diff --git a/pkg/test/testutil/testutil.go b/pkg/test/testutil/testutil.go
index 5db023969..6b97ff185 100644
--- a/pkg/test/testutil/testutil.go
+++ b/pkg/test/testutil/testutil.go
@@ -56,6 +56,10 @@ var (
 	runscPath            = flag.String("runsc", os.Getenv("RUNTIME"), "path to runsc binary")
 	// Note: flag overlay is already taken by runsc.
 	isRunningWithOverlay = flag.Bool("test-overlay", BoolFromEnv("TEST_OVERLAY", false), "whether test is running with --overlay2")
+
+	// TestEnvSupportsRawSockets indicates whether a test sandbox can
+	// create raw sockets.
+	TestEnvSupportsRawSockets = true
 )
 
 // StringFromEnv returns the value of the named environment variable, or `def` if unset/empty.
diff --git a/runsc/boot/BUILD b/runsc/boot/BUILD
index 16784d8cf..91cdcd6e8 100644
--- a/runsc/boot/BUILD
+++ b/runsc/boot/BUILD
@@ -117,6 +117,7 @@ go_library(
         "//runsc/specutils",
         "//runsc/specutils/seccomp",
         "@com_github_opencontainers_runtime_spec//specs-go:go_default_library",
+        "@com_github_syndtr_gocapability//capability:go_default_library",
         "@org_golang_google_protobuf//proto:go_default_library",
         "@org_golang_x_sys//unix:go_default_library",
     ],
@@ -143,6 +144,7 @@ go_test(
         "//runsc/flag",
         "//runsc/fsgofer",
         "@com_github_opencontainers_runtime_spec//specs-go:go_default_library",
+        "@com_github_syndtr_gocapability//capability:go_default_library",
         "@org_golang_x_sys//unix:go_default_library",
     ],
 )
diff --git a/runsc/boot/loader.go b/runsc/boot/loader.go
index f597f336d..fd0e2192a 100644
--- a/runsc/boot/loader.go
+++ b/runsc/boot/loader.go
@@ -24,6 +24,7 @@ import (
 	gtime "time"
 
 	specs "github.com/opencontainers/runtime-spec/specs-go"
+	"github.com/syndtr/gocapability/capability"
 	"golang.org/x/sys/unix"
 	"gvisor.dev/gvisor/pkg/abi/linux"
 	"gvisor.dev/gvisor/pkg/bpf"
@@ -1116,6 +1117,12 @@ func newRootNetworkNamespace(conf *config.Config, clock tcpip.Clock, uniqueID st
 	// Run().
 	switch conf.Network {
 	case config.NetworkHost:
+		// If configured for raw socket support with host network
+		// stack, make sure that we have CAP_NET_RAW the host,
+		// otherwise we can't make raw sockets.
+		if conf.EnableRaw && !specutils.HasCapabilities(capability.CAP_NET_RAW) {
+			return nil, fmt.Errorf("configuring network=host with raw sockets requires CAP_NET_RAW capability")
+		}
 		// No network namespacing support for hostinet yet, hence creator is nil.
 		return inet.NewRootNamespace(hostinet.NewStack(), nil), nil
 
diff --git a/runsc/boot/loader_test.go b/runsc/boot/loader_test.go
index fe0633ce3..a87a30928 100644
--- a/runsc/boot/loader_test.go
+++ b/runsc/boot/loader_test.go
@@ -18,10 +18,12 @@ import (
 	"fmt"
 	"math/rand"
 	"os"
+	"strings"
 	"testing"
 	"time"
 
 	specs "github.com/opencontainers/runtime-spec/specs-go"
+	"github.com/syndtr/gocapability/capability"
 	"golang.org/x/sys/unix"
 	"gvisor.dev/gvisor/pkg/control/server"
 	"gvisor.dev/gvisor/pkg/fspath"
@@ -103,12 +105,12 @@ func startGofer(root string) (int, func(), error) {
 	return sandboxEnd, cleanup, nil
 }
 
-func createLoader(spec *specs.Spec) (*Loader, func(), error) {
-	fd, err := server.CreateSocket(fmt.Sprintf("\x00loader-test.%010d", rand.Int())[:10])
+func createLoader(conf *config.Config, spec *specs.Spec) (*Loader, func(), error) {
+	sock := fmt.Sprintf("\x00loader-test.%010d", rand.Int())
+	fd, err := server.CreateSocket(sock)
 	if err != nil {
 		return nil, nil, err
 	}
-	conf := testConfig()
 	sandEnd, cleanup, err := startGofer(spec.Root.Path)
 	if err != nil {
 		return nil, nil, err
@@ -143,7 +145,7 @@ func createLoader(spec *specs.Spec) (*Loader, func(), error) {
 
