diff --git a/src/cpp/ext/csm/BUILD b/src/cpp/ext/csm/BUILD
index f58c6d14c8b..411a3b3075a 100644
--- a/src/cpp/ext/csm/BUILD
+++ b/src/cpp/ext/csm/BUILD
@@ -52,9 +52,11 @@ grpc_cc_library(
     language = "c++",
     visibility = ["//:__subpackages__"],
     deps = [
+        "//:gpr",
         "//:gpr_platform",
         "//:grpc_base",
         "//:protobuf_struct_upb",
+        "//:uri_parser",
         "//src/core:env",
         "//src/core:error",
         "//src/core:json",
diff --git a/src/cpp/ext/csm/csm_observability.cc b/src/cpp/ext/csm/csm_observability.cc
index 168030cac20..cff3d5d327c 100644
--- a/src/cpp/ext/csm/csm_observability.cc
+++ b/src/cpp/ext/csm/csm_observability.cc
@@ -20,8 +20,12 @@
 
 #include "src/cpp/ext/csm/csm_observability.h"
 
+#include <string>
 #include <utility>
 
+#include <grpc/support/log.h>
+
+#include "src/core/lib/uri/uri_parser.h"
 #include "src/cpp/ext/otel/otel_plugin.h"
 
 namespace grpc {
@@ -71,8 +75,27 @@ CsmObservabilityBuilder& CsmObservabilityBuilder::SetTargetAttributeFilter(
 
 absl::StatusOr<CsmObservability> CsmObservabilityBuilder::BuildAndRegister() {
   builder_.BuildAndRegisterGlobal();
+  builder_.SetTargetSelector(CsmChannelTargetSelector);
   return CsmObservability();
 }
 
+bool CsmChannelTargetSelector(absl::string_view target) {
+  auto uri = grpc_core::URI::Parse(target);
+  if (!uri.ok()) {
+    gpr_log(GPR_ERROR, "Failed to parse URI: %s", std::string(target).c_str());
+    return false;
+  }
+  // CSM channels should have an "xds" scheme
+  if (uri->scheme() != "xds") {
+    return false;
+  }
+  // If set, the authority should be TD
+  if (!uri->authority().empty() &&
+      uri->authority() != "traffic-director-global.xds.googleapis.com") {
+    return false;
+  }
+  return true;
+}
+
 }  // namespace internal
 }  // namespace grpc
diff --git a/src/cpp/ext/csm/csm_observability.h b/src/cpp/ext/csm/csm_observability.h
index 683b3ea83ea..ca3e4af8094 100644
--- a/src/cpp/ext/csm/csm_observability.h
+++ b/src/cpp/ext/csm/csm_observability.h
@@ -76,6 +76,10 @@ class CsmObservabilityBuilder {
   OpenTelemetryPluginBuilder builder_;
 };
 
+// EXPOSED FOR TESTING PURPOSES ONLY
+// Returns true if the channel is a CSM channel.
+bool CsmChannelTargetSelector(absl::string_view target);
+
 }  // namespace internal
 }  // namespace grpc
 
diff --git a/test/cpp/ext/csm/csm_observability_test.cc b/test/cpp/ext/csm/csm_observability_test.cc
index 84320b76d34..4ac0b006021 100644
--- a/test/cpp/ext/csm/csm_observability_test.cc
+++ b/test/cpp/ext/csm/csm_observability_test.cc
@@ -37,6 +37,29 @@ TEST(GsmDependencyTest, GoogleCloudOpenTelemetryDependency) {
   EXPECT_NE(google::cloud::otel::MakeResourceDetector(), nullptr);
 }
 
+TEST(CsmChannelTargetSelectorTest, NonXdsTargets) {
+  EXPECT_FALSE(internal::CsmChannelTargetSelector("foo.bar.google.com"));
+  EXPECT_FALSE(internal::CsmChannelTargetSelector("dns:///foo.bar.google.com"));
+  EXPECT_FALSE(
+      internal::CsmChannelTargetSelector("dns:///foo.bar.google.com:1234"));
+  EXPECT_FALSE(internal::CsmChannelTargetSelector(
+      "dns://authority/foo.bar.google.com:1234"));
+}
+
+TEST(CsmChannelTargetSelectorTest, XdsTargets) {
+  EXPECT_TRUE(internal::CsmChannelTargetSelector("xds:///foo"));
+  EXPECT_TRUE(internal::CsmChannelTargetSelector("xds:///foo.bar"));
+}
+
+TEST(CsmChannelTargetSelectorTest, XdsTargetsWithNonTDAuthority) {
+  EXPECT_FALSE(internal::CsmChannelTargetSelector("xds://authority/foo"));
+}
+
+TEST(CsmChannelTargetSelectorTest, XdsTargetsWithTDAuthority) {
+  EXPECT_TRUE(internal::CsmChannelTargetSelector(
+      "xds://traffic-director-global.xds.googleapis.com/foo"));
+}
+
 }  // namespace
 }  // namespace testing
 }  // namespace grpc