diff --git a/satellite/gc/piecetracker/observer.go b/satellite/gc/piecetracker/observer.go
new file mode 100644
index 000000000..2d720255a
--- /dev/null
+++ b/satellite/gc/piecetracker/observer.go
@@ -0,0 +1,135 @@
+// Copyright (C) 2023 Storj Labs, Inc.
+// See LICENSE for copying information.
+
+package piecetracker
+
+import (
+	"context"
+	"time"
+
+	"github.com/spacemonkeygo/monkit/v3"
+	"github.com/zeebo/errs"
+	"go.uber.org/zap"
+
+	"storj.io/common/storj"
+	"storj.io/storj/satellite/metabase"
+	"storj.io/storj/satellite/metabase/rangedloop"
+	"storj.io/storj/satellite/overlay"
+)
+
+var (
+	// Error is a standard error class for this package.
+	Error = errs.Class("piecetracker")
+	mon   = monkit.Package()
+
+	// check if Observer and Partial interfaces are satisfied.
+	_ rangedloop.Observer = (*Observer)(nil)
+	_ rangedloop.Partial  = (*observerFork)(nil)
+)
+
+// Observer implements piecetraker ranged loop observer.
+//
+// The piecetracker counts the number of pieces currently expected to reside on each node,
+// then passes the counts to the overlay with UpdatePieceCounts().
+type Observer struct {
+	log        *zap.Logger
+	config     Config
+	overlay    overlay.DB
+	metabaseDB *metabase.DB
+
+	pieceCounts map[metabase.NodeAlias]int64
+}
+
+// NewObserver creates new piecetracker ranged loop observer.
+func NewObserver(log *zap.Logger, metabaseDB *metabase.DB, overlay overlay.DB, config Config) *Observer {
+	return &Observer{
+		log:         log,
+		overlay:     overlay,
+		metabaseDB:  metabaseDB,
+		config:      config,
+		pieceCounts: map[metabase.NodeAlias]int64{},
+	}
+}
+
+// Start implements ranged loop observer start method.
+func (observer *Observer) Start(ctx context.Context, time time.Time) (err error) {
+	defer mon.Task()(&ctx)(&err)
+
+	observer.pieceCounts = map[metabase.NodeAlias]int64{}
+	return nil
+}
+
+// Fork implements ranged loop observer fork method.
+func (observer *Observer) Fork(ctx context.Context) (_ rangedloop.Partial, err error) {
+	defer mon.Task()(&ctx)(&err)
+
+	return newObserverFork(), nil
+}
+
+// Join joins piecetracker ranged loop partial to main observer updating piece counts map.
+func (observer *Observer) Join(ctx context.Context, partial rangedloop.Partial) (err error) {
+	defer mon.Task()(&ctx)(&err)
+	pieceTracker, ok := partial.(*observerFork)
+	if !ok {
+		return Error.New("expected %T but got %T", pieceTracker, partial)
+	}
+
+	// Merge piece counts for each node.
+	for nodeAlias, pieceCount := range pieceTracker.pieceCounts {
+		observer.pieceCounts[nodeAlias] += pieceCount
+	}
+
+	return nil
+}
+
+// Finish updates piece counts in the DB.
+func (observer *Observer) Finish(ctx context.Context) (err error) {
+	defer mon.Task()(&ctx)(&err)
+
+	observer.log.Info("piecetracker observer finished")
+
+	nodeAliasMap, err := observer.metabaseDB.LatestNodesAliasMap(ctx)
+	pieceCounts := make(map[storj.NodeID]int64, len(observer.pieceCounts))
+
+	for nodeAlias, count := range observer.pieceCounts {
+		nodeID, ok := nodeAliasMap.Node(nodeAlias)
+		if !ok {
+			observer.log.Error("unrecognized node alias in piecetracker ranged-loop", zap.Int32("node-alias", int32(nodeAlias)))
+			continue
+		}
+		pieceCounts[nodeID] = count
+	}
+	err = observer.overlay.UpdatePieceCounts(ctx, pieceCounts)
+	if err != nil {
+		observer.log.Error("error updating piece counts", zap.Error(err))
+		return Error.Wrap(err)
+	}
+
+	return nil
+}
+
+type observerFork struct {
+	pieceCounts map[metabase.NodeAlias]int64
+}
+
+// newObserverFork creates new piecetracker ranged loop fork.
+func newObserverFork() *observerFork {
+	return &observerFork{
+		pieceCounts: map[metabase.NodeAlias]int64{},
+	}
+}
+
+// Process iterates over segment range updating partial piece counts for each node.
+func (fork *observerFork) Process(ctx context.Context, segments []rangedloop.Segment) error {
+	for _, segment := range segments {
+		if segment.Inline() {
+			continue
+		}
+
+		for _, piece := range segment.AliasPieces {
