diff --git a/bazel/external/BUILD b/bazel/external/BUILD
index 62a6ca994d26a..4558a1cee2cd0 100644
--- a/bazel/external/BUILD
+++ b/bazel/external/BUILD
@@ -13,6 +13,7 @@ cc_library(
     tags = ["skip_on_windows"],
     deps = [
         "@com_github_datadog_dd_opentracing_cpp//:dd_opentracing_cpp",
+        "@com_github_datadog_dd_trace_cpp//:dd_trace_cpp",
         "@com_google_googletest//:gtest",
         "@io_opentracing_cpp//:opentracing",
     ],
diff --git a/bazel/repositories.bzl b/bazel/repositories.bzl
index 1100b5bd01f7e..5903b4df7c966 100644
--- a/bazel/repositories.bzl
+++ b/bazel/repositories.bzl
@@ -164,6 +164,7 @@ def envoy_dependencies(skip_targets = []):
     _com_github_circonus_labs_libcircllhist()
     _com_github_cyan4973_xxhash()
     _com_github_datadog_dd_opentracing_cpp()
+    _com_github_datadog_dd_trace_cpp()
     _com_github_mirror_tclap()
     _com_github_envoyproxy_sqlparser()
     _com_github_fmtlib_fmt()
@@ -574,6 +575,13 @@ def _com_github_datadog_dd_opentracing_cpp():
         actual = "@com_github_datadog_dd_opentracing_cpp//:dd_opentracing_cpp",
     )
 
+def _com_github_datadog_dd_trace_cpp():
+    external_http_archive("com_github_datadog_dd_trace_cpp")
+    native.bind(
+        name = "dd_trace_cpp",
+        actual = "@com_github_datadog_dd_trace_cpp//:dd_trace_cpp",
+    )
+
 def _com_github_skyapm_cpp2sky():
     external_http_archive(
         name = "com_github_skyapm_cpp2sky",
diff --git a/bazel/repository_locations.bzl b/bazel/repository_locations.bzl
index fce969321fe1f..8881dfabb0149 100644
--- a/bazel/repository_locations.bzl
+++ b/bazel/repository_locations.bzl
@@ -546,6 +546,21 @@ REPOSITORY_LOCATIONS_SPEC = dict(
         license = "Apache-2.0",
         license_url = "https://github.com/DataDog/dd-opentracing-cpp/blob/v{version}/LICENSE",
     ),
+    com_github_datadog_dd_trace_cpp = dict(
+        project_name = "Datadog C++ Tracing Library",
+        project_desc = "Datadog distributed tracing for C++",
+        project_url = "https://github.com/DataDog/dd-trace-cpp",
+        version = "0.1.5",
+        sha256 = "d76c98109822d6c3e8deb335117766b67c2be636169e60e5c813c9075b721aa1",
+        strip_prefix = "dd-trace-cpp-{version}",
+        urls = ["https://github.com/DataDog/dd-trace-cpp/archive/v{version}.tar.gz"],
+        use_category = ["observability_ext"],
+        extensions = ["envoy.tracers.datadog"],
+        release_date = "2022-12-06",
+        cpe = "N/A",
+        license = "Apache-2.0",
+        license_url = "https://github.com/DataDog/dd-trace-cpp/blob/v{version}/LICENSE",
+    ),
     com_github_google_benchmark = dict(
         project_name = "Benchmark",
         project_desc = "Library to benchmark code snippets",
diff --git a/source/extensions/tracers/datadog/BUILD b/source/extensions/tracers/datadog/BUILD
index 0c314374f9683..7d30626a89820 100644
--- a/source/extensions/tracers/datadog/BUILD
+++ b/source/extensions/tracers/datadog/BUILD
@@ -15,11 +15,21 @@ envoy_cc_library(
     name = "datadog_tracer_lib",
     srcs = [
         "datadog_tracer_impl.cc",
+        "time_util.cc",
     ],
     hdrs = [
         "datadog_tracer_impl.h",
+        "time_util.h",
+    ],
+    copts = [
+        # Make sure that headers included from dd_trace_cpp use Abseil
+        # equivalents of std::string_view and std::optional.
+        "-DDD_USE_ABSEIL_FOR_ENVOY",
+    ],
+    external_deps = [
+        "dd_opentracing_cpp",
+        "dd_trace_cpp",
     ],
-    external_deps = ["dd_opentracing_cpp"],
     deps = [
         "//source/common/config:utility_lib",
         "//source/common/http:async_client_utility_lib",
diff --git a/source/extensions/tracers/datadog/time_util.cc b/source/extensions/tracers/datadog/time_util.cc
new file mode 100644
index 0000000000000..201452aa3abcf
--- /dev/null
+++ b/source/extensions/tracers/datadog/time_util.cc
@@ -0,0 +1,26 @@
+#include "source/extensions/tracers/datadog/time_util.h"
+
+#include <chrono>
+
+namespace Envoy {
+namespace Extensions {
+namespace Tracers {
+namespace Datadog {
+
+datadog::tracing::TimePoint estimateTime(SystemTime wall) {
+  return estimateTime(wall, datadog::tracing::default_clock);
+}
+
+datadog::tracing::TimePoint estimateTime(SystemTime wall, const datadog::tracing::Clock& clock) {
+  datadog::tracing::TimePoint point = clock();
+  if (point.wall > wall) {
+    point.tick -= point.wall - wall;
+  }
+  point.wall = wall;
+  return point;
+}
+
+} // namespace Datadog
+} // namespace Tracers
+} // namespace Extensions
+} // namespace Envoy
diff --git a/source/extensions/tracers/datadog/time_util.h b/source/extensions/tracers/datadog/time_util.h
new file mode 100644
index 0000000000000..723c4ded82d2a
--- /dev/null
+++ b/source/extensions/tracers/datadog/time_util.h
@@ -0,0 +1,45 @@
+#pragma once
+
+/**
+ * This file contains functions related to time points and durations.
+ *
+ * Envoy has a time type that contains both a system time point and a steady
+ * ("monotonic") time point. However, only the system time is exposed to the
+ * tracing subsystem. This may be remedied in the future, but for now we work
+ * with the system time.
+ *
+ * This is problematic for the Datadog core tracing library (dd-trace-cpp),
+ * because it uses the steady time to calculate the duration of a span
+ * (end.tick - begin.tick). So, we need to get a steady clock time from a given system
+ * clock time. The scheme is to measure the current system/steady time,
+ * compare the system part with the given system time, and then adjust the
+ * measured steady time accordingly. This is correct if the system clock has not
+ * been adjusted since the given system time was measured. It's incorrect
+ * otherwise, hence only an estimate. This conversion is performed by the
+ * estimateTime function.
+ */
+
+#include <datadog/clock.h>
+
+#include "envoy/common/time.h"
+
+namespace Envoy {
+namespace Extensions {
+namespace Tracers {
+namespace Datadog {
+
+/**
+ * Convert a specified system \p time to a datadog time point, estimating the
+    steady portion of the result by examining the current time as measured by
+    the optionally specified \p clock and comparing it with the given \p time.
+ * @param time system time to convert from
+ * @param clock datadog clock used to measure the current time (default clock if omitted)
+ * @return datadog time point whose steady portion is estimated from the given \p time.
+ */
+datadog::tracing::TimePoint estimateTime(SystemTime time);
+datadog::tracing::TimePoint estimateTime(SystemTime time, const datadog::tracing::Clock& clock);
+
+} // namespace Datadog
+} // namespace Tracers
+} // namespace Extensions
+} // namespace Envoy
diff --git a/test/extensions/tracers/datadog/BUILD b/test/extensions/tracers/datadog/BUILD
index fd70bcc5b2e8b..7b22bafa420be 100644
--- a/test/extensions/tracers/datadog/BUILD
+++ b/test/extensions/tracers/datadog/BUILD
@@ -15,8 +15,17 @@ envoy_extension_cc_test(
     name = "datadog_tracer_impl_test",
     srcs = [
         "datadog_tracer_impl_test.cc",
+        "time_util_test.cc",
+    ],
+    copts = [
+        # Make sure that headers included from dd_trace_cpp use Abseil
+        # equivalents of std::string_view and std::optional.
