diff --git a/aws_lambda_powertools/shared/constants.py b/aws_lambda_powertools/shared/constants.py
index 47bb384bc76..82c131843fb 100644
--- a/aws_lambda_powertools/shared/constants.py
+++ b/aws_lambda_powertools/shared/constants.py
@@ -6,6 +6,7 @@
 XRAY_SDK_CORE_MODULE: str = "aws_xray_sdk.core"
 XRAY_TRACE_ID_ENV: str = "_X_AMZN_TRACE_ID"
 MIDDLEWARE_FACTORY_TRACE_ENV: str = "POWERTOOLS_TRACE_MIDDLEWARES"
+INVALID_XRAY_NAME_CHARACTERS = r"[?;*()!$~^<>]"
 
 # Logger constants
 LOGGER_LOG_SAMPLING_RATE: str = "POWERTOOLS_LOGGER_SAMPLE_RATE"
diff --git a/aws_lambda_powertools/shared/functions.py b/aws_lambda_powertools/shared/functions.py
index ee274498260..0f943f36d39 100644
--- a/aws_lambda_powertools/shared/functions.py
+++ b/aws_lambda_powertools/shared/functions.py
@@ -4,6 +4,7 @@
 import itertools
 import logging
 import os
+import re
 import warnings
 from binascii import Error as BinAsciiError
 from pathlib import Path
@@ -275,13 +276,10 @@ def abs_lambda_path(relative_path: str = "") -> str:
         If the path is empty, it will return the current working directory.
     """
     # Retrieve the LAMBDA_TASK_ROOT environment variable or default to an empty string
-    current_working_directory = os.environ.get("LAMBDA_TASK_ROOT", "")
+    current_working_directory = os.environ.get("LAMBDA_TASK_ROOT", "") or str(Path.cwd())
 
-    # If LAMBDA_TASK_ROOT is not set, use the current working directory
-    if not current_working_directory:
-        current_working_directory = str(Path.cwd())
+    return str(Path(current_working_directory, relative_path))
 
-    # Combine the current working directory and the relative path to get the absolute path
-    absolute_path = str(Path(current_working_directory, relative_path))
 
-    return absolute_path
+def sanitize_xray_segment_name(name: str) -> str:
+    return re.sub(constants.INVALID_XRAY_NAME_CHARACTERS, "", name)
diff --git a/aws_lambda_powertools/tracing/tracer.py b/aws_lambda_powertools/tracing/tracer.py
index 8c673294faa..a79ac4ec738 100644
--- a/aws_lambda_powertools/tracing/tracer.py
+++ b/aws_lambda_powertools/tracing/tracer.py
@@ -8,7 +8,11 @@
 from typing import Any, Callable, Dict, List, Optional, Sequence, Union, cast, overload
 
 from aws_lambda_powertools.shared import constants
-from aws_lambda_powertools.shared.functions import resolve_env_var_choice, resolve_truthy_env_var_choice
+from aws_lambda_powertools.shared.functions import (
+    resolve_env_var_choice,
+    resolve_truthy_env_var_choice,
+    sanitize_xray_segment_name,
+)
 from aws_lambda_powertools.shared.lazy_import import LazyLoader
 from aws_lambda_powertools.shared.types import AnyCallableT
 from aws_lambda_powertools.tracing.base import BaseProvider, BaseSegment
@@ -520,7 +524,8 @@ async def async_tasks():
             )
 
         # Example: app.ClassA.get_all  # noqa ERA001
-        method_name = f"{method.__module__}.{method.__qualname__}"
+        # Valid characters can be found at http://docs.aws.amazon.com/xray/latest/devguide/xray-api-segmentdocuments.html
+        method_name = sanitize_xray_segment_name(f"{method.__module__}.{method.__qualname__}")
 
