An apparatus and system are disclosed for adjusting trace data granularity. An initialization module sets a base granularity for trace data recorded for a component. A registration module registers a condition counter comprising a condition set. The threshold module sets a count threshold for the condition counter. An increment module counts each instance of the condition set. An adjustment module adjusts the granularity of trace data stored for the component to a modified granularity if the condition count exceeds the count threshold. In one embodiment, a timer module times an adjusted trace data granularity time interval. The adjustment module may set the granularity of the trace data to the base granularity when the adjusted trace data granularity time interval exceeds a specified time interval.