diff --git a/hindsight-api/hindsight_api/engine/llm_wrapper.py b/hindsight-api/hindsight_api/engine/llm_wrapper.py
index 65ba39ed..996ae7ab 100644
--- a/hindsight-api/hindsight_api/engine/llm_wrapper.py
+++ b/hindsight-api/hindsight_api/engine/llm_wrapper.py
@@ -400,13 +400,17 @@ class LLMProvider:
                     output_tokens = usage.completion_tokens or 0 if usage else 0
                     total_tokens = usage.total_tokens or 0 if usage else 0
 
-                    if usage:
-                        get_metrics_collector().record_tokens(
-                            operation=scope,
-                            bank_id="llm",
-                            input_tokens=input_tokens,
-                            output_tokens=output_tokens,
-                        )
+                    # Record LLM metrics
+                    metrics = get_metrics_collector()
+                    metrics.record_llm_call(
+                        provider=self.provider,
+                        model=self.model,
+                        scope=scope,
+                        duration=duration,
+                        input_tokens=input_tokens,
+                        output_tokens=output_tokens,
+                        success=True,
+                    )
 
                     # Log slow calls
                     if duration > 10.0 and usage:
@@ -559,24 +563,28 @@ class LLMProvider:
                 else:
                     result = content
 
-                # Record token usage metrics
+                # Record metrics and log slow calls
                 duration = time.time() - start_time
                 input_tokens = response.usage.input_tokens or 0 if response.usage else 0
                 output_tokens = response.usage.output_tokens or 0 if response.usage else 0
                 total_tokens = input_tokens + output_tokens
 
-                if response.usage:
-                    get_metrics_collector().record_tokens(
-                        operation="memory",
-                        bank_id="llm",
-                        input_tokens=input_tokens,
-                        output_tokens=output_tokens,
-                    )
+                # Record LLM metrics
+                metrics = get_metrics_collector()
+                metrics.record_llm_call(
+                    provider=self.provider,
+                    model=self.model,
+                    scope="memory",
+                    duration=duration,
+                    input_tokens=input_tokens,
+                    output_tokens=output_tokens,
+                    success=True,
+                )
 
                 # Log slow calls
-                if duration > 10.0 and response.usage:
+                if duration > 10.0:
                     logger.info(
-                        f"slow llm call: model={self.provider}/{self.model}, "
+                        f"slow llm call: scope=memory, model={self.provider}/{self.model}, "
                         f"input_tokens={input_tokens}, output_tokens={output_tokens}, "
                         f"time={duration:.3f}s"
                     )
@@ -719,18 +727,22 @@ class LLMProvider:
 
                     # Extract token usage from Ollama response
                     # Ollama returns prompt_eval_count (input) and eval_count (output)
+                    duration = time.time() - start_time
                     input_tokens = result.get("prompt_eval_count", 0) or 0
                     output_tokens = result.get("eval_count", 0) or 0
                     total_tokens = input_tokens + output_tokens
 
-                    # Record to metrics
-                    if input_tokens > 0 or output_tokens > 0:
-                        get_metrics_collector().record_tokens(
-                            operation="memory",
-                            bank_id="llm",
-                            input_tokens=input_tokens,
-                            output_tokens=output_tokens,
-                        )
+                    # Record LLM metrics
+                    metrics = get_metrics_collector()
+                    metrics.record_llm_call(
+                        provider=self.provider,
+                        model=self.model,
+                        scope="memory",
+                        duration=duration,
+                        input_tokens=input_tokens,
+                        output_tokens=output_tokens,
+                        success=True,
+                    )
 
                     # Validate against Pydantic model or return raw JSON
                     if skip_validation:
@@ -865,7 +877,7 @@ class LLMProvider:
                 else:
                     result = content
 
-                # Record token usage metrics
+                # Record metrics and log slow calls
                 duration = time.time() - start_time
                 input_tokens = 0
                 output_tokens = 0
@@ -873,20 +885,26 @@ class LLMProvider:
                     usage = response.usage_metadata
                     input_tokens = usage.prompt_token_count or 0
                     output_tokens = usage.candidates_token_count or 0
-                    get_metrics_collector().record_tokens(
-                        operation="memory",
-                        bank_id="llm",
-                        input_tokens=input_tokens,
-                        output_tokens=output_tokens,
-                    )
 
-                    # Log slow calls
-                    if duration > 10.0:
-                        logger.info(
-                            f"slow llm call: model={self.provider}/{self.model}, "
-                            f"input_tokens={input_tokens}, output_tokens={output_tokens}, "
-                            f"time={duration:.3f}s"
-                        )
+                # Record LLM metrics
+                metrics = get_metrics_collector()
+                metrics.record_llm_call(
+                    provider=self.provider,
+                    model=self.model,
+                    scope="memory",
+                    duration=duration,
+                    input_tokens=input_tokens,
+                    output_tokens=output_tokens,
+                    success=True,
+                )
+
+                # Log slow calls
+                if duration > 10.0 and input_tokens > 0:
+                    logger.info(
+                        f"slow llm call: scope=memory, model={self.provider}/{self.model}, "
+                        f"input_tokens={input_tokens}, output_tokens={output_tokens}, "
+                        f"time={duration:.3f}s"
+                    )
 
                 if return_usage:
                     token_usage = TokenUsage(
diff --git a/hindsight-api/hindsight_api/engine/memory_engine.py b/hindsight-api/hindsight_api/engine/memory_engine.py
index 67e664df..bce48cdd 100644
--- a/hindsight-api/hindsight_api/engine/memory_engine.py
+++ b/hindsight-api/hindsight_api/engine/memory_engine.py
@@ -18,6 +18,7 @@ from datetime import UTC, datetime, timedelta
 from typing import TYPE_CHECKING, Any
 
 from ..config import get_config
+from ..metrics import get_metrics_collector
 
 # Context variable for current schema (async-safe, per-task isolation)
 _current_schema: contextvars.ContextVar[str] = contextvars.ContextVar("current_schema", default="public")
@@ -3162,16 +3163,20 @@ Guidelines:
 
