diff --git a/src/khoj/processor/conversation/anthropic/utils.py b/src/khoj/processor/conversation/anthropic/utils.py
index 4f6b68c2..3fee8b43 100644
--- a/src/khoj/processor/conversation/anthropic/utils.py
+++ b/src/khoj/processor/conversation/anthropic/utils.py
@@ -18,7 +18,12 @@ from khoj.processor.conversation.utils import (
     get_image_from_url,
 )
 from khoj.utils import state
-from khoj.utils.helpers import get_chat_usage_metrics, in_debug_mode, is_none_or_empty
+from khoj.utils.helpers import (
+    get_chat_usage_metrics,
+    in_debug_mode,
+    is_none_or_empty,
+    is_promptrace_enabled,
+)
 
 logger = logging.getLogger(__name__)
 
@@ -84,7 +89,7 @@ def anthropic_completion_with_backoff(
     # Save conversation trace
     tracer["chat_model"] = model_name
     tracer["temperature"] = temperature
-    if in_debug_mode() or state.verbose > 1:
+    if is_promptrace_enabled():
         commit_conversation_trace(messages, aggregated_response, tracer)
 
     return aggregated_response
@@ -156,7 +161,7 @@ def anthropic_llm_thread(
         # Save conversation trace
         tracer["chat_model"] = model_name
         tracer["temperature"] = temperature
-        if in_debug_mode() or state.verbose > 1:
+        if is_promptrace_enabled():
             commit_conversation_trace(messages, aggregated_response, tracer)
     except Exception as e:
         logger.error(f"Error in anthropic_llm_thread: {e}", exc_info=True)
diff --git a/src/khoj/processor/conversation/google/utils.py b/src/khoj/processor/conversation/google/utils.py
index eb9b21b0..5f24362b 100644
--- a/src/khoj/processor/conversation/google/utils.py
+++ b/src/khoj/processor/conversation/google/utils.py
@@ -25,7 +25,12 @@ from khoj.processor.conversation.utils import (
     get_image_from_url,
 )
 from khoj.utils import state
-from khoj.utils.helpers import get_chat_usage_metrics, in_debug_mode, is_none_or_empty
+from khoj.utils.helpers import (
+    get_chat_usage_metrics,
+    in_debug_mode,
+    is_none_or_empty,
+    is_promptrace_enabled,
+)
 
 logger = logging.getLogger(__name__)
 
@@ -84,7 +89,7 @@ def gemini_completion_with_backoff(
     # Save conversation trace
     tracer["chat_model"] = model_name
     tracer["temperature"] = temperature
-    if in_debug_mode() or state.verbose > 1:
+    if is_promptrace_enabled():
         commit_conversation_trace(messages, response_text, tracer)
 
     return response_text
@@ -160,7 +165,7 @@ def gemini_llm_thread(
         # Save conversation trace
         tracer["chat_model"] = model_name
         tracer["temperature"] = temperature
-        if in_debug_mode() or state.verbose > 1:
+        if is_promptrace_enabled():
             commit_conversation_trace(messages, aggregated_response, tracer)
     except StopCandidateException as e:
         logger.warning(
diff --git a/src/khoj/processor/conversation/offline/chat_model.py b/src/khoj/processor/conversation/offline/chat_model.py
index 998589dd..66660c43 100644
--- a/src/khoj/processor/conversation/offline/chat_model.py
+++ b/src/khoj/processor/conversation/offline/chat_model.py
@@ -19,7 +19,12 @@ from khoj.processor.conversation.utils import (
 )
 from khoj.utils import state
 from khoj.utils.constants import empty_escape_sequences
-from khoj.utils.helpers import ConversationCommand, in_debug_mode, is_none_or_empty
+from khoj.utils.helpers import (
+    ConversationCommand,
+    in_debug_mode,
+    is_none_or_empty,
+    is_promptrace_enabled,
+)
 from khoj.utils.rawconfig import LocationData
 from khoj.utils.yaml import yaml_dump
 
@@ -246,7 +251,7 @@ def llm_thread(g, messages: List[ChatMessage], model: Any, max_prompt_size: int
             g.send(response_delta)
 