+			fork.pieceCounts[piece.Alias]++
+		}
+	}
+
+	return nil
+}
diff --git a/satellite/gc/piecetracker/observer_test.go b/satellite/gc/piecetracker/observer_test.go
new file mode 100644
index 000000000..0979aeabf
--- /dev/null
+++ b/satellite/gc/piecetracker/observer_test.go
@@ -0,0 +1,82 @@
+// Copyright (C) 2023 Storj Labs, Inc.
+// See LICENSE for copying information.
+
+package piecetracker_test
+
+import (
+	"fmt"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+	"go.uber.org/zap"
+
+	"storj.io/common/memory"
+	"storj.io/common/testcontext"
+	"storj.io/common/testrand"
+	"storj.io/storj/private/testplanet"
+	"storj.io/storj/satellite"
+)
+
+func TestObserverPieceTracker(t *testing.T) {
+	testplanet.Run(t, testplanet.Config{
+		SatelliteCount: 1, StorageNodeCount: 4, UplinkCount: 1,
+		Reconfigure: testplanet.Reconfigure{
+			Satellite: func(log *zap.Logger, index int, config *satellite.Config) {
+				config.PieceTracker.UseRangedLoop = true
+				config.RangedLoop.Parallelism = 4
+				config.RangedLoop.BatchSize = 4
+
+				// configure RS
+				config.Metainfo.RS.Min = 2
+				config.Metainfo.RS.Repair = 3
+				config.Metainfo.RS.Success = 4
+				config.Metainfo.RS.Total = 4
+			},
+		},
+	}, func(t *testing.T, ctx *testcontext.Context, planet *testplanet.Planet) {
+		// ensure that the piece counts are empty
+		pieceCounts, err := planet.Satellites[0].Overlay.DB.AllPieceCounts(ctx)
+		require.NoError(t, err)
+		require.Equal(t, 0, len(pieceCounts))
+
+		// Setup: create 50KiB of data for the uplink to upload
+		testdata := testrand.Bytes(50 * memory.KiB)
+
+		testBucket := "testbucket"
+		err = planet.Uplinks[0].Upload(ctx, planet.Satellites[0], testBucket, "test/path", testdata)
+		require.NoError(t, err)
+
+		// Run the ranged loop
+		_, err = planet.Satellites[0].RangedLoop.RangedLoop.Service.RunOnce(ctx)
+		require.NoError(t, err)
+
+		// Check that the piece counts are correct
+		pieceCounts, err = planet.Satellites[0].Overlay.DB.AllPieceCounts(ctx)
+		require.NoError(t, err)
+		require.True(t, len(pieceCounts) > 0)
+
+		for node, count := range pieceCounts {
+			require.Equal(t, int64(1), count, "node %s should have 1 piece", node)
+		}
+
+		// upload more objects
+		numOfObjects := 10
+		for i := 0; i < numOfObjects; i++ {
+			err = planet.Uplinks[0].Upload(ctx, planet.Satellites[0], testBucket, fmt.Sprintf("test/path%d", i), testdata)
+			require.NoError(t, err)
+		}
+
+		// Run the ranged loop again
+		_, err = planet.Satellites[0].RangedLoop.RangedLoop.Service.RunOnce(ctx)
+		require.NoError(t, err)
+
+		// Check that the piece counts are correct
+		pieceCounts, err = planet.Satellites[0].Overlay.DB.AllPieceCounts(ctx)
+		require.NoError(t, err)
+		require.True(t, len(pieceCounts) > 0)
+
+		for node, count := range pieceCounts {
+			require.Equal(t, int64(numOfObjects+1), count, "node %s should have %d pieces", node, numOfObjects+1)
+		}
+	})
+}
diff --git a/satellite/gc/piecetracker/piecetracker.go b/satellite/gc/piecetracker/piecetracker.go
new file mode 100644
index 000000000..1bcb1f77c
--- /dev/null
+++ b/satellite/gc/piecetracker/piecetracker.go
@@ -0,0 +1,9 @@
+// Copyright (C) 2023 Storj Labs, Inc.
+// See LICENSE for copying information.
+
+package piecetracker
+
+// Config is the configuration for the piecetracker.
+type Config struct {
+	UseRangedLoop bool `help:"whether to enable piece tracker observer with ranged loop" default:"true"`
+}
diff --git a/satellite/peer.go b/satellite/peer.go
index 6e1f877ae..9ee6582ec 100644
--- a/satellite/peer.go
+++ b/satellite/peer.go
@@ -43,6 +43,7 @@ import (
 	"storj.io/storj/satellite/console/userinfo"
 	"storj.io/storj/satellite/contact"
 	"storj.io/storj/satellite/gc/bloomfilter"
+	"storj.io/storj/satellite/gc/piecetracker"
 	"storj.io/storj/satellite/gc/sender"
 	"storj.io/storj/satellite/gracefulexit"
 	"storj.io/storj/satellite/mailservice"
@@ -215,6 +216,8 @@ type Config struct {
 	ProjectLimit accounting.ProjectLimitConfig
 