         # Steps 1-3: Run multi-fact-type search (12-way retrieval: 4 methods × 3 fact types)
         recall_start = time.time()
-        search_result = await self.recall_async(
-            bank_id=bank_id,
-            query=query,
-            budget=budget,
-            max_tokens=4096,
-            enable_trace=False,
-            fact_type=["experience", "world", "opinion"],
-            include_entities=True,
-            request_context=request_context,
-        )
+        metrics = get_metrics_collector()
+        with metrics.record_operation(
+            "recall", bank_id=bank_id, source="reflect", budget=budget.value if budget else None
+        ):
+            search_result = await self.recall_async(
+                bank_id=bank_id,
+                query=query,
+                budget=budget,
+                max_tokens=4096,
+                enable_trace=False,
+                fact_type=["experience", "world", "opinion"],
+                include_entities=True,
+                request_context=request_context,
+            )
         recall_time = time.time() - recall_start
 
         all_results = search_result.results
diff --git a/hindsight-api/hindsight_api/metrics.py b/hindsight-api/hindsight_api/metrics.py
index d8f16cf6..0f082fba 100644
--- a/hindsight-api/hindsight_api/metrics.py
+++ b/hindsight-api/hindsight_api/metrics.py
@@ -5,6 +5,7 @@ This module provides metrics for:
 - Operation latency (retain, recall, reflect) with percentiles
 - Token usage (input/output) per operation
 - Per-bank granularity via labels
+- LLM call latency and token usage with scope dimension
 """
 
 import logging
@@ -14,8 +15,54 @@ from contextlib import contextmanager
 from opentelemetry import metrics
 from opentelemetry.exporter.prometheus import PrometheusMetricReader
 from opentelemetry.sdk.metrics import MeterProvider
+from opentelemetry.sdk.metrics.view import ExplicitBucketHistogramAggregation, View
 from opentelemetry.sdk.resources import Resource
 
+# Custom bucket boundaries for operation duration (in seconds)
+# Fine granularity in 0-30s range where most operations complete
+DURATION_BUCKETS = (0.1, 0.25, 0.5, 0.75, 1.0, 2.0, 3.0, 5.0, 7.5, 10.0, 15.0, 20.0, 30.0, 60.0, 120.0)
+
+# LLM duration buckets (finer granularity for faster LLM calls)
+LLM_DURATION_BUCKETS = (0.1, 0.25, 0.5, 1.0, 2.0, 3.0, 5.0, 10.0, 15.0, 30.0, 60.0, 120.0)
+
+
+def get_token_bucket(token_count: int) -> str:
+    """
+    Convert a token count to a bucket label for use as a dimension.
+
+    This allows analyzing token usage patterns without high-cardinality issues.
+
+    Buckets:
+    - "0-100": Very small requests/responses
+    - "100-500": Small requests/responses
+    - "500-1k": Medium requests/responses
+    - "1k-5k": Large requests/responses
+    - "5k-10k": Very large requests/responses
+    - "10k-50k": Huge requests/responses
+    - "50k+": Extremely large requests/responses
+
+    Args:
+        token_count: Number of tokens
+
+    Returns:
+        Bucket label string
+    """
+    if token_count < 100:
+        return "0-100"
+    elif token_count < 500:
+        return "100-500"
+    elif token_count < 1000:
+        return "500-1k"
+    elif token_count < 5000:
+        return "1k-5k"
+    elif token_count < 10000:
+        return "5k-10k"
+    elif token_count < 50000:
+        return "10k-50k"
+    else:
+        return "50k+"
+
+
 logger = logging.getLogger(__name__)
 
 # Global meter instance
@@ -48,8 +95,22 @@ def initialize_metrics(service_name: str = "hindsight-api", service_version: str
     # Create Prometheus metric reader
     prometheus_reader = PrometheusMetricReader()
 
-    # Create meter provider with Prometheus exporter
-    provider = MeterProvider(resource=resource, metric_readers=[prometheus_reader])
+    # Create view with custom bucket boundaries for duration histogram
+    duration_view = View(
+        instrument_name="hindsight.operation.duration",
+        aggregation=ExplicitBucketHistogramAggregation(boundaries=DURATION_BUCKETS),
+    )
+
+    # Create view with custom bucket boundaries for LLM duration histogram
+    llm_duration_view = View(
+        instrument_name="hindsight.llm.duration",
+        aggregation=ExplicitBucketHistogramAggregation(boundaries=LLM_DURATION_BUCKETS),
+    )
+
+    # Create meter provider with Prometheus exporter and custom views
+    provider = MeterProvider(
+        resource=resource, metric_readers=[prometheus_reader], views=[duration_view, llm_duration_view]
+    )
 
     # Set the global meter provider
     metrics.set_meter_provider(provider)
@@ -71,20 +132,39 @@ class MetricsCollectorBase:
     """Base class for metrics collectors."""
 