         capture_response = resolve_truthy_env_var_choice(
             env=os.getenv(constants.TRACER_CAPTURE_RESPONSE_ENV, "true"),
diff --git a/tests/unit/test_shared_functions.py b/tests/unit/test_shared_functions.py
index c8c4bb2afb2..b286c536249 100644
--- a/tests/unit/test_shared_functions.py
+++ b/tests/unit/test_shared_functions.py
@@ -15,6 +15,7 @@
     resolve_env_var_choice,
     resolve_max_age,
     resolve_truthy_env_var_choice,
+    sanitize_xray_segment_name,
     strtobool,
 )
 from aws_lambda_powertools.utilities.data_classes.common import DictWrapper
@@ -175,3 +176,27 @@ def test_abs_lambda_path_w_filename_envvar(default_lambda_path):
     os.environ["LAMBDA_TASK_ROOT"] = default_lambda_path
     # Then path = env + relative_path
     assert abs_lambda_path(relative_path="cert/pub.cert") == str(Path(os.environ["LAMBDA_TASK_ROOT"], relative_path))
+
+
+def test_sanitize_xray_segment_name():
+    # GIVEN a name with invalid characters
+    invalid_name = "app?;*.lambda_function.(<locals>).get_todos!$~^<>"
+
+    # WHEN we sanitize this name by removing invalid characters
+    sanitized_name = sanitize_xray_segment_name(invalid_name)
+
+    # THEN the sanitized name should not contain invalid characters
+    expected_name = "app.lambda_function.locals.get_todos"
+    assert sanitized_name == expected_name
+
+
+def test_sanitize_xray_segment_name_with_no_special_characters():
+    # GIVEN a name without any invalid characters
+    valid_name = "app#lambda_function"
+
+    # WHEN we sanitize this name
+    sanitized_name = sanitize_xray_segment_name(valid_name)
+
+    # THEN the sanitized name remains the same as the original name
+    expected_name = valid_name
+    assert sanitized_name == expected_name
diff --git a/tests/unit/test_tracing.py b/tests/unit/test_tracing.py
index 7b09bcde885..0d12afa629b 100644
--- a/tests/unit/test_tracing.py
+++ b/tests/unit/test_tracing.py
@@ -127,10 +127,10 @@ def greeting(name, message):
     # and use service name as a metadata namespace
     assert in_subsegment_mock.in_subsegment.call_count == 1
     assert in_subsegment_mock.in_subsegment.call_args == mocker.call(
-        name=f"## {MODULE_PREFIX}.test_tracer_method.<locals>.greeting",
+        name=f"## {MODULE_PREFIX}.test_tracer_method.locals.greeting",
     )
     assert in_subsegment_mock.put_metadata.call_args == mocker.call(
-        key=f"{MODULE_PREFIX}.test_tracer_method.<locals>.greeting response",
+        key=f"{MODULE_PREFIX}.test_tracer_method.locals.greeting response",
         value=dummy_response,
         namespace="booking",
     )
@@ -261,8 +261,7 @@ def greeting(name, message):
     # and their service name as the namespace
     put_metadata_mock_args = in_subsegment_mock.put_metadata.call_args[1]
     assert (
-        put_metadata_mock_args["key"]
-        == f"{MODULE_PREFIX}.test_tracer_method_exception_metadata.<locals>.greeting error"
+        put_metadata_mock_args["key"] == f"{MODULE_PREFIX}.test_tracer_method_exception_metadata.locals.greeting error"
     )
     assert put_metadata_mock_args["namespace"] == "booking"
 
@@ -316,20 +315,20 @@ async def greeting(name, message):
     # THEN we should add metadata for each response like we would for a sync decorated method
     assert in_subsegment_mock.in_subsegment.call_count == 2
     assert in_subsegment_greeting_call_args == mocker.call(
-        name=f"## {MODULE_PREFIX}.test_tracer_method_nested_async.<locals>.greeting",
+        name=f"## {MODULE_PREFIX}.test_tracer_method_nested_async.locals.greeting",
     )
     assert in_subsegment_greeting2_call_args == mocker.call(
-        name=f"## {MODULE_PREFIX}.test_tracer_method_nested_async.<locals>.greeting_2",
+        name=f"## {MODULE_PREFIX}.test_tracer_method_nested_async.locals.greeting_2",
     )
 
