diff --git a/ballerina/Ballerina.toml b/ballerina/Ballerina.toml
index dfa1890..802bebe 100644
--- a/ballerina/Ballerina.toml
+++ b/ballerina/Ballerina.toml
@@ -1,7 +1,7 @@
 [package]
 org = "ballerina"
 name = "observe"
-version = "1.5.0"
+version = "1.6.0"
 distribution = "2201.12.0"
 
 [[package.modules]]
@@ -13,7 +13,7 @@ export = true
 graalvmCompatible = true
 
 [[platform.java21.dependency]]
-path = "../native/build/libs/observe-native-1.5.0.jar"
+path = "../native/build/libs/observe-native-1.6.0.jar"
 groupId = "ballerina"
 artifactId = "observe"
 
diff --git a/ballerina/Dependencies.toml b/ballerina/Dependencies.toml
index 6ed799a..c623243 100644
--- a/ballerina/Dependencies.toml
+++ b/ballerina/Dependencies.toml
@@ -18,7 +18,7 @@ modules = [
 [[package]]
 org = "ballerina"
 name = "observe"
-version = "1.5.0"
+version = "1.6.0"
 dependencies = [
 	{org = "ballerina", name = "jballerina.java"}
 ]
diff --git a/ballerina/natives.bal b/ballerina/natives.bal
index 4e59e23..03128d9 100644
--- a/ballerina/natives.bal
+++ b/ballerina/natives.bal
@@ -91,6 +91,16 @@ public isolated function finishSpan(int spanId) returns error? = @java:Method {
     name: "finishSpan"
 } external;
 
+# Finish the current span.
+#
+# + spanId - Id of span to finish
+# + 'error - Error to be recorded in the span
+# + return - An error if an error occurred while finishing the span
+public isolated function finishSpanWithError(int spanId, error 'error) returns error? = @java:Method {
+    'class: "io.ballerina.stdlib.observe.nativeimpl.FinishSpan",
+    name: "finishSpanWithError"
+} external;
+
 # Retrieve a map of span context data.
 #
 # + return - Map of span context data (traceId and spanId).
diff --git a/build-config/resources/Ballerina.toml b/build-config/resources/Ballerina.toml
index ae1f262..36dfbd0 100644
--- a/build-config/resources/Ballerina.toml
+++ b/build-config/resources/Ballerina.toml
@@ -2,7 +2,7 @@
 org = "ballerina"
 name = "observe"
 version = "@toml.version@"
-distribution = "2201.11.0"
+distribution = "2201.12.0"
 
 [[package.modules]]
 name = "observe.mockextension"
diff --git a/gradle.properties b/gradle.properties
index 66d9a21..8d0a86f 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -14,7 +14,7 @@
 
 org.gradle.caching=true
 group=io.ballerina.stdlib
-version=1.6.0-SNAPSHOT
+version=1.6.1-SNAPSHOT
 ballerinaLangVersion=2201.13.0-20251016-073200-0d348172
 
 spotbugsPluginVersion=6.0.18
diff --git a/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/FinishSpan.java b/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/FinishSpan.java
index 6682f85..c324a59 100644
--- a/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/FinishSpan.java
+++ b/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/FinishSpan.java
@@ -22,6 +22,7 @@
 import io.ballerina.runtime.api.Environment;
 import io.ballerina.runtime.api.creators.ErrorCreator;
 import io.ballerina.runtime.api.utils.StringUtils;
+import io.ballerina.runtime.api.values.BError;
 
 /**
  * This function which implements the finishSpan method for observe.
@@ -40,4 +41,16 @@ public static Object finishSpan(Environment env, long spanId) {
         return ErrorCreator.createError(StringUtils.fromString(("Can not finish span with id " + spanId + ". Span " +
                 "already finished")));
     }
+
+    public static Object finishSpanWithError(Environment env, long spanId, BError error) {
+        boolean isFinished = OpenTracerBallerinaWrapper.getInstance().finishSpanWithError(env, spanId,
+                error);
+
+        if (isFinished) {
+            return null;
+        }
+
+        return ErrorCreator.createError(StringUtils.fromString(("Can not finish span with id " + spanId + ". Span " +
+                "already finished")));
+    }
 }
diff --git a/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/OpenTracerBallerinaWrapper.java b/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/OpenTracerBallerinaWrapper.java
index ba59839..f5c5ded 100644
--- a/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/OpenTracerBallerinaWrapper.java
+++ b/native/src/main/java/io/ballerina/stdlib/observe/nativeimpl/OpenTracerBallerinaWrapper.java
@@ -22,6 +22,7 @@
 import io.ballerina.runtime.api.Environment;
 import io.ballerina.runtime.api.creators.ErrorCreator;
 import io.ballerina.runtime.api.utils.StringUtils;
+import io.ballerina.runtime.api.values.BError;
 import io.ballerina.runtime.observability.ObserveUtils;
 import io.ballerina.runtime.observability.ObserverContext;
 import io.ballerina.runtime.observability.tracer.BSpan;
@@ -36,6 +37,7 @@
 import java.util.concurrent.atomic.AtomicLong;
 
 import static io.ballerina.runtime.observability.ObservabilityConstants.DEFAULT_SERVICE_NAME;
+import static io.ballerina.runtime.observability.ObservabilityConstants.PROPERTY_ERROR_VALUE;
 import static io.ballerina.runtime.observability.ObservabilityConstants.TAG_KEY_ENTRYPOINT_FUNCTION_MODULE;
 import static io.ballerina.runtime.observability.ObservabilityConstants.TAG_KEY_ENTRYPOINT_FUNCTION_NAME;
 import static io.ballerina.runtime.observability.ObservabilityConstants.TAG_KEY_ENTRYPOINT_RESOURCE_ACCESSOR;
@@ -165,6 +167,33 @@ public boolean finishSpan(Environment env, long spanId) {
         }
     }
 
+    /**
+     * Method to mark a span as finished.
+     *
+     * @param env    current environment
+     * @param spanId id of the Span
+     * @return boolean to indicate if span was finished
+     */
+    public boolean finishSpanWithError(Environment env, long spanId, BError error) {
+
+        if (!enabled) {
+            return false;
+        }
+        ObserverContext observerContext = observerContextMap.get(spanId);
+        if (observerContext != null) {
+            observerContext.addProperty(PROPERTY_ERROR_VALUE, error);
+            if (observerContext.isSystemSpan()) {
+                ObserveUtils.setObserverContextToCurrentFrame(env, observerContext.getParent());
+            }
+            TracingUtils.stopObservation(observerContext);
+            observerContext.setFinished();
+            observerContextMap.remove(spanId);
+            return true;
+        } else {
+            return false;
+        }
+    }
+
     /**
      * Method to add tags to an existing span.
      *