     @contextmanager
-    def record_operation(self, operation: str, bank_id: str, budget: str | None = None, max_tokens: int | None = None):
-        """Context manager to record operation duration and status."""
-        raise NotImplementedError
-
-    def record_tokens(
+    def record_operation(
         self,
         operation: str,
         bank_id: str,
-        input_tokens: int = 0,
-        output_tokens: int = 0,
+        source: str = "api",
         budget: str | None = None,
         max_tokens: int | None = None,
     ):
-        """Record token usage for an operation."""
+        """Context manager to record operation duration and status."""
+        raise NotImplementedError
+
+    def record_llm_call(
+        self,
+        provider: str,
+        model: str,
+        scope: str,
+        duration: float,
+        input_tokens: int = 0,
+        output_tokens: int = 0,
+        success: bool = True,
+    ):
+        """
+        Record metrics for an LLM call.
+
+        Args:
+            provider: LLM provider name (openai, anthropic, gemini, groq, ollama, lmstudio)
+            model: Model name
+            scope: Scope identifier (e.g., "memory", "reflect", "entity_observation")
+            duration: Call duration in seconds
+            input_tokens: Number of input/prompt tokens
+            output_tokens: Number of output/completion tokens
+            success: Whether the call was successful
+        """
         raise NotImplementedError
 
 
@@ -92,20 +172,28 @@ class NoOpMetricsCollector(MetricsCollectorBase):
     """No-op metrics collector that does nothing. Used when metrics are disabled."""
 
     @contextmanager
-    def record_operation(self, operation: str, bank_id: str, budget: str | None = None, max_tokens: int | None = None):
-        """No-op context manager."""
-        yield
-
-    def record_tokens(
+    def record_operation(
         self,
         operation: str,
         bank_id: str,
-        input_tokens: int = 0,
-        output_tokens: int = 0,
+        source: str = "api",
         budget: str | None = None,
         max_tokens: int | None = None,
     ):
-        """No-op token recording."""
+        """No-op context manager."""
+        yield
+
+    def record_llm_call(
+        self,
+        provider: str,
+        model: str,
+        scope: str,
+        duration: float,
+        input_tokens: int = 0,
+        output_tokens: int = 0,
+        success: bool = True,
+    ):
+        """No-op LLM call recording."""
         pass
 
 
@@ -125,33 +213,52 @@ class MetricsCollector(MetricsCollectorBase):
             name="hindsight.operation.duration", description="Duration of Hindsight operations in seconds", unit="s"
         )
 
-        # Token usage counters
-        self.tokens_input = self.meter.create_counter(
-            name="hindsight.tokens.input", description="Number of input tokens consumed", unit="tokens"
-        )
-
-        self.tokens_output = self.meter.create_counter(
-            name="hindsight.tokens.output", description="Number of output tokens generated", unit="tokens"
-        )
-
         # Operation counter (success/failure)
         self.operation_total = self.meter.create_counter(
             name="hindsight.operation.total", description="Total number of operations executed", unit="operations"
         )
 
+        # LLM call latency histogram (in seconds)
+        # Records duration of LLM API calls with provider, model, and scope dimensions
+        self.llm_duration = self.meter.create_histogram(
+            name="hindsight.llm.duration", description="Duration of LLM API calls in seconds", unit="s"
+        )
+
+        # LLM token usage counters with bucket labels
+        self.llm_tokens_input = self.meter.create_counter(
+            name="hindsight.llm.tokens.input", description="Number of input tokens for LLM calls", unit="tokens"
+        )
+
+        self.llm_tokens_output = self.meter.create_counter(
+            name="hindsight.llm.tokens.output", description="Number of output tokens from LLM calls", unit="tokens"
+        )
+
+        # LLM call counter (success/failure)
+        self.llm_calls_total = self.meter.create_counter(
+            name="hindsight.llm.calls.total", description="Total number of LLM API calls", unit="calls"
+        )
+
     @contextmanager
-    def record_operation(self, operation: str, bank_id: str, budget: str | None = None, max_tokens: int | None = None):
+    def record_operation(
+        self,
+        operation: str,
+        bank_id: str,
+        source: str = "api",
+        budget: str | None = None,
+        max_tokens: int | None = None,
+    ):
         """
         Context manager to record operation duration and status.
 
         Usage:
-            with metrics.record_operation("recall", bank_id="user123", budget="mid", max_tokens=4096):
+            with metrics.record_operation("recall", bank_id="user123", source="api", budget="mid", max_tokens=4096):
                 # ... perform operation
                 pass
 
         Args:
-            operation: Operation name (retain, recall, reflect)
+            operation: Operation name (retain, recall, reflect, entity_observation)
             bank_id: Memory bank ID
+            source: Source of the operation (api, reflect, internal)
             budget: Optional budget level (low, mid, high)
             max_tokens: Optional max tokens for the operation
         """
@@ -159,6 +266,7 @@ class MetricsCollector(MetricsCollectorBase):
         attributes = {
             "operation": operation,
             "bank_id": bank_id,
+            "source": source,
         }
         if budget:
             attributes["budget"] = budget
@@ -181,40 +289,56 @@ class MetricsCollector(MetricsCollectorBase):
             # Record operation count
             self.operation_total.add(1, attributes)
 
-    def record_tokens(
+    def record_llm_call(
         self,
-        operation: str,
-        bank_id: str,
+        provider: str,
+        model: str,
+        scope: str,
+        duration: float,
         input_tokens: int = 0,
         output_tokens: int = 0,
-        budget: str | None = None,
-        max_tokens: int | None = None,
+        success: bool = True,
     ):
         """
-        Record token usage for an operation.
+        Record metrics for an LLM call.
 
