diff --git a/src/cpp/ext/gcp/observability_config.cc b/src/cpp/ext/gcp/observability_config.cc
index 1bf1e8a7450..28d8aed966f 100644
--- a/src/cpp/ext/gcp/observability_config.cc
+++ b/src/cpp/ext/gcp/observability_config.cc
@@ -48,12 +48,12 @@ namespace internal {
 namespace {
 
 // Loads the contents of the file pointed by env var
-// GRPC_OBSERVABILITY_CONFIG_FILE. If unset, falls back to the contents of
-// GRPC_OBSERVABILITY_CONFIG.
+// GRPC_GCP_OBSERVABILITY_CONFIG_FILE. If unset, falls back to the contents of
+// GRPC_GCP_OBSERVABILITY_CONFIG.
 absl::StatusOr<std::string> GetGcpObservabilityConfigContents() {
-  // First, try GRPC_OBSERVABILITY_CONFIG_FILE
+  // First, try GRPC_GCP_OBSERVABILITY_CONFIG_FILE
   std::string contents_str;
-  auto path = grpc_core::GetEnv("GRPC_OBSERVABILITY_CONFIG_FILE");
+  auto path = grpc_core::GetEnv("GRPC_GCP_OBSERVABILITY_CONFIG_FILE");
   if (path.has_value()) {
     grpc_slice contents;
     grpc_error_handle error =
@@ -67,15 +67,15 @@ absl::StatusOr<std::string> GetGcpObservabilityConfigContents() {
     grpc_slice_unref(contents);
     return std::move(contents_str);
   }
-  // Next, try GRPC_OBSERVABILITY_CONFIG env var.
-  auto env_config = grpc_core::GetEnv("GRPC_OBSERVABILITY_CONFIG");
+  // Next, try GRPC_GCP_OBSERVABILITY_CONFIG env var.
+  auto env_config = grpc_core::GetEnv("GRPC_GCP_OBSERVABILITY_CONFIG");
   if (env_config.has_value()) {
     return std::move(*env_config);
   }
   // No observability config found.
   return absl::FailedPreconditionError(
-      "Environment variables GRPC_OBSERVABILITY_CONFIG_FILE or "
-      "GRPC_OBSERVABILITY_CONFIG "
+      "Environment variables GRPC_GCP_OBSERVABILITY_CONFIG_FILE or "
+      "GRPC_GCP_OBSERVABILITY_CONFIG "
       "not defined");
 }
 
diff --git a/src/cpp/ext/gcp/observability_config.h b/src/cpp/ext/gcp/observability_config.h
index 0d5cc69c53f..6ed0755766a 100644
--- a/src/cpp/ext/gcp/observability_config.h
+++ b/src/cpp/ext/gcp/observability_config.h
@@ -116,9 +116,9 @@ struct GcpObservabilityConfig {
   }
 
   // Tries to load the contents of GcpObservabilityConfig from the file located
-  // by the value of environment variable `GRPC_OBSERVABILITY_CONFIG_FILE`. If
-  // `GRPC_OBSERVABILITY_CONFIG_FILE` is unset, falls back to
-  // `GRPC_OBSERVABILITY_CONFIG`.
+  // by the value of environment variable `GRPC_GCP_OBSERVABILITY_CONFIG_FILE`.
+  // If `GRPC_GCP_OBSERVABILITY_CONFIG_FILE` is unset, falls back to
+  // `GRPC_GCP_OBSERVABILITY_CONFIG`.
   static absl::StatusOr<GcpObservabilityConfig> ReadFromEnv();
 };
 
diff --git a/test/cpp/ext/gcp/observability_config_test.cc b/test/cpp/ext/gcp/observability_config_test.cc
index 8c27b593ab6..a5f51b6592b 100644
--- a/test/cpp/ext/gcp/observability_config_test.cc
+++ b/test/cpp/ext/gcp/observability_config_test.cc
@@ -247,13 +247,13 @@ TEST(GcpEnvParsingTest, NoEnvironmentVariableSet) {
   auto config = GcpObservabilityConfig::ReadFromEnv();
   EXPECT_EQ(config.status(),
             absl::FailedPreconditionError(
-                "Environment variables GRPC_OBSERVABILITY_CONFIG_FILE or "
-                "GRPC_OBSERVABILITY_CONFIG "
+                "Environment variables GRPC_GCP_OBSERVABILITY_CONFIG_FILE or "
+                "GRPC_GCP_OBSERVABILITY_CONFIG "
                 "not defined"));
 }
 
