diff --git a/lib/sentry/client_report.ex b/lib/sentry/client_report.ex
index d51133de..fe38703c 100644
--- a/lib/sentry/client_report.ex
+++ b/lib/sentry/client_report.ex
@@ -28,8 +28,7 @@ defmodule Sentry.ClientReport do
     :insufficient_data,
     :backpressure,
     :send_error,
-    :internal_sdk_error,
-    :ignored
+    :internal_sdk_error
   ]
 
   @typedoc """
diff --git a/lib/sentry/config.ex b/lib/sentry/config.ex
index 60b2ac98..c133b229 100644
--- a/lib/sentry/config.ex
+++ b/lib/sentry/config.ex
@@ -382,8 +382,10 @@ defmodule Sentry.Config do
       Defaults to `[404]`, so *404 Not Found* requests are not traced. Set it to `[]` to
       trace them again.
 
-      Outgoing requests are not affected, and the trace is still propagated to the services
-      this one calls.
+      The transaction is dropped only once the response status is known, after the request
+      has been handled. The trace is still propagated as sampled, so services called while
+      handling the request still report their part of it. Dropped transactions are counted
+      in client reports with the `event_processor` reason. Outgoing requests are not affected.
 
       *Available since 14.0.0*.
       """
diff --git a/lib/sentry/opentelemetry/span_processor.ex b/lib/sentry/opentelemetry/span_processor.ex
index 888ab31e..e8940591 100644
--- a/lib/sentry/opentelemetry/span_processor.ex
+++ b/lib/sentry/opentelemetry/span_processor.ex
@@ -187,13 +187,20 @@ if Sentry.OpenTelemetry.VersionChecker.tracing_compatible?() do
       result
     end
 
-    # Only incoming requests are matched. An outgoing call can become a
-    # transaction root of its own when it outlives the request that made it,
-    # and the option is not meant to drop those.
-    defp ignored_response_status?(%{kind: :server, attributes: attributes}) do
+    defp ignored_response_status?(%{kind: :server, attributes: attributes} = span_record) do
       case Map.get(attributes, to_string(HTTPAttributes.http_response_status_code())) do
         status when is_integer(status) ->
-          Enum.any?(Config.traces_ignore_http_status_codes(), &status_matches?(&1, status))
+          ignored? =
+            Enum.any?(Config.traces_ignore_http_status_codes(), &status_matches?(&1, status))
+
+          if ignored? do
+            LoggerUtils.debug(fn ->
+              "Discarding transaction #{span_record.name} (#{span_record.span_id}): " <>
+                "its response status #{status} is listed in :traces_ignore_http_status_codes"
+            end)
+          end
+
+          ignored?
 
         _other ->
           false
@@ -206,7 +213,7 @@ if Sentry.OpenTelemetry.VersionChecker.tracing_compatible?() do
     defp status_matches?(code, status), do: code == status
 
     defp discard_transaction(transaction) do
-      ClientReport.Sender.record_discarded_events(:ignored, [transaction])
+      ClientReport.Sender.record_discarded_events(:event_processor, [transaction])
       true
     end
 
diff --git a/test_integrations/phoenix_app/test/phoenix_app/ignored_status_traces_test.exs b/test_integrations/phoenix_app/test/phoenix_app/ignored_status_traces_test.exs
index 9807ff35..db85e02f 100644
--- a/test_integrations/phoenix_app/test/phoenix_app/ignored_status_traces_test.exs
+++ b/test_integrations/phoenix_app/test/phoenix_app/ignored_status_traces_test.exs
@@ -1,6 +1,7 @@
 defmodule PhoenixApp.IgnoredStatusTracesTest do
   use ExUnit.Case, async: false
 
+  import ExUnit.CaptureLog
   import Sentry.TestHelpers
 
   @port 4102
@@ -71,16 +72,31 @@ defmodule PhoenixApp.IgnoredStatusTracesTest do
     assert upstream_tx["transaction"] == "GET /upstream"
   end
 
-  test "a request answered with an ignored status is reported as discarded telemetry", %{
+  test "a request answered with an ignored status is discarded by an event processor", %{
     ref: ref,
     client_report_sender: sender
   } do
     put_test_config(traces_ignore_http_status_codes: [410])
+    log_at_debug_level()
 
-    assert request("/responses/410") == 410
-    assert reported_transactions(ref) == []
+    log =
+      capture_log([level: :debug], fn ->
+        assert request("/responses/410") == 410
+        assert reported_transactions(ref) == []
+      end)
+
+    assert log =~ ~r/\[debug\]\s+Discarding transaction .*response status 410/
+
+    assert discarded_outcomes(sender, ref, "event_processor") == %{
+             "transaction" => 1,
+             "span" => 1
+           }
+  end
 
-    assert discarded_outcomes(sender, ref, "ignored") == %{"transaction" => 1, "span" => 1}
+  defp log_at_debug_level do
+    previous_level = Logger.level()
+    Logger.configure(level: :debug)
+    on_exit(fn -> Logger.configure(level: previous_level) end)
   end
 
   defp request(path) do