diff --git a/CHANGELOG.md b/CHANGELOG.md
index c332cda6d8..4eee938181 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -66,6 +66,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
   ([#563](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/563))
 - `opentelemetry-exporter-datadog` Datadog exporter should not use `unknown_service` as fallback resource service name.
   ([#570](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/570))
+- Add support for the async extension of SQLAlchemy (>= 1.4)
+  ([#568](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/568))
 
 ### Added
 - `opentelemetry-instrumentation-httpx` Add `httpx` instrumentation
diff --git a/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/__init__.py b/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/__init__.py
index 01db312b3f..05e6451626 100644
--- a/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/__init__.py
+++ b/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/__init__.py
@@ -36,18 +36,32 @@
         engine=engine,
     )
 
+    # of the async variant of SQLAlchemy
+
+    from sqlalchemy.ext.asyncio import create_async_engine
+
+    from opentelemetry.instrumentation.sqlalchemy import SQLAlchemyInstrumentor
+    import sqlalchemy
+
+    engine = create_async_engine("sqlite:///:memory:")
+    SQLAlchemyInstrumentor().instrument(
+        engine=engine.sync_engine
+    )
+
 API
 ---
 """
 from typing import Collection
 
 import sqlalchemy
+from packaging.version import parse as parse_version
 from wrapt import wrap_function_wrapper as _w
 
 from opentelemetry.instrumentation.instrumentor import BaseInstrumentor
 from opentelemetry.instrumentation.sqlalchemy.engine import (
     EngineTracer,
     _get_tracer,
+    _wrap_create_async_engine,
     _wrap_create_engine,
 )
 from opentelemetry.instrumentation.sqlalchemy.package import _instruments
@@ -76,6 +90,13 @@ def _instrument(self, **kwargs):
         """
         _w("sqlalchemy", "create_engine", _wrap_create_engine)
         _w("sqlalchemy.engine", "create_engine", _wrap_create_engine)
+        if parse_version(sqlalchemy.__version__).release >= (1, 4):
+            _w(
+                "sqlalchemy.ext.asyncio",
+                "create_async_engine",
+                _wrap_create_async_engine,
+            )
+
         if kwargs.get("engine") is not None:
             return EngineTracer(
                 _get_tracer(
@@ -88,3 +109,5 @@ def _instrument(self, **kwargs):
     def _uninstrument(self, **kwargs):
         unwrap(sqlalchemy, "create_engine")
         unwrap(sqlalchemy.engine, "create_engine")
+        if parse_version(sqlalchemy.__version__).release >= (1, 4):
+            unwrap(sqlalchemy.ext.asyncio, "create_async_engine")
diff --git a/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/engine.py b/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/engine.py
index e69c6dbcb4..ed1dfb1976 100644
--- a/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/engine.py
+++ b/instrumentation/opentelemetry-instrumentation-sqlalchemy/src/opentelemetry/instrumentation/sqlalchemy/engine.py
@@ -12,8 +12,6 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-from threading import local
-
 from sqlalchemy.event import listen  # pylint: disable=no-name-in-module
 
 from opentelemetry import trace
@@ -44,6 +42,16 @@ def _get_tracer(engine, tracer_provider=None):
     )
 
 
+# pylint: disable=unused-argument
+def _wrap_create_async_engine(func, module, args, kwargs):
+    """Trace the SQLAlchemy engine, creating an `EngineTracer`
+    object that will listen to SQLAlchemy events.
+    """
+    engine = func(*args, **kwargs)
+    EngineTracer(_get_tracer(engine), engine.sync_engine)
+    return engine
+
+
 # pylint: disable=unused-argument
 def _wrap_create_engine(func, module, args, kwargs):
     """Trace the SQLAlchemy engine, creating an `EngineTracer`
@@ -59,20 +67,10 @@ def __init__(self, tracer, engine):
         self.tracer = tracer
         self.engine = engine
         self.vendor = _normalize_vendor(engine.name)
-        self.cursor_mapping = {}
-        self.local = local()
 
         listen(engine, "before_cursor_execute", self._before_cur_exec)
-        listen(engine, "after_cursor_execute", self._after_cur_exec)
-        listen(engine, "handle_error", self._handle_error)
-
-    @property
-    def current_thread_span(self):
-        return getattr(self.local, "current_span", None)
-
-    @current_thread_span.setter
-    def current_thread_span(self, span):
-        setattr(self.local, "current_span", span)
+        listen(engine, "after_cursor_execute", _after_cur_exec)
+        listen(engine, "handle_error", _handle_error)
 
     def _operation_name(self, db_name, statement):
         parts = []
@@ -90,7 +88,9 @@ def _operation_name(self, db_name, statement):
         return " ".join(parts)
 
