diff --git a/internal/graph/check.go b/internal/graph/check.go
index 0acb216a30..04abc668d7 100644
--- a/internal/graph/check.go
+++ b/internal/graph/check.go
@@ -6,7 +6,6 @@ import (
 	"fmt"
 	"time"
 
-	"github.com/google/uuid"
 	"github.com/prometheus/client_golang/prometheus"
 	"github.com/samber/lo"
 	"go.opentelemetry.io/otel"
@@ -128,7 +127,7 @@ func (cc *ConcurrentChecker) Check(ctx context.Context, req ValidatedCheckReques
 	if debugInfo == nil {
 		debugInfo = &v1.DebugInformation{
 			Check: &v1.CheckDebugTrace{
-				TraceId:  uuid.NewString(),
+				TraceId:  NewTraceID(),
 				SourceId: nodeID,
 			},
 		}
@@ -1328,7 +1327,7 @@ func combineResponseMetadata(ctx context.Context, existing *v1.ResponseMeta, res
 
 	debugInfo := &v1.DebugInformation{
 		Check: &v1.CheckDebugTrace{
-			TraceId:  uuid.NewString(),
+			TraceId:  NewTraceID(),
 			SourceId: nodeID,
 		},
 	}
diff --git a/internal/graph/traceid.go b/internal/graph/traceid.go
new file mode 100644
index 0000000000..e275bc5adb
--- /dev/null
+++ b/internal/graph/traceid.go
@@ -0,0 +1,13 @@
+package graph
+
+import (
+	"github.com/google/uuid"
+)
+
+// NewTraceID generates a new trace ID. The trace IDs will only be unique with
+// a single dispatch request tree and should not be used for any other purpose.
+// This function currently uses the UUID library to generate a new trace ID,
+// which means it should not be invoked from performance-critical code paths.
+func NewTraceID() string {
+	return uuid.NewString()
+}
diff --git a/internal/services/v1/bulkcheck.go b/internal/services/v1/bulkcheck.go
index e9bc656d3c..28dfa40fb8 100644
--- a/internal/services/v1/bulkcheck.go
+++ b/internal/services/v1/bulkcheck.go
@@ -7,7 +7,6 @@ import (
 	"time"
 
 	v1 "github.com/authzed/authzed-go/proto/authzed/api/v1"
-	"github.com/google/uuid"
 	"github.com/jzelinskie/stringz"
 	"google.golang.org/grpc/status"
 	"google.golang.org/protobuf/types/known/durationpb"
@@ -199,7 +198,7 @@ func (bc *bulkChecker) checkBulkPermissions(ctx context.Context, req *v1.CheckBu
 							},
 							Results:  localResults,
 							Duration: durationpb.New(time.Duration(0)),
-							TraceId:  uuid.New().String(),
+							TraceId:  graph.NewTraceID(),
 							SourceId: debugInfo.Check.SourceId,
 						},
 					}
diff --git a/pkg/middleware/nodeid/nodeid.go b/pkg/middleware/nodeid/nodeid.go
index 2c8cea66f9..cea4a51521 100644
--- a/pkg/middleware/nodeid/nodeid.go
+++ b/pkg/middleware/nodeid/nodeid.go
@@ -2,8 +2,10 @@ package nodeid
 
 import (
 	"context"
+	"fmt"
 	"os"
 
+	"github.com/cespare/xxhash/v2"
 	middleware "github.com/grpc-ecosystem/go-grpc-middleware/v2"
 	"google.golang.org/grpc"
 )
@@ -40,7 +42,14 @@ func FromContext(ctx context.Context) (string, error) {
 		if err != nil {
 			return "", err
 		}
-		defaultNodeID = spiceDBPrefix + hostname
+
+		// Hash the hostname to get the final default node ID.
+		hasher := xxhash.New()
+		if _, err := hasher.WriteString(hostname); err != nil {
+			return "", fmt.Errorf("failed to hash hostname: %w", err)
+		}
+
+		defaultNodeID = spiceDBPrefix + fmt.Sprintf("%x", hasher.Sum(nil))
 	}
 
 	if err := setInContext(ctx, defaultNodeID); err != nil {