diff --git a/.changeset/thin-students-lick.md b/.changeset/thin-students-lick.md
new file mode 100644
index 0000000000..4b1c62bacd
--- /dev/null
+++ b/.changeset/thin-students-lick.md
@@ -0,0 +1,5 @@
+---
+"@clerk/nuxt": patch
+---
+
+Allow custom middleware with options
diff --git a/integration/presets/index.ts b/integration/presets/index.ts
index 92d31062e5..ede126b607 100644
--- a/integration/presets/index.ts
+++ b/integration/presets/index.ts
@@ -5,6 +5,7 @@ import { expo } from './expo';
 import { express } from './express';
 import { createLongRunningApps } from './longRunningApps';
 import { next } from './next';
+import { nuxt } from './nuxt';
 import { react } from './react';
 import { remix } from './remix';
 import { tanstack } from './tanstack';
@@ -20,6 +21,7 @@ export const appConfigs = {
   expo,
   astro,
   tanstack,
+  nuxt,
   secrets: {
     instanceKeys,
   },
diff --git a/integration/tests/nuxt/middleware.test.ts b/integration/tests/nuxt/middleware.test.ts
new file mode 100644
index 0000000000..edd6fed920
--- /dev/null
+++ b/integration/tests/nuxt/middleware.test.ts
@@ -0,0 +1,87 @@
+import { expect, test } from '@playwright/test';
+
+import type { Application } from '../../models/application';
+import { appConfigs } from '../../presets';
+import { createTestUtils } from '../../testUtils';
+
+test.describe('custom middleware @nuxt', () => {
+  test.describe.configure({ mode: 'parallel' });
+  let app: Application;
+
+  test.beforeAll(async () => {
+    app = await appConfigs.nuxt.node
+      .clone()
+      .setName('nuxt-custom-middleware')
+      .addFile(
+        'nuxt.config.js',
+        () => `export default defineNuxtConfig({
+          modules: ['@clerk/nuxt'],
+          devtools: { enabled: false },
+          clerk: {
+            skipServerMiddleware: true
+          }
+        });`,
+      )
+      .addFile(
+        'server/middleware/clerk.js',
+        () => `import { clerkMiddleware } from '@clerk/nuxt/server';
+
+        export default clerkMiddleware((event) => {
+          const { userId } = event.context.auth
+          if (!userId && event.path === '/api/me') {
+            throw createError({
+              statusCode: 401,
+              statusMessage: 'You are not authorized to access this resource.'
+            })
+          }
+        });
+      `,
+      )
+      .addFile(
+        'pages/me.vue',
+        () => `<script setup>
+        const { data, error } = await useFetch('/api/me');
+        </script>
+
+        <template>
+          <div v-if="data">Hello, {{ data.firstName }}</div>
+          <div v-else-if="error">{{ error.statusCode }}: {{ error.statusMessage }}</div>
+          <div v-else>Unknown status</div>
+        </template>`,
+      )
+      .commit();
+
+    await app.setup();
+    await app.withEnv(appConfigs.envs.withCustomRoles);
+    await app.dev();
+  });
+
+  test.afterAll(async () => {
+    await app.teardown();
+  });
+
+  test('guard API route with custom middleware', async ({ page, context }) => {
+    const u = createTestUtils({ app, page, context });
+    const fakeUser = u.services.users.createFakeUser();
+    await u.services.users.createBapiUser(fakeUser);
+
+    // Verify unauthorized access is blocked
+    await u.page.goToAppHome();
+    await u.po.expect.toBeSignedOut();
+    await u.page.goToRelative('/me');
+    await expect(u.page.getByText('401: You are not authorized to access this resource')).toBeVisible();
+
+    // Sign in flow
+    await u.page.goToRelative('/sign-in');
+    await u.po.signIn.waitForMounted();
+    await u.po.signIn.signInWithEmailAndInstantPassword({ email: fakeUser.email, password: fakeUser.password });
+    await u.po.expect.toBeSignedIn();
+    await u.page.waitForAppUrl('/');
+
+    // Verify authorized access works
+    await u.page.goToRelative('/me');
+    await expect(u.page.getByText(`Hello, ${fakeUser.firstName}`)).toBeVisible();
+
+    await fakeUser.deleteIfExists();
+  });
+});
diff --git a/packages/nuxt/package.json b/packages/nuxt/package.json
index f199d27dc3..cab6860a0c 100644
--- a/packages/nuxt/package.json
+++ b/packages/nuxt/package.json
@@ -46,7 +46,8 @@
     "lint": "eslint src/",
     "lint:attw": "attw --pack . --ignore-rules no-resolution cjs-resolves-to-esm",
     "lint:publint": "publint",
-    "publish:local": "pnpm yalc push --replace --sig"
+    "publish:local": "pnpm yalc push --replace --sig",
+    "test": "vitest"
