diff --git a/cli/CHANGELOG.md b/cli/CHANGELOG.md
index 3e39c4342c6d..6b42b6c48165 100644
--- a/cli/CHANGELOG.md
+++ b/cli/CHANGELOG.md
@@ -3,6 +3,10 @@
 
 _Released 03/1/2023 (PENDING)_
 
+**Features:**
+
+- It is now possible to set `hostOnly` cookies with [`cy.setCookie()`](https://docs.cypress.io/api/commands/setcookie) for a given domain. Addresses [#16856](https://github.com/cypress-io/cypress/issues/16856) and [#17527](https://github.com/cypress-io/cypress/issues/17527).
+
 **Bugfixes:**
 
 - Fixed an issue where cookies were being duplicated with the same hostname, but a prepended dot. Fixed an issue where cookies may not be expiring correctly. Fixes [#25174](https://github.com/cypress-io/cypress/issues/25174), [#25205](https://github.com/cypress-io/cypress/issues/25205) and [#25495](https://github.com/cypress-io/cypress/issues/25495).
diff --git a/cli/types/cypress.d.ts b/cli/types/cypress.d.ts
index 17a27f2b3eda..fb927383598c 100644
--- a/cli/types/cypress.d.ts
+++ b/cli/types/cypress.d.ts
@@ -3569,12 +3569,49 @@ declare namespace Cypress {
     action: 'select' | 'drag-drop'
   }
 
+  /**
+   * Options that control how the `cy.setCookie` command
+   * sets the cookie in the browser.
+   * @see https://on.cypress.io/setcookie#Arguments
+   */
   interface SetCookieOptions extends Loggable, Timeoutable {
+    /**
+     * The path of the cookie.
+     * @default "/"
+     */
     path: string
+    /**
+     * Represents the domain the cookie belongs to (e.g. "docs.cypress.io", "github.com").
+     * @default location.hostname
+     */
     domain: string
+    /**
+     * Whether a cookie's scope is limited to secure channels, such as HTTPS.
+     * @default false
+     */
     secure: boolean
+    /**
+     * Whether or not the cookie is HttpOnly, meaning the cookie is inaccessible to client-side scripts.
+     * The Cypress cookie API has access to HttpOnly cookies.
+     * @default false
+     */
     httpOnly: boolean
+    /**
+     * Whether or not the cookie is a host-only cookie, meaning the request's host must exactly match the domain of the cookie.
+     * @default false
+     */
+    hostOnly: boolean
+    /**
+     * The cookie's expiry time, specified in seconds since Unix Epoch.
+     * The default is expiry is 20 years in the future from current time.
+     */
     expiry: number
+    /**
+     * The cookie's SameSite value. If set, should be one of `lax`, `strict`, or `no_restriction`.
+     * `no_restriction` is the equivalent of `SameSite=None`. Pass `undefined` to use the browser's default.
+     * Note: `no_restriction` can only be used if the secure flag is set to `true`.
+     * @default undefined
+     */
     sameSite: SameSiteStatus
   }
 
@@ -6104,6 +6141,7 @@ declare namespace Cypress {
     value: string
     path: string
     domain: string
+    hostOnly?: boolean
     httpOnly: boolean
     secure: boolean
     expiry?: number
diff --git a/cli/types/tests/cypress-tests.ts b/cli/types/tests/cypress-tests.ts
index 26010d29df3a..4b036baa10e5 100644
--- a/cli/types/tests/cypress-tests.ts
+++ b/cli/types/tests/cypress-tests.ts
@@ -1063,6 +1063,14 @@ namespace CypressSetCookieTests {
     expiry: 12345,
     sameSite: 'lax',
   })
+  cy.setCookie('name', 'value', {
+    domain: 'www.foobar.com',
+    path: '/',
+    secure: false,
+    httpOnly: false,
+    hostOnly: true,
+    sameSite: 'lax',
+  })
   cy.setCookie('name', 'value', { log: true, timeout: 10, domain: 'localhost' })
 
