diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1d32e53dc6..460e315422 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -16,6 +16,7 @@ This release introduces an `httpx.SSLContext()` class and `ssl_context` paramete
 * Ensure JSON request bodies are compact. (#3363)
 * Review URL percent escape sets, based on WHATWG spec. (#3371, #3373)
 * Ensure `certifi` and `httpcore` are only imported if required. (#3377)
+* Treat `socks5h` as a valid proxy scheme. (#3178)
 
 ## 0.27.2 (27th August, 2024)
 
diff --git a/httpx/_config.py b/httpx/_config.py
index 5a1a98a024..3fd5e1ddce 100644
--- a/httpx/_config.py
+++ b/httpx/_config.py
@@ -262,7 +262,7 @@ def __init__(
         url = URL(url)
         headers = Headers(headers)
 
-        if url.scheme not in ("http", "https", "socks5"):
+        if url.scheme not in ("http", "https", "socks5", "socks5h"):
             raise ValueError(f"Unknown scheme for proxy URL {url!r}")
 
         if url.username or url.password:
diff --git a/httpx/_transports/default.py b/httpx/_transports/default.py
index 50ff91055e..85d0f5f522 100644
--- a/httpx/_transports/default.py
+++ b/httpx/_transports/default.py
@@ -189,7 +189,7 @@ def __init__(
                 http2=http2,
                 socket_options=socket_options,
             )
-        elif proxy.url.scheme == "socks5":
+        elif proxy.url.scheme in ("socks5", "socks5h"):
             try:
                 import socksio  # noqa
             except ImportError:  # pragma: no cover
@@ -215,7 +215,7 @@ def __init__(
             )
         else:  # pragma: no cover
             raise ValueError(
-                "Proxy protocol must be either 'http', 'https', or 'socks5',"
+                "Proxy protocol must be either 'http', 'https', 'socks5', or 'socks5h',"
                 f" but got {proxy.url.scheme!r}."
             )
 
@@ -338,7 +338,7 @@ def __init__(
                 http2=http2,
                 socket_options=socket_options,
             )
-        elif proxy.url.scheme == "socks5":
+        elif proxy.url.scheme in ("socks5", "socks5h"):
             try:
                 import socksio  # noqa
             except ImportError:  # pragma: no cover
@@ -364,7 +364,7 @@ def __init__(
             )
         else:  # pragma: no cover
             raise ValueError(
-                "Proxy protocol must be either 'http', 'https', or 'socks5',"
+                "Proxy protocol must be either 'http', 'https', 'socks5', or 'socks5h',"
                 " but got {proxy.url.scheme!r}."
             )
 
diff --git a/tests/client/test_proxies.py b/tests/client/test_proxies.py
index 90a92f56bb..3e4090dcec 100644
--- a/tests/client/test_proxies.py
+++ b/tests/client/test_proxies.py
@@ -16,15 +16,16 @@ def url_to_origin(url: str) -> httpcore.URL:
 def test_socks_proxy():
     url = httpx.URL("http://www.example.com")
 
-    client = httpx.Client(proxy="socks5://localhost/")
-    transport = client._transport_for_url(url)
-    assert isinstance(transport, httpx.HTTPTransport)
-    assert isinstance(transport._pool, httpcore.SOCKSProxy)
+    for proxy in ("socks5://localhost/", "socks5h://localhost/"):
+        client = httpx.Client(proxy=proxy)
+        transport = client._transport_for_url(url)
+        assert isinstance(transport, httpx.HTTPTransport)
+        assert isinstance(transport._pool, httpcore.SOCKSProxy)
 
-    async_client = httpx.AsyncClient(proxy="socks5://localhost/")
-    async_transport = async_client._transport_for_url(url)
-    assert isinstance(async_transport, httpx.AsyncHTTPTransport)
-    assert isinstance(async_transport._pool, httpcore.AsyncSOCKSProxy)
+        async_client = httpx.AsyncClient(proxy=proxy)
+        async_transport = async_client._transport_for_url(url)
+        assert isinstance(async_transport, httpx.AsyncHTTPTransport)
+        assert isinstance(async_transport._pool, httpcore.AsyncSOCKSProxy)
 
 
 PROXY_URL = "http://[::1]"