diff --git a/lib/supavisor/client_handler.ex b/lib/supavisor/client_handler.ex
index 761c65f8..73e2b4ab 100644
--- a/lib/supavisor/client_handler.ex
+++ b/lib/supavisor/client_handler.ex
@@ -328,7 +328,10 @@ defmodule Supavisor.ClientHandler do
           idle_timeout: opts.idle_timeout
       }
 
-      Registry.register(@clients_registry, data.id, started_at: System.monotonic_time())
+      Registry.register(@clients_registry, data.id,
+        started_at: System.monotonic_time(),
+        app_name: data.app_name
+      )
 
       cond do
         data.client_ready ->
@@ -354,7 +357,7 @@ defmodule Supavisor.ClientHandler do
         case Supavisor.get_pool_ranch(data.id) do
           {:ok, pool_ranch} ->
             Logger.metadata(proxy: true)
-            Registry.register(@proxy_clients_registry, data.id, [])
+            Registry.register(@proxy_clients_registry, data.id, app_name: data.app_name)
 
             {:keep_state, %{data | pool_ranch: pool_ranch}, {:next_event, :internal, :connect_db}}
 
@@ -903,7 +906,7 @@ defmodule Supavisor.ClientHandler do
         else: :auth_query
 
     connection_params = %Supavisor.ConnectionParameters{
-      application_name: data.app_name || "Supavisor",
+      application_name: data.app_name,
       database: db_name,
       host: to_charlist(info.tenant.db_host),
       sni_hostname:
diff --git a/lib/supavisor/client_handler/protocol_helpers.ex b/lib/supavisor/client_handler/protocol_helpers.ex
index e5d7cd89..27ee25a2 100644
--- a/lib/supavisor/client_handler/protocol_helpers.ex
+++ b/lib/supavisor/client_handler/protocol_helpers.ex
@@ -113,15 +113,15 @@ defmodule Supavisor.ClientHandler.ProtocolHelpers do
   @doc """
   Normalizes application name from client connection.
 
-  Returns sanitized string or default "Supavisor" for invalid names.
+  Returns sanitized string or default "" for missing/invalid names.
   """
   @spec normalize_app_name(any()) :: String.t()
   def normalize_app_name(name) when is_binary(name), do: name
-  def normalize_app_name(nil), do: "Supavisor"
+  def normalize_app_name(nil), do: ""
 
   def normalize_app_name(name) do
     Logger.debug("ClientHandler: Invalid application name #{inspect(name)}")
-    "Supavisor"
+    ""
   end
 
   @doc """
diff --git a/lib/supavisor/db_handler.ex b/lib/supavisor/db_handler.ex
index 8165c501..0f9b25ae 100644
--- a/lib/supavisor/db_handler.ex
+++ b/lib/supavisor/db_handler.ex
@@ -166,15 +166,23 @@ defmodule Supavisor.DbHandler do
         %{} -> {args.id, Supavisor.Manager.get_config(args.id)}
       end
 
+    proxy = Map.get(config, :proxy, false)
+
     Helpers.set_log_level(config.log_level)
     Helpers.set_max_heap_size(90)
-
     Logger.metadata(project: config.tenant, user: config.user, mode: config.mode)
 
+    conn_params =
+      if proxy do
+        config.connection_params
+      else
+        %ConnectionParameters{config.connection_params | application_name: "Supavisor"}
+      end
+
     data = %{
       id: id,
       sock: nil,
-      connection_params: config.connection_params,
+      connection_params: conn_params,
       user: config.user,
       tenant: config.tenant,
       tenant_feature_flags: config.tenant_feature_flags,
@@ -184,7 +192,7 @@ defmodule Supavisor.DbHandler do
       server_proof: nil,
       stats: %{},
       prepared_statements: MapSet.new(),
-      proxy: Map.get(config, :proxy, false),
+      proxy: proxy,
       client_tls: Map.get(config, :client_tls),
       client_jit: Map.get(config, :client_jit),
       stream_state: MessageStreamer.new_stream_state(BackendMessageHandler),
diff --git a/lib/supavisor/monitoring/tenant.ex b/lib/supavisor/monitoring/tenant.ex
index 05fd556f..83bc0097 100644
--- a/lib/supavisor/monitoring/tenant.ex
+++ b/lib/supavisor/monitoring/tenant.ex
@@ -248,28 +248,35 @@ defmodule Supavisor.PromEx.Plugins.Tenant do
           event_name: [:supavisor, :connections],
           description: "The total count of active clients for a tenant.",
           measurement: :active,
-          tags: @tags
+          tags: @tags ++ [:app_name]
         )
       ]
     )
   end
 