   cy.setCookie('name') // $ExpectError
diff --git a/packages/driver/cypress/e2e/commands/cookies.cy.js b/packages/driver/cypress/e2e/commands/cookies.cy.js
index e87b5f5b9310..e47455d0faf8 100644
--- a/packages/driver/cypress/e2e/commands/cookies.cy.js
+++ b/packages/driver/cypress/e2e/commands/cookies.cy.js
@@ -562,6 +562,40 @@ describe('src/cy/commands/cookies - no stub', () => {
       })
     })
   })
+
+  it('sets the cookie on the specified domain as hostOnly and validates hostOnly property persists through related commands that fetch cookies', () => {
+    const isWebkit = Cypress.browser.name.includes('webkit')
+
+    cy.visit('http://www.barbaz.com:3500/fixtures/generic.html')
+    cy.setCookie('foo', 'bar', { hostOnly: true })
+
+    cy.getCookie('foo').its('domain').should('eq', 'www.barbaz.com')
+    if (!isWebkit) {
+      cy.getCookie('foo').its('hostOnly').should('eq', true)
+    }
+
+    cy.getCookies().then((cookies) => {
+      expect(cookies).to.have.lengthOf(1)
+
+      const cookie = cookies[0]
+
+      expect(cookie).to.have.property('domain', 'www.barbaz.com')
+      if (!isWebkit) {
+        expect(cookie).to.have.property('hostOnly', true)
+      }
+    })
+
+    cy.getAllCookies().then((cookies) => {
+      expect(cookies).to.have.lengthOf(1)
+
+      const cookie = cookies[0]
+
+      expect(cookie).to.have.property('domain', 'www.barbaz.com')
+      if (!isWebkit) {
+        expect(cookie).to.have.property('hostOnly', true)
+      }
+    })
+  })
 })
 
 describe('src/cy/commands/cookies', () => {
@@ -785,7 +819,7 @@ describe('src/cy/commands/cookies', () => {
 
       it('#consoleProps', () => {
         cy.getCookies().then(function (cookies) {
-          expect(cookies).to.deep.eq([{ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false }])
+          expect(cookies).to.deep.eq([{ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false, hostOnly: false }])
           const c = this.lastLog.invoke('consoleProps')
 
           expect(c['Yielded']).to.deep.eq(cookies)
@@ -938,7 +972,7 @@ describe('src/cy/commands/cookies', () => {
 
       it('#consoleProps', () => {
         cy.getCookies().then(function (cookies) {
-          expect(cookies).to.deep.eq([{ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false }])
+          expect(cookies).to.deep.eq([{ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false, hostOnly: false }])
           const c = this.lastLog.invoke('consoleProps')
 
           expect(c['Yielded']).to.deep.eq(cookies)
@@ -955,7 +989,7 @@ describe('src/cy/commands/cookies', () => {
       })
 
       cy.getCookie('foo').should('deep.eq', {
-        name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false,
+        name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false, hostOnly: true,
       })
       .then(() => {
         expect(Cypress.automation).to.be.calledWith(
@@ -1196,7 +1230,7 @@ describe('src/cy/commands/cookies', () => {
       .then(() => {
         expect(Cypress.automation).to.be.calledWith(
           'set:cookie',
-          { domain: 'localhost', name: 'foo', value: 'bar', path: '/', secure: false, httpOnly: false, expiry: 12345, sameSite: undefined },
+          { domain: 'localhost', name: 'foo', value: 'bar', path: '/', secure: false, httpOnly: false, hostOnly: false, expiry: 12345, sameSite: undefined },
         )
       })
     })
@@ -1212,7 +1246,7 @@ describe('src/cy/commands/cookies', () => {
       .then(() => {
         expect(Cypress.automation).to.be.calledWith(
           'set:cookie',
-          { domain: 'brian.dev.local', name: 'foo', value: 'bar', path: '/foo', secure: true, httpOnly: true, expiry: 987, sameSite: undefined },
+          { domain: 'brian.dev.local', name: 'foo', value: 'bar', path: '/foo', secure: true, httpOnly: true, hostOnly: false, expiry: 987, sameSite: undefined },
         )
       })
     })
@@ -1461,7 +1495,7 @@ describe('src/cy/commands/cookies', () => {
 
         Cypress.automation
         .withArgs('set:cookie', {
-          domain: 'localhost', name: 'foo', value: 'bar', path: '/', secure: false, httpOnly: false, expiry: 12345, sameSite: undefined,
+          domain: 'localhost', name: 'foo', value: 'bar', path: '/', secure: false, httpOnly: false, hostOnly: false, expiry: 12345, sameSite: undefined,
         })
         .resolves({
           name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false, hostOnly: true,
@@ -1494,7 +1528,7 @@ describe('src/cy/commands/cookies', () => {
 
       it('#consoleProps', () => {
         cy.setCookie('foo', 'bar').then(function (cookie) {
-          expect(cookie).to.deep.eq({ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false })
+          expect(cookie).to.deep.eq({ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false, hostOnly: true })
           const c = this.lastLog.invoke('consoleProps')
 
           expect(c['Yielded']).to.deep.eq(cookie)
@@ -1688,7 +1722,7 @@ describe('src/cy/commands/cookies', () => {
           const c = this.lastLog.invoke('consoleProps')
 