     # pylint: disable=unused-argument
-    def _before_cur_exec(self, conn, cursor, statement, *args):
+    def _before_cur_exec(
+        self, conn, cursor, statement, params, context, executemany
+    ):
         attrs, found = _get_attributes_from_url(conn.engine.url)
         if not found:
             attrs = _get_attributes_from_cursor(self.vendor, cursor, attrs)
@@ -100,7 +100,6 @@ def _before_cur_exec(self, conn, cursor, statement, *args):
             self._operation_name(db_name, statement),
             kind=trace.SpanKind.CLIENT,
         )
-        self.current_thread_span = self.cursor_mapping[cursor] = span
         with trace.use_span(span, end_on_exit=False):
             if span.is_recording():
                 span.set_attribute(SpanAttributes.DB_STATEMENT, statement)
@@ -108,34 +107,28 @@ def _before_cur_exec(self, conn, cursor, statement, *args):
                 for key, value in attrs.items():
                     span.set_attribute(key, value)
 
-    # pylint: disable=unused-argument
-    def _after_cur_exec(self, conn, cursor, statement, *args):
-        span = self.cursor_mapping.get(cursor, None)
-        if span is None:
-            return
+        context._otel_span = span
 
-        span.end()
-        self._cleanup(cursor)
 
-    def _handle_error(self, context):
-        span = self.current_thread_span
-        if span is None:
-            return
+# pylint: disable=unused-argument
+def _after_cur_exec(conn, cursor, statement, params, context, executemany):
+    span = getattr(context, "_otel_span", None)
+    if span is None:
+        return
 
-        try:
-            if span.is_recording():
-                span.set_status(
-                    Status(StatusCode.ERROR, str(context.original_exception),)
-                )
-        finally:
-            span.end()
-            self._cleanup(context.cursor)
-
-    def _cleanup(self, cursor):
-        try:
-            del self.cursor_mapping[cursor]
-        except KeyError:
-            pass
+    span.end()
+
+
+def _handle_error(context):
+    span = getattr(context.execution_context, "_otel_span", None)
+    if span is None:
+        return
+
+    if span.is_recording():
+        span.set_status(
+            Status(StatusCode.ERROR, str(context.original_exception),)
+        )
+    span.end()
 
 
 def _get_attributes_from_url(url):
diff --git a/instrumentation/opentelemetry-instrumentation-sqlalchemy/tests/test_sqlalchemy.py b/instrumentation/opentelemetry-instrumentation-sqlalchemy/tests/test_sqlalchemy.py
index 4a633687e6..bed2b5f312 100644
--- a/instrumentation/opentelemetry-instrumentation-sqlalchemy/tests/test_sqlalchemy.py
+++ b/instrumentation/opentelemetry-instrumentation-sqlalchemy/tests/test_sqlalchemy.py
@@ -11,8 +11,11 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
+import asyncio
 from unittest import mock
 
+import pytest
+import sqlalchemy
 from sqlalchemy import create_engine
 
 from opentelemetry import trace
@@ -38,6 +41,29 @@ def test_trace_integration(self):
         self.assertEqual(spans[0].name, "SELECT :memory:")
         self.assertEqual(spans[0].kind, trace.SpanKind.CLIENT)
 
+    @pytest.mark.skipif(
+        not sqlalchemy.__version__.startswith("1.4"),
+        reason="only run async tests for 1.4",
+    )
+    def test_async_trace_integration(self):
+        async def run():
+            from sqlalchemy.ext.asyncio import (  # pylint: disable-all
+                create_async_engine,
+            )
+
+            engine = create_async_engine("sqlite+aiosqlite:///:memory:")
+            SQLAlchemyInstrumentor().instrument(
+                engine=engine.sync_engine, tracer_provider=self.tracer_provider
+            )
+            async with engine.connect() as cnx:
+                await cnx.execute(sqlalchemy.text("SELECT	1 + 1;"))
+            spans = self.memory_exporter.get_finished_spans()
+            self.assertEqual(len(spans), 1)
+            self.assertEqual(spans[0].name, "SELECT :memory:")
+            self.assertEqual(spans[0].kind, trace.SpanKind.CLIENT)
+
+        asyncio.get_event_loop().run_until_complete(run())
+
     def test_not_recording(self):
         mock_tracer = mock.Mock()
         mock_span = mock.Mock()
@@ -68,3 +94,24 @@ def test_create_engine_wrapper(self):
         self.assertEqual(len(spans), 1)
         self.assertEqual(spans[0].name, "SELECT :memory:")
         self.assertEqual(spans[0].kind, trace.SpanKind.CLIENT)
+
+    @pytest.mark.skipif(
+        not sqlalchemy.__version__.startswith("1.4"),
+        reason="only run async tests for 1.4",
+    )
+    def test_create_async_engine_wrapper(self):
+        async def run():
+            SQLAlchemyInstrumentor().instrument()
+            from sqlalchemy.ext.asyncio import (  # pylint: disable-all
+                create_async_engine,
+            )
+
+            engine = create_async_engine("sqlite+aiosqlite:///:memory:")
+            async with engine.connect() as cnx:
+                await cnx.execute(sqlalchemy.text("SELECT	1 + 1;"))
+            spans = self.memory_exporter.get_finished_spans()
+            self.assertEqual(len(spans), 1)
+            self.assertEqual(spans[0].name, "SELECT :memory:")
+            self.assertEqual(spans[0].kind, trace.SpanKind.CLIENT)
+
+        asyncio.get_event_loop().run_until_complete(run())
diff --git a/tests/opentelemetry-docker-tests/tests/sqlalchemy_tests/mixins.py b/tests/opentelemetry-docker-tests/tests/sqlalchemy_tests/mixins.py
index c2e5548ab1..b9c766ad1c 100644
--- a/tests/opentelemetry-docker-tests/tests/sqlalchemy_tests/mixins.py
+++ b/tests/opentelemetry-docker-tests/tests/sqlalchemy_tests/mixins.py
@@ -15,6 +15,7 @@
 import contextlib
 import logging
 import threading
+import unittest
 