 // TestRun runs a simple application in a sandbox and checks that it succeeds.
 func TestRun(t *testing.T) {
-	l, cleanup, err := createLoader(testSpec())
+	l, cleanup, err := createLoader(testConfig(), testSpec())
 	if err != nil {
 		t.Fatalf("error creating loader: %v", err)
 	}
@@ -181,7 +183,7 @@ func TestRun(t *testing.T) {
 // TestStartSignal tests that the controller Start message will cause
 // WaitForStartSignal to return.
 func TestStartSignal(t *testing.T) {
-	l, cleanup, err := createLoader(testSpec())
+	l, cleanup, err := createLoader(testConfig(), testSpec())
 	if err != nil {
 		t.Fatalf("error creating loader: %v", err)
 	}
@@ -228,6 +230,53 @@ func TestStartSignal(t *testing.T) {
 	}
 }
 
+// Test that network=host with raw sockets enabled requires CAP_NET_RAW on the
+// host.
+func TestHostnetWithRawSockets(t *testing.T) {
+	// Drop CAP_NET_RAW from effective capabilities, if we have it.
+	pid := os.Getpid()
+	caps, err := capability.NewPid2(os.Getpid())
+	if err != nil {
+		t.Fatalf("error getting capabilities for pid %d: %v", pid, err)
+	}
+	if err := caps.Load(); err != nil {
+		t.Fatalf("error loading capabilities: %v", err)
+	}
+	if caps.Get(capability.EFFECTIVE, capability.CAP_NET_RAW) {
+		caps.Unset(capability.EFFECTIVE, capability.CAP_NET_RAW)
+		if err := caps.Apply(capability.EFFECTIVE); err != nil {
+			t.Fatalf("error applying capabilities")
+		}
+		// Be nice and add it back when we are done.
+		defer func() {
+			caps.Set(capability.EFFECTIVE, capability.CAP_NET_RAW)
+			if err := caps.Apply(capability.EFFECTIVE); err != nil {
+				t.Fatalf("error restoring capabilities")
+			}
+		}()
+	}
+
+	// Configure host network with raw sockets.
+	conf := testConfig()
+	conf.Network = config.NetworkHost
+	conf.EnableRaw = true
+
+	// Creating loader should fail.
+	l, err := New(Args{
+		ID:   "should-fail",
+		Spec: testSpec(),
+		Conf: conf,
+	})
+	if err == nil {
+		l.Destroy()
+		t.Fatalf("expected loader.New() to fail but it did not")
+	}
+	// Error message must be about CAP_NET_RAW.
+	if !strings.Contains(err.Error(), "CAP_NET_RAW") {
+		t.Errorf("expected error to contain CAP_NET_RAW but got %q", err)
+	}
+}
+
 type CreateMountTestcase struct {
 	name string
 	// Spec that will be used to create the mount manager.  Note
@@ -410,7 +459,7 @@ func TestCreateMountNamespace(t *testing.T) {
 			spec.Root = tc.spec.Root
 
 			t.Logf("Using root: %q", spec.Root.Path)
-			l, loaderCleanup, err := createLoader(spec)
+			l, loaderCleanup, err := createLoader(testConfig(), spec)
 			if err != nil {
 				t.Fatalf("failed to create loader: %v", err)
 			}
diff --git a/test/runner/main.go b/test/runner/main.go
index a9ae64688..9c41b0dd6 100644
--- a/test/runner/main.go
+++ b/test/runner/main.go
@@ -223,13 +223,18 @@ func runRunsc(tc *gtest.TestCase, spec *specs.Spec) error {
 		"-log-format=text",
 		"-TESTONLY-unsafe-nonroot=true",
 		"-TESTONLY-allow-packet-endpoint-write=true",
-		"-net-raw=true",
 		fmt.Sprintf("-panic-signal=%d", unix.SIGTERM),
 		fmt.Sprintf("-iouring=%t", *ioUring),
 		"-watchdog-action=panic",
 		"-platform", *platform,
 		"-file-access", *fileAccess,
 	}
+
+	if *network == "host" && !testutil.TestEnvSupportsRawSockets {
+		log.Warningf("Testing with network=host but test environment does not support raw sockets. Raw socket support will be disabled.")
+	} else {
+		args = append(args, "-net-raw")
+	}
 	if *overlay {
 		args = append(args, "-overlay2=all:dir=/tmp")
 	}