE_NONE
 from ddtrace.internal.constants import _PROPAGATION_STYLE_W3C_TRACECONTEXT
@@ -1529,6 +1531,9 @@ def test_extract_tracecontext(headers, expected_context):
     HTTP_HEADER_PARENT_ID: "parent_id",
     HTTP_HEADER_SAMPLING_PRIORITY: "sample",
 }
+
+DATADOG_BAGGAGE_HEADERS_VALID = {**DATADOG_HEADERS_VALID, "baggage": "key1=val1,key2=val2"}
+
 B3_HEADERS_VALID = {
     _HTTP_HEADER_B3_TRACE_ID: "80f198ee56343ba864fe8b2a57d3eff7",
     _HTTP_HEADER_B3_SPAN_ID: "a2fb4a1d1a96d312",
@@ -1582,6 +1587,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_datadog_default",
         None,
+        None,
         DATADOG_HEADERS_VALID,
         {
             "trace_id": 13088165645273925489,
@@ -1594,6 +1600,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_datadog_default_wsgi",
         None,
+        None,
         {get_wsgi_header(name): value for name, value in DATADOG_HEADERS_VALID.items()},
         {
             "trace_id": 13088165645273925489,
@@ -1606,6 +1613,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_datadog_no_priority",
         None,
+        None,
         DATADOG_HEADERS_VALID_NO_PRIORITY,
         {
             "trace_id": 13088165645273925489,
@@ -1618,12 +1626,14 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "invalid_datadog",
         [PROPAGATION_STYLE_DATADOG],
+        None,
         DATADOG_HEADERS_INVALID,
         CONTEXT_EMPTY,
     ),
     (
         "valid_datadog_explicit_style",
         [PROPAGATION_STYLE_DATADOG],
+        None,
         DATADOG_HEADERS_VALID,
         {
             "trace_id": 13088165645273925489,
@@ -1636,6 +1646,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "invalid_datadog_negative_trace_id",
         [PROPAGATION_STYLE_DATADOG],
+        None,
         {
             HTTP_HEADER_TRACE_ID: "-1",
             HTTP_HEADER_PARENT_ID: "5678",
@@ -1647,6 +1658,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_datadog_explicit_style_wsgi",
         [PROPAGATION_STYLE_DATADOG],
+        None,
         {get_wsgi_header(name): value for name, value in DATADOG_HEADERS_VALID.items()},
         {
             "trace_id": 13088165645273925489,
@@ -1659,6 +1671,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_datadog_all_styles",
         [PROPAGATION_STYLE_DATADOG, PROPAGATION_STYLE_B3_MULTI, PROPAGATION_STYLE_B3_SINGLE],
+        None,
         DATADOG_HEADERS_VALID,
         {
             "trace_id": 13088165645273925489,
@@ -1671,13 +1684,29 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_datadog_no_datadog_style",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         DATADOG_HEADERS_VALID,
         CONTEXT_EMPTY,
     ),
+    (
+        "valid_datadog_and_baggage_default",
+        None,
+        None,
+        DATADOG_BAGGAGE_HEADERS_VALID,
+        {
+            "trace_id": 13088165645273925489,
+            "span_id": 5678,
+            "sampling_priority": 1,
+            "dd_origin": "synthetics",
+            "meta": {"_dd.p.dm": "-3"},
+            "baggage": {"key1": "val1", "key2": "val2"},
+        },
+    ),
     # B3 headers
     (
         "valid_b3_simple",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         B3_HEADERS_VALID,
         {
             "trace_id": TRACE_ID,
@@ -1689,6 +1718,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_wsgi",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         {get_wsgi_header(name): value for name, value in B3_HEADERS_VALID.items()},
         {
             "trace_id": TRACE_ID,
@@ -1700,6 +1730,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_flags",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         {
             _HTTP_HEADER_B3_TRACE_ID: B3_HEADERS_VALID[_HTTP_HEADER_B3_TRACE_ID],
             _HTTP_HEADER_B3_SPAN_ID: B3_HEADERS_VALID[_HTTP_HEADER_B3_SPAN_ID],
@@ -1715,6 +1746,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_with_parent_id",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         {
             _HTTP_HEADER_B3_TRACE_ID: B3_HEADERS_VALID[_HTTP_HEADER_B3_TRACE_ID],
             _HTTP_HEADER_B3_SPAN_ID: B3_HEADERS_VALID[_HTTP_HEADER_B3_SPAN_ID],
@@ -1731,6 +1763,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_only_trace_and_span_id",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         {
             _HTTP_HEADER_B3_TRACE_ID: B3_HEADERS_VALID[_HTTP_HEADER_B3_TRACE_ID],
