diff --git a/package.json b/package.json
index 64b75fb875..4e80210dcf 100644
--- a/package.json
+++ b/package.json
@@ -58,7 +58,7 @@
     "execa": "7.1.1",
     "fs-extra": "11.1.1",
     "globby": "13.2.0",
-    "h3": "1.6.6",
+    "h3": "1.7.0",
     "jiti": "1.18.2",
     "markdownlint-cli": "^0.33.0",
     "nuxi": "workspace:*",
diff --git a/packages/nuxi/package.json b/packages/nuxi/package.json
index d0a76ea4bb..152b6eab19 100644
--- a/packages/nuxi/package.json
+++ b/packages/nuxi/package.json
@@ -36,7 +36,7 @@
     "execa": "7.1.1",
     "flat": "5.0.2",
     "giget": "1.1.2",
-    "h3": "1.6.6",
+    "h3": "1.7.0",
     "jiti": "1.18.2",
     "listhen": "1.0.4",
     "mlly": "1.3.0",
diff --git a/packages/nuxt/package.json b/packages/nuxt/package.json
index 25137efa5c..3f59c2aa1c 100644
--- a/packages/nuxt/package.json
+++ b/packages/nuxt/package.json
@@ -72,7 +72,7 @@
     "estree-walker": "^3.0.3",
     "fs-extra": "^11.1.1",
     "globby": "^13.2.0",
-    "h3": "^1.6.6",
+    "h3": "^1.7.0",
     "hookable": "^5.5.3",
     "jiti": "^1.18.2",
     "klona": "^2.0.6",
diff --git a/packages/nuxt/src/core/runtime/nitro/error.ts b/packages/nuxt/src/core/runtime/nitro/error.ts
index 80ce8c8b1d..22d77781cd 100644
--- a/packages/nuxt/src/core/runtime/nitro/error.ts
+++ b/packages/nuxt/src/core/runtime/nitro/error.ts
@@ -21,9 +21,6 @@ export default <NitroErrorHandler> async function errorhandler (error: H3Error,
     data: error.data
   }
 
-  // Set response code and message
-  setResponseStatus(event, (errorObject.statusCode !== 200 && errorObject.statusCode) as any as number || 500, errorObject.statusMessage)
-
   // Console output
   if (error.unhandled || error.fatal) {
     const tags = [
@@ -36,6 +33,11 @@ export default <NitroErrorHandler> async function errorhandler (error: H3Error,
     console.error(tags, errorObject.message + '\n' + stack.map(l => '  ' + l.text).join('  \n'))
   }
 
+  if (event.handled) { return }
+
+  // Set response code and message
+  setResponseStatus(event, (errorObject.statusCode !== 200 && errorObject.statusCode) as any as number || 500, errorObject.statusMessage)
+
   // JSON response
   if (isJsonRequest(event)) {
     setResponseHeader(event, 'Content-Type', 'application/json')
@@ -63,16 +65,19 @@ export default <NitroErrorHandler> async function errorhandler (error: H3Error,
       // TODO: Support `message` in template
       (errorObject as any).description = errorObject.message
     }
+    if (event.handled) { return }
     setResponseHeader(event, 'Content-Type', 'text/html;charset=UTF-8')
     event.node.res.end(template(errorObject))
     return
   }
 
+  const html = await res.text()
+  if (event.handled) { return }
+
   for (const [header, value] of res.headers.entries()) {
     setResponseHeader(event, header, value)
   }
-
   setResponseStatus(event, res.status && res.status !== 200 ? res.status : undefined, res.statusText)
 
