diff --git a/README.md b/README.md
index 43d2cba6..35947369 100644
--- a/README.md
+++ b/README.md
@@ -72,6 +72,7 @@ Some examples require extra dependencies. See each sample's directory for specif
 * [message_passing/introduction](message_passing/introduction/) - Introduction to queries, signals, and updates.
 * [message_passing/safe_message_handlers](message_passing/safe_message_handlers/) - Safely handling updates and signals.
 * [message_passing/update_with_start/lazy_initialization](message_passing/update_with_start/lazy_initialization/) - Use update-with-start to update a Shopping Cart, starting it if it does not exist.
+* [multiline_logging](multiline_logging) - Format multiline exception logs as single-line JSON within Temporal boundaries.
 * [open_telemetry](open_telemetry) - Trace workflows with OpenTelemetry.
 * [patching](patching) - Alter workflows safely with `patch` and `deprecate_patch`.
 * [polling](polling) - Recommended implementation of an activity that needs to periodically poll an external resource waiting its successful completion.
diff --git a/multiline_logging/README.md b/multiline_logging/README.md
new file mode 100644
index 00000000..9e55a70a
--- /dev/null
+++ b/multiline_logging/README.md
@@ -0,0 +1,48 @@
+# Multiline Exception Logging Interceptor
+
+This sample demonstrates how to handle multiline exception logs in Temporal workflows and activities by formatting them as single-line JSON. This solves the issue where multiline tracebacks span multiple log entries in log aggregation systems like Datadog.
+
+## Problem
+
+When exceptions with multiline tracebacks are raised in Temporal activities or workflows, they can create multiple separate log entries in log aggregation systems, making them difficult to parse and analyze.
+
+## Solution
+
+The `MultilineLoggingInterceptor` captures exceptions within Temporal boundaries and:
+1. Formats the exception details as a single-line JSON object
+2. Logs the formatted exception 
+3. Re-raises the original exception to maintain normal error handling
+
+The JSON format includes:
+- `message`: The exception message
+- `type`: The exception class name  
+- `traceback`: The full traceback with newlines replaced by " | "
+
+## Usage
+
+```python
+from multiline_logging.interceptor import MultilineLoggingInterceptor
+
+worker = Worker(
+    client,
+    task_queue="my-task-queue",
+    workflows=[MyWorkflow],
+    activities=[my_activity],
+    interceptors=[MultilineLoggingInterceptor()],
+)
+```
+
+## Running the Sample
+
+1. Start Temporal server: `temporal server start-dev`
+2. Run the worker: `python multiline_logging/worker.py`
+3. In another terminal, run the starter: `python multiline_logging/starter.py`
+
+You'll see the multiline exceptions formatted as single-line JSON in the worker logs.
+
+## Key Benefits
+
+- **Surgical**: Only affects logging within Temporal SDK boundaries
+- **Non-intrusive**: Doesn't interfere with existing log formatters
+- **Preserves behavior**: Original exceptions are still raised normally
+- **Structured**: JSON format is easy to parse and analyze
diff --git a/multiline_logging/__init__.py b/multiline_logging/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/multiline_logging/activities.py b/multiline_logging/activities.py
new file mode 100644
index 00000000..3db2f941
--- /dev/null
+++ b/multiline_logging/activities.py
@@ -0,0 +1,27 @@
+from temporalio import activity
+
+
+@activity.defn
+async def failing_activity(should_fail: bool) -> str:
+    if should_fail:
+        try:
+            raise ValueError("Inner exception with\nmultiple lines\nof text")
+        except ValueError as inner:
+            raise RuntimeError(
+                "Outer exception that wraps\nanother exception with\nmultiline content"
+            ) from inner
+    return "Success!"