             _HTTP_HEADER_B3_SPAN_ID: B3_HEADERS_VALID[_HTTP_HEADER_B3_SPAN_ID],
@@ -1745,6 +1778,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_only_trace_id",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         {
             _HTTP_HEADER_B3_TRACE_ID: B3_HEADERS_VALID[_HTTP_HEADER_B3_TRACE_ID],
         },
@@ -1758,24 +1792,28 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "invalid_b3",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         B3_HEADERS_INVALID,
         CONTEXT_EMPTY,
     ),
     (
         "valid_b3_default_style",
         None,
+        None,
         B3_HEADERS_VALID,
         CONTEXT_EMPTY,
     ),
     (
         "valid_b3_no_b3_style",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         B3_HEADERS_VALID,
         CONTEXT_EMPTY,
     ),
     (
         "valid_b3_all_styles",
         [PROPAGATION_STYLE_DATADOG, PROPAGATION_STYLE_B3_MULTI, PROPAGATION_STYLE_B3_SINGLE],
+        None,
         B3_HEADERS_VALID,
         {
             "trace_id": TRACE_ID,
@@ -1788,6 +1826,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_single_header_simple",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         B3_SINGLE_HEADERS_VALID,
         {
             "trace_id": TRACE_ID,
@@ -1799,6 +1838,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_single_header_simple",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         {
             get_wsgi_header(_HTTP_HEADER_B3_SINGLE): B3_SINGLE_HEADERS_VALID[_HTTP_HEADER_B3_SINGLE],
         },
@@ -1812,6 +1852,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_single_header_simple",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         {
             get_wsgi_header(_HTTP_HEADER_B3_SINGLE): B3_SINGLE_HEADERS_VALID[_HTTP_HEADER_B3_SINGLE],
         },
@@ -1825,6 +1866,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_single_header_only_sampled",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         {
             _HTTP_HEADER_B3_SINGLE: "1",
         },
@@ -1838,6 +1880,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_single_header_only_trace_and_span_id",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         {
             _HTTP_HEADER_B3_SINGLE: "80f198ee56343ba864fe8b2a57d3eff7-e457b5a2e4d86bd1",
         },
@@ -1851,12 +1894,14 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "invalid_b3_single_header",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         B3_SINGLE_HEADERS_INVALID,
         CONTEXT_EMPTY,
     ),
     (
         "valid_b3_single_header_all_styles",
         [PROPAGATION_STYLE_DATADOG, PROPAGATION_STYLE_B3_MULTI, PROPAGATION_STYLE_B3_SINGLE],
+        None,
         B3_SINGLE_HEADERS_VALID,
         {
             "trace_id": TRACE_ID,
@@ -1868,6 +1913,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_single_header_extra_data",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         {_HTTP_HEADER_B3_SINGLE: B3_SINGLE_HEADERS_VALID[_HTTP_HEADER_B3_SINGLE] + "-05e3ac9a4f6e3b90-extra-data-here"},
         {
             "trace_id": TRACE_ID,
@@ -1879,18 +1925,21 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_b3_single_header_default_style",
         None,
+        None,
         B3_SINGLE_HEADERS_VALID,
         CONTEXT_EMPTY,
     ),
     (
         "valid_b3_single_header_no_b3_single_header_style",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         B3_SINGLE_HEADERS_VALID,
         CONTEXT_EMPTY,
     ),
     (
         "baggage_case_insensitive",
         None,
+        None,
         {"BAgGage": "key1=val1,key2=val2"},
         {
             "baggage": {"key1": "val1", "key2": "val2"},
@@ -1900,6 +1949,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_default_style",
         None,
+        None,
         ALL_HEADERS,
         {
             "trace_id": 13088165645273925489,
@@ -1928,6 +1978,7 @@ def test_extract_tracecontext(headers, expected_context):
             PROPAGATION_STYLE_B3_SINGLE,
             _PROPAGATION_STYLE_W3C_TRACECONTEXT,
         ],
+        None,
         ALL_HEADERS,
         {
             "trace_id": 13088165645273925489,
@@ -1968,6 +2019,7 @@ def test_extract_tracecontext(headers, expected_context):
             PROPAGATION_STYLE_B3_SINGLE,
             _PROPAGATION_STYLE_W3C_TRACECONTEXT,
         ],
+        None,
