diff --git a/agentops/sdk/decorators/factory.py b/agentops/sdk/decorators/factory.py
index 6da554e8e..89de22022 100644
--- a/agentops/sdk/decorators/factory.py
+++ b/agentops/sdk/decorators/factory.py
@@ -1,6 +1,7 @@
 import inspect
 import functools
 import asyncio
+import os
 from typing import Any, Dict, Callable, Optional, Union
 
 
@@ -22,6 +23,46 @@
 )
 
 
+# Track whether we've warned about uninitialized tracer to avoid spamming
+_uninitialized_warning_shown = False
+
+
+def _ensure_tracer_initialized(operation_name: str, entity_kind: str) -> bool:
+    """
+    Ensure the tracer is initialized before using decorators.
+    
+    Returns True if tracer is initialized (or was auto-initialized), False otherwise.
+    """
+    global _uninitialized_warning_shown
+    
+    if tracer.initialized:
+        return True
+    
+    # Check if auto-initialization is enabled via environment variable
+    auto_init = os.environ.get("AGENTOPS_AUTO_INIT", "").lower() in ("true", "1", "yes")
+    
+    if auto_init:
+        try:
+            import agentops
+            agentops.init(auto_start_session=False, instrument_llm_calls=True)
+            logger.debug(f"AgentOps auto-initialized for decorator '{operation_name}'")
+            return True
+        except Exception as e:
+            logger.warning(f"Failed to auto-initialize AgentOps: {e}")
+            return False
+    
+    # Show warning only once to avoid spam
+    if not _uninitialized_warning_shown:
+        logger.warning(
+            f"AgentOps decorator '@{entity_kind}' used on '{operation_name}' but tracer is not initialized. "
+            f"Spans will not be created. Call agentops.init() first, or set AGENTOPS_AUTO_INIT=true "
+            f"to auto-initialize when decorators are used."
+        )
+        _uninitialized_warning_shown = True
+    
+    return False
+
+
 def create_entity_decorator(entity_kind: str) -> Callable[..., Any]:
     """
     Factory that creates decorators for instrumenting functions and classes.
@@ -101,10 +142,11 @@ async def __aexit__(self, exc_type: Any, exc_val: Any, exc_tb: Any) -> None:
         def wrapper(
             wrapped_func: Callable[..., Any], instance: Optional[Any], args: tuple, kwargs: Dict[str, Any]
         ) -> Any:
-            if not tracer.initialized:
+            operation_name = name or wrapped_func.__name__
+            
+            if not _ensure_tracer_initialized(operation_name, entity_kind):
                 return wrapped_func(*args, **kwargs)
 
-            operation_name = name or wrapped_func.__name__
             is_async = asyncio.iscoroutinefunction(wrapped_func)
             is_generator = inspect.isgeneratorfunction(wrapped_func)
             is_async_generator = inspect.isasyncgenfunction(wrapped_func)
diff --git a/tests/unit/sdk/test_decorators.py b/tests/unit/sdk/test_decorators.py
index 96824d0fe..f39388b8a 100644
--- a/tests/unit/sdk/test_decorators.py
+++ b/tests/unit/sdk/test_decorators.py
@@ -761,3 +761,97 @@ def no_cost_tool(self):
             span for span in spans if span.attributes.get(SpanAttributes.AGENTOPS_SPAN_KIND) == SpanKind.TOOL
         )
         assert SpanAttributes.LLM_USAGE_TOOL_COST not in tool_span.attributes
+
+
+class TestDecoratorInitializationWarning:
+    """Tests for decorator behavior when tracer is not initialized."""
+
+    def test_decorator_warns_when_tracer_not_initialized(self, caplog):
+        """Test that decorators warn when tracer is not initialized."""
+        import agentops.sdk.decorators.factory as factory_module
+        
+        # Reset the warning flag to ensure we can test the warning
+        factory_module._uninitialized_warning_shown = False
+        
+        # Create a mock tracer state where initialized is False
+        original_initialized = factory_module.tracer._initialized
+        factory_module.tracer._initialized = False
+        
+        try:
+            @agent
+            def test_agent_func():
+                return "test result"
+            
+            # Call the decorated function
+            result = test_agent_func()
+            
+            # Function should still execute and return the result
+            assert result == "test result"
+            
+            # Check that warning was logged
+            assert factory_module._uninitialized_warning_shown is True
+            
+        finally:
+            # Restore original state
+            factory_module.tracer._initialized = original_initialized
+            factory_module._uninitialized_warning_shown = False
+
+    def test_decorator_warning_only_shown_once(self):
+        """Test that the warning is only shown once to avoid spam."""
+        import agentops.sdk.decorators.factory as factory_module
+        
+        # Reset the warning flag
+        factory_module._uninitialized_warning_shown = False
+        
+        original_initialized = factory_module.tracer._initialized
+        factory_module.tracer._initialized = False
+        
+        try:
+            @tool
+            def test_tool_1():
+                return "tool 1"
+            
+            @tool
+            def test_tool_2():
+                return "tool 2"
+            
+            # Call both tools
+            test_tool_1()
+            assert factory_module._uninitialized_warning_shown is True
+            
+            # Reset to check that warning isn't shown again
+            # (the flag stays True, so second call shouldn't warn)
+            test_tool_2()
+            # The flag should still be True (not reset)
+            assert factory_module._uninitialized_warning_shown is True
+            
+        finally:
+            factory_module.tracer._initialized = original_initialized
+            factory_module._uninitialized_warning_shown = False
+
+    def test_decorator_executes_function_when_tracer_not_initialized(self):
+        """Test that decorated functions still execute even when tracer is not initialized."""
+        import agentops.sdk.decorators.factory as factory_module
+        
+        factory_module._uninitialized_warning_shown = False
+        original_initialized = factory_module.tracer._initialized
+        factory_module.tracer._initialized = False
+        
+        try:
+            call_count = 0
+            
+            @operation
+            def counting_operation(value):
+                nonlocal call_count
+                call_count += 1
+                return value * 2
+            
+            result = counting_operation(5)
+            
+            # Function should execute
+            assert result == 10
+            assert call_count == 1
+            
+        finally:
+            factory_module.tracer._initialized = original_initialized
+            factory_module._uninitialized_warning_shown = False