   },
   "dependencies": {
     "@clerk/backend": "workspace:*",
diff --git a/packages/nuxt/src/runtime/server/__tests__/clerkMiddleware.test.ts b/packages/nuxt/src/runtime/server/__tests__/clerkMiddleware.test.ts
new file mode 100644
index 0000000000..89766f0b1e
--- /dev/null
+++ b/packages/nuxt/src/runtime/server/__tests__/clerkMiddleware.test.ts
@@ -0,0 +1,106 @@
+import { createApp, eventHandler, setResponseHeader, toWebHandler } from 'h3';
+import { vi } from 'vitest';
+
+import { clerkMiddleware } from '../clerkMiddleware';
+
+const AUTH_RESPONSE = {
+  userId: 'user_2jZSstSbxtTndD9P7q4kDl0VVZa',
+  sessionId: 'sess_2jZSstSbxtTndD9P7q4kDl0VVZa',
+};
+
+const MOCK_OPTIONS = {
+  secretKey: 'sk_test_xxxxxxxxxxxxxxxxxx',
+  publishableKey: 'pk_test_xxxxxxxxxxxxx',
+  signInUrl: '/foo',
+  signUpUrl: '/bar',
+};
+
+vi.mock('#imports', () => {
+  return {
+    useRuntimeConfig: () => ({}),
+  };
+});
+
+const authenticateRequestMock = vi.fn().mockResolvedValue({
+  toAuth: () => AUTH_RESPONSE,
+  headers: new Headers(),
+});
+
+vi.mock('../clerkClient', () => {
+  return {
+    clerkClient: () => ({
+      authenticateRequest: authenticateRequestMock,
+      telemetry: { record: vi.fn() },
+    }),
+  };
+});
+
+describe('clerkMiddleware(params)', () => {
+  test('renders route as normally when used without params', async () => {
+    const app = createApp();
+    const handler = toWebHandler(app);
+    app.use(clerkMiddleware());
+    app.use(
+      '/',
+      eventHandler(event => event.context.auth),
+    );
+    const response = await handler(new Request(new URL('/', 'http://localhost')));
+
+    expect(response.status).toBe(200);
+    expect(await response.json()).toEqual(AUTH_RESPONSE);
+  });
+
+  test('renders route as normally when used with options param', async () => {
+    const app = createApp();
+    const handler = toWebHandler(app);
+    app.use(clerkMiddleware(MOCK_OPTIONS));
+    app.use(
+      '/',
+      eventHandler(event => event.context.auth),
+    );
+    const response = await handler(new Request(new URL('/', 'http://localhost')));
+
+    expect(response.status).toBe(200);
+    expect(authenticateRequestMock).toHaveBeenCalledWith(expect.any(Request), expect.objectContaining(MOCK_OPTIONS));
+    expect(await response.json()).toEqual(AUTH_RESPONSE);
+  });
+
+  test('executes handler and renders route when used with a custom handler', async () => {
+    const app = createApp();
+    const handler = toWebHandler(app);
+    app.use(
+      clerkMiddleware(event => {
+        setResponseHeader(event, 'a-custom-header', '1');
+      }),
+    );
+    app.use(
+      '/',
+      eventHandler(event => event.context.auth),
+    );
+    const response = await handler(new Request(new URL('/', 'http://localhost')));
+
+    expect(response.status).toBe(200);
+    expect(response.headers.get('a-custom-header')).toBe('1');
+    expect(await response.json()).toEqual(AUTH_RESPONSE);
+  });
+
+  test('executes handler and renders route when used with a custom handler and options', async () => {
+    const app = createApp();
+    const handler = toWebHandler(app);
+    app.use(
+      clerkMiddleware(event => {
+        setResponseHeader(event, 'a-custom-header', '1');
+      }, MOCK_OPTIONS),
+    );
+    app.use(
+      '/',
+      eventHandler(event => event.context.auth),
+    );
+    const response = await handler(new Request(new URL('/', 'http://localhost')));
+
+    expect(response.status).toBe(200);
+    expect(response.headers.get('a-custom-header')).toBe('1');
+    expect(authenticateRequestMock).toHaveBeenCalledWith(expect.any(Request), expect.objectContaining(MOCK_OPTIONS));
+    expect(await response.json()).toEqual(AUTH_RESPONSE);
+  });
+});
diff --git a/packages/nuxt/src/runtime/server/clerkMiddleware.ts b/packages/nuxt/src/runtime/server/clerkMiddleware.ts
index 620182a9ea..8d38aa53fc 100644
--- a/packages/nuxt/src/runtime/server/clerkMiddleware.ts
+++ b/packages/nuxt/src/runtime/server/clerkMiddleware.ts
@@ -1,31 +1,65 @@
 import type { AuthObject } from '@clerk/backend';
+import type { AuthenticateRequestOptions } from '@clerk/backend/internal';
 import { AuthStatus, constants } from '@clerk/backend/internal';
-import type { H3Event } from 'h3';
+import { eventMethodCalled } from '@clerk/shared/telemetry';
+import type { EventHandler } from 'h3';
 import { createError, eventHandler, setResponseHeader } from 'h3';
 