         Args:
-            operation: Operation name (retain, recall, reflect)
-            bank_id: Memory bank ID
-            input_tokens: Number of input tokens
-            output_tokens: Number of output tokens
-            budget: Optional budget level
-            max_tokens: Optional max tokens for the operation
+            provider: LLM provider name (openai, anthropic, gemini, groq, ollama, lmstudio)
+            model: Model name
+            scope: Scope identifier (e.g., "memory", "reflect", "entity_observation")
+            duration: Call duration in seconds
+            input_tokens: Number of input/prompt tokens
+            output_tokens: Number of output/completion tokens
+            success: Whether the call was successful
         """
-        attributes = {
-            "operation": operation,
-            "bank_id": bank_id,
+        # Base attributes for all metrics
+        base_attributes = {
+            "provider": provider,
+            "model": model,
+            "scope": scope,
+            "success": str(success).lower(),
         }
-        if budget:
-            attributes["budget"] = budget
-        if max_tokens:
-            attributes["max_tokens"] = str(max_tokens)
 
+        # Record duration
+        self.llm_duration.record(duration, base_attributes)
+
+        # Record call count
+        self.llm_calls_total.add(1, base_attributes)
+
+        # Record tokens with bucket labels for cardinality control
         if input_tokens > 0:
-            self.tokens_input.add(input_tokens, attributes)
+            input_attributes = {
+                **base_attributes,
+                "token_bucket": get_token_bucket(input_tokens),
+            }
+            self.llm_tokens_input.add(input_tokens, input_attributes)
 
         if output_tokens > 0:
-            self.tokens_output.add(output_tokens, attributes)
+            output_attributes = {
+                **base_attributes,
+                "token_bucket": get_token_bucket(output_tokens),
+            }
+            self.llm_tokens_output.add(output_tokens, output_attributes)
 
 
 # Global metrics collector instance (defaults to no-op)
diff --git a/hindsight-api/tests/test_llm_token_metrics.py b/hindsight-api/tests/test_llm_token_metrics.py
index d4a81e67..87a24cd6 100644
--- a/hindsight-api/tests/test_llm_token_metrics.py
+++ b/hindsight-api/tests/test_llm_token_metrics.py
@@ -9,8 +9,6 @@ from hindsight_api.metrics import (
     MetricsCollector,
     NoOpMetricsCollector,
     get_metrics_collector,
-    initialize_metrics,
-    create_metrics_collector,
 )
 
 
@@ -20,16 +18,16 @@ def get_groq_api_key() -> str | None:
 
 
 @pytest.mark.asyncio
-async def test_token_metrics_recorded_for_groq():
+async def test_llm_metrics_recorded_for_groq():
     """
-    Test that token metrics are recorded when making LLM calls via Groq.
+    Test that LLM metrics are recorded when making LLM calls via Groq.
     Uses openai/gpt-oss-20b as recommended by Hindsight.
     """
     api_key = get_groq_api_key()
     if not api_key:
         pytest.skip("Skipping: GROQ_API_KEY not set")
 
-    # Create a mock metrics collector to track record_tokens calls
+    # Create a mock metrics collector to track record_llm_call calls
     mock_collector = MagicMock(spec=MetricsCollector)
 
     with patch("hindsight_api.engine.llm_wrapper.get_metrics_collector", return_value=mock_collector):
@@ -50,30 +48,35 @@ async def test_token_metrics_recorded_for_groq():
             scope="test_metrics",
         )
 
-        # Verify record_tokens was called - this is the main test
-        assert mock_collector.record_tokens.called, "record_tokens should have been called"
+        # Verify record_llm_call was called - this is the main test
+        assert mock_collector.record_llm_call.called, "record_llm_call should have been called"
 
         # Get the call arguments
-        call_kwargs = mock_collector.record_tokens.call_args.kwargs
+        call_kwargs = mock_collector.record_llm_call.call_args.kwargs
 
         # Verify the call had correct structure
-        assert call_kwargs["operation"] == "test_metrics", f"Expected operation='test_metrics', got {call_kwargs}"
-        assert call_kwargs["bank_id"] == "llm", f"Expected bank_id='llm', got {call_kwargs}"
+        assert call_kwargs["provider"] == "groq", f"Expected provider='groq', got {call_kwargs}"
+        assert call_kwargs["model"] == "openai/gpt-oss-20b", f"Expected model='openai/gpt-oss-20b', got {call_kwargs}"
+        assert call_kwargs["scope"] == "test_metrics", f"Expected scope='test_metrics', got {call_kwargs}"
+        assert call_kwargs["duration"] > 0, f"Expected duration > 0, got {call_kwargs['duration']}"
         assert call_kwargs["input_tokens"] > 0, f"Expected input_tokens > 0, got {call_kwargs['input_tokens']}"
-        # Output tokens may be 0 for some edge cases, but input should always be > 0
         assert call_kwargs["output_tokens"] >= 0, f"Expected output_tokens >= 0, got {call_kwargs['output_tokens']}"
+        assert call_kwargs["success"] is True, f"Expected success=True, got {call_kwargs['success']}"
 
