diff --git a/chalice/package.py b/chalice/package.py
index ecdd0268e..fb55676e9 100644
--- a/chalice/package.py
+++ b/chalice/package.py
@@ -334,6 +334,9 @@ def _generate_restapi(self, resource, template):
             properties = resources['RestAPI']['Properties']
             properties['MinimumCompressionSize'] = \
                 int(resource.minimum_compression)
+        if self._config.xray_enabled:
+            properties = resources['RestAPI']['Properties']
+            properties['TracingEnabled'] = True
 
         handler_cfn_name = to_cfn_resource_name(
             resource.lambda_function.resource_name)
diff --git a/docs/source/topics/middleware.rst b/docs/source/topics/middleware.rst
index 90a8ea0de..465315bc1 100644
--- a/docs/source/topics/middleware.rst
+++ b/docs/source/topics/middleware.rst
@@ -271,15 +271,15 @@ Integrating with AWS Lambda Powertools
 --------------------------------------
 
 `AWS Lambda Powertools
-<https://awslabs.github.io/aws-lambda-powertools-python/latest/>`__ is a suite of
+<https://docs.powertools.aws.dev/lambda/python/latest/>`__ is a suite of
 utilities for AWS Lambda functions that makes tracing with AWS X-Ray,
 structured logging and creating custom metrics asynchronously easier.
 
 You can use Chalice middleware to easily integrate Lambda Powertools with
 your Chalice apps.  In this example, we'll use the
 `Logger
-<https://awslabs.github.io/aws-lambda-powertools-python/latest/core/logger/>`__
-and `Tracer <https://awslabs.github.io/aws-lambda-powertools-python/latest/core/tracer/>`__
+<https://docs.powertools.aws.dev/lambda/python/latest/core/logger/>`__
+and `Tracer <https://docs.powertools.aws.dev/lambda/python/latest/core/tracer/>`__
 and convert them to Chalice middleware so they will be automatically applied
 to all Lambda functions in our application.
 
diff --git a/tests/unit/test_package.py b/tests/unit/test_package.py
index cd01e451d..e770344be 100644
--- a/tests/unit/test_package.py
+++ b/tests/unit/test_package.py
@@ -1335,6 +1335,17 @@ def test_can_generate_scheduled_event(self):
             },
         }
 
+    def test_can_generate_rest_api_with_xray(
+            self, sample_app_with_auth):
+        config = Config.create(chalice_app=sample_app_with_auth,
+                               project_dir='.',
+                               api_gateway_stage='api',
+                               xray=True
+                               )
+        template = self.generate_template(config)
+        resources = template['Resources']
+        assert resources['RestAPI']['Properties']['TracingEnabled'] is True
+
     def test_can_generate_rest_api_without_compression(
             self, sample_app_with_auth):
         config = Config.create(chalice_app=sample_app_with_auth,
@@ -1372,6 +1383,7 @@ def test_can_generate_rest_api(self, sample_app_with_auth):
         assert resources['RestAPI']['Type'] == 'AWS::Serverless::Api'
         assert resources['RestAPI']['Properties']['MinimumCompressionSize'] \
             == 100
+        assert 'TracingEnabled' not in resources['RestAPI']['Properties']
         # We should also create the auth lambda function.
         assert resources['Myauth']['Type'] == 'AWS::Serverless::Function'
         # Along with permission to invoke from API Gateway.