   def execute_tenant_metrics do
-    Registry.select(Supavisor.Registry.TenantClients, [{{:"$1", :_, :_}, [], [:"$1"]}])
-    |> Enum.frequencies_by(&Supavisor.id(&1, upstream_tls: false))
-    |> Enum.each(&emit_telemetry_for_tenant/1)
+    Supavisor.Registry.TenantClients
+    |> Registry.select([{{:"$1", :_, :"$2"}, [], [{{:"$1", :"$2"}}]}])
+    |> Enum.frequencies_by(fn {id, meta} ->
+      {Supavisor.id(id, upstream_tls: false), meta[:app_name] || ""}
+    end)
+    |> Enum.each(fn {{id, app_name}, count} ->
+      emit_telemetry_for_tenant(id, count, app_name)
+    end)
   end
 
-  @spec emit_telemetry_for_tenant({S.id(), non_neg_integer()}) :: :ok
+  @spec emit_telemetry_for_tenant(S.id(), non_neg_integer(), String.t()) :: :ok
   def emit_telemetry_for_tenant(
-        {Supavisor.id(
-           type: type,
-           tenant: tenant,
-           user: user,
-           mode: mode,
-           db: db_name,
-           search_path: search_path
-         ), count}
+        Supavisor.id(
+          type: type,
+          tenant: tenant,
+          user: user,
+          mode: mode,
+          db: db_name,
+          search_path: search_path
+        ),
+        count,
+        app_name
       ) do
     :telemetry.execute(
       [:supavisor, :connections],
@@ -280,7 +287,8 @@ defmodule Supavisor.PromEx.Plugins.Tenant do
         mode: mode,
         type: type,
         db_name: db_name,
-        search_path: search_path
+        search_path: search_path,
+        app_name: app_name
       }
     )
   end
@@ -296,7 +304,7 @@ defmodule Supavisor.PromEx.Plugins.Tenant do
           event_name: [:supavisor, :client, :connection, :lifetime],
           measurement: :lifetime,
           description: "How long the client connection has been alive.",
-          tags: @tags,
+          tags: @tags ++ [:app_name],
           unit: {:native, :millisecond},
           reporter_options: [
             peep_bucket_calculator: ClientConnectionLifetimeBuckets
@@ -342,7 +350,8 @@ defmodule Supavisor.PromEx.Plugins.Tenant do
             mode: mode,
             type: type,
             db_name: db_name,
-            search_path: search_path
+            search_path: search_path,
+            app_name: meta[:app_name] || ""
           }
         )
     end
@@ -359,28 +368,35 @@ defmodule Supavisor.PromEx.Plugins.Tenant do
           event_name: [:supavisor, :proxy, :connections],
           description: "The total count of active proxy clients for a tenant.",
           measurement: :active,
-          tags: @tags
+          tags: @tags ++ [:app_name]
         )
       ]
     )
   end
 
   def execute_tenant_proxy_metrics do
-    Registry.select(Supavisor.Registry.TenantProxyClients, [{{:"$1", :_, :_}, [], [:"$1"]}])
-    |> Enum.frequencies_by(&Supavisor.id(&1, upstream_tls: false))
-    |> Enum.each(&emit_proxy_telemetry_for_tenant/1)
+    Supavisor.Registry.TenantProxyClients
+    |> Registry.select([{{:"$1", :_, :"$2"}, [], [{{:"$1", :"$2"}}]}])
+    |> Enum.frequencies_by(fn {id, meta} ->
+      {Supavisor.id(id, upstream_tls: false), meta[:app_name] || ""}
+    end)
+    |> Enum.each(fn {{id, app_name}, count} ->
+      emit_proxy_telemetry_for_tenant(id, count, app_name)
+    end)
   end
 