-        print(f"\nToken metrics recorded:")
-        print(f"  operation: {call_kwargs['operation']}")
+        print(f"\nLLM metrics recorded:")
+        print(f"  provider: {call_kwargs['provider']}")
+        print(f"  model: {call_kwargs['model']}")
+        print(f"  scope: {call_kwargs['scope']}")
+        print(f"  duration: {call_kwargs['duration']:.3f}s")
         print(f"  input_tokens: {call_kwargs['input_tokens']}")
         print(f"  output_tokens: {call_kwargs['output_tokens']}")
         print(f"  response: {response}")
 
 
 @pytest.mark.asyncio
-async def test_token_metrics_recorded_for_structured_output():
+async def test_llm_metrics_recorded_for_structured_output():
     """
-    Test that token metrics are recorded for structured output (JSON) calls.
+    Test that LLM metrics are recorded for structured output (JSON) calls.
     """
     api_key = get_groq_api_key()
     if not api_key:
@@ -108,14 +111,14 @@ async def test_token_metrics_recorded_for_structured_output():
         assert response.greeting is not None
         assert response.language is not None
 
-        # Verify record_tokens was called
-        assert mock_collector.record_tokens.called, "record_tokens should have been called"
+        # Verify record_llm_call was called
+        assert mock_collector.record_llm_call.called, "record_llm_call should have been called"
 
-        call_kwargs = mock_collector.record_tokens.call_args.kwargs
+        call_kwargs = mock_collector.record_llm_call.call_args.kwargs
         assert call_kwargs["input_tokens"] > 0
         assert call_kwargs["output_tokens"] > 0
 