           expect(c['Yielded']).to.eq('null')
-          expect(c['Cleared Cookie']).to.deep.eq({ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false })
+          expect(c['Cleared Cookie']).to.deep.eq({ name: 'foo', value: 'bar', domain: 'localhost', path: '/', secure: true, httpOnly: false, hostOnly: false })
         })
       })
 
diff --git a/packages/driver/cypress/e2e/e2e/origin/cookie_login.cy.ts b/packages/driver/cypress/e2e/e2e/origin/cookie_login.cy.ts
index e54da5957830..a747a1ec4b33 100644
--- a/packages/driver/cypress/e2e/e2e/origin/cookie_login.cy.ts
+++ b/packages/driver/cypress/e2e/e2e/origin/cookie_login.cy.ts
@@ -725,6 +725,7 @@ describe('cy.origin - cookie login', { browser: '!webkit' }, () => {
           expect(Cypress._.omit(cookie, 'expiry')).to.deep.equal({
             domain: 'www.foobar.com',
             httpOnly: false,
+            hostOnly: true,
             name: 'key',
             path: '/fixtures',
             sameSite: 'strict',
@@ -853,6 +854,7 @@ describe('cy.origin - cookie login', { browser: '!webkit' }, () => {
           expect(Cypress._.omit(cookie, 'expiry')).to.deep.equal({
             domain: 'www.foobar.com',
             httpOnly: false,
+            hostOnly: true,
             name: 'name',
             path: '/',
             sameSite: 'lax',
diff --git a/packages/driver/src/cy/commands/cookies.ts b/packages/driver/src/cy/commands/cookies.ts
index b29505614572..6d311ca5b8c3 100644
--- a/packages/driver/src/cy/commands/cookies.ts
+++ b/packages/driver/src/cy/commands/cookies.ts
@@ -4,10 +4,7 @@ import Promise from 'bluebird'
 import $utils from '../../cypress/utils'
 import $errUtils from '../../cypress/error_utils'
 
-// TODO: add hostOnly to COOKIE_PROPS
-// https://github.com/cypress-io/cypress/issues/363
-// https://github.com/cypress-io/cypress/issues/17527
-const COOKIE_PROPS = 'name value path secure httpOnly expiry domain sameSite'.split(' ')
+const COOKIE_PROPS = 'name value path secure hostOnly httpOnly expiry domain sameSite'.split(' ')
 
 function pickCookieProps (cookie) {
   if (!cookie) return cookie
@@ -359,6 +356,7 @@ export default function (Commands, Cypress: InternalCypress.Cypress, cy, state,
         path: '/',
         secure: false,
         httpOnly: false,
+        hostOnly: false,
         log: true,
         expiry: $utils.addTwentyYears(),
       })
diff --git a/packages/extension/app/background.js b/packages/extension/app/background.js
index 04afe3154193..7dd81726f32c 100644
--- a/packages/extension/app/background.js
+++ b/packages/extension/app/background.js
@@ -179,6 +179,8 @@ const setOneCookie = (props) => {
   }
 
   if (props.hostOnly) {
+    // If the hostOnly prop is available, delete the domain.
+    // This will wind up setting a hostOnly cookie based on the calculated cookieURL above.
     delete props.domain
   }
 
diff --git a/system-tests/projects/e2e/cypress/e2e/cookies_spec_baseurl.cy.js b/system-tests/projects/e2e/cypress/e2e/cookies_spec_baseurl.cy.js
index 342e4f74650c..86f254e2ef29 100644
--- a/system-tests/projects/e2e/cypress/e2e/cookies_spec_baseurl.cy.js
+++ b/system-tests/projects/e2e/cypress/e2e/cookies_spec_baseurl.cy.js
@@ -256,13 +256,19 @@ describe('cookies', () => {
 
               _.times(n + 1, (i) => {
                 ['foo', 'bar'].forEach((tag) => {
+                  const domain = (i % 2) === (8 - n) ? expectedDomain : altDomain
+
                   const expectedCookie = {
                     'name': `name${tag}${i}`,
                     'value': `val${tag}${i}`,
                     'path': '/',
-                    'domain': (i % 2) === (8 - n) ? expectedDomain : altDomain,
+                    // eslint-disable-next-line object-shorthand
+                    'domain': domain,
                     'secure': false,
                     'httpOnly': false,
+                    ...(domain[0] !== '.' && domain !== 'localhost' && domain !== '127.0.0.1' ? {
+                      'hostOnly': true,
+                    } : {}),
                   }
 
                   if (defaultSameSite) {