 import { clerkClient } from './clerkClient';
 import { createInitialState, toWebRequest } from './utils';
 
-type Handler = (event: H3Event) => void;
+function parseHandlerAndOptions(args: unknown[]) {
+  return [
+    typeof args[0] === 'function' ? args[0] : undefined,
+    (args.length === 2 ? args[1] : typeof args[0] === 'function' ? {} : args[0]) || {},
+  ] as [EventHandler | undefined, AuthenticateRequestOptions];
+}
+
+interface ClerkMiddleware {
+  /**
+   * @example
+   * export default clerkMiddleware((event) => { ... }, options);
+   */
+  (handler: EventHandler, options?: AuthenticateRequestOptions): ReturnType<typeof eventHandler>;
+
+  /**
+   * @example
+   * export default clerkMiddleware(options);
+   */
+  (options?: AuthenticateRequestOptions): ReturnType<typeof eventHandler>;
+}
 
 /**
- * Integrates Clerk authentication into your Nuxt application through Middleware.
- *
- * @param handler Optional callback function to handle the authenticated request
+ * Middleware for Nuxt that handles authentication and authorization with Clerk.
  *
  * @example
- * Basic usage:
+ * Basic usage with options:
  * ```ts
- * import { clerkMiddleware } from '@clerk/nuxt/server'
- *
- * export default clerkMiddleware()
+ * export default clerkMiddleware({
+ *   authorizedParties: ['https://example.com']
+ * })
  * ```
  *
  * @example
  * With custom handler:
  * ```ts
- * import { clerkMiddleware } from '@clerk/nuxt/server'
+ * export default clerkMiddleware((event) => {
+ *   // Access auth data from the event context
+ *   const { auth } = event.context
+ *
+ *   // Example: Require authentication for all API routes
+ *   if (!auth.userId && event.path.startsWith('/api')) {
+ *     throw createError({
+ *       statusCode: 401,
+ *       message: 'Unauthorized'
+ *     })
+ *   }
+ * })
+ * ```
  *
+ * @example
+ * With custom handler and options:
+ * ```ts
  * export default clerkMiddleware((event) => {
  *   // Access auth data from the event context
  *   const { auth } = event.context
@@ -37,14 +71,25 @@ type Handler = (event: H3Event) => void;
  *       message: 'Unauthorized'
  *     })
  *   }
+ * }, {
+ *   authorizedParties: ['https://example.com']
  * })
  * ```
  */
-export function clerkMiddleware(handler?: Handler) {
+export const clerkMiddleware: ClerkMiddleware = (...args: unknown[]) => {
+  const [handler, options] = parseHandlerAndOptions(args);
   return eventHandler(async event => {
     const clerkRequest = toWebRequest(event);
 
-    const requestState = await clerkClient(event).authenticateRequest(clerkRequest);
+    clerkClient(event).telemetry.record(
+      eventMethodCalled('clerkMiddleware', {
+        handler: Boolean(handler),
+        satellite: Boolean(options.isSatellite),
+        proxy: Boolean(options.proxyUrl),
+      }),
+    );
+
+    const requestState = await clerkClient(event).authenticateRequest(clerkRequest, options);
 
     const locationHeader = requestState.headers.get(constants.Headers.Location);
     if (locationHeader) {
@@ -69,7 +114,7 @@ export function clerkMiddleware(handler?: Handler) {
 
     handler?.(event);
   });
-}
+};
 
 declare module 'h3' {
   interface H3EventContext {
diff --git a/packages/nuxt/vitest.config.ts b/packages/nuxt/vitest.config.ts
new file mode 100644
index 0000000000..7382f40e7d
--- /dev/null
+++ b/packages/nuxt/vitest.config.ts
@@ -0,0 +1,7 @@
+import { defineConfig } from 'vitest/config';
+
+export default defineConfig({
+  test: {
+    globals: true,
+  },
+});
diff --git a/turbo.json b/turbo.json
index ea27da6e51..ccaee59409 100644
--- a/turbo.json
+++ b/turbo.json
@@ -223,7 +223,7 @@
       "outputLogs": "new-only"
     },
     "//#test:integration:nuxt": {
-      "dependsOn": ["@clerk/clerk-js#build", "@clerk/vue#build", "@clerk/nuxt#build"],
+      "dependsOn": ["@clerk/clerk-js#build", "@clerk/vue#build", "@clerk/backend#build", "@clerk/nuxt#build"],
       "env": ["CLEANUP", "DEBUG", "E2E_*", "INTEGRATION_INSTANCE_KEYS"],
       "inputs": ["integration/**"],
       "outputLogs": "new-only"