diff --git a/docker-compose.test.yml b/docker-compose.test.yml
index afe8cf69..ab28cf87 100644
--- a/docker-compose.test.yml
+++ b/docker-compose.test.yml
@@ -132,7 +132,7 @@ services:
 
   tempo:
     profiles: ["observability"]
-    image: grafana/tempo:2.10.7
+    image: grafana/tempo:3.0.2
     command: ["-config.file=/etc/tempo/tempo-config.yml"]
     volumes:
       - ./services/observability/tempo/tempo-config.yml:/etc/tempo/tempo-config.yml:ro
diff --git a/docker-compose.yml b/docker-compose.yml
index 9b9223bd..a29f52c8 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -273,7 +273,7 @@ services:
 
   tempo:
     profiles: ["observability"]
-    image: grafana/tempo:2.10.7
+    image: grafana/tempo:3.0.2
     command: ["-config.file=/etc/tempo/tempo-config.yml"]
     volumes:
       - ./services/observability/tempo/tempo-config.yml:/etc/tempo/tempo-config.yml:ro
diff --git a/services/observability/tempo/tempo-config.yml b/services/observability/tempo/tempo-config.yml
index 608bad9a..d9435a40 100644
--- a/services/observability/tempo/tempo-config.yml
+++ b/services/observability/tempo/tempo-config.yml
@@ -1,3 +1,5 @@
+# Tempo 3 monolithic (-target=all). No Kafka.
+# Migration: https://grafana.com/docs/tempo/latest/set-up-for-tracing/setup-tempo/migrate-to-3/
 server:
   http_listen_port: 3200
 
@@ -10,12 +12,16 @@ distributor:
         http:
           endpoint: 0.0.0.0:4318
 
-ingester:
+# Replaces removed `ingester` (max_block_duration carried over).
+live_store:
   max_block_duration: 5m
 
-compactor:
-  compaction:
-    block_retention: 48h
+# Replaces removed `compactor` (48h retention carried over).
+backend_scheduler:
+  provider:
+    compaction:
+      compaction:
+        block_retention: 48h
 
 storage:
   trace: