diff --git a/changes/pr4232.yaml b/changes/pr4232.yaml
new file mode 100644
index 0000000000..a9b08be9a5
--- /dev/null
+++ b/changes/pr4232.yaml
@@ -0,0 +1,2 @@
+enhancement:
+  - "Add `--docker-client-timeout` flag to docker agent, for configuring the timeout for all docker API requests - [#4232](https://github.com/PrefectHQ/prefect/pull/4232)"
diff --git a/package-lock.json b/package-lock.json
index ed0115baf8..73659c5821 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -4247,24 +4247,24 @@
       "dev": true
     },
     "elliptic": {
-      "version": "6.5.3",
-      "resolved": "https://registry.npmjs.org/elliptic/-/elliptic-6.5.3.tgz",
-      "integrity": "sha512-IMqzv5wNQf+E6aHeIqATs0tOLeOTwj1QKbRcS3jBbYkl5oLAserA8yJTT7/VyHUYG91PRmPyeQDObKLPpeS4dw==",
+      "version": "6.5.4",
+      "resolved": "https://registry.npmjs.org/elliptic/-/elliptic-6.5.4.tgz",
+      "integrity": "sha512-iLhC6ULemrljPZb+QutR5TQGB+pdW6KGD5RSegS+8sorOZT+rdQFbsQFJgvN3eRqNALqJer4oQ16YvJHlU8hzQ==",
       "dev": true,
       "requires": {
-        "bn.js": "^4.4.0",
-        "brorand": "^1.0.1",
+        "bn.js": "^4.11.9",
+        "brorand": "^1.1.0",
         "hash.js": "^1.0.0",
-        "hmac-drbg": "^1.0.0",
-        "inherits": "^2.0.1",
-        "minimalistic-assert": "^1.0.0",
-        "minimalistic-crypto-utils": "^1.0.0"
+        "hmac-drbg": "^1.0.1",
+        "inherits": "^2.0.4",
+        "minimalistic-assert": "^1.0.1",
+        "minimalistic-crypto-utils": "^1.0.1"
       },
       "dependencies": {
         "bn.js": {
-          "version": "4.11.9",
-          "resolved": "https://registry.npmjs.org/bn.js/-/bn.js-4.11.9.tgz",
-          "integrity": "sha512-E6QoYqCKZfgatHTdHzs1RRKP7ip4vvm+EyRUeE2RF0NblwVvb0p6jSVeNTOFxPn26QXN2o6SMfNxKp6kU8zQaw==",
+          "version": "4.12.0",
+          "resolved": "https://registry.npmjs.org/bn.js/-/bn.js-4.12.0.tgz",
+          "integrity": "sha512-c98Bf3tPniI+scsdk237ku1Dc3ujXQTSgyiPUDEOe7tRkhrqridvh8klBv0HCEso1OLOYcHuCv/cS6DNxKH+ZA==",
           "dev": true
         }
       }
diff --git a/src/prefect/agent/docker/agent.py b/src/prefect/agent/docker/agent.py
index 218fd74449..766bf32337 100644
--- a/src/prefect/agent/docker/agent.py
+++ b/src/prefect/agent/docker/agent.py
@@ -18,17 +18,18 @@ if TYPE_CHECKING:
     import docker
 
 
-def _stream_container_logs(base_url: str, container_id: str) -> None:
+def _stream_container_logs(base_url: str, timeout: int, container_id: str) -> None:
     """
     Stream container logs back to stdout
 
     Args:
         - base_url (str): URL for a Docker daemon server
+        - timeout (int): timeout for docker api requests
         - container_id (str): ID of a container to stream logs
     """
     import docker
 
-    client = docker.APIClient(base_url=base_url, version="auto")
+    client = docker.APIClient(base_url=base_url, timeout=timeout, version="auto")
     for log in client.logs(container=container_id, stream=True, follow=True):
         print(str(log, "utf-8").rstrip())
 
@@ -82,6 +83,8 @@ class DockerAgent(Agent):
             some Docker-in-Docker setups that users may be running their agent with.
         - reg_allow_list (List[str], optional): Limits Docker Agent to only pull images
             from the listed registries.
+        - docker_client_timeout (int, optional): The timeout to use for docker
+            API calls, defaults to 60 seconds.
     """
 
     def __init__(
@@ -101,6 +104,7 @@ class DockerAgent(Agent):
         networks: List[str] = None,
         docker_interface: bool = True,
         reg_allow_list: List[str] = None,
+        docker_client_timeout: int = None,
     ) -> None:
         super().__init__(
             agent_config_id=agent_config_id,
@@ -150,6 +154,7 @@ class DockerAgent(Agent):
         self.networks = networks
         self.logger.debug(f"Docker networks set to {self.networks}")
 
+        self.docker_client_timeout = docker_client_timeout or 60
         self.docker_interface = docker_interface
         self.logger.debug(
             "Docker interface toggle set to {}".format(self.docker_interface)
@@ -183,7 +188,11 @@ class DockerAgent(Agent):
         # the 'import prefect' time low
         import docker
 
-        return docker.APIClient(base_url=self.base_url, version="auto")
+        return docker.APIClient(
+            base_url=self.base_url,
+            version="auto",
+            timeout=self.docker_client_timeout,
+        )
 
     def heartbeat(self) -> None:
         try:
@@ -483,6 +492,7 @@ class DockerAgent(Agent):
             target=_stream_container_logs,
             kwargs={
                 "base_url": self.base_url,
+                "timeout": self.docker_client_timeout,
                 "container_id": container_id,
             },
         )
diff --git a/src/prefect/cli/agent.py b/src/prefect/cli/agent.py
index b90fa8b6aa..f26b4f91c5 100644
--- a/src/prefect/cli/agent.py
+++ b/src/prefect/cli/agent.py
@@ -223,6 +223,12 @@ def docker():
         "setups that users may be running their agent with."
     ),
 )
+@click.option(
+    "--docker-client-timeout",
+    default=None,
+    type=int,
+    help="The timeout to use for docker API calls, defaults to 60 seconds.",
+)
 def start(volumes, no_docker_interface, **kwargs):
     """Start a docker agent"""
     from prefect.agent.docker import DockerAgent
@@ -524,6 +530,12 @@ _agents = {
     help="Disable presence of a Docker interface.",
     hidden=True,
 )
+@click.option(
+    "--docker-client-timeout",
+    default=None,
+    type=int,
+    hidden=True,
+)
 @click.pass_context
 def start(
     ctx,
@@ -549,6 +561,7 @@ def start(
     agent_address,
     hostname_label,
     storage_labels,
+    docker_client_timeout,
 ):
     """
     Start an agent.
@@ -611,6 +624,7 @@ def start(
         --no-docker-interface       Disable the check of a Docker interface on this machine.
                                     Note: This is mostly relevant for some Docker-in-Docker
                                     setups that users may be running their agent with.
+        --docker-client-timeout     Timeout for docker api requests
 
     \b
     Kubernetes Agent:
@@ -692,6 +706,7 @@ def start(
                 volumes=list(volume),
                 networks=tuple(network),
                 docker_interface=not no_docker_interface,
+                docker_client_timeout=docker_client_timeout,
             ).start()
         elif agent_option == "fargate":
             from_qualified_name(retrieved_agent)(

diff --git a/tests/agent/test_docker_agent.py b/tests/agent/test_docker_agent.py
index 92bdad2372..a671c7dd70 100644
--- a/tests/agent/test_docker_agent.py
+++ b/tests/agent/test_docker_agent.py
@@ -68,11 +68,12 @@ def test_docker_agent_config_options_populated(monkeypatch):
     api = MagicMock()
     monkeypatch.setattr("docker.APIClient", api)
 
-    agent = DockerAgent(base_url="url", no_pull=True)
+    agent = DockerAgent(base_url="url", no_pull=True, docker_client_timeout=123)
     assert agent.client.get_auth_token() == "TEST_TOKEN"
     assert agent.logger
     assert agent.no_pull
     assert api.call_args[1]["base_url"] == "url"
+    assert api.call_args[1]["timeout"] == 123
 
 
 def test_docker_agent_no_pull(api):
@@ -515,7 +516,11 @@ def test_docker_agent_deploy_flow_show_flow_logs(api, monkeypatch):
 
     process_kwargs = dict(
         target=_stream_container_logs,
-        kwargs={"base_url": agent.base_url, "container_id": "container_id"},
+        kwargs={
+            "base_url": agent.base_url,
+            "container_id": "container_id",
+            "timeout": 60,
+        },
     )
     process.assert_called_with(**process_kwargs)
     # Check all arguments to `multiprocessing.Process` are pickleable
diff --git a/tests/cli/test_agent.py b/tests/cli/test_agent.py
index d0d42981e2..4a283e6df9 100644
--- a/tests/cli/test_agent.py
+++ b/tests/cli/test_agent.py
@@ -59,7 +59,7 @@ def test_help(cmd):
             (
                 "--base-url testurl --no-pull --show-flow-logs --volume volume1 "
                 "--volume volume2 --network testnetwork1 --network testnetwork2 "
-                "--no-docker-interface"
+                "--no-docker-interface --docker-client-timeout 123"
             ),
             {
                 "base_url": "testurl",
@@ -68,6 +68,7 @@ def test_help(cmd):
                 "no_pull": True,
                 "show_flow_logs": True,
                 "docker_interface": False,
+                "docker_client_timeout": 123,
             },
         ),
         (