     assert in_subsegment_mock.put_metadata.call_count == 2
     assert put_metadata_greeting2_call_args == mocker.call(
-        key=f"{MODULE_PREFIX}.test_tracer_method_nested_async.<locals>.greeting_2 response",
+        key=f"{MODULE_PREFIX}.test_tracer_method_nested_async.locals.greeting_2 response",
         value=dummy_response,
         namespace="booking",
     )
     assert put_metadata_greeting_call_args == mocker.call(
-        key=f"{MODULE_PREFIX}.test_tracer_method_nested_async.<locals>.greeting response",
+        key=f"{MODULE_PREFIX}.test_tracer_method_nested_async.locals.greeting response",
         value=dummy_response,
         namespace="booking",
     )
@@ -375,7 +374,7 @@ async def greeting(name, message):
     put_metadata_mock_args = in_subsegment_mock.put_metadata.call_args[1]
     assert (
         put_metadata_mock_args["key"]
-        == f"{MODULE_PREFIX}.test_tracer_method_exception_metadata_async.<locals>.greeting error"
+        == f"{MODULE_PREFIX}.test_tracer_method_exception_metadata_async.locals.greeting error"
     )
     assert put_metadata_mock_args["namespace"] == "booking"
 
@@ -409,7 +408,7 @@ def handler(event, context):
     assert in_subsegment_mock.in_subsegment.call_count == 2
     assert handler_trace == mocker.call(name="## handler")
     assert yield_function_trace == mocker.call(
-        name=f"## {MODULE_PREFIX}.test_tracer_yield_from_context_manager.<locals>.yield_with_capture",
+        name=f"## {MODULE_PREFIX}.test_tracer_yield_from_context_manager.locals.yield_with_capture",
     )
     assert "test result" in result
 
@@ -436,7 +435,7 @@ def yield_with_capture():
     put_metadata_mock_args = in_subsegment_mock.put_metadata.call_args[1]
     assert (
         put_metadata_mock_args["key"]
-        == f"{MODULE_PREFIX}.test_tracer_yield_from_context_manager_exception_metadata.<locals>.yield_with_capture error"  # noqa E501
+        == f"{MODULE_PREFIX}.test_tracer_yield_from_context_manager_exception_metadata.locals.yield_with_capture error"  # noqa E501
     )
     assert isinstance(put_metadata_mock_args["value"], ValueError)
     assert put_metadata_mock_args["namespace"] == "booking"
@@ -480,7 +479,7 @@ def handler(event, context):
     assert in_subsegment_mock.in_subsegment.call_count == 2
     assert handler_trace == mocker.call(name="## handler")
     assert yield_function_trace == mocker.call(
-        name=f"## {MODULE_PREFIX}.test_tracer_yield_from_nested_context_manager.<locals>.yield_with_capture",
+        name=f"## {MODULE_PREFIX}.test_tracer_yield_from_nested_context_manager.locals.yield_with_capture",
     )
     assert "test result" in result
 
@@ -512,7 +511,7 @@ def handler(event, context):
     assert in_subsegment_mock.in_subsegment.call_count == 2
     assert handler_trace == mocker.call(name="## handler")
     assert generator_fn_trace == mocker.call(
-        name=f"## {MODULE_PREFIX}.test_tracer_yield_from_generator.<locals>.generator_fn",
+        name=f"## {MODULE_PREFIX}.test_tracer_yield_from_generator.locals.generator_fn",
     )
     assert "test result" in result
 
@@ -538,7 +537,7 @@ def generator_fn():
     put_metadata_mock_args = in_subsegment_mock.put_metadata.call_args[1]
     assert (
         put_metadata_mock_args["key"]
-        == f"{MODULE_PREFIX}.test_tracer_yield_from_generator_exception_metadata.<locals>.generator_fn error"
+        == f"{MODULE_PREFIX}.test_tracer_yield_from_generator_exception_metadata.locals.generator_fn error"
     )
     assert put_metadata_mock_args["namespace"] == "booking"
     assert isinstance(put_metadata_mock_args["value"], ValueError)