         # Save conversation trace
-        if in_debug_mode() or state.verbose > 1:
+        if is_promptrace_enabled():
             commit_conversation_trace(messages, aggregated_response, tracer)
 
     finally:
@@ -287,7 +292,7 @@ def send_message_to_model_offline(
     # Streamed responses need to be saved by the calling function
     tracer["chat_model"] = model
     tracer["temperature"] = temperature
-    if in_debug_mode() or state.verbose > 1:
+    if is_promptrace_enabled():
         commit_conversation_trace(messages, response_text, tracer)
 
     return response_text
diff --git a/src/khoj/processor/conversation/openai/utils.py b/src/khoj/processor/conversation/openai/utils.py
index ddc59d76..2f01be32 100644
--- a/src/khoj/processor/conversation/openai/utils.py
+++ b/src/khoj/processor/conversation/openai/utils.py
@@ -20,7 +20,11 @@ from khoj.processor.conversation.utils import (
     commit_conversation_trace,
 )
 from khoj.utils import state
-from khoj.utils.helpers import get_chat_usage_metrics, in_debug_mode
+from khoj.utils.helpers import (
+    get_chat_usage_metrics,
+    in_debug_mode,
+    is_promptrace_enabled,
+)
 
 logger = logging.getLogger(__name__)
 
@@ -97,7 +101,7 @@ def completion_with_backoff(
     # Save conversation trace
     tracer["chat_model"] = model
     tracer["temperature"] = temperature
-    if in_debug_mode() or state.verbose > 1:
+    if is_promptrace_enabled():
         commit_conversation_trace(messages, aggregated_response, tracer)
 
     return aggregated_response
@@ -208,7 +212,7 @@ def llm_thread(
         # Save conversation trace
         tracer["chat_model"] = model_name
         tracer["temperature"] = temperature
-        if in_debug_mode() or state.verbose > 1:
+        if is_promptrace_enabled():
             commit_conversation_trace(messages, aggregated_response, tracer)
     except Exception as e:
         logger.error(f"Error in llm_thread: {e}", exc_info=True)
diff --git a/src/khoj/processor/conversation/utils.py b/src/khoj/processor/conversation/utils.py
index 155a109c..21a95a29 100644
--- a/src/khoj/processor/conversation/utils.py
+++ b/src/khoj/processor/conversation/utils.py
@@ -34,6 +34,7 @@ from khoj.utils.helpers import (
     ConversationCommand,
     in_debug_mode,
     is_none_or_empty,
+    is_promptrace_enabled,
     merge_dicts,
 )
 from khoj.utils.rawconfig import FileAttachment
@@ -292,7 +293,7 @@ def save_to_conversation_log(
         user_message=q,
     )
 
-    if os.getenv("PROMPTRACE_DIR"):
+    if is_promptrace_enabled():
         merge_message_into_conversation_trace(q, chat_response, tracer)
 
     logger.info(
@@ -591,7 +592,7 @@ def commit_conversation_trace(
         return None
 
     # Infer repository path from environment variable or provided path
-    repo_path = repo_path or os.getenv("PROMPTRACE_DIR")
+    repo_path = repo_path if not is_none_or_empty(repo_path) else os.getenv("PROMPTRACE_DIR")
     if not repo_path:
         return None
 
@@ -686,7 +687,7 @@ Metadata
         return None
 
 
-def merge_message_into_conversation_trace(query: str, response: str, tracer: dict, repo_path="/tmp/promptrace") -> bool:
+def merge_message_into_conversation_trace(query: str, response: str, tracer: dict, repo_path=None) -> bool:
     """
     Merge the message branch into its parent conversation branch.
 
@@ -709,7 +710,9 @@ def merge_message_into_conversation_trace(query: str, response: str, tracer: dic
         conv_branch = f"c_{tracer['cid']}"
 
         # Infer repository path from environment variable or provided path
-        repo_path = os.getenv("PROMPTRACE_DIR", repo_path)
+        repo_path = repo_path if not is_none_or_empty(repo_path) else os.getenv("PROMPTRACE_DIR")
+        if not repo_path:
+            return None
         repo = Repo(repo_path)
 
         # Checkout conversation branch
diff --git a/src/khoj/utils/helpers.py b/src/khoj/utils/helpers.py
index 02cd7a92..187e9062 100644
--- a/src/khoj/utils/helpers.py
+++ b/src/khoj/utils/helpers.py
@@ -451,6 +451,12 @@ def in_debug_mode():
     return is_env_var_true("KHOJ_DEBUG")
 
 
+def is_promptrace_enabled():
+    """Check if Khoj is running with prompt tracing enabled.
+    Set PROMPTRACE_DIR environment variable to prompt tracing path to enable it."""
+    return not is_none_or_empty(os.getenv("PROMPTRACE_DIR"))
+
+
 def is_valid_url(url: str) -> bool:
     """Check if a string is a valid URL"""
     try: