diff --git a/CHANGELOG.md b/CHANGELOG.md
index 907525b..d462a63 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,9 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+## [1.3.12] - 2024-04-22
+
+- UriReplacementHandler improvements to be added to middleware pipeline by default and respects options set in the HttpRequestMessage (https://github.com/microsoft/kiota-http-dotnet/issues/242)
 - Adds `ConfigureAwait(false)` calls to async calls (https://github.com/microsoft/kiota-http-dotnet/issues/240). 
 
 ## [1.3.11] - 2024-04-19
diff --git a/Microsoft.Kiota.Http.HttpClientLibrary.Tests/Middleware/UriReplacementHandlerTests.cs b/Microsoft.Kiota.Http.HttpClientLibrary.Tests/Middleware/UriReplacementHandlerTests.cs
index 02df8ce..293edf4 100644
--- a/Microsoft.Kiota.Http.HttpClientLibrary.Tests/Middleware/UriReplacementHandlerTests.cs
+++ b/Microsoft.Kiota.Http.HttpClientLibrary.Tests/Middleware/UriReplacementHandlerTests.cs
@@ -2,6 +2,7 @@
 using System.Collections.Generic;
 using System.Net.Http;
 using System.Threading.Tasks;
+using Microsoft.Kiota.Abstractions;
 using Microsoft.Kiota.Http.HttpClientLibrary.Middleware;
 using Microsoft.Kiota.Http.HttpClientLibrary.Middleware.Options;
 using Moq;
@@ -65,4 +66,38 @@ public async Task Calls_Uri_ReplacementAsync()
 
         mockReplacement.Verify(static x=> x.Replace(It.IsAny<Uri>()), Times.Once());
     }
+
+    [Fact]
+    public async Task Calls_Uri_Replacement_From_Request_OptionsAsync()
+    {
+        var mockReplacement = new Mock<IUriReplacementHandlerOption>();
+        mockReplacement.Setup(static x => x.IsEnabled()).Returns(true);
+        mockReplacement.Setup(static x => x.Replace(It.IsAny<Uri>())).Returns(new Uri("http://changed"));
+
+        var handler = new UriReplacementHandler<IUriReplacementHandlerOption>()
+        {
+            InnerHandler = new FakeSuccessHandler()
+        };
+        var msg = new HttpRequestMessage(HttpMethod.Get, "http://localhost");
+        SetRequestOption(msg, mockReplacement.Object);
+        var client = new HttpClient(handler);
+        await client.SendAsync(msg);
+
+        mockReplacement.Verify(static x=> x.Replace(It.IsAny<Uri>()), Times.Once());
+    }
+
+    /// <summary>
+    /// Sets a <see cref="IRequestOption"/> in <see cref="HttpRequestMessage"/>.
+    /// </summary>
+    /// <typeparam name="T"></typeparam>
+    /// <param name="httpRequestMessage">The <see cref="HttpRequestMessage"/> representation of the request.</param>
+    /// <param name="option">The request option.</param>
+    private static void SetRequestOption<T>(HttpRequestMessage httpRequestMessage, T option) where T : IRequestOption
+    {
+#if NET5_0_OR_GREATER
+        httpRequestMessage.Options.Set(new HttpRequestOptionsKey<T>(typeof(T).FullName!), option);
+#else
+        httpRequestMessage.Properties.Add(typeof(T).FullName!, option);
+#endif
+    }
 }
diff --git a/src/KiotaClientFactory.cs b/src/KiotaClientFactory.cs
index 5dd9498..6c7d1ec 100644
--- a/src/KiotaClientFactory.cs
+++ b/src/KiotaClientFactory.cs
@@ -8,6 +8,7 @@
 using System.Net.Http;
 using Microsoft.Kiota.Abstractions.Authentication;
 using Microsoft.Kiota.Http.HttpClientLibrary.Middleware;
+using Microsoft.Kiota.Http.HttpClientLibrary.Middleware.Options;
 
 namespace Microsoft.Kiota.Http.HttpClientLibrary
 {
@@ -36,6 +37,7 @@ public static IList<DelegatingHandler> CreateDefaultHandlers()
             return new List<DelegatingHandler>
             {
                 //add the default middlewares as they are ready
+                new UriReplacementHandler<UriReplacementHandlerOption>(),
                 new RetryHandler(),
                 new RedirectHandler(),
                 new ParametersNameDecodingHandler(),
diff --git a/src/Microsoft.Kiota.Http.HttpClientLibrary.csproj b/src/Microsoft.Kiota.Http.HttpClientLibrary.csproj
index 99406a3..c36fcbc 100644
--- a/src/Microsoft.Kiota.Http.HttpClientLibrary.csproj
+++ b/src/Microsoft.Kiota.Http.HttpClientLibrary.csproj
@@ -15,7 +15,7 @@
     <PackageProjectUrl>https://aka.ms/kiota/docs</PackageProjectUrl>
     <EmbedUntrackedSources>true</EmbedUntrackedSources>
     <Deterministic>true</Deterministic>
-    <VersionPrefix>1.3.11</VersionPrefix>
+    <VersionPrefix>1.3.12</VersionPrefix>
     <VersionSuffix></VersionSuffix>
     <GeneratePackageOnBuild>true</GeneratePackageOnBuild>
     <!-- Enable this line once we go live to prevent breaking changes -->
diff --git a/src/Middleware/UriReplacementHandler.cs b/src/Middleware/UriReplacementHandler.cs
index c1fe66d..4bb2fe3 100644
--- a/src/Middleware/UriReplacementHandler.cs
+++ b/src/Middleware/UriReplacementHandler.cs
@@ -12,21 +12,29 @@ namespace Microsoft.Kiota.Http.HttpClientLibrary.Middleware;
 /// <typeparam name="TUriReplacementHandlerOption">A type with the rules used to perform a URI replacement.</typeparam>
 public class UriReplacementHandler<TUriReplacementHandlerOption> : DelegatingHandler where TUriReplacementHandlerOption : IUriReplacementHandlerOption
 {
-    private readonly TUriReplacementHandlerOption uriReplacement;
+    private readonly TUriReplacementHandlerOption? _uriReplacement;
 
     /// <summary>
     /// Creates a new UriReplacementHandler.
     /// </summary>
     /// <param name="uriReplacement">An object with the URI replacement rules.</param>
-    public UriReplacementHandler(TUriReplacementHandlerOption uriReplacement)
+    public UriReplacementHandler(TUriReplacementHandlerOption? uriReplacement = default)
     {
-        this.uriReplacement = uriReplacement;
+        this._uriReplacement = uriReplacement;
     }
 
     /// <inheritdoc/>
     protected override async Task<HttpResponseMessage> SendAsync(
         HttpRequestMessage request, System.Threading.CancellationToken cancellationToken)
     {
+        var uriReplacement = request.GetRequestOption<TUriReplacementHandlerOption>() ?? _uriReplacement;
+
+        // If there is no URI replacement to apply, then just skip this handler.
+        if(uriReplacement is null)
+        {
+            return await base.SendAsync(request, cancellationToken).ConfigureAwait(false);
+        }
+
         Activity? activity;
         if(request.GetRequestOption<ObservabilityOptions>() is { } obsOptions)
         {