-  @spec emit_proxy_telemetry_for_tenant({S.id(), non_neg_integer()}) :: :ok
+  @spec emit_proxy_telemetry_for_tenant(S.id(), non_neg_integer(), String.t()) :: :ok
   def emit_proxy_telemetry_for_tenant(
-        {Supavisor.id(
-           type: type,
-           tenant: tenant,
-           user: user,
-           mode: mode,
-           db: db_name,
-           search_path: search_path
-         ), count}
+        Supavisor.id(
+          type: type,
+          tenant: tenant,
+          user: user,
+          mode: mode,
+          db: db_name,
+          search_path: search_path
+        ),
+        count,
+        app_name
       ) do
     :telemetry.execute(
       [:supavisor, :proxy, :connections],
@@ -391,7 +407,8 @@ defmodule Supavisor.PromEx.Plugins.Tenant do
         mode: mode,
         type: type,
         db_name: db_name,
-        search_path: search_path
+        search_path: search_path,
+        app_name: app_name
       }
     )
   end
diff --git a/test/integration/proxy_test.exs b/test/integration/proxy_test.exs
index 3470937f..3956a828 100644
--- a/test/integration/proxy_test.exs
+++ b/test/integration/proxy_test.exs
@@ -4,6 +4,7 @@ defmodule Supavisor.Integration.ProxyTest do
   require Logger
   require Supavisor
 
+  alias Ecto.Adapters.SQL.Sandbox
   alias Postgrex, as: P
   alias Supavisor.Support.{Cluster, SSLHelper}
 
@@ -135,6 +136,177 @@ defmodule Supavisor.Integration.ProxyTest do
     end
   end
 
+  @tag cluster: true
+  test "app_name is set correctly for the proxy connection" do
+    db_conf = Application.get_env(:supavisor, Supavisor.Repo)
+    username = db_conf[:username]
+
+    tenant =
+      Sandbox.unboxed_run(Supavisor.Repo, fn ->
+        random_suffix = :crypto.strong_rand_bytes(8) |> Base.encode16(case: :lower)
+        tenant_id = "app_name_test_#{System.unique_integer([:positive])}_#{random_suffix}"
+
+        {:ok, _} =
+          Supavisor.Tenants.create_tenant(%{
+            db_host: to_string(db_conf[:hostname]),
+            db_port: db_conf[:port],
+            db_database: db_conf[:database],
+            default_parameter_status: %{},
+            external_id: tenant_id,
+            require_user: true,
+            availability_zone: "ap-southeast-1c",
+            users: [
+              %{
+                "db_user" => db_conf[:username],
+                "db_password" => db_conf[:password],
+                "pool_size" => 3,
+                "mode_type" => "transaction"
+              }
+            ]
+          })
+
+        on_exit(fn -> Supavisor.Tenants.delete_tenant_by_external_id(tenant_id) end)
+        tenant_id
+      end)
+
+    id =
+      Supavisor.id(
+        type: :single,
+        tenant: tenant,
+        user: username,
+        mode: :transaction,
+        db: db_conf[:database]
+      )
+
+    assert {:ok, _pid, node2} = Cluster.start_node()
+    Node.connect(node2)
+
+    {:ok, conn} =
+      Postgrex.start_link(
+        hostname: db_conf[:hostname],
+        port: Application.get_env(:supavisor, :proxy_port_transaction),
+        database: db_conf[:database],
+        password: db_conf[:password],
+        username: "#{username}.#{tenant}",
+        parameters: [application_name: "my_test_app"]
+      )
+
+    # Upstream DB connection should always identify as "Supavisor"
+    assert %P.Result{rows: [["Supavisor"]]} =
+             P.query!(conn, "SELECT current_setting('application_name')", [])
+
+    # node2 is the pool node
+    :ok =
+      wait_until(fn ->
+        :rpc.call(node2, Registry, :lookup, [
+          Supavisor.Registry.TenantClients,
+          id
+        ]) != []
+      end)
+
+    [{_pid, proxy_meta}] =
+      :rpc.call(node2, Registry, :lookup, [
+        Supavisor.Registry.TenantClients,
+        id
+      ])
+
+    assert proxy_meta[:app_name] == "my_test_app"
+
+    # our node is the proxy node
+    :ok =
+      wait_until(fn ->
+        Registry.lookup(Supavisor.Registry.TenantProxyClients, id) != []
+      end)
+
+    [{_pid, pool_meta}] = Registry.lookup(Supavisor.Registry.TenantProxyClients, id)
+    assert pool_meta[:app_name] == "my_test_app"
+  end
+
+  @tag cluster: true
+  test "app_name defaults to empty string when not provided" do
+    db_conf = Application.get_env(:supavisor, Supavisor.Repo)
+    username = db_conf[:username]
+
+    tenant =
+      Sandbox.unboxed_run(Supavisor.Repo, fn ->
+        random_suffix = :crypto.strong_rand_bytes(8) |> Base.encode16(case: :lower)
+        tenant_id = "app_name_empty_#{System.unique_integer([:positive])}_#{random_suffix}"
+
+        {:ok, _} =
+          Supavisor.Tenants.create_tenant(%{
+            db_host: to_string(db_conf[:hostname]),
+            db_port: db_conf[:port],
+            db_database: db_conf[:database],
+            default_parameter_status: %{},
+            external_id: tenant_id,
+            require_user: true,
+            availability_zone: "ap-southeast-1c",
+            users: [
+              %{
+                "db_user" => db_conf[:username],
+                "db_password" => db_conf[:password],
+                "pool_size" => 3,
+                "mode_type" => "transaction"
+              }
+            ]
+          })
+
+        on_exit(fn -> Supavisor.Tenants.delete_tenant_by_external_id(tenant_id) end)
+        tenant_id
+      end)
+
+    id =
+      Supavisor.id(
+        type: :single,
+        tenant: tenant,
+        user: username,
+        mode: :transaction,
+        db: db_conf[:database]
+      )
+
+    assert {:ok, _pid, node2} = Cluster.start_node()
+    Node.connect(node2)
+
+    {:ok, conn} =
+      Postgrex.start_link(
+        hostname: db_conf[:hostname],
+        port: Application.get_env(:supavisor, :proxy_port_transaction),
+        database: db_conf[:database],
+        password: db_conf[:password],
+        username: "#{username}.#{tenant}"
+      )
+
+    # Upstream DB connection should always identify as "Supavisor"
+    assert %P.Result{rows: [["Supavisor"]]} =
+             P.query!(conn, "SELECT current_setting('application_name')", [])
+
+    # node2 is the pool node
+    :ok =
+      wait_until(fn ->
+        :rpc.call(node2, Registry, :lookup, [
+          Supavisor.Registry.TenantClients,
+          id
+        ]) != []
+      end)
+
+    [{_pid, proxy_meta}] =
+      :rpc.call(node2, Registry, :lookup, [
+        Supavisor.Registry.TenantClients,
+        id
+      ])
+
+    assert proxy_meta[:app_name] == ""
+
+    # our node is the proxy node
+    :ok =
+      wait_until(fn ->
+        Registry.lookup(Supavisor.Registry.TenantProxyClients, id) != []
+      end)
+
+    [{_pid, pool_meta}] = Registry.lookup(Supavisor.Registry.TenantProxyClients, id)
+    assert pool_meta[:app_name] == ""
+  end
+
   for tenant <- @tenants do
     test "select with #{tenant}" do
       %{proxy: proxy, origin: origin} = setup_tenant_connections(unquote(tenant))
diff --git a/test/supavisor/client_handler_test.exs b/test/supavisor/client_handler_test.exs
index a2a176b6..60b74633 100644
--- a/test/supavisor/client_handler_test.exs
+++ b/test/supavisor/client_handler_test.exs
@@ -142,7 +142,7 @@ defmodule Supavisor.ClientHandlerTest do
 