+
+
+@activity.defn
+async def complex_failing_activity() -> str:
+    """Activity that creates a complex multiline traceback"""
+
+    def nested_function():
+        def deeply_nested():
+            raise Exception("Deep exception with\nvery long\nmultiline\nerror message")
+
+        deeply_nested()
+
+    nested_function()
+    return "This won't be reached"
diff --git a/multiline_logging/interceptor.py b/multiline_logging/interceptor.py
new file mode 100644
index 00000000..3e981ead
--- /dev/null
+++ b/multiline_logging/interceptor.py
@@ -0,0 +1,66 @@
+import json
+import logging
+import traceback
+from typing import Any, Optional, Type
+
+from temporalio import activity, workflow
+from temporalio.worker import (
+    ActivityInboundInterceptor,
+    ExecuteActivityInput,
+    ExecuteWorkflowInput,
+    Interceptor,
+    WorkflowInboundInterceptor,
+    WorkflowInterceptorClassInput,
+)
+
+logger = logging.getLogger(__name__)
+
+
+class _MultilineLoggingActivityInboundInterceptor(ActivityInboundInterceptor):
+    async def execute_activity(self, input: ExecuteActivityInput) -> Any:
+        try:
+            return await super().execute_activity(input)
+        except Exception as e:
+            exception_data = {
+                "message": str(e),
+                "type": type(e).__name__,
+                "traceback": traceback.format_exc().replace("\n", " | "),
+            }
+
+            logger.error(f"Activity exception: {json.dumps(exception_data)}")
+
+            raise e
+
+
+class _MultilineLoggingWorkflowInterceptor(WorkflowInboundInterceptor):
+    async def execute_workflow(self, input: ExecuteWorkflowInput) -> Any:
+        try:
+            return await super().execute_workflow(input)
+        except Exception as e:
+            exception_data = {
+                "message": str(e),
+                "type": type(e).__name__,
+                "traceback": traceback.format_exc().replace("\n", " | "),
+            }
+
+            if not workflow.unsafe.is_replaying():
+                with workflow.unsafe.sandbox_unrestricted():
+                    logger.error(f"Workflow exception: {json.dumps(exception_data)}")
+
+            raise e
+
+
+class MultilineLoggingInterceptor(Interceptor):
+    """Temporal Interceptor that formats multiline exception logs as single-line JSON"""
+
+    def intercept_activity(
+        self, next: ActivityInboundInterceptor
+    ) -> ActivityInboundInterceptor:
+        return _MultilineLoggingActivityInboundInterceptor(
+            super().intercept_activity(next)
+        )
+
+    def workflow_interceptor_class(
+        self, input: WorkflowInterceptorClassInput
+    ) -> Optional[Type[WorkflowInboundInterceptor]]:
+        return _MultilineLoggingWorkflowInterceptor
diff --git a/multiline_logging/starter.py b/multiline_logging/starter.py
new file mode 100644
index 00000000..f4e4f4e8
--- /dev/null
+++ b/multiline_logging/starter.py
@@ -0,0 +1,32 @@
+import asyncio
+
+from temporalio.client import Client
+
+from multiline_logging.workflows import MultilineLoggingWorkflow
+
+
+async def main():
+    client = await Client.connect("localhost:7233")
+
+    test_cases = [
+        "activity_exception",
+        "complex_activity_exception",
+        "workflow_exception",
+    ]
+
+    for test_case in test_cases:
+        print(f"\n--- Testing {test_case} ---")
+        try:
+            result = await client.execute_workflow(
+                MultilineLoggingWorkflow.run,
+                test_case,
+                id=f"multiline-logging-{test_case}",
+                task_queue="multiline-logging-task-queue",
+            )
+            print(f"Result: {result}")
+        except Exception as e:
+            print(f"Expected exception caught: {e}")
+
+
+if __name__ == "__main__":
+    asyncio.run(main())
diff --git a/multiline_logging/test_imports.py b/multiline_logging/test_imports.py
new file mode 100644
index 00000000..1cec2f31
--- /dev/null
+++ b/multiline_logging/test_imports.py
@@ -0,0 +1,23 @@
+#!/usr/bin/env python3
+"""
+Test that all imports work correctly
+"""
+
+try:
+    from .interceptor import MultilineLoggingInterceptor
+
+    print("✅ Interceptor imports successfully")
+
+    from .activities import complex_failing_activity, failing_activity
+
+    print("✅ Activities import successfully")
+
+    from .workflows import MultilineLoggingWorkflow
+
+    print("✅ Workflows import successfully")
+
+    print("✅ All imports work correctly!")
