diff --git a/ddtrace/propagation/http.py b/ddtrace/propagation/http.py
index a1664664ace..563ee838d84 100644
--- a/ddtrace/propagation/http.py
+++ b/ddtrace/propagation/http.py
@@ -101,6 +101,7 @@ def _possible_header(header):
 _POSSIBLE_HTTP_HEADER_B3_FLAGS = _possible_header(_HTTP_HEADER_B3_FLAGS)
 _POSSIBLE_HTTP_HEADER_TRACEPARENT = _possible_header(_HTTP_HEADER_TRACEPARENT)
 _POSSIBLE_HTTP_HEADER_TRACESTATE = _possible_header(_HTTP_HEADER_TRACESTATE)
+_POSSIBLE_HTTP_BAGGAGE_HEADER = _possible_header(_HTTP_HEADER_BAGGAGE)
 
 
 # https://www.w3.org/TR/trace-context/#traceparent-header-field-values
@@ -937,7 +938,7 @@ def _inject(span_context: Context, headers: Dict[str, str]) -> None:
 
     @staticmethod
     def _extract(headers: Dict[str, str]) -> Context:
-        header_value = headers.get(_HTTP_HEADER_BAGGAGE)
+        header_value = _extract_header_value(_POSSIBLE_HTTP_BAGGAGE_HEADER, headers)
 
         if not header_value:
             return Context(baggage={})
diff --git a/releasenotes/notes/case_insensitive_baggage_header_extraction-63167c492474da6f.yaml b/releasenotes/notes/case_insensitive_baggage_header_extraction-63167c492474da6f.yaml
new file mode 100644
index 00000000000..ad0eacb28e8
--- /dev/null
+++ b/releasenotes/notes/case_insensitive_baggage_header_extraction-63167c492474da6f.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    tracer: This fix resolves an issue where baggage header extraction was case sensitive and didn't accept the header prepended with HTTP.
+    Now the baggage header will be extracted regardless of casing and the HTTP format.
+    
diff --git a/tests/tracer/test_propagation.py b/tests/tracer/test_propagation.py
index 61fec650a70..0d4c5d7c01d 100644
--- a/tests/tracer/test_propagation.py
+++ b/tests/tracer/test_propagation.py
@@ -1888,6 +1888,14 @@ def test_extract_tracecontext(headers, expected_context):
         B3_SINGLE_HEADERS_VALID,
         CONTEXT_EMPTY,
     ),
+    (
+        "baggage_case_insensitive",
+        None,
+        {"BAgGage": "key1=val1,key2=val2"},
+        {
+            "baggage": {"key1": "val1", "key2": "val2"},
+        },
+    ),
     # All valid headers
     (
         "valid_all_headers_default_style",
@@ -2278,14 +2286,14 @@ def test_propagation_extract_w_config(name, styles, headers, expected_context, r
     overrides = {}
     if styles is not None:
         overrides["_propagation_style_extract"] = styles
-        with override_global_config(overrides):
-            context = HTTPPropagator.extract(headers)
-            if not expected_context.get("tracestate"):
-                assert context == Context(**expected_context)
-            else:
-                copied_expectation = expected_context.copy()
-                tracestate = copied_expectation.pop("tracestate")
-                assert context == Context(**copied_expectation, meta={"tracestate": tracestate})
+    with override_global_config(overrides):
+        context = HTTPPropagator.extract(headers)
+        if not expected_context.get("tracestate"):
+            assert context == Context(**expected_context)
+        else:
+            copied_expectation = expected_context.copy()
+            tracestate = copied_expectation.pop("tracestate")
+            assert context == Context(**copied_expectation, meta={"tracestate": tracestate})
 
 
 EXTRACT_OVERRIDE_FIXTURES = [