diff --git a/.changelog/5271.added b/.changelog/5271.added
new file mode 100644
index 00000000000..f69fb5c17c7
--- /dev/null
+++ b/.changelog/5271.added
@@ -0,0 +1 @@
+`opentelemetry-sdk`: the SDK configurator now honors the `OTEL_CONFIG_FILE` environment variable. When set, the SDK loads and applies the referenced declarative configuration file (YAML or JSON) in place of the env-var-based init path.
diff --git a/opentelemetry-sdk/src/opentelemetry/sdk/_configuration/__init__.py b/opentelemetry-sdk/src/opentelemetry/sdk/_configuration/__init__.py
index 432346c6e17..46d1ca7ddfc 100644
--- a/opentelemetry-sdk/src/opentelemetry/sdk/_configuration/__init__.py
+++ b/opentelemetry-sdk/src/opentelemetry/sdk/_configuration/__init__.py
@@ -37,6 +37,7 @@
 )
 from opentelemetry.sdk.environment_variables import (
     _OTEL_PYTHON_LOGGING_AUTO_INSTRUMENTATION_ENABLED,
+    OTEL_CONFIG_FILE,
     OTEL_EXPORTER_OTLP_LOGS_PROTOCOL,
     OTEL_EXPORTER_OTLP_METRICS_PROTOCOL,
     OTEL_EXPORTER_OTLP_PROTOCOL,
@@ -720,4 +721,24 @@ class _OTelSDKConfigurator(_BaseConfigurator):
     """
 
     def _configure(self, **kwargs):
+        if config_file := environ.get(OTEL_CONFIG_FILE):
+            # Imported lazily so that the SDK does not require the optional
+            # file-configuration extras (pyyaml, jsonschema) unless a config
+            # file is actually requested.
+            # pylint: disable=import-outside-toplevel
+            from opentelemetry.sdk._configuration._sdk import (  # noqa: PLC0415
+                configure_sdk,
+            )
+            from opentelemetry.sdk._configuration.file._loader import (  # noqa: PLC0415
+                load_config_file,
+            )
+
+            if kwargs:
+                _logger.warning(
+                    "%s is set; ignoring configurator kwargs: %s",
+                    OTEL_CONFIG_FILE,
+                    sorted(kwargs),
+                )
+            configure_sdk(load_config_file(config_file))
+            return
         _initialize_components(**kwargs)
diff --git a/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables/__init__.py b/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables/__init__.py
index 94738ca4697..e7d04c4eb02 100644
--- a/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables/__init__.py
+++ b/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables/__init__.py
@@ -9,6 +9,18 @@
 Default: "false"
 """
 
+OTEL_CONFIG_FILE = "OTEL_CONFIG_FILE"
+"""
+.. envvar:: OTEL_CONFIG_FILE
+
+The :envvar:`OTEL_CONFIG_FILE` environment variable points the SDK at a
+declarative configuration file (YAML or JSON). When set, the file is the
+sole source of SDK configuration; other ``OTEL_*`` environment variables
+are ignored except where referenced via ``${env:VAR}`` substitution inside
+the file. See the OpenTelemetry declarative configuration specification
+for details.
+"""
+
 OTEL_RESOURCE_ATTRIBUTES = "OTEL_RESOURCE_ATTRIBUTES"
 """
 .. envvar:: OTEL_RESOURCE_ATTRIBUTES
diff --git a/opentelemetry-sdk/tests/_configuration/test_configurator_file_routing.py b/opentelemetry-sdk/tests/_configuration/test_configurator_file_routing.py
new file mode 100644
index 00000000000..89b2098217b
--- /dev/null
+++ b/opentelemetry-sdk/tests/_configuration/test_configurator_file_routing.py
@@ -0,0 +1,89 @@
+# Copyright The OpenTelemetry Authors
+# SPDX-License-Identifier: Apache-2.0
+
+# Tests access private members of SDK classes to assert correct configuration.