-        print(f"\nStructured output token metrics:")
+        print(f"\nStructured output LLM metrics:")
         print(f"  greeting: {response.greeting}")
         print(f"  language: {response.language}")
         print(f"  input_tokens: {call_kwargs['input_tokens']}")
diff --git a/hindsight-api/tests/test_metrics.py b/hindsight-api/tests/test_metrics.py
new file mode 100644
index 00000000..d6a4c914
--- /dev/null
+++ b/hindsight-api/tests/test_metrics.py
@@ -0,0 +1,391 @@
+"""Tests for metrics instrumentation."""
+import pytest
+from unittest.mock import MagicMock, patch
+
+from hindsight_api.metrics import (
+    MetricsCollector,
+    MetricsCollectorBase,
+    NoOpMetricsCollector,
+    get_metrics_collector,
+    get_token_bucket,
+    create_metrics_collector,
+    initialize_metrics,
+)
+
+
+class TestNoOpMetricsCollector:
+    """Tests for the no-op metrics collector."""
+
+    def test_record_operation_is_noop(self):
+        """Test that record_operation does nothing."""
+        collector = NoOpMetricsCollector()
+
+        # Should not raise any exception
+        with collector.record_operation("recall", bank_id="test_bank", source="api"):
+            pass
+
+    def test_nested_contexts_work(self):
+        """Test that nested context managers work correctly."""
+        collector = NoOpMetricsCollector()
+
+        # Nested contexts should work without issues
+        with collector.record_operation("reflect", bank_id="test_bank", source="api"):
+            with collector.record_operation("recall", bank_id="test_bank", source="reflect"):
+                pass
+
+    def test_exception_propagates(self):
+        """Test that exceptions inside context are propagated."""
+        collector = NoOpMetricsCollector()
+
+        with pytest.raises(ValueError, match="test error"):
+            with collector.record_operation("recall", bank_id="test_bank"):
+                raise ValueError("test error")
+
+    def test_record_llm_call_is_noop(self):
+        """Test that record_llm_call does nothing."""
+        collector = NoOpMetricsCollector()
+
+        # Should not raise any exception
+        collector.record_llm_call(
+            provider="openai",
+            model="gpt-4",
+            scope="memory",
+            duration=1.5,
+            input_tokens=100,
+            output_tokens=50,
+            success=True,
+        )
+
+
+class TestMetricsCollector:
+    """Tests for the real metrics collector."""
+
+    @pytest.fixture
+    def mock_meter(self):
+        """Create a mock meter for testing."""
+        meter = MagicMock()
+        # Create separate mocks for each histogram (operation_duration, llm_duration)
+        histogram_mocks = [MagicMock(), MagicMock()]
+        meter.create_histogram.side_effect = histogram_mocks
+        # Create separate mocks for each counter
+        # (operation_total, llm_tokens_input, llm_tokens_output, llm_calls_total)
+        counter_mocks = [MagicMock() for _ in range(4)]
+        meter.create_counter.side_effect = counter_mocks
+        return meter
+
+    @pytest.fixture
+    def collector(self, mock_meter):
+        """Create a MetricsCollector with a mock meter."""
+        with patch("hindsight_api.metrics.get_meter", return_value=mock_meter):
+            return MetricsCollector()
+
+    def test_record_operation_records_duration(self, collector):
+        """Test that record_operation records duration."""
+        with collector.record_operation("recall", bank_id="test_bank", source="api"):
+            pass
+
+        # Histogram should have been called
+        collector.operation_duration.record.assert_called_once()
+        call_args = collector.operation_duration.record.call_args
+
+        # First arg is duration (should be > 0)
+        duration = call_args[0][0]
+        assert duration >= 0
+
+        # Second arg is attributes dict
+        attributes = call_args[0][1]
+        assert attributes["operation"] == "recall"
+        assert attributes["bank_id"] == "test_bank"
+        assert attributes["source"] == "api"
+        assert attributes["success"] == "true"
+
+    def test_record_operation_records_failure_on_exception(self, collector):
+        """Test that record_operation records failure when exception occurs."""
+        with pytest.raises(RuntimeError):
+            with collector.record_operation("retain", bank_id="test_bank", source="api"):
+                raise RuntimeError("Test error")
+
+        # Should have recorded with success=false
+        call_args = collector.operation_duration.record.call_args
+        attributes = call_args[0][1]
+        assert attributes["success"] == "false"
+
+    def test_record_operation_with_budget(self, collector):
+        """Test that budget is included in attributes when provided."""
+        with collector.record_operation("recall", bank_id="test_bank", source="api", budget="mid"):
+            pass
+
+        call_args = collector.operation_duration.record.call_args
+        attributes = call_args[0][1]
+        assert attributes["budget"] == "mid"
+
+    def test_record_operation_with_max_tokens(self, collector):
+        """Test that max_tokens is included in attributes when provided."""
+        with collector.record_operation("recall", bank_id="test_bank", source="api", max_tokens=4096):
+            pass
+
+        call_args = collector.operation_duration.record.call_args
+        attributes = call_args[0][1]
+        assert attributes["max_tokens"] == "4096"
+
+    def test_record_operation_source_values(self, collector):
+        """Test different source values: api, reflect, internal."""
+        sources = ["api", "reflect", "internal"]
+
+        for source in sources:
+            collector.operation_duration.record.reset_mock()
+
+            with collector.record_operation("recall", bank_id="test_bank", source=source):
+                pass
+
+            call_args = collector.operation_duration.record.call_args
+            attributes = call_args[0][1]
+            assert attributes["source"] == source
+
+    def test_nested_contexts_track_separately(self, collector):
+        """Test that nested operations are tracked separately with different sources."""
+        # Simulate reflect (api) calling recall (reflect)
+        with collector.record_operation("reflect", bank_id="test_bank", source="api"):
+            with collector.record_operation("recall", bank_id="test_bank", source="reflect"):
+                pass
+
+        # Should have 2 calls to record
+        assert collector.operation_duration.record.call_count == 2
+        assert collector.operation_total.add.call_count == 2
+
+        # Check the calls
+        calls = collector.operation_duration.record.call_args_list
+
+        # First call should be recall (inner context exits first)
+        recall_attrs = calls[0][0][1]
+        assert recall_attrs["operation"] == "recall"
+        assert recall_attrs["source"] == "reflect"
+
+        # Second call should be reflect (outer context exits last)
+        reflect_attrs = calls[1][0][1]
+        assert reflect_attrs["operation"] == "reflect"
+        assert reflect_attrs["source"] == "api"
+
+
+class TestGetMetricsCollector:
+    """Tests for the get_metrics_collector function."""
+
+    def test_returns_noop_by_default(self):
+        """Test that get_metrics_collector returns NoOpMetricsCollector by default."""
+        # Reset global state
+        import hindsight_api.metrics as metrics_module
+        original_collector = metrics_module._metrics_collector
+
+        try:
+            metrics_module._metrics_collector = NoOpMetricsCollector()
+            collector = get_metrics_collector()
+            assert isinstance(collector, NoOpMetricsCollector)
+        finally:
+            metrics_module._metrics_collector = original_collector
+
+
+class TestMetricsCollectorBase:
+    """Tests for the MetricsCollectorBase abstract class."""
+
+    def test_is_abstract(self):