         {get_wsgi_header(name): value for name, value in ALL_HEADERS.items()},
         {
             "trace_id": 13088165645273925489,
@@ -2003,6 +2055,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_datadog_style",
         [PROPAGATION_STYLE_DATADOG],
+        None,
         ALL_HEADERS,
         {
             "trace_id": 13088165645273925489,
@@ -2015,6 +2068,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_datadog_style_wsgi",
         [PROPAGATION_STYLE_DATADOG],
+        None,
         {get_wsgi_header(name): value for name, value in ALL_HEADERS.items()},
         {
             "trace_id": 13088165645273925489,
@@ -2027,6 +2081,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_b3_style",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         ALL_HEADERS,
         {
             "trace_id": TRACE_ID,
@@ -2038,6 +2093,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_b3_style_wsgi",
         [PROPAGATION_STYLE_B3_MULTI],
+        None,
         {get_wsgi_header(name): value for name, value in ALL_HEADERS.items()},
         {
             "trace_id": TRACE_ID,
@@ -2049,6 +2105,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_both_b3_styles",
         [PROPAGATION_STYLE_B3_MULTI, PROPAGATION_STYLE_B3_SINGLE],
+        None,
         ALL_HEADERS,
         {
             "trace_id": TRACE_ID,
@@ -2060,6 +2117,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_b3_single_style",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         ALL_HEADERS,
         {
             "trace_id": TRACE_ID,
@@ -2072,6 +2130,7 @@ def test_extract_tracecontext(headers, expected_context):
         # name, styles, headers, expected_context,
         "none_style",
         [_PROPAGATION_STYLE_NONE],
+        None,
         ALL_HEADERS,
         {
             "trace_id": None,
@@ -2084,6 +2143,7 @@ def test_extract_tracecontext(headers, expected_context):
         # name, styles, headers, expected_context,
         "none_and_other_prop_style_still_extracts",
         [PROPAGATION_STYLE_DATADOG, _PROPAGATION_STYLE_NONE],
+        None,
         ALL_HEADERS,
         {
             "trace_id": 13088165645273925489,
@@ -2097,6 +2157,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "order_matters_B3_SINGLE_HEADER_first",
         [PROPAGATION_STYLE_B3_SINGLE, PROPAGATION_STYLE_B3_MULTI, PROPAGATION_STYLE_DATADOG],
+        None,
         B3_SINGLE_HEADERS_VALID,
         {
             "trace_id": TRACE_ID,
@@ -2113,6 +2174,7 @@ def test_extract_tracecontext(headers, expected_context):
             PROPAGATION_STYLE_DATADOG,
             _PROPAGATION_STYLE_W3C_TRACECONTEXT,
         ],
+        None,
         B3_HEADERS_VALID,
         {
             "trace_id": TRACE_ID,
@@ -2124,6 +2186,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "order_matters_B3_second_no_Datadog_headers",
         [PROPAGATION_STYLE_DATADOG, PROPAGATION_STYLE_B3_MULTI],
+        None,
         B3_HEADERS_VALID,
         {
             "trace_id": TRACE_ID,
@@ -2135,6 +2198,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_b3_single_style_wsgi",
         [PROPAGATION_STYLE_B3_SINGLE],
+        None,
         {get_wsgi_header(name): value for name, value in ALL_HEADERS.items()},
         {
             "trace_id": TRACE_ID,
@@ -2153,6 +2217,7 @@ def test_extract_tracecontext(headers, expected_context):
             _PROPAGATION_STYLE_W3C_TRACECONTEXT,
             PROPAGATION_STYLE_B3_SINGLE,
         ],
+        None,
         DATADOG_TRACECONTEXT_MATCHING_TRACE_ID_HEADERS,
         {
             "trace_id": _get_64_lowest_order_bits_as_int(TRACE_ID),
@@ -2170,6 +2235,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "no_additional_tracestate_support_when_present_but_trace_ids_do_not_match",
         [PROPAGATION_STYLE_DATADOG, _PROPAGATION_STYLE_W3C_TRACECONTEXT],
+        None,
         {**DATADOG_HEADERS_VALID, **TRACECONTEXT_HEADERS_VALID_RUM_NO_SAMPLING_DECISION},
         {
             "trace_id": 13088165645273925489,
@@ -2191,18 +2257,21 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_all_headers_no_style",
         [],
+        None,
         ALL_HEADERS,
         CONTEXT_EMPTY,
     ),
     (
         "valid_all_headers_no_style_wsgi",
         [],
+        None,
         {get_wsgi_header(name): value for name, value in ALL_HEADERS.items()},
         CONTEXT_EMPTY,