       data = %{sock: {:gen_tcp, :fake_port}, id: "test", app_name: nil}
 
-      assert {:keep_state, %{app_name: "Supavisor"},
+      assert {:keep_state, %{app_name: ""},
               {:next_event, :internal,
                {:hello, {:single, {"postgres", "dev_tenant", "postgres", nil, false, nil}}}}} =
                @subject.handle_event(:info, {:tcp, :fake_port, bin}, :handshake, data)
diff --git a/test/supavisor/metrics_cleaner_test.exs b/test/supavisor/metrics_cleaner_test.exs
index 86006878..722eeb59 100644
--- a/test/supavisor/metrics_cleaner_test.exs
+++ b/test/supavisor/metrics_cleaner_test.exs
@@ -23,13 +23,15 @@ defmodule Supavisor.MetricsCleanerTest do
   test "metrics for unknown tenant are removed" do
     :ok =
       Metrics.emit_telemetry_for_tenant(
-        {Supavisor.id(
-           type: :single,
-           tenant: "non-existent",
-           user: "foo",
-           mode: :transaction,
-           db: "bar"
-         ), 2137}
+        Supavisor.id(
+          type: :single,
+          tenant: "non-existent",
+          user: "foo",
+          mode: :transaction,
+          db: "bar"
+        ),
+        2137,
+        ""
       )
 
     metrics = Supavisor.Monitoring.PromEx.get_metrics()
@@ -112,13 +114,15 @@ defmodule Supavisor.MetricsCleanerTest do
 