+        """Test that MetricsCollectorBase methods are abstract."""
+        # Create a class that inherits but doesn't implement
+        class IncompleteCollector(MetricsCollectorBase):
+            pass
+
+        collector = IncompleteCollector()
+
+        # Abstract methods should raise NotImplementedError
+        with pytest.raises(NotImplementedError):
+            with collector.record_operation("test", "test"):
+                pass
+
+        with pytest.raises(NotImplementedError):
+            collector.record_llm_call("test", "test", "test", 1.0)
+
+
+class TestGetTokenBucket:
+    """Tests for the get_token_bucket function."""
+
+    def test_bucket_0_100(self):
+        """Test tokens < 100 return '0-100' bucket."""
+        assert get_token_bucket(0) == "0-100"
+        assert get_token_bucket(50) == "0-100"
+        assert get_token_bucket(99) == "0-100"
+
+    def test_bucket_100_500(self):
+        """Test tokens 100-499 return '100-500' bucket."""
+        assert get_token_bucket(100) == "100-500"
+        assert get_token_bucket(250) == "100-500"
+        assert get_token_bucket(499) == "100-500"
+
+    def test_bucket_500_1k(self):
+        """Test tokens 500-999 return '500-1k' bucket."""
+        assert get_token_bucket(500) == "500-1k"
+        assert get_token_bucket(750) == "500-1k"
+        assert get_token_bucket(999) == "500-1k"
+
+    def test_bucket_1k_5k(self):
+        """Test tokens 1000-4999 return '1k-5k' bucket."""
+        assert get_token_bucket(1000) == "1k-5k"
+        assert get_token_bucket(2500) == "1k-5k"
+        assert get_token_bucket(4999) == "1k-5k"
+
+    def test_bucket_5k_10k(self):
+        """Test tokens 5000-9999 return '5k-10k' bucket."""
+        assert get_token_bucket(5000) == "5k-10k"
+        assert get_token_bucket(7500) == "5k-10k"
+        assert get_token_bucket(9999) == "5k-10k"
+
+    def test_bucket_10k_50k(self):
+        """Test tokens 10000-49999 return '10k-50k' bucket."""
+        assert get_token_bucket(10000) == "10k-50k"
+        assert get_token_bucket(25000) == "10k-50k"
+        assert get_token_bucket(49999) == "10k-50k"
+
+    def test_bucket_50k_plus(self):
+        """Test tokens >= 50000 return '50k+' bucket."""
+        assert get_token_bucket(50000) == "50k+"
+        assert get_token_bucket(100000) == "50k+"
+        assert get_token_bucket(1000000) == "50k+"
+
+
+class TestLLMMetrics:
+    """Tests for LLM-specific metrics recording."""
+
+    @pytest.fixture
+    def mock_meter(self):
+        """Create a mock meter for testing."""
+        meter = MagicMock()
+        # Create separate mocks for each histogram (operation_duration, llm_duration)
+        histogram_mocks = [MagicMock(), MagicMock()]
+        meter.create_histogram.side_effect = histogram_mocks
+        # Create separate mocks for each counter
+        # (operation_total, llm_tokens_input, llm_tokens_output, llm_calls_total)
+        counter_mocks = [MagicMock() for _ in range(4)]
+        meter.create_counter.side_effect = counter_mocks
+        return meter
+
+    @pytest.fixture
+    def collector(self, mock_meter):
+        """Create a MetricsCollector with a mock meter."""
+        with patch("hindsight_api.metrics.get_meter", return_value=mock_meter):
+            return MetricsCollector()
+
+    def test_record_llm_call_records_duration(self, collector):
+        """Test that record_llm_call records duration."""
+        collector.record_llm_call(
+            provider="openai",
+            model="gpt-4",
+            scope="memory",
+            duration=1.5,
+            input_tokens=100,
+            output_tokens=50,
+            success=True,
+        )
+
+        # LLM duration histogram should be called
+        collector.llm_duration.record.assert_called_once()
+        call_args = collector.llm_duration.record.call_args
+
+        # First arg is duration
+        assert call_args[0][0] == 1.5
+
+        # Second arg is attributes dict
+        attributes = call_args[0][1]
+        assert attributes["provider"] == "openai"
+        assert attributes["model"] == "gpt-4"
+        assert attributes["scope"] == "memory"
+        assert attributes["success"] == "true"
+
+    def test_record_llm_call_records_failure(self, collector):
+        """Test that record_llm_call records failure status."""
+        collector.record_llm_call(
+            provider="anthropic",
+            model="claude-3",
+            scope="reflect",
+            duration=0.5,
+            success=False,
+        )
+
+        # Check success is false
+        call_args = collector.llm_duration.record.call_args
+        attributes = call_args[0][1]
+        assert attributes["success"] == "false"
+
+    def test_record_llm_call_records_tokens_with_buckets(self, collector):
+        """Test that record_llm_call records tokens with bucket labels."""
+        collector.record_llm_call(
+            provider="openai",
+            model="gpt-4",
+            scope="memory",
+            duration=1.0,
+            input_tokens=2500,  # Should be "1k-5k" bucket
+            output_tokens=150,  # Should be "100-500" bucket
+            success=True,
+        )
+
+        # Input tokens should be recorded with bucket
+        collector.llm_tokens_input.add.assert_called_once()
+        input_call = collector.llm_tokens_input.add.call_args
+        assert input_call[0][0] == 2500
+        assert input_call[0][1]["token_bucket"] == "1k-5k"
+
+        # Output tokens should be recorded with bucket
+        collector.llm_tokens_output.add.assert_called_once()
+        output_call = collector.llm_tokens_output.add.call_args
+        assert output_call[0][0] == 150
+        assert output_call[0][1]["token_bucket"] == "100-500"
+
+    def test_record_llm_call_skips_zero_tokens(self, collector):
+        """Test that zero token values don't record."""
+        collector.record_llm_call(
+            provider="openai",
+            model="gpt-4",
+            scope="memory",
+            duration=1.0,
+            input_tokens=0,
+            output_tokens=0,
+            success=True,
+        )
+
+        # Token counters should not be called
+        collector.llm_tokens_input.add.assert_not_called()
+        collector.llm_tokens_output.add.assert_not_called()
+
+    def test_record_llm_call_increments_call_counter(self, collector):
+        """Test that record_llm_call increments the call counter."""
+        collector.record_llm_call(
+            provider="gemini",
+            model="gemini-pro",
+            scope="entity_observation",
+            duration=2.0,
+            success=True,
+        )
+
+        # Call counter should be incremented
+        collector.llm_calls_total.add.assert_called_once()
+        call_args = collector.llm_calls_total.add.call_args
+        assert call_args[0][0] == 1
+        assert call_args[0][1]["provider"] == "gemini"
+        assert call_args[0][1]["model"] == "gemini-pro"
+        assert call_args[0][1]["scope"] == "entity_observation"
+
+    def test_record_llm_call_different_scopes(self, collector):
+        """Test recording LLM calls with different scopes."""
+        scopes = ["memory", "reflect", "entity_observation", "answer"]
+
+        for scope in scopes:
+            collector.llm_duration.record.reset_mock()
+
+            collector.record_llm_call(
+                provider="openai",
+                model="gpt-4",
+                scope=scope,
+                duration=1.0,
+                success=True,
+            )
+
+            call_args = collector.llm_duration.record.call_args
+            attributes = call_args[0][1]
+            assert attributes["scope"] == scope
diff --git a/hindsight-docs/docs/developer/metrics.md b/hindsight-docs/docs/developer/metrics.md
index 21c246ce..cb30c694 100644
--- a/hindsight-docs/docs/developer/metrics.md
+++ b/hindsight-docs/docs/developer/metrics.md
@@ -12,17 +12,51 @@ curl http://localhost:8888/metrics
 