 TEST(GcpEnvParsingTest, ConfigFileDoesNotExist) {
-  grpc_core::SetEnv("GRPC_OBSERVABILITY_CONFIG_FILE",
+  grpc_core::SetEnv("GRPC_GCP_OBSERVABILITY_CONFIG_FILE",
                     "/tmp/gcp_observability_config_does_not_exist");
 
   auto config = GcpObservabilityConfig::ReadFromEnv();
@@ -261,22 +261,22 @@ TEST(GcpEnvParsingTest, ConfigFileDoesNotExist) {
   EXPECT_EQ(config.status(),
             absl::FailedPreconditionError("Failed to load file"));
 
-  grpc_core::UnsetEnv("GRPC_OBSERVABILITY_CONFIG_FILE");
+  grpc_core::UnsetEnv("GRPC_GCP_OBSERVABILITY_CONFIG_FILE");
 }
 
 TEST(GcpEnvParsingTest, ProjectIdNotSet) {
-  grpc_core::SetEnv("GRPC_OBSERVABILITY_CONFIG", "{}");
+  grpc_core::SetEnv("GRPC_GCP_OBSERVABILITY_CONFIG", "{}");
 
   auto config = GcpObservabilityConfig::ReadFromEnv();
   EXPECT_EQ(config.status(),
             absl::FailedPreconditionError("GCP Project ID not found."));
 
-  grpc_core::UnsetEnv("GRPC_OBSERVABILITY_CONFIG");
+  grpc_core::UnsetEnv("GRPC_GCP_OBSERVABILITY_CONFIG");
   grpc_core::CoreConfiguration::Reset();
 }
 
 TEST(GcpEnvParsingTest, ProjectIdFromGcpProjectEnvVar) {
-  grpc_core::SetEnv("GRPC_OBSERVABILITY_CONFIG", "{}");
+  grpc_core::SetEnv("GRPC_GCP_OBSERVABILITY_CONFIG", "{}");
   grpc_core::SetEnv("GCP_PROJECT", "gcp_project");
 
   auto config = GcpObservabilityConfig::ReadFromEnv();
@@ -284,12 +284,12 @@ TEST(GcpEnvParsingTest, ProjectIdFromGcpProjectEnvVar) {
   EXPECT_EQ(config->project_id, "gcp_project");
 
   grpc_core::UnsetEnv("GCP_PROJECT");
-  grpc_core::UnsetEnv("GRPC_OBSERVABILITY_CONFIG");
+  grpc_core::UnsetEnv("GRPC_GCP_OBSERVABILITY_CONFIG");
   grpc_core::CoreConfiguration::Reset();
 }
 
 TEST(GcpEnvParsingTest, ProjectIdFromGcloudProjectEnvVar) {
-  grpc_core::SetEnv("GRPC_OBSERVABILITY_CONFIG", "{}");
+  grpc_core::SetEnv("GRPC_GCP_OBSERVABILITY_CONFIG", "{}");
   grpc_core::SetEnv("GCLOUD_PROJECT", "gcloud_project");
 
   auto config = GcpObservabilityConfig::ReadFromEnv();
@@ -297,12 +297,12 @@ TEST(GcpEnvParsingTest, ProjectIdFromGcloudProjectEnvVar) {
   EXPECT_EQ(config->project_id, "gcloud_project");
 
   grpc_core::UnsetEnv("GCLOUD_PROJECT");
-  grpc_core::UnsetEnv("GRPC_OBSERVABILITY_CONFIG");
+  grpc_core::UnsetEnv("GRPC_GCP_OBSERVABILITY_CONFIG");
   grpc_core::CoreConfiguration::Reset();
 }
 
