diff --git a/CHANGELOG.md b/CHANGELOG.md
index 06e9bcda974..073ef899045 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -20,6 +20,7 @@ This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
 
 ### Changed
 
+- For tracestate's members, prepend the new element and remove the oldest one, which is over capacity (#2592)
 - Add event and link drop counts to the exported data from the `oltptrace` exporter. (#2601)
 
 ### Fixed
diff --git a/trace/tracestate.go b/trace/tracestate.go
index 86fc62c1d8f..7b7af6955f9 100644
--- a/trace/tracestate.go
+++ b/trace/tracestate.go
@@ -171,7 +171,8 @@ func (ts TraceState) Get(key string) string {
 // specification an error is returned with the original TraceState.
 //
 // If adding a new list-member means the TraceState would have more members
-// than is allowed an error is returned instead with the original TraceState.
+// then is allowed, the new list-member will be inserted and the right-most
+// list-member will be dropped in the returned TraceState.
 func (ts TraceState) Insert(key, value string) (TraceState, error) {
 	m, err := newMember(key, value)
 	if err != nil {
@@ -179,17 +180,10 @@ func (ts TraceState) Insert(key, value string) (TraceState, error) {
 	}
 
 	cTS := ts.Delete(key)
-	if cTS.Len()+1 > maxListMembers {
-		// TODO (MrAlias): When the second version of the Trace Context
-		// specification is published this needs to not return an error.
-		// Instead it should drop the "right-most" member and insert the new
-		// member at the front.
-		//
-		// https://github.com/w3c/trace-context/pull/448
-		return ts, fmt.Errorf("failed to insert: %w", errMemberNumber)
+	if cTS.Len()+1 <= maxListMembers {
+		cTS.list = append(cTS.list, member{})
 	}
-
-	cTS.list = append(cTS.list, member{})
+	// When the number of members exceeds capacity, drop the "right-most".
 	copy(cTS.list[1:], cTS.list)
 	cTS.list[0] = m
 
diff --git a/trace/tracestate_test.go b/trace/tracestate_test.go
index a1ef14f6f7b..784c1589219 100644
--- a/trace/tracestate_test.go
+++ b/trace/tracestate_test.go
@@ -482,14 +482,20 @@ func TestTraceStateInsert(t *testing.T) {
 			err:        errInvalidKey,
 		},
 		{
-			name:       "too many entries",
+			name:       "drop the right-most member(oldest) in queue",
 			tracestate: maxMembers,
 			key:        "keyx",
 			value:      "valx",
-			expected:   maxMembers,
-			err:        errMemberNumber,
-		},
-	}
+			expected: func() TraceState {
+				// Prepend the new element and remove the oldest one, which is over capacity.
+				return TraceState{
+					list: append(
+						[]member{{Key: "keyx", Value: "valx"}},
+						maxMembers.list[:len(maxMembers.list)-1]...,
+					),
+				}
+			}(),
+		}}
 
 	for _, tc := range testCases {
 		t.Run(tc.name, func(t *testing.T) {