diff --git a/src/fetch.ts b/src/fetch.ts
index b4029fe..3c2b440 100644
--- a/src/fetch.ts
+++ b/src/fetch.ts
@@ -6,14 +6,17 @@ import {
   isPayloadMethod,
   isJSONSerializable,
   detectResponseType,
-  mergeFetchOptions,
+  resolveFetchOptions,
   callHooks,
 } from "./utils";
 import type {
   CreateFetchOptions,
   FetchResponse,
+  ResponseType,
   FetchContext,
   $Fetch,
+  FetchRequest,
+  FetchOptions,
 } from "./types";
 
 // https://developer.mozilla.org/en-US/docs/Web/HTTP/Status
@@ -88,13 +91,18 @@ export function createFetch(globalOptions: CreateFetchOptions = {}): $Fetch {
     throw error;
   }
 
-  const $fetchRaw: $Fetch["raw"] = async function $fetchRaw(
-    _request,
-    _options = {}
-  ) {
+  const $fetchRaw: $Fetch["raw"] = async function $fetchRaw<
+    T = any,
+    R extends ResponseType = "json",
+  >(_request: FetchRequest, _options: FetchOptions<R> = {}) {
     const context: FetchContext = {
       request: _request,
-      options: mergeFetchOptions(_options, globalOptions.defaults, Headers),
+      options: resolveFetchOptions<R, T>(
+        _request,
+        _options,
+        globalOptions.defaults as unknown as FetchOptions<R, T>,
+        Headers
+      ),
       response: undefined,
       error: undefined,
     };
@@ -110,11 +118,8 @@ export function createFetch(globalOptions: CreateFetchOptions = {}): $Fetch {
       if (context.options.baseURL) {
         context.request = withBase(context.request, context.options.baseURL);
       }
-      if (context.options.query || context.options.params) {
-        context.request = withQuery(context.request, {
-          ...context.options.params,
-          ...context.options.query,
-        });
+      if (context.options.query) {
+        context.request = withQuery(context.request, context.options.query);
       }
     }
 
diff --git a/src/types.ts b/src/types.ts
index e9c9cbd..5f2e818 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -23,11 +23,17 @@ export interface FetchOptions<R extends ResponseType = ResponseType, T = any>
   extends Omit<RequestInit, "body">,
     FetchHooks<T, R> {
   baseURL?: string;
+
   body?: RequestInit["body"] | Record<string, any>;
+
   ignoreResponseError?: boolean;
+
   params?: Record<string, any>;
+
   query?: Record<string, any>;
+
   parseResponse?: (responseText: string) => any;
+
   responseType?: R;
 
   /**
@@ -61,6 +67,13 @@ export interface FetchOptions<R extends ResponseType = ResponseType, T = any>
   retryStatusCodes?: number[];
 }
 
+export interface ResolvedFetchOptions<
+  R extends ResponseType = ResponseType,
+  T = any,
+> extends FetchOptions<R, T> {
+  headers: Headers;
+}
+
 export interface CreateFetchOptions {
   defaults?: FetchOptions;
   fetch?: Fetch;
@@ -79,7 +92,7 @@ export type GlobalOptions = Pick<
 
 export interface FetchContext<T = any, R extends ResponseType = ResponseType> {
   request: FetchRequest;
-  options: FetchOptions<R>;
+  options: ResolvedFetchOptions<R>;
   response?: FetchResponse<T>;
   error?: Error;
 }
diff --git a/src/utils.ts b/src/utils.ts
index f9760ab..0efd414 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -2,6 +2,8 @@ import type {
   FetchContext,
   FetchHook,
   FetchOptions,
+  FetchRequest,
+  ResolvedFetchOptions,
   ResponseType,
 } from "./types";
 
@@ -69,40 +71,59 @@ export function detectResponseType(_contentType = ""): ResponseType {
   return "blob";
 }
 
-// Merging of fetch option objects.
-export function mergeFetchOptions(
-  input: FetchOptions | undefined,
-  defaults: FetchOptions | undefined,
-  Headers = globalThis.Headers
-): FetchOptions {
-  const merged: FetchOptions = {
-    ...defaults,
-    ...input,
-  };
+export function resolveFetchOptions<
+  R extends ResponseType = ResponseType,
+  T = any,
+>(
+  request: FetchRequest,
+  input: FetchOptions<R, T> | undefined,
+  defaults: FetchOptions<R, T> | undefined,
+  Headers: typeof globalThis.Headers
+): ResolvedFetchOptions<R, T> {
+  // Merge headers
+  const headers = mergeHeaders(
+    input?.headers ?? (request as Request)?.headers,
+    defaults?.headers,
+    Headers
+  );
 
-  // Merge params and query
-  if (defaults?.params && input?.params) {
-    merged.params = {
+  // Merge query/params
+  let query: Record<string, any> | undefined;
+  if (defaults?.query || defaults?.params || input?.params || input?.query) {
+    query = {
       ...defaults?.params,
-      ...input?.params,
-    };
-  }
-  if (defaults?.query && input?.query) {
-    merged.query = {
       ...defaults?.query,
+      ...input?.params,
       ...input?.query,
     };
   }
 
-  // Merge headers
-  if (defaults?.headers && input?.headers) {
-    merged.headers = new Headers(defaults?.headers || {});
-    for (const [key, value] of new Headers(input?.headers || {})) {
-      merged.headers.set(key, value);
+  return {
+    ...defaults,
+    ...input,
+    query,
+    params: query,
+    headers,
+  };
+}
+
+function mergeHeaders(
+  input: HeadersInit | undefined,
+  defaults: HeadersInit | undefined,
+  Headers: typeof globalThis.Headers
+): Headers {
+  if (!defaults) {
+    return new Headers(input);
+  }
+  const headers = new Headers(defaults);
+  if (input) {
+    for (const [key, value] of Symbol.iterator in input || Array.isArray(input)
+      ? input
+      : new Headers(input)) {
+      headers.set(key, value);
     }
   }
-
-  return merged;
+  return headers;
 }
 
 export async function callHooks<C extends FetchContext = FetchContext>(
diff --git a/test/index.test.ts b/test/index.test.ts
index abbbd26..aabb9dd 100644
--- a/test/index.test.ts
+++ b/test/index.test.ts
@@ -383,7 +383,24 @@ describe("ofetch", () => {
       "x-header-c": "3",
     });
 
-    expect(path).to.eq("?b=2&c=3&a=1");
+    const parseParams = (str: string) =>
+      Object.fromEntries(new URLSearchParams(str).entries());
+    expect(parseParams(path)).toMatchObject(parseParams("?b=2&c=3&a=1"));
+  });
+
+  it("uses request headers", async () => {
+    expect(
+      await $fetch(
+        new Request(getURL("echo"), { headers: { foo: "1" } }),
+        {}
+      ).then((r) => r.headers)
+    ).toMatchObject({ foo: "1" });
+
+    expect(
+      await $fetch(new Request(getURL("echo"), { headers: { foo: "1" } }), {
+        headers: { foo: "2", bar: "3" },
+      }).then((r) => r.headers)
+    ).toMatchObject({ foo: "2", bar: "3" });
   });
 
   it("calls hooks", async () => {