Small language models (SLMs) have been increasingly deployed in edge devices and other resource-constrained settings. However, these models make confident mispredictions and produce unstable output, making them risky for factual and decision-critical tasks. Current evaluation methodology relies on final accuracy or hallucination rates without explaining how internal model behavior affects outputs. Specifically, how entropy evolves during decoding, how attention is distributed across layers, and how hidden representations contribute to uncertainty, logical inconsistencies, and misinformation propagation are often overlooked. Consequently, this study introduces a trace-level analysis of entropy and attention dynamics in SLMs evaluated with the TruthfulQA dataset. Four models with parameter ranges of 1B-1.7B parameters were examined via token-level output entropy, attention entropy, head dispersion, and hidden-state representation. The results reflect three model classifications by entropy patterns. Deterministic models (DeepSeek-1.5B and LLaMA-1B): output entropy decreases over time. Exploratory models (Gemma-1B): with increasing entropy, and balanced models (Qwen-1.7B): have moderate and stable entropy. Also, each group has distinctively different hidden-state movement and attention dispersion patterns. The analysis demonstrates that truthfulness in SLMs emerges from structured entropy and attention dynamics. Monitoring and optimizing these internal uncertainty patterns can guide the design of a more reliable, hallucination-aware, and application-specific edge SLMs.