diff --git a/docs/telemetry.mdx b/docs/telemetry.mdx
index b181ad827..35f713860 100644
--- a/docs/telemetry.mdx
+++ b/docs/telemetry.mdx
@@ -22,7 +22,16 @@ usage of tools, API calls, responses, any data processed by the agents, or secre
 When the `share_crew` feature is enabled, detailed data including task descriptions, agents' backstories or goals, and other specific attributes are collected 
 to provide deeper insights. This expanded data collection may include personal information if users have incorporated it into their crews or tasks. 
 Users should carefully consider the content of their crews and tasks before enabling `share_crew`. 
-Users can disable telemetry by setting the environment variable `OTEL_SDK_DISABLED` to `true`.
+Users can disable telemetry by setting the environment variable `CREWAI_DISABLE_TELEMETRY` to `true` or by setting `OTEL_SDK_DISABLED` to `true` (note that the latter disables all OpenTelemetry instrumentation globally).
+
+### Examples:
+```python
+# Disable CrewAI telemetry only
+os.environ['CREWAI_DISABLE_TELEMETRY'] = 'true'
+
+# Disable all OpenTelemetry (including CrewAI)
+os.environ['OTEL_SDK_DISABLED'] = 'true'
+```
 
 ### Data Explanation:
 | Defaulted | Data                                      | Reason and Specifics                                                                                                       |
@@ -55,4 +64,4 @@ This enables a deeper insight into usage patterns.
 <Warning>
     If you enable `share_crew`, the collected data may include personal information if it has been incorporated into crew configurations, task descriptions, or outputs. 
     Users should carefully review their data and ensure compliance with GDPR and other applicable privacy regulations before enabling this feature.
-</Warning>
\ No newline at end of file
+</Warning>
diff --git a/src/crewai/telemetry/telemetry.py b/src/crewai/telemetry/telemetry.py
index edf4c886a..6fec368b3 100644
--- a/src/crewai/telemetry/telemetry.py
+++ b/src/crewai/telemetry/telemetry.py
@@ -45,10 +45,10 @@ class Telemetry:
     """
 
     def __init__(self):
-        self.ready = False
-        self.trace_set = False
+        self.ready: bool = False
+        self.trace_set: bool = False
 
-        if os.getenv("OTEL_SDK_DISABLED", "false").lower() == "true":
+        if self._is_telemetry_disabled():
             return
 
         try:
@@ -75,6 +75,13 @@ class Telemetry:
             ):
                 raise  # Re-raise the exception to not interfere with system signals
             self.ready = False
+            
+    def _is_telemetry_disabled(self) -> bool:
+        """Check if telemetry should be disabled based on environment variables."""
+        return (
+            os.getenv("OTEL_SDK_DISABLED", "false").lower() == "true" or
+            os.getenv("CREWAI_DISABLE_TELEMETRY", "false").lower() == "true"
+        )
 
     def set_tracer(self):
         if self.ready and not self.trace_set:
diff --git a/tests/telemetry/__init__.py b/tests/telemetry/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/telemetry/test_telemetry_disable.py b/tests/telemetry/test_telemetry_disable.py
new file mode 100644
index 000000000..16c02acaa
--- /dev/null
+++ b/tests/telemetry/test_telemetry_disable.py
@@ -0,0 +1,30 @@
+import os
+from unittest.mock import patch
+
+import pytest
+
+from crewai.telemetry import Telemetry
+
+
+@pytest.mark.parametrize("env_var,value,expected_ready", [
+    ("OTEL_SDK_DISABLED", "true", False),
+    ("OTEL_SDK_DISABLED", "TRUE", False),
+    ("CREWAI_DISABLE_TELEMETRY", "true", False),
+    ("CREWAI_DISABLE_TELEMETRY", "TRUE", False),
+    ("OTEL_SDK_DISABLED", "false", True),
+    ("CREWAI_DISABLE_TELEMETRY", "false", True),
+])
+def test_telemetry_environment_variables(env_var, value, expected_ready):
+    """Test telemetry state with different environment variable configurations."""
+    with patch.dict(os.environ, {env_var: value}):
+        with patch("crewai.telemetry.telemetry.TracerProvider"):
+            telemetry = Telemetry()
+            assert telemetry.ready is expected_ready
+
+
+def test_telemetry_enabled_by_default():
+    """Test that telemetry is enabled by default."""
+    with patch.dict(os.environ, {}, clear=True):
+        with patch("crewai.telemetry.telemetry.TracerProvider"):
+            telemetry = Telemetry()
+            assert telemetry.ready is True