+
+except ImportError as e:
+    print(f"❌ Import error: {e}")
+    exit(1)
diff --git a/multiline_logging/test_interceptor.py b/multiline_logging/test_interceptor.py
new file mode 100644
index 00000000..7f107e2d
--- /dev/null
+++ b/multiline_logging/test_interceptor.py
@@ -0,0 +1,42 @@
+#!/usr/bin/env python3
+"""
+Simple test to validate the multiline logging interceptor logic
+"""
+import json
+import traceback
+
+
+def test_multiline_formatting():
+    """Test that multiline exceptions are properly formatted as single-line JSON"""
+    try:
+        try:
+            raise ValueError("Inner exception with\nmultiple lines\nof text")
+        except ValueError as inner:
+            raise RuntimeError(
+                "Outer exception that wraps\nanother exception with\nmultiline content"
+            ) from inner
+    except Exception as e:
+        exception_data = {
+            "message": str(e),
+            "type": type(e).__name__,
+            "traceback": traceback.format_exc().replace("\n", " | "),
+        }
+
+        json_output = json.dumps(exception_data)
+
+        print("Original exception message:")
+        print(repr(str(e)))
+        print("\nFormatted JSON output:")
+        print(json_output)
+        print("\nValidation:")
+        print(f"- Contains newlines in JSON: {'\\n' in json_output}")
+        print(f"- JSON is valid: {json.loads(json_output) is not None}")
+        print(f"- Single line: {json_output.count('\\n') == 0}")
+
+        return json_output
+
+
+if __name__ == "__main__":
+    print("Testing multiline exception formatting...")
+    result = test_multiline_formatting()
+    print("\n✅ Test completed successfully!")
diff --git a/multiline_logging/worker.py b/multiline_logging/worker.py
new file mode 100644
index 00000000..d698abd6
--- /dev/null
+++ b/multiline_logging/worker.py
@@ -0,0 +1,30 @@
+import asyncio
+import logging
+
+from temporalio.client import Client
+from temporalio.worker import Worker
+
+from multiline_logging.activities import complex_failing_activity, failing_activity
+from multiline_logging.interceptor import MultilineLoggingInterceptor
+from multiline_logging.workflows import MultilineLoggingWorkflow
+
+logging.basicConfig(level=logging.INFO)
+
+
+async def main():
+    client = await Client.connect("localhost:7233")
+
+    worker = Worker(
+        client,
+        task_queue="multiline-logging-task-queue",
+        workflows=[MultilineLoggingWorkflow],
+        activities=[failing_activity, complex_failing_activity],
+        interceptors=[MultilineLoggingInterceptor()],
+    )
+
+    print("Worker started. Ctrl+C to exit.")
+    await worker.run()
+
+
+if __name__ == "__main__":
+    asyncio.run(main())
diff --git a/multiline_logging/workflows.py b/multiline_logging/workflows.py
new file mode 100644
index 00000000..86c7fb48
--- /dev/null
+++ b/multiline_logging/workflows.py
@@ -0,0 +1,24 @@
+from datetime import timedelta
+
+from temporalio import workflow
+
+with workflow.unsafe.imports_passed_through():
+    from .activities import complex_failing_activity, failing_activity
+
+
+@workflow.defn
+class MultilineLoggingWorkflow:
+    @workflow.run
+    async def run(self, test_type: str) -> str:
+        if test_type == "activity_exception":
+            return await workflow.execute_activity(
+                failing_activity, True, schedule_to_close_timeout=timedelta(seconds=5)
+            )
+        elif test_type == "complex_activity_exception":
+            return await workflow.execute_activity(
+                complex_failing_activity, schedule_to_close_timeout=timedelta(seconds=5)
+            )
+        elif test_type == "workflow_exception":
+            raise RuntimeError("Workflow exception with\nmultiple lines\nof error text")
+        else:
+            return "No exception test"
diff --git a/pyproject.toml b/pyproject.toml
index fa5a0300..7432cdb6 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -91,6 +91,7 @@ packages = [
     "hello",
     "langchain",
     "message_passing",
+    "multiline_logging",
     "nexus",
     "open_telemetry",
     "patching",
@@ -143,4 +144,4 @@ ignore_errors = true
 
 [[tool.mypy.overrides]]
 module = "opentelemetry.*"
-ignore_errors = true
\ No newline at end of file
+ignore_errors = true