 from sqlalchemy import Column, Integer, String, create_engine, insert
 from sqlalchemy.ext.declarative import declarative_base
@@ -242,4 +243,10 @@ def insert_players(session):
                 close_all_sessions()
 
         spans = self.memory_exporter.get_finished_spans()
-        self.assertEqual(len(spans), 5)
+
+        # SQLAlchemy 1.4 uses the `execute_values` extension of the psycopg2 dialect to
+        # batch inserts together which means `insert_players` only generates one span.
+        # See https://docs.sqlalchemy.org/en/14/changelog/migration_14.html#orm-batch-inserts-with-psycopg2-now-batch-statements-with-returning-in-most-cases
+        self.assertEqual(
+            len(spans), 5 if self.VENDOR not in ["postgresql"] else 3
+        )
diff --git a/tox.ini b/tox.ini
index 2d58b8928e..e7a5445043 100644
--- a/tox.ini
+++ b/tox.ini
@@ -122,8 +122,8 @@ envlist =
     py3{6,7,8,9}-test-instrumentation-grpc
 
     ; opentelemetry-instrumentation-sqlalchemy
-    py3{6,7,8,9}-test-instrumentation-sqlalchemy
-    pypy3-test-instrumentation-sqlalchemy
+    py3{6,7,8,9}-test-instrumentation-sqlalchemy{11,14}
+    pypy3-test-instrumentation-sqlalchemy{11,14}
 
     ; opentelemetry-instrumentation-redis
     py3{6,7,8,9}-test-instrumentation-redis
@@ -173,6 +173,9 @@ deps =
   elasticsearch6: elasticsearch>=6.0,<7.0
   elasticsearch7: elasticsearch-dsl>=7.0,<8.0
   elasticsearch7: elasticsearch>=7.0,<8.0
+  sqlalchemy11: sqlalchemy>=1.1,<1.2
+  sqlalchemy14: aiosqlite
+  sqlalchemy14: sqlalchemy~=1.4
 
   ; FIXME: add coverage testing
   ; FIXME: add mypy testing
@@ -205,7 +208,7 @@ changedir =
   test-instrumentation-redis: instrumentation/opentelemetry-instrumentation-redis/tests
   test-instrumentation-requests: instrumentation/opentelemetry-instrumentation-requests/tests
   test-instrumentation-sklearn: instrumentation/opentelemetry-instrumentation-sklearn/tests
-  test-instrumentation-sqlalchemy: instrumentation/opentelemetry-instrumentation-sqlalchemy/tests
+  test-instrumentation-sqlalchemy{11,14}: instrumentation/opentelemetry-instrumentation-sqlalchemy/tests
   test-instrumentation-sqlite3: instrumentation/opentelemetry-instrumentation-sqlite3/tests
   test-instrumentation-starlette: instrumentation/opentelemetry-instrumentation-starlette/tests
   test-instrumentation-tornado: instrumentation/opentelemetry-instrumentation-tornado/tests
@@ -290,7 +293,7 @@ commands_pre =
 
   sklearn: pip install {toxinidir}/instrumentation/opentelemetry-instrumentation-sklearn[test]
 
-  sqlalchemy: pip install {toxinidir}/instrumentation/opentelemetry-instrumentation-sqlalchemy[test]
+  sqlalchemy{11,14}: pip install {toxinidir}/instrumentation/opentelemetry-instrumentation-sqlalchemy[test]
 
   elasticsearch{2,5,6,7}: pip install {toxinidir}/opentelemetry-python-core/opentelemetry-instrumentation {toxinidir}/instrumentation/opentelemetry-instrumentation-elasticsearch[test]
 
@@ -329,7 +332,7 @@ commands =
 
 [testenv:lint]
 basepython: python3.9
-recreate = False 
+recreate = False
 deps =
   -c dev-requirements.txt
   flaky
@@ -399,7 +402,7 @@ deps =
   PyMySQL ~= 0.10.1
   psycopg2 ~= 2.8.4
   aiopg >= 0.13.0, < 1.3.0
-  sqlalchemy ~= 1.3.16
+  sqlalchemy ~= 1.4
   redis ~= 3.3.11
   celery[pytest] >= 4.0, < 6.0
   protobuf>=3.13.0