diff --git a/docs/pages/development.rst b/docs/pages/development.rst
index 82e7d1d27..0733c9adc 100644
--- a/docs/pages/development.rst
+++ b/docs/pages/development.rst
@@ -54,7 +54,7 @@ Or as a decorator:
   >>> from returns.result import Failure, Result
   >>> from returns.primitives.tracing import collect_traces
 
-  >>> @collect_traces()
+  >>> @collect_traces
   ... def traced_function(value: str) -> IOResult[str, str]:
   ...     return IOFailure(value)
 
diff --git a/returns/primitives/tracing.py b/returns/primitives/tracing.py
index 4ae98c6ed..42e7f2838 100644
--- a/returns/primitives/tracing.py
+++ b/returns/primitives/tracing.py
@@ -1,13 +1,35 @@
 import types
 from contextlib import contextmanager
 from inspect import FrameInfo, stack
-from typing import List, Optional
+from typing import (
+    Callable,
+    ContextManager,
+    Iterator,
+    List,
+    Optional,
+    TypeVar,
+    Union,
+    overload,
+)
 
 from returns.result import _Failure
 
+_FunctionType = TypeVar('_FunctionType', bound=Callable)
 
-@contextmanager
-def collect_traces():
+
+@overload
+def collect_traces() -> ContextManager[None]:
+    """Context Manager to active traces collect to the Failures."""
+
+
+@overload
+def collect_traces(function: _FunctionType) -> _FunctionType:
+    """Decorator to active traces collect to the Failures."""
+
+
+def collect_traces(
+    function: Optional[_FunctionType] = None,
+) -> Union[_FunctionType, ContextManager[None]]:  # noqa: DAR101, DAR201, DAR301
     """
     Context Manager/Decorator to active traces collect to the Failures.
 
@@ -36,13 +58,16 @@ def collect_traces():
         # doctest: # noqa: DAR301, E501
 
     """
-    unpatched_get_trace = getattr(_Failure, '_get_trace')  # noqa: B009
-    substitute_get_trace = types.MethodType(_get_trace, _Failure)
-    setattr(_Failure, '_get_trace', substitute_get_trace)  # noqa: B010
-    try:
-        yield
-    finally:
-        setattr(_Failure, '_get_trace', unpatched_get_trace)  # noqa: B010
+    @contextmanager
+    def factory() -> Iterator[None]:
+        unpatched_get_trace = getattr(_Failure, '_get_trace')  # noqa: B009
+        substitute_get_trace = types.MethodType(_get_trace, _Failure)
+        setattr(_Failure, '_get_trace', substitute_get_trace)  # noqa: B010
+        try:  # noqa: WPS501
+            yield
+        finally:
+            setattr(_Failure, '_get_trace', unpatched_get_trace)  # noqa: B010
+    return factory()(function) if function else factory()
 
 
 def _get_trace(_self: _Failure) -> Optional[List[FrameInfo]]:
diff --git a/typesafety/test_primitives/test_tracing/test_collect_traces.yml b/typesafety/test_primitives/test_tracing/test_collect_traces.yml
new file mode 100644
index 000000000..e6dee6a5a
--- /dev/null
+++ b/typesafety/test_primitives/test_tracing/test_collect_traces.yml
@@ -0,0 +1,36 @@
+- case: collect_traces_context_manager_return_type_one
+  disable_cache: true
+  main: |
+    from returns.primitives.tracing import collect_traces
+
+    reveal_type(collect_traces)  # N: Revealed type is 'Overload(def () -> typing.ContextManager[None], def [_FunctionType <: def (*Any, **Any) -> Any] (function: _FunctionType`-1) -> _FunctionType`-1)'
+
+- case: collect_traces_context_manager_return_type_two
+  disable_cache: true
+  main: |
+    from returns.primitives.tracing import collect_traces
+
+    with reveal_type(collect_traces()):  # N: Revealed type is 'typing.ContextManager[None]'
+        pass
+
+- case: collect_traces_decorated_function_return_type
+  disable_cache: true
+  main: |
+    from returns.primitives.tracing import collect_traces
+
+    @collect_traces
+    def function() -> int:
+      return 0
+
+    reveal_type(function)  # N: Revealed type is 'def () -> builtins.int'
+
+- case: collect_traces_decorated_function_with_argument_return_type
+  disable_cache: true
+  main: |
+    from returns.primitives.tracing import collect_traces
+
+    @collect_traces
+    def function(number: int) -> str:
+      return str(number)
+
+    reveal_type(function)  # N: Revealed type is 'def (number: builtins.int) -> builtins.str'