diff --git a/playbooks/roles/xqueue/templates/xqueue.conf.j2 b/playbooks/roles/xqueue/templates/xqueue.conf.j2
index 64767a35016..1089fa09666 100644
--- a/playbooks/roles/xqueue/templates/xqueue.conf.j2
+++ b/playbooks/roles/xqueue/templates/xqueue.conf.j2
@@ -15,7 +15,9 @@ command={{ executable }} -c {{ xqueue_app_dir }}/xqueue_gunicorn.py {{ XQUEUE_GU
 user={{ common_web_user }}
 directory={{ xqueue_code_dir }}
 
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQUEUE_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS=service:{{ XQUEUE_DATADOG_APPNAME }},{% endif -%}PID=/var/tmp/xqueue.pid,PORT={{ xqueue_gunicorn_port }},ADDRESS={{ xqueue_gunicorn_host }},LANG={{ XQUEUE_LANG }},DJANGO_SETTINGS_MODULE=xqueue.{{ XQUEUE_SETTINGS }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
+# Copied DD_TRACE_LOG_STREAM_HANDLER config from edx_django_service. This is required
+# to disable Datadog trace debug logging.
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQUEUE_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS=service:{{ XQUEUE_DATADOG_APPNAME }},DD_TRACE_LOG_STREAM_HANDLER=false,{% endif -%}PID=/var/tmp/xqueue.pid,PORT={{ xqueue_gunicorn_port }},ADDRESS={{ xqueue_gunicorn_host }},LANG={{ XQUEUE_LANG }},DJANGO_SETTINGS_MODULE=xqueue.{{ XQUEUE_SETTINGS }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
 
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
diff --git a/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2 b/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
index d7aeea37f9d..862b8463ed2 100644
--- a/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
+++ b/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
@@ -15,7 +15,9 @@ command={{ executable }} --pythonpath={{ xqueue_code_dir }} --settings=xqueue.{{
 user={{ common_web_user }}
 directory={{ xqueue_code_dir }}
 
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_STARTUP_TIMEOUT=10,NEW_RELIC_APP_NAME={{ XQUEUE_CONSUMER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS=service:{{ XQUEUE_CONSUMER_DATADOG_APPNAME }},{% endif -%}LANG={{ XQUEUE_LANG }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
+# Copied DD_TRACE_LOG_STREAM_HANDLER config from edx_django_service. This is required
+# to disable Datadog trace debug logging.
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_STARTUP_TIMEOUT=10,NEW_RELIC_APP_NAME={{ XQUEUE_CONSUMER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS=service:{{ XQUEUE_CONSUMER_DATADOG_APPNAME }},DD_TRACE_LOG_STREAM_HANDLER=false,{% endif -%}LANG={{ XQUEUE_LANG }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
 
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
diff --git a/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2 b/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
index 9c51b9225fa..0ed738ad74a 100644
--- a/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
+++ b/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
@@ -13,12 +13,14 @@
 {% endif -%}
 
 [program:{{ xqwatcher_service_name }}]
-command={{ executable }} -m {{ xqwatcher_module }} -d {{ xqwatcher_conf_dir }} 
+command={{ executable }} -m {{ xqwatcher_module }} -d {{ xqwatcher_conf_dir }}
 process_name=%(program_name)s
 user={{ common_web_user }}
 directory={{ xqwatcher_code_dir }}
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQWATCHER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS=service:{{ XQWATCHER_DATADOG_APPNAME }},{% endif -%}
+# Copied DD_TRACE_LOG_STREAM_HANDLER config from edx_django_service. This is required
+# to disable Datadog trace debug logging.
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQWATCHER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_TAGS=service:{{ XQWATCHER_DATADOG_APPNAME }},DD_TRACE_LOG_STREAM_HANDLER=false,{% endif -%}
 killasgroup=true
 stopasgroup=true