+# pylint: disable=protected-access,no-self-use
+
+import unittest
+from unittest.mock import patch
+
+from opentelemetry.sdk._configuration import _OTelSDKConfigurator
+from opentelemetry.sdk._configuration._exceptions import ConfigurationError
+from opentelemetry.sdk.environment_variables import OTEL_CONFIG_FILE
+
+
+class TestConfiguratorFileRouting(unittest.TestCase):
+    def tearDown(self):
+        # _BaseConfigurator caches instances via a singleton; reset so sibling
+        # tests (e.g. test_configurator.py's CustomConfigurator subclass) are
+        # not affected by this class's singleton state.
+        _OTelSDKConfigurator._instance = None
+
+    @patch.dict("os.environ", {}, clear=True)
+    @patch("opentelemetry.sdk._configuration._initialize_components")
+    def test_env_var_unset_runs_env_var_path(self, mock_init_components):
+        _OTelSDKConfigurator()._configure(auto_instrumentation_version="X")
+        mock_init_components.assert_called_once_with(
+            auto_instrumentation_version="X"
+        )
+
+    @patch.dict("os.environ", {OTEL_CONFIG_FILE: "/tmp/otel.yaml"})
+    @patch("opentelemetry.sdk._configuration._sdk.configure_sdk")
+    @patch("opentelemetry.sdk._configuration.file._loader.load_config_file")
+    @patch("opentelemetry.sdk._configuration._initialize_components")
+    def test_env_var_set_routes_to_declarative_path(
+        self, mock_init_components, mock_load, mock_configure_sdk
+    ):
+        sentinel_config = object()
+        mock_load.return_value = sentinel_config
+
+        _OTelSDKConfigurator()._configure()
+
+        mock_load.assert_called_once_with("/tmp/otel.yaml")
+        mock_configure_sdk.assert_called_once_with(sentinel_config)
+        mock_init_components.assert_not_called()
+
+    @patch.dict("os.environ", {OTEL_CONFIG_FILE: "/does/not/exist.yaml"})
+    @patch("opentelemetry.sdk._configuration._initialize_components")
+    def test_env_var_set_missing_file_propagates(self, mock_init_components):
+        with self.assertRaises(ConfigurationError):
+            _OTelSDKConfigurator()._configure()
+        mock_init_components.assert_not_called()
+
+    @patch.dict("os.environ", {OTEL_CONFIG_FILE: "/tmp/otel.yaml"})
+    @patch("opentelemetry.sdk._configuration._sdk.configure_sdk")
+    @patch("opentelemetry.sdk._configuration.file._loader.load_config_file")
+    def test_env_var_set_with_kwargs_warns_and_ignores(
+        self, mock_load, mock_configure_sdk
+    ):
+        mock_load.return_value = object()
+
+        with self.assertLogs(
+            "opentelemetry.sdk._configuration", level="WARNING"
+        ) as captured:
+            _OTelSDKConfigurator()._configure(
+                sampler="X", auto_instrumentation_version="Y"
+            )
+
+        self.assertTrue(
+            any(
+                "OTEL_CONFIG_FILE" in msg and "sampler" in msg
+                for msg in captured.output
+            ),
+            f"Expected warning about ignored kwargs, got: {captured.output}",
+        )
+        mock_configure_sdk.assert_called_once()
+
+    @patch.dict("os.environ", {}, clear=True)
+    @patch("opentelemetry.sdk._configuration._initialize_components")
+    def test_distro_override_pattern_still_works(self, mock_init_components):
+        class CustomConfigurator(_OTelSDKConfigurator):
+            def _configure(self, **kwargs):
+                kwargs["sampler"] = "TEST_SAMPLER"
+                super()._configure(**kwargs)
+
+        CustomConfigurator()._configure(auto_instrumentation_version="V")
+
+        mock_init_components.assert_called_once_with(
+            auto_instrumentation_version="V", sampler="TEST_SAMPLER"
+        )