-  event.node.res.end(await res.text())
+  event.node.res.end(html)
 }
diff --git a/packages/schema/package.json b/packages/schema/package.json
index 322656a7b0..1ec6484e3a 100644
--- a/packages/schema/package.json
+++ b/packages/schema/package.json
@@ -34,7 +34,7 @@
     "@vitejs/plugin-vue": "4.2.3",
     "@vitejs/plugin-vue-jsx": "3.0.1",
     "esbuild-loader": "3.0.1",
-    "h3": "1.6.6",
+    "h3": "1.7.0",
     "ignore": "5.2.4",
     "nitropack": "2.4.1",
     "unbuild": "latest",
diff --git a/packages/vite/package.json b/packages/vite/package.json
index 220b51e579..f357da4389 100644
--- a/packages/vite/package.json
+++ b/packages/vite/package.json
@@ -40,7 +40,7 @@
     "externality": "^1.0.2",
     "fs-extra": "^11.1.1",
     "get-port-please": "^3.0.1",
-    "h3": "^1.6.6",
+    "h3": "^1.7.0",
     "knitwork": "^1.0.0",
     "magic-string": "^0.30.0",
     "mlly": "^1.3.0",
diff --git a/packages/webpack/package.json b/packages/webpack/package.json
index e062477e82..19635001bf 100644
--- a/packages/webpack/package.json
+++ b/packages/webpack/package.json
@@ -31,7 +31,7 @@
     "file-loader": "^6.2.0",
     "fork-ts-checker-webpack-plugin": "^8.0.0",
     "fs-extra": "^11.1.1",
-    "h3": "^1.6.6",
+    "h3": "^1.7.0",
     "hash-sum": "^2.0.0",
     "lodash-es": "^4.17.21",
     "magic-string": "^0.30.0",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index a2ab86f501..951394817b 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -81,8 +81,8 @@ importers:
         specifier: 13.2.0
         version: 13.2.0
       h3:
-        specifier: 1.6.6
-        version: 1.6.6
+        specifier: 1.7.0
+        version: 1.7.0
       jiti:
         specifier: 1.18.2
         version: 1.18.2
@@ -278,8 +278,8 @@ importers:
         specifier: 1.1.2
         version: 1.1.2
       h3:
-        specifier: 1.6.6
-        version: 1.6.6
+        specifier: 1.7.0
+        version: 1.7.0
       jiti:
         specifier: 1.18.2
         version: 1.18.2
@@ -383,8 +383,8 @@ importers:
         specifier: ^13.2.0
         version: 13.2.0
       h3:
-        specifier: ^1.6.6
-        version: 1.6.6
+        specifier: ^1.7.0
+        version: 1.7.0
       hookable:
         specifier: ^5.5.3
         version: 5.5.3
@@ -559,8 +559,8 @@ importers:
         specifier: 3.0.1
         version: 3.0.1(webpack@5.87.0)
       h3:
-        specifier: 1.6.6
-        version: 1.6.6
+        specifier: 1.7.0
+        version: 1.7.0
       ignore:
         specifier: 5.2.4
         version: 5.2.4
@@ -686,8 +686,8 @@ importers:
         specifier: ^3.0.1
         version: 3.0.1
       h3:
-        specifier: ^1.6.6
-        version: 1.6.6
+        specifier: ^1.7.0
+        version: 1.7.0
       knitwork:
         specifier: ^1.0.0
         version: 1.0.0
@@ -801,8 +801,8 @@ importers:
         specifier: ^11.1.1
         version: 11.1.1
       h3:
-        specifier: ^1.6.6
-        version: 1.6.6
+        specifier: ^1.7.0
+        version: 1.7.0
       hash-sum:
         specifier: ^2.0.0
         version: 2.0.0
@@ -5385,12 +5385,12 @@ packages:
     dependencies:
       duplexer: 0.1.2
 
-  /h3@1.6.6:
-    resolution: {integrity: sha512-DWu2s11OuuO9suEkX99dXaJoxd1RgPXiM4iDmLdrhGV63GLoav13f3Kdd5/Rw7xNKzhzn2+F2dleQjG66SnMPQ==}
+  /h3@1.7.0:
+    resolution: {integrity: sha512-iJJz2Pn2rC0j8CB3rkFMs0K269W7hDVOC7eL3qne5Joy4JZX1W7id7PBFV593GboHDOx0PzgO6ocqsynrIvdxw==}
     dependencies:
       cookie-es: 1.0.0
       defu: 6.1.2
-      destr: 1.2.2
+      destr: 2.0.0
       iron-webcrypto: 0.7.0
       radix3: 1.0.1
       ufo: 1.1.2
@@ -6548,7 +6548,7 @@ packages:
       fs-extra: 11.1.1
       globby: 13.2.0
       gzip-size: 7.0.0
-      h3: 1.6.6
+      h3: 1.7.0
       hookable: 5.5.3
       http-proxy: 1.18.1
       is-primitive: 3.0.1
@@ -8606,7 +8606,7 @@ packages:
       anymatch: 3.1.3
       chokidar: 3.5.3
       destr: 1.2.2
-      h3: 1.6.6
+      h3: 1.7.0
       ioredis: 5.3.2
       listhen: 1.0.4
       lru-cache: 9.1.1
diff --git a/test/bundle.test.ts b/test/bundle.test.ts
index a92b125df0..30eb83bf5c 100644
--- a/test/bundle.test.ts
+++ b/test/bundle.test.ts
@@ -35,10 +35,10 @@ describe.skipIf(process.env.SKIP_BUNDLE_SIZE === 'true' || process.env.ECOSYSTEM
 
   it('default server bundle size', async () => {
     stats.server = await analyzeSizes(['**/*.mjs', '!node_modules'], serverDir)
-    expect.soft(roundToKilobytes(stats.server.totalBytes)).toMatchInlineSnapshot('"62.1k"')
+    expect.soft(roundToKilobytes(stats.server.totalBytes)).toMatchInlineSnapshot('"62.2k"')
 
     const modules = await analyzeSizes('node_modules/**/*', serverDir)
-    expect.soft(roundToKilobytes(modules.totalBytes)).toMatchInlineSnapshot('"2295k"')
+    expect.soft(roundToKilobytes(modules.totalBytes)).toMatchInlineSnapshot('"2296k"')
 
     const packages = modules.files
       .filter(m => m.endsWith('package.json'))