diff --git a/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_tracing.py b/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_tracing.py
index b248b7a5ba2a..f9ab0ff60750 100644
--- a/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_tracing.py
+++ b/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_tracing.py
@@ -85,6 +85,12 @@
 # duplicates across multiple AgentServerHost instantiations.
 _CONSOLE_HANDLER_ATTR = "_agentserver_console"
 
+# Logger names whose INFO messages are too noisy by default (set to WARNING unless the user requests DEBUG).
+_SUPPRESSED_LOGGERS = (
+    "azure.monitor.opentelemetry.exporter",
+    "azure.core.pipeline.policies.http_logging_policy",
+)
+
 
 def configure_observability(
     *,
@@ -131,8 +137,13 @@ def configure_observability(
         setattr(_console, _CONSOLE_HANDLER_ATTR, True)
         root.addHandler(_console)
 
-    # Suppress the noisy Azure Core HTTP logging policy logger.
-    logging.getLogger("azure.core.pipeline.policies.http_logging_policy").setLevel(logging.WARNING)
+    # Suppress noisy loggers by setting their level to WARNING.
+    # Must be done BEFORE _configure_tracing() — the distro respects
+    # pre-set levels, preventing repetitive "Transmission succeeded" INFO messages.
+    # Preserve visibility when user explicitly requests DEBUG.
+    if logging.getLevelName(resolved_level) > logging.DEBUG:
+        for _noisy in _SUPPRESSED_LOGGERS:
+            logging.getLogger(_noisy).setLevel(logging.WARNING)
 
     # Tracing and OTel export
     _configure_tracing(connection_string=connection_string, enable_sensitive_data=enable_sensitive_data)