 | Metric | Type | Labels | Description |
 |--------|------|--------|-------------|
-| `hindsight.operation.duration` | Histogram | operation, bank_id, budget, max_tokens, success | Duration of operations in seconds |
-| `hindsight.operation.total` | Counter | operation, bank_id, budget, max_tokens, success | Total number of operations executed |
+| `hindsight.operation.duration` | Histogram | operation, bank_id, source, budget, max_tokens, success | Duration of operations in seconds |
+| `hindsight.operation.total` | Counter | operation, bank_id, source, budget, max_tokens, success | Total number of operations executed |
 
-The `operation` label values are: `retain`, `recall`, `reflect`.
+**Labels:**
+- `operation`: Operation type (`retain`, `recall`, `reflect`)
+- `bank_id`: Memory bank identifier
+- `source`: Where the operation was triggered from (`api`, `reflect`, `internal`)
+- `budget`: Budget level if specified (`low`, `mid`, `high`)
+- `max_tokens`: Max tokens if specified
+- `success`: Whether the operation succeeded (`true`, `false`)
 
-### Token Metrics
+The `source` label allows distinguishing between:
+- `api`: Direct API calls from clients
+- `reflect`: Internal recall calls made during reflect operations
+- `internal`: Other internal operations
+
+### LLM Metrics
 
 | Metric | Type | Labels | Description |
 |--------|------|--------|-------------|
-| `hindsight.tokens.input` | Counter | operation, bank_id, budget, max_tokens | Input tokens consumed |
-| `hindsight.tokens.output` | Counter | operation, bank_id, budget, max_tokens | Output tokens generated |
+| `hindsight.llm.duration` | Histogram | provider, model, scope, success | Duration of LLM API calls in seconds |
+| `hindsight.llm.calls.total` | Counter | provider, model, scope, success | Total number of LLM API calls |
+| `hindsight.llm.tokens.input` | Counter | provider, model, scope, success, token_bucket | Input tokens for LLM calls |
+| `hindsight.llm.tokens.output` | Counter | provider, model, scope, success, token_bucket | Output tokens from LLM calls |
+
+**Labels:**
+- `provider`: LLM provider (`openai`, `anthropic`, `gemini`, `groq`, `ollama`, `lmstudio`)
+- `model`: Model name (e.g., `gpt-4`, `claude-3-sonnet`)
+- `scope`: What the LLM call is for (`memory`, `reflect`, `entity_observation`, `answer`)
+- `success`: Whether the call succeeded (`true`, `false`)
+- `token_bucket`: Token count bucket for cardinality control (`0-100`, `100-500`, `500-1k`, `1k-5k`, `5k-10k`, `10k-50k`, `50k+`)
+
+### Histogram Buckets
+
+Custom bucket boundaries are configured for better percentile accuracy:
+
+**Operation Duration Buckets (seconds):**
+```
+0.1, 0.25, 0.5, 0.75, 1.0, 2.0, 3.0, 5.0, 7.5, 10.0, 15.0, 20.0, 30.0, 60.0, 120.0
+```
+
+**LLM Duration Buckets (seconds):**
+```
+0.1, 0.25, 0.5, 1.0, 2.0, 3.0, 5.0, 10.0, 15.0, 30.0, 60.0, 120.0
+```
 
 ## Prometheus Configuration
 
@@ -32,3 +66,30 @@ scrape_configs:
     static_configs:
       - targets: ['localhost:8888']
 ```
+
+## Example Queries
+
+### Average operation latency by type
+```promql
+rate(hindsight_operation_duration_sum[5m]) / rate(hindsight_operation_duration_count[5m])
+```
+
+### LLM calls per minute by provider
+```promql
+rate(hindsight_llm_calls_total[1m]) * 60
+```
+
+### P95 LLM latency
+```promql
+histogram_quantile(0.95, rate(hindsight_llm_duration_bucket[5m]))
+```
+
+### Total tokens consumed by model
+```promql
+sum by (model) (hindsight_llm_tokens_input_total + hindsight_llm_tokens_output_total)
+```
+
+### Internal vs API recall operations
+```promql
+sum by (source) (rate(hindsight_operation_total{operation="recall"}[5m]))
+```