diff --git a/ddtrace/settings/config.py b/ddtrace/settings/config.py
index 972d2fff700..10cc15a5828 100644
--- a/ddtrace/settings/config.py
+++ b/ddtrace/settings/config.py
@@ -743,8 +743,15 @@ def _handle_remoteconfig(self, data, test_tracer=None):
             log.warning("unexpected number of RC payloads %r", data)
             return
 
+        # Check if 'lib_config' is a key in the dictionary since other items can be sent in the payload
+        config = None
+        for config_item in data["config"]:
+            if isinstance(config_item, Dict):
+                if "lib_config" in config_item:
+                    config = config_item
+                    break
+
         # If no data is submitted then the RC config has been deleted. Revert the settings.
-        config = data["config"][0]
         base_rc_config = {n: None for n in self._config}
 
         if config and "lib_config" in config:
@@ -777,7 +784,6 @@ def _handle_remoteconfig(self, data, test_tracer=None):
                 if tags:
                     tags = self._format_tags(lib_config["tracing_header_tags"])
                 base_rc_config["trace_http_header_tags"] = tags
-
         self._set_config_items([(k, v, "remote_config") for k, v in base_rc_config.items()])
         # called unconditionally to handle the case where header tags have been unset
         self._handle_remoteconfig_header_tags(base_rc_config)
diff --git a/releasenotes/notes/rc_payload_fix-a03a98dcad934658.yaml b/releasenotes/notes/rc_payload_fix-a03a98dcad934658.yaml
new file mode 100644
index 00000000000..330c6586eb9
--- /dev/null
+++ b/releasenotes/notes/rc_payload_fix-a03a98dcad934658.yaml
@@ -0,0 +1,8 @@
+---
+fixes:
+  - |
+    RemoteConfig: This fix resolves an issue where remote config did not work for the tracer when using an agent 
+    that would add a flare item to the remote config payload. With this fix, the tracer will now correctly pull out
+    the lib_config we need from the payload in order to implement remote config changes properly.
+
+
diff --git a/tests/internal/test_settings.py b/tests/internal/test_settings.py
index 4bae14bfef9..0ad706b3951 100644
--- a/tests/internal/test_settings.py
+++ b/tests/internal/test_settings.py
@@ -16,11 +16,25 @@ def _base_rc_config(cfg):
     return {
         "metadata": [],
         "config": [
+            # this flare data can often come in and we want to make sure we're pulling the
+            # actual lib_config data out correctly regardless
+            {
+                "internal_order": [
+                    "flare-log-level.trace",
+                    "flare-log-level.debug",
+                    "flare-log-level.info",
+                    "flare-log-level.warn",
+                    "flare-log-level.error",
+                    "flare-log-level.critical",
+                    "flare-log-level.off",
+                ],
+                "order": [],
+            },
             {
                 "action": "enable",
                 "service_target": {"service": None, "env": None},
                 "lib_config": cfg,
-            }
+            },
         ],
     }
 
@@ -182,7 +196,7 @@ def test_settings_missing_lib_config(config, monkeypatch):
     base_rc_config = _base_rc_config({})
 
     # Delete "lib_config" from the remote config
-    del base_rc_config["config"][0]["lib_config"]
+    del base_rc_config["config"][1]["lib_config"]
     assert "lib_config" not in base_rc_config["config"][0]
 
     config._handle_remoteconfig(base_rc_config, None)