diff --git a/dvc/config_schema.py b/dvc/config_schema.py
index b5ee185a8..a5c077d3c 100644
--- a/dvc/config_schema.py
+++ b/dvc/config_schema.py
@@ -106,6 +106,7 @@ WEBDAV_COMMON = {
     "password": str,
     "ask_password": Bool,
     "token": str,
+    "custom_auth_header": str,
     "cert_path": str,
     "key_path": str,
     "timeout": Coerce(int),
diff --git a/pyproject.toml b/pyproject.toml
index 04141ff9f..555606219 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -78,7 +78,7 @@ oss = ["dvc-oss==2.19.0"]
 s3 = ["dvc-s3==2.21.0"]
 ssh = ["dvc-ssh==2.21.0"]
 ssh_gssapi = ["dvc-ssh[gssapi]==2.21.0"]
-webdav = ["dvc-webdav==2.19.0"]
+webdav = ["dvc-webdav==2.19.1"]
 webhdfs = ["dvc-webhdfs==2.19.0"]
 webhdfs_kerberos = ["dvc-webhdfs[kerberos]==2.19.0"]
 terraform = ["tpi[ssh]>=2.1.0"]
diff --git a/tests/unit/remote/test_webdav.py b/tests/unit/remote/test_webdav.py
index cd8c188e3..416556793 100644
--- a/tests/unit/remote/test_webdav.py
+++ b/tests/unit/remote/test_webdav.py
@@ -9,6 +9,7 @@ url = "webdav://example.com/public.php/webdav"
 user = "username"
 password = "password"
 token = "4MgjsNM5aSJjxIKM"
+custom_auth_header = "Custom-Header"
 
 
 def test_common():
@@ -23,6 +24,7 @@ def test_common():
         password=None,
         ask_password=False,
         token=None,
+        custom_auth_header=None,
     )
     assert issubset(
         {
@@ -87,6 +89,46 @@ def test_ask_password(mocker):
     ask_password_mocked.assert_called_once_with(host, user)
 
 
+def test_custom_auth_header():
+    config = {
+        "url": url,
+        "custom_auth_header": custom_auth_header,
+        "password": password,
+    }
+    fs = WebDAVFileSystem(**config)
+    assert issubset(
+        {"headers": {custom_auth_header: password}, "auth": None},
+        fs.fs_args,
+    )
+
+
+def test_ask_password_custom_auth_header(mocker):
+    ask_password_mocked = mocker.patch(
+        "dvc_webdav.ask_password", return_value="pass"
+    )
+    host = "host"
+
+    # it should not ask for password as password is set
+    config = {
+        "url": url,
+        "custom_auth_header": custom_auth_header,
+        "password": password,
+        "ask_password": True,
+        "host": host,
+    }
+    fs = WebDAVFileSystem(**config)
+    assert issubset(
+        {"headers": {custom_auth_header: password}, "auth": None}, fs.fs_args
+    )
+
+    config.pop("password")
+    fs = WebDAVFileSystem(**config)
+    assert issubset(
+        {"headers": {custom_auth_header: "pass"}, "auth": None}, fs.fs_args
+    )
+    ask_password_mocked.assert_called_once_with(host, custom_auth_header)
+
+
 def test_ssl_verify_custom_cert():
     config = {
         "url": url,