     ),
     (
         "datadog_tracecontext_conflicting_span_ids",
         [PROPAGATION_STYLE_DATADOG, _PROPAGATION_STYLE_W3C_TRACECONTEXT],
+        None,
         {
             HTTP_HEADER_TRACE_ID: "9291375655657946024",
             HTTP_HEADER_PARENT_ID: "15",
@@ -2215,6 +2284,135 @@ def test_extract_tracecontext(headers, expected_context):
             "meta": {"_dd.p.dm": "-3", LAST_DD_PARENT_ID_KEY: "000000000000000f"},
         },
     ),
+    (
+        "valid_datadog_default_w_restart_behavior",
+        None,
+        _PROPAGATION_BEHAVIOR_RESTART,
+        DATADOG_HEADERS_VALID,
+        {
+            "trace_id": None,
+            "span_id": None,
+            "sampling_priority": None,
+            "dd_origin": None,
+            "span_links": [
+                SpanLink(
+                    trace_id=13088165645273925489,
+                    span_id=5678,
+                    tracestate=None,
+                    flags=1,
+                    attributes={"reason": "propagation_behavior_extract", "context_headers": "datadog"},
+                )
+            ],
+        },
+    ),
+    (
+        "valid_datadog_tracecontext_and_baggage_default_w_restart_behavior",
+        None,
+        _PROPAGATION_BEHAVIOR_RESTART,
+        {**DATADOG_BAGGAGE_HEADERS_VALID, **TRACECONTEXT_HEADERS_VALID},
+        {
+            "trace_id": None,
+            "span_id": None,
+            "sampling_priority": None,
+            "dd_origin": None,
+            "baggage": {"key1": "val1", "key2": "val2"},
+            "span_links": [
+                SpanLink(
+                    trace_id=13088165645273925489,
+                    span_id=5678,
+                    tracestate=None,
+                    flags=1,
+                    attributes={"reason": "propagation_behavior_extract", "context_headers": "datadog"},
+                )
+            ],
+        },
+    ),
+    # All valid headers
+    (
+        "valid_all_headers_default_style_w_restart_behavior",
+        None,
+        _PROPAGATION_BEHAVIOR_RESTART,
+        ALL_HEADERS,
+        {
+            "trace_id": None,
+            "span_id": None,
+            "sampling_priority": None,
+            "dd_origin": None,
+            "span_links": [
+                SpanLink(
+                    trace_id=13088165645273925489,
+                    span_id=5678,
+                    tracestate=None,
+                    flags=1,
+                    attributes={"reason": "propagation_behavior_extract", "context_headers": "datadog"},
+                )
+            ],
+        },
+    ),
+    (
+        "valid_all_headers_trace_context_datadog_style_w_restart_behavior",
+        [_PROPAGATION_STYLE_W3C_TRACECONTEXT, PROPAGATION_STYLE_DATADOG],
+        _PROPAGATION_BEHAVIOR_RESTART,
+        ALL_HEADERS,
+        {
+            "trace_id": None,
+            "span_id": None,
+            "sampling_priority": None,
+            "dd_origin": None,
+            "span_links": [
+                SpanLink(
+                    trace_id=171395628812617415352188477958425669623,
+                    span_id=67667974448284343,
+                    tracestate="dd=s:2;o:rum;t.dm:-4;t.usr.id:baz64,congo=t61rcWkgMzE",
+                    flags=1,
+                    attributes={"reason": "propagation_behavior_extract", "context_headers": "tracecontext"},
+                )
+            ],
+        },
+    ),
+    (
+        "valid_all_headers_all_styles_w_restart_behavior",
+        [PROPAGATION_STYLE_B3_MULTI, PROPAGATION_STYLE_B3_SINGLE, _PROPAGATION_STYLE_W3C_TRACECONTEXT],
+        _PROPAGATION_BEHAVIOR_RESTART,
+        ALL_HEADERS,
+        {
+            "trace_id": None,
+            "span_id": None,
+            "sampling_priority": None,
+            "dd_origin": None,
+            "span_links": [
+                SpanLink(
+                    trace_id=171395628812617415352188477958425669623,
+                    span_id=67667974448284343,
+                    tracestate=None,
+                    flags=1,
+                    attributes={"reason": "propagation_behavior_extract", "context_headers": "b3multi"},
+                )
+            ],
+        },
+    ),
+    (
+        "valid_all_headers_and_baggage_trace_context_datadog_style_w_restart_behavior",
+        None,
+        _PROPAGATION_BEHAVIOR_RESTART,
