diff --git a/CHANGELOG.md b/CHANGELOG.md
index c65af97b98..c7549c25ef 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ## [Unreleased](https://github.com/open-telemetry/opentelemetry-python/compare/v1.10.0-0.29b0...HEAD)
 
 ### Fixed
+- `opentelemetry-instrumentation-pyramid` Fixed which package is the correct caller in _traced_init.
+  ([#830](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/830))
 - `opentelemetry-instrumentation-tornado` Fix Tornado errors mapping to 500
   ([#1048])(https://github.com/open-telemetry/opentelemetry-python-contrib/pull/1048)
 - `opentelemetry-instrumentation-urllib` make span attributes available to sampler
diff --git a/instrumentation/opentelemetry-instrumentation-pyramid/src/opentelemetry/instrumentation/pyramid/__init__.py b/instrumentation/opentelemetry-instrumentation-pyramid/src/opentelemetry/instrumentation/pyramid/__init__.py
index c92f9b0dc5..0c7a6bdfdd 100644
--- a/instrumentation/opentelemetry-instrumentation-pyramid/src/opentelemetry/instrumentation/pyramid/__init__.py
+++ b/instrumentation/opentelemetry-instrumentation-pyramid/src/opentelemetry/instrumentation/pyramid/__init__.py
@@ -144,7 +144,7 @@
 API
 ---
 """
-
+import platform
 from typing import Collection
 
 from pyramid.config import Configurator
@@ -166,6 +166,11 @@
 # from importing an unused symbol.
 trace_tween_factory  # pylint: disable=pointless-statement
 
+if platform.python_implementation() == "PyPy":
+    CALLER_LEVELS = 3
+else:
+    CALLER_LEVELS = 2
+
 
 def _traced_init(wrapped, instance, args, kwargs):
     settings = kwargs.get("settings", {})
@@ -185,10 +190,12 @@ def _traced_init(wrapped, instance, args, kwargs):
     # to find the calling package. So if we let the original `__init__`
     # function call it, our wrapper will mess things up.
     if not kwargs.get("package", None):
-        # Get the package for the third frame up from this one.
-        # Default is `level=2` which will give us the package from `wrapt`
-        # instead of the desired package (the caller)
-        kwargs["package"] = caller_package(level=3)
+        # Get the package for the 2nd frame up from this one.
+        # Default is `level=2` one level down (in Configurator.__init__).
+        # We want the 3rd level from _there_. Since we are already 1 level above,
+        # we need the 2nd level up from here, which will give us the package from
+        # `wrapt` instead of the desired package (the caller)
+        kwargs["package"] = caller_package(level=CALLER_LEVELS)
 
     wrapped(*args, **kwargs)
     instance.include("opentelemetry.instrumentation.pyramid.callbacks")
diff --git a/instrumentation/opentelemetry-instrumentation-pyramid/tests/test_automatic.py b/instrumentation/opentelemetry-instrumentation-pyramid/tests/test_automatic.py
index 0a839c60a2..58a4a12b20 100644
--- a/instrumentation/opentelemetry-instrumentation-pyramid/tests/test_automatic.py
+++ b/instrumentation/opentelemetry-instrumentation-pyramid/tests/test_automatic.py
@@ -87,6 +87,12 @@ def test_tween_list(self):
         span_list = self.memory_exporter.get_finished_spans()
         self.assertEqual(len(span_list), 1)
 
+    def test_registry_name_is_this_module(self):
+        config = Configurator()
+        self.assertEqual(
+            config.registry.__name__, __name__.rsplit(".", maxsplit=1)[0]
+        )
+
 
 class TestWrappedWithOtherFramework(
     InstrumentationTest, TestBase, WsgiTestBase