     :ok =
       Metrics.emit_telemetry_for_tenant(
-        {Supavisor.id(
-           type: :single,
-           tenant: "orphan-tags-test",
-           user: "foo",
-           mode: :transaction,
-           db: "bar"
-         ), 42}
+        Supavisor.id(
+          type: :single,
+          tenant: "orphan-tags-test",
+          user: "foo",
+          mode: :transaction,
+          db: "bar"
+        ),
+        42,
+        ""
       )
 
     # Trigger a scrape so the cache_tid gets populated via the export path
@@ -132,7 +136,8 @@ defmodule Supavisor.MetricsCleanerTest do
       mode: :transaction,
       type: :single,
       db_name: "bar",
-      search_path: nil
+      search_path: nil,
+      app_name: ""
     }
 
     [{^tags_map, tags_id}] = :ets.lookup(tags_tid, tags_map)
diff --git a/test/supavisor/monitoring/tenant_test.exs b/test/supavisor/monitoring/tenant_test.exs
index fe714458..06ca93aa 100644
--- a/test/supavisor/monitoring/tenant_test.exs
+++ b/test/supavisor/monitoring/tenant_test.exs
@@ -104,7 +104,8 @@ defmodule Supavisor.PromEx.Plugins.TenantTest do
                mode: :transaction,
                type: :single,
                db_name: ctx.db,
-               search_path: nil
+               search_path: nil,
+               app_name: ""
              }
     end
   end
@@ -129,7 +130,7 @@ defmodule Supavisor.PromEx.Plugins.TenantTest do
         start_supervised!(
           {Task,
            fn ->
-             Registry.register(Supavisor.Registry.TenantClients, id, [])
+             Registry.register(Supavisor.Registry.TenantClients, id, app_name: "myapp")
              Process.sleep(:infinity)
            end},
           id: :"client_#{i}"
@@ -147,12 +148,64 @@ defmodule Supavisor.PromEx.Plugins.TenantTest do
                mode: :transaction,
                type: :single,
                db_name: "test_db",
-               search_path: nil
+               search_path: nil,
+               app_name: "myapp"
              }
 
       refute_receive {^ref, {[:supavisor, :connections], %{active: 3}, _}}
       refute_receive {^ref, {[:supavisor, :connections], %{active: 2}, _}}
     end
+
+    test "groups clients by app_name" do
+      id =
+        Supavisor.id(
+          type: :single,
+          tenant: "metrics_app_name_test",
+          user: "test_user",
+          mode: :transaction,
+          db: "test_db",
+          search_path: nil,
+          upstream_tls: false
+        )
+
+      clients = [
+        {id, [app_name: "webapp"]},
+        {id, [app_name: "webapp"]},
+        {id, [app_name: "worker"]},
+        {id, [app_name: ""]}
+      ]
+
+      for {{reg_id, meta}, i} <- Enum.with_index(clients) do
+        start_supervised!(
+          {Task,
+           fn ->
+             Registry.register(Supavisor.Registry.TenantClients, reg_id, meta)
+             Process.sleep(:infinity)
+           end},
+          id: :"app_name_client_#{i}"
+        )
+      end
+
+      ref = attach_handler([:supavisor, :connections])
+      Tenant.execute_tenant_metrics()
+
+      events =
+        Enum.reduce_while(1..10, [], fn _, acc ->
+          receive do
+            {^ref, {[:supavisor, :connections], measurement, meta}} ->
+              {:cont, [{measurement, meta} | acc]}
+          after
+            100 -> {:halt, acc}
+          end
+        end)
+
+      assert length(events) == 3
+
+      by_app = Map.new(events, fn {%{active: count}, %{app_name: app}} -> {app, count} end)
+      assert by_app["webapp"] == 2
+      assert by_app["worker"] == 1
+      assert by_app[""] == 1
+    end
   end
 
   describe "execute_tenant_proxy_metrics/0" do
@@ -174,7 +227,7 @@ defmodule Supavisor.PromEx.Plugins.TenantTest do
         start_supervised!(
           {Task,
            fn ->
-             Registry.register(Supavisor.Registry.TenantProxyClients, id, [])
+             Registry.register(Supavisor.Registry.TenantProxyClients, id, app_name: "proxyapp")
              Process.sleep(:infinity)
            end},
           id: :"proxy_client_#{i}"
@@ -192,7 +245,8 @@ defmodule Supavisor.PromEx.Plugins.TenantTest do
                mode: :transaction,
                type: :single,
                db_name: "test_db",
-               search_path: nil
+               search_path: nil,
+               app_name: "proxyapp"
              }
 
       refute_receive {^ref, {[:supavisor, :proxy, :connections], %{active: 2}, _}}