 TEST(GcpEnvParsingTest, ProjectIdFromGoogleCloudProjectEnvVar) {
-  grpc_core::SetEnv("GRPC_OBSERVABILITY_CONFIG", "{}");
+  grpc_core::SetEnv("GRPC_GCP_OBSERVABILITY_CONFIG", "{}");
   grpc_core::SetEnv("GOOGLE_CLOUD_PROJECT", "google_cloud_project");
 
   auto config = GcpObservabilityConfig::ReadFromEnv();
@@ -310,7 +310,7 @@ TEST(GcpEnvParsingTest, ProjectIdFromGoogleCloudProjectEnvVar) {
   EXPECT_EQ(config->project_id, "google_cloud_project");
 
   grpc_core::UnsetEnv("GOOGLE_CLOUD_PROJECT");
-  grpc_core::UnsetEnv("GRPC_OBSERVABILITY_CONFIG");
+  grpc_core::UnsetEnv("GRPC_GCP_OBSERVABILITY_CONFIG");
   grpc_core::CoreConfiguration::Reset();
 }
 
@@ -352,13 +352,13 @@ class EnvParsingTest : public ::testing::TestWithParam<EnvParsingTestType> {
   ~EnvParsingTest() override {
     if (GetParam().config_source() == EnvParsingTestType::ConfigSource::kFile) {
       if (tmp_file_name != nullptr) {
-        grpc_core::UnsetEnv("GRPC_OBSERVABILITY_CONFIG_FILE");
+        grpc_core::UnsetEnv("GRPC_GCP_OBSERVABILITY_CONFIG_FILE");
         remove(tmp_file_name);
         gpr_free(tmp_file_name);
       }
     } else if (GetParam().config_source() ==
                EnvParsingTestType::ConfigSource::kEnvVar) {
-      grpc_core::UnsetEnv("GRPC_OBSERVABILITY_CONFIG");
+      grpc_core::UnsetEnv("GRPC_GCP_OBSERVABILITY_CONFIG");
     }
   }
 
@@ -369,10 +369,10 @@ class EnvParsingTest : public ::testing::TestWithParam<EnvParsingTestType> {
           gpr_tmpfile("gcp_observability_config", &tmp_file_name);
       fputs(json, tmp_config_file);
       fclose(tmp_config_file);
-      grpc_core::SetEnv("GRPC_OBSERVABILITY_CONFIG_FILE", tmp_file_name);
+      grpc_core::SetEnv("GRPC_GCP_OBSERVABILITY_CONFIG_FILE", tmp_file_name);
     } else if (GetParam().config_source() ==
                EnvParsingTestType::ConfigSource::kEnvVar) {
-      grpc_core::SetEnv("GRPC_OBSERVABILITY_CONFIG", json);
+      grpc_core::SetEnv("GRPC_GCP_OBSERVABILITY_CONFIG", json);
     }
   }
 
diff --git a/test/cpp/ext/gcp/observability_test.cc b/test/cpp/ext/gcp/observability_test.cc
index 757e38a8cf3..c8c9c28f3ec 100644
--- a/test/cpp/ext/gcp/observability_test.cc
+++ b/test/cpp/ext/gcp/observability_test.cc
@@ -28,8 +28,8 @@ TEST(GcpObservabilityTest, RegistrationTest) {
   auto status = grpc::experimental::GcpObservabilityInit();
   EXPECT_EQ(status,
             absl::FailedPreconditionError(
-                "Environment variables GRPC_OBSERVABILITY_CONFIG_FILE or "
-                "GRPC_OBSERVABILITY_CONFIG "
+                "Environment variables GRPC_GCP_OBSERVABILITY_CONFIG_FILE or "
+                "GRPC_GCP_OBSERVABILITY_CONFIG "
                 "not defined"));
 
   grpc_core::CoreConfiguration::Reset();