+        {**ALL_HEADERS, **DATADOG_BAGGAGE_HEADERS_VALID},
+        {
+            "trace_id": None,
+            "span_id": None,
+            "sampling_priority": None,
+            "dd_origin": None,
+            "baggage": {"key1": "val1", "key2": "val2"},
+            "span_links": [
+                SpanLink(
+                    trace_id=13088165645273925489,
+                    span_id=5678,
+                    tracestate=None,
+                    flags=1,
+                    attributes={"reason": "propagation_behavior_extract", "context_headers": "datadog"},
+                )
+            ],
+        },
+    ),
 ]
 
 # Only add fixtures here if they can't pass both test_propagation_extract_env
@@ -2225,6 +2423,7 @@ def test_extract_tracecontext(headers, expected_context):
         # can't be tested correctly via test_propagation_extract_w_config. It is tested separately
         "valid_tracecontext_simple",
         [_PROPAGATION_STYLE_W3C_TRACECONTEXT],
+        None,
         TRACECONTEXT_HEADERS_VALID_BASIC,
         {
             "trace_id": TRACE_ID,
@@ -2241,6 +2440,7 @@ def test_extract_tracecontext(headers, expected_context):
     (
         "valid_tracecontext_rum_no_sampling_decision",
         [_PROPAGATION_STYLE_W3C_TRACECONTEXT],
+        None,
         TRACECONTEXT_HEADERS_VALID_RUM_NO_SAMPLING_DECISION,
         {
             "trace_id": TRACE_ID,
@@ -2252,11 +2452,24 @@ def test_extract_tracecontext(headers, expected_context):
             },
         },
     ),
+    # Only works for env since config is modified at startup to set
+    # propagation_style_extract to [None] if DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT is set to ignore
+    (
+        "valid_datadog_default_w_ignore_behavior",
+        None,
+        _PROPAGATION_BEHAVIOR_IGNORE,
+        DATADOG_HEADERS_VALID,
+        CONTEXT_EMPTY,
+    ),
 ]
 
 
-@pytest.mark.parametrize("name,styles,headers,expected_context", EXTRACT_FIXTURES + EXTRACT_FIXTURES_ENV_ONLY)
-def test_propagation_extract_env(name, styles, headers, expected_context, run_python_code_in_subprocess):
+@pytest.mark.parametrize(
+    "name,styles,extract_behavior,headers,expected_context", EXTRACT_FIXTURES + EXTRACT_FIXTURES_ENV_ONLY
+)
+def test_propagation_extract_env(
+    name, styles, extract_behavior, headers, expected_context, run_python_code_in_subprocess
+):
     # Execute the test code in isolation to ensure env variables work as expected
     code = """
 import json
@@ -2274,18 +2487,24 @@ def test_propagation_extract_env(name, styles, headers, expected_context, run_py
     env = os.environ.copy()
     if styles is not None:
         env["DD_TRACE_PROPAGATION_STYLE"] = ",".join(styles)
+    if extract_behavior is not None:
+        env["DD_TRACE_PROPAGATION_BEHAVIOR_EXTRACT"] = extract_behavior
     stdout, stderr, status, _ = run_python_code_in_subprocess(code=code, env=env)
     print(stderr, stdout)
     assert status == 0, (stdout, stderr)
 
 
-@pytest.mark.parametrize("name,styles,headers,expected_context", EXTRACT_FIXTURES)
-def test_propagation_extract_w_config(name, styles, headers, expected_context, run_python_code_in_subprocess):
+@pytest.mark.parametrize("name,styles,extract_behavior,headers,expected_context", EXTRACT_FIXTURES)
+def test_propagation_extract_w_config(
+    name, styles, extract_behavior, headers, expected_context, run_python_code_in_subprocess
+):
     # Setting via ddtrace.config works as expected too
     # DEV: This also helps us get code coverage reporting
     overrides = {}
     if styles is not None:
         overrides["_propagation_style_extract"] = styles
+    if extract_behavior is not None:
+        overrides["_propagation_behavior_extract"] = extract_behavior
     with override_global_config(overrides):
         context = HTTPPropagator.extract(headers)
         if not expected_context.get("tracestate"):
diff --git a/tests/utils.py b/tests/utils.py
index de0129f75a3..5b98fe42d1b 100644
--- a/tests/utils.py
+++ b/tests/utils.py
@@ -123,6 +123,7 @@ def override_global_config(values):
         "_health_metrics_enabled",
         "_propagation_style_extract",
         "_propagation_style_inject",
+        "_propagation_behavior_extract",
         "_x_datadog_tags_max_length",
         "_128_bit_trace_id_enabled",
         "_x_datadog_tags_enabled",