 	Analytics analytics.Config
+
+	PieceTracker piecetracker.Config
 }
 
 func setupMailService(log *zap.Logger, config Config) (*mailservice.Service, error) {
diff --git a/satellite/rangedloop.go b/satellite/rangedloop.go
index 824a62391..5faf0fa36 100644
--- a/satellite/rangedloop.go
+++ b/satellite/rangedloop.go
@@ -18,6 +18,7 @@ import (
 	"storj.io/storj/private/lifecycle"
 	"storj.io/storj/satellite/accounting/nodetally"
 	"storj.io/storj/satellite/audit"
+	"storj.io/storj/satellite/gc/piecetracker"
 	"storj.io/storj/satellite/gracefulexit"
 	"storj.io/storj/satellite/metabase"
 	"storj.io/storj/satellite/metabase/rangedloop"
@@ -65,6 +66,10 @@ type RangedLoop struct {
 		NodeTallyObserver *nodetally.Observer
 	}
 
+	PieceTracker struct {
+		Observer *piecetracker.Observer
+	}
+
 	RangedLoop struct {
 		Service *rangedloop.Service
 	}
@@ -124,6 +129,15 @@ func NewRangedLoop(log *zap.Logger, db DB, metabaseDB *metabase.DB, config *Conf
 			metabaseDB)
 	}
 
+	{ // setup piece tracker observer
+		peer.PieceTracker.Observer = piecetracker.NewObserver(
+			log.Named("piecetracker"),
+			metabaseDB,
+			peer.DB.OverlayCache(),
+			config.PieceTracker,
+		)
+	}
+
 	{ // setup overlay
 		peer.Overlay.Service, err = overlay.NewService(peer.Log.Named("overlay"), peer.DB.OverlayCache(), peer.DB.NodeEvents(), config.Console.ExternalAddress, config.Console.SatelliteName, config.Overlay)
 		if err != nil {
@@ -167,6 +181,10 @@ func NewRangedLoop(log *zap.Logger, db DB, metabaseDB *metabase.DB, config *Conf
 			observers = append(observers, peer.Repair.Observer)
 		}
 
+		if config.PieceTracker.UseRangedLoop {
+			observers = append(observers, peer.PieceTracker.Observer)
+		}
+
 		segments := rangedloop.NewMetabaseRangeSplitter(metabaseDB, config.RangedLoop.AsOfSystemInterval, config.RangedLoop.BatchSize)
 		peer.RangedLoop.Service = rangedloop.NewService(log.Named("rangedloop"), config.RangedLoop, segments, observers)
 
diff --git a/scripts/testdata/satellite-config.yaml.lock b/scripts/testdata/satellite-config.yaml.lock
index e2ba9245b..c66915e97 100755
--- a/scripts/testdata/satellite-config.yaml.lock
+++ b/scripts/testdata/satellite-config.yaml.lock
@@ -889,6 +889,9 @@ identity.key-path: /root/.local/share/storj/identity/satellite/identity.key
 # price user should pay for storage per month in dollars/TB
 # payments.usage-price.storage-tb: "4"
 
+# whether to enable piece tracker observer with ranged loop
+# piece-tracker.use-ranged-loop: true
+
 # how often to remove unused project bandwidth rollups
 # project-bw-cleanup.interval: 24h0m0s