diff --git a/lib/crewai/src/crewai/events/listeners/tracing/first_time_trace_handler.py b/lib/crewai/src/crewai/events/listeners/tracing/first_time_trace_handler.py
index f9b2ad37f..56cb776a2 100644
--- a/lib/crewai/src/crewai/events/listeners/tracing/first_time_trace_handler.py
+++ b/lib/crewai/src/crewai/events/listeners/tracing/first_time_trace_handler.py
@@ -111,7 +111,13 @@ class FirstTimeTraceHandler:
 
             events_count = len(self.batch_manager.event_buffer)
             if self.batch_manager.event_buffer:
-                self.batch_manager._send_events_to_backend()
+                send_status = self.batch_manager._send_events_to_backend()
+                if send_status == 500 and self.batch_manager.trace_batch_id:
+                    self.batch_manager.plus_api.mark_trace_batch_as_failed(
+                        self.batch_manager.trace_batch_id,
+                        "Error sending events to backend",
+                    )
+                    return
 
             self.batch_manager._finalize_backend_batch(events_count)
             self.ephemeral_url = self.batch_manager.ephemeral_trace_url