+        "-DDD_USE_ABSEIL_FOR_ENVOY",
     ],
     extension_names = ["envoy.tracers.datadog"],
+    external_deps = [
+        "dd_trace_cpp",
+    ],
     # TODO(wrowe): envoy_extension_ rules don't currently exclude windows extensions
     tags = ["skip_on_windows"],
     deps = [
diff --git a/test/extensions/tracers/datadog/time_util_test.cc b/test/extensions/tracers/datadog/time_util_test.cc
new file mode 100644
index 0000000000000..472677f6dde95
--- /dev/null
+++ b/test/extensions/tracers/datadog/time_util_test.cc
@@ -0,0 +1,72 @@
+#include <datadog/clock.h>
+
+#include "envoy/common/time.h"
+
+#include "source/extensions/tracers/datadog/time_util.h"
+
+#include "gtest/gtest.h"
+
+namespace Envoy {
+namespace Extensions {
+namespace Tracers {
+namespace Datadog {
+namespace {
+
+TEST(DatadogTracerTimeUtilTest, EstimateTime) {
+  // Concerns:
+  //
+  // - If the current system time is after the specified time (likely case),
+  //   then the resulting steady time point is set back accordingly.
+  // - If the current system time is before the specified time (rare case),
+  //   then the resulting steady time point is whatever the clock returns.
+
+  // Modify `now` to change the value returned by `clock`.
+  datadog::tracing::TimePoint now;
+  datadog::tracing::Clock clock = [&]() { return now; };
+
+  // A little time has elapsed since the SystemTime was measured. The
+  // resulting steady time point should be set back by the difference.
+  datadog::tracing::TimePoint clock_result = datadog::tracing::default_clock();
+  SystemTime argument = clock_result.wall;
+  clock_result.wall += std::chrono::microseconds(100);
+  now = clock_result;
+  datadog::tracing::TimePoint result = estimateTime(argument, clock);
+  EXPECT_EQ(result.wall, argument);
+  EXPECT_EQ(result.tick, clock_result.tick - std::chrono::microseconds(100));
+
+  // The clock has been set back since the SystemTime was measured. The
+  // resulting steady time can't do better than whatever the clock returns
+  // (we wouldn't want to set the steady time point into the future).
+  clock_result = datadog::tracing::default_clock();
+  argument = clock_result.wall;
+  clock_result.wall -= std::chrono::milliseconds(100);
+  now = clock_result;
+  result = estimateTime(argument, clock);
+  EXPECT_EQ(result.wall, argument);
+  EXPECT_EQ(result.tick, clock_result.tick);
+}
+
+TEST(DatadogTracerTimeUtilTest, DefaultClock) {
+  // The one-parameter overload of `estimateTime` uses the system clock.
+  // We can at least check that the steady (monotonic, `.tick`) portion is
+  // approximately non-decreasing along "before," "during," and "after."
+  // Only "approximately," because the `datadog::tracing::default_clock` can't
+  // measure both clocks exactly simultaneously, so its correction to the
+  // steady time might actually set it back in time some tiny amount.
+  const datadog::tracing::Clock clock = datadog::tracing::default_clock;
+  const datadog::tracing::TimePoint before = clock();
+  const datadog::tracing::TimePoint estimated_before = estimateTime(before.wall);
+  const datadog::tracing::TimePoint after = clock();
+
+  const auto tolerance = std::chrono::microseconds(100);
+
+  EXPECT_LE(before.tick, after.tick);
+  EXPECT_LE(estimated_before.tick - before.tick, tolerance);
+  EXPECT_LE(after.tick - estimated_before.tick, tolerance);
+}
+
+} // namespace
+} // namespace Datadog
+} // namespace Tracers
+} // namespace Extensions
+} // namespace Envoy