Docker Agent: Passing custom parameters when creating docker.APIClient
## Current behavior
prefect docker agent is using default parameters to create an instance of docker.APIClient. This makes it impossible to customize the docker client. Things such as to increase the timeout of docker client cannot be done.

https://github.com/PrefectHQ/prefect/blob/master/src/prefect/agent/docker/agent.py#L186


## Proposed behavior
We should have a way to pass custom parameters to when creating an instance of docker.APIClient. 
Either as a dictionary or as a json config file




## Example
When the somehow get overloaded, docker daemon failed to create a container within 60 seconds, docker.APIClient will then return a timeout error similar to https://github.com/docker/compose/issues/3927. In my case increase the timeout from 60 to 120 seconds would mitigate this problem.
tests/agent/test_docker_agent.py::test_docker_agent_config_options_populated
tests/agent/test_docker_agent.py::test_docker_agent_init tests/agent/test_docker_agent.py::test_docker_agent_config_options[osx-unix://var/run/docker.sock] tests/agent/test_docker_agent.py::test_docker_agent_config_options[win32-npipe:////./pipe/docker_engine] tests/agent/test_docker_agent.py::test_docker_agent_no_pull tests/agent/test_docker_agent.py::test_docker_agent_ping tests/agent/test_docker_agent.py::test_docker_agent_ping_exception tests/agent/test_docker_agent.py::test_populate_env_vars_from_agent_config tests/agent/test_docker_agent.py::test_populate_env_vars[backend0] tests/agent/test_docker_agent.py::test_populate_env_vars[backend1] tests/agent/test_docker_agent.py::test_populate_env_vars_includes_agent_labels tests/agent/test_docker_agent.py::test_populate_env_vars_sets_log_to_cloud[True] tests/agent/test_docker_agent.py::test_populate_env_vars_sets_log_to_cloud[False] tests/agent/test_docker_agent.py::test_populate_env_vars_from_run_config tests/agent/test_docker_agent.py::test_docker_agent_deploy_flow_unsupported_run_config tests/agent/test_docker_agent.py::test_docker_agent_deploy_flow_storage_raises tests/agent/test_docker_agent.py::test_docker_agent_deploy_flow_reg_allow_list_not_allowed tests/agent/test_docker_agent.py::test_docker_agent_shutdown_terminates_child_processes tests/agent/test_docker_agent.py::test_docker_agent_heartbeat_gocase tests/agent/test_docker_agent.py::test_docker_agent_heartbeat_exits_on_failure tests/agent/test_docker_agent.py::test_docker_agent_heartbeat_logs_reconnect tests/agent/test_docker_agent.py::test_docker_agent_heartbeat_resets_fail_count tests/agent/test_docker_agent.py::test_docker_agent_init_volume_empty_options tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_unix[name-True] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_unix[/some/path-False] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_unix[./some/path-False] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_unix[~/some/path-False] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_unix[../some/path-False] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_unix[ tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_unix[\n../some/path-True] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_win32[name-True] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_win32[C:\\\\some\\path-False] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_win32[c:\\\\some\\path-False] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_win32[\\\\some\\path-False] tests/agent/test_docker_agent.py::test_docker_agent_is_named_volume_win32[\\\\\\some\\path-False] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_unix[candidate0-named_volumes0-container_mount_paths0-host_spec0] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_unix[candidate1-named_volumes1-container_mount_paths1-host_spec1] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_unix[candidate2-named_volumes2-container_mount_paths2-host_spec2] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_unix[candidate3-named_volumes3-container_mount_paths3-host_spec3] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_unix[candidate4-named_volumes4-container_mount_paths4-host_spec4] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_unix[candidate5-named_volumes5-container_mount_paths5-host_spec5] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_win[candidate0-named_volumes0-container_mount_paths0-host_spec0] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_win[candidate1-named_volumes1-container_mount_paths1-host_spec1] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_win[candidate2-named_volumes2-container_mount_paths2-host_spec2] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_win[candidate3-named_volumes3-container_mount_paths3-host_spec3] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_win[candidate4-named_volumes4-container_mount_paths4-host_spec4] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_raises_on_invalid_spec[some-name:/ctr/path:ro-ValueError] tests/agent/test_docker_agent.py::test_docker_agent_parse_volume_spec_raises_on_invalid_spec[/some/path:/ctr/path:rw:something-else-ValueError] tests/agent/test_docker_agent.py::test_docker_agent_start_max_polls[0] tests/agent/test_docker_agent.py::test_docker_agent_start_max_polls[1] tests/agent/test_docker_agent.py::test_docker_agent_start_max_polls[2] tests/agent/test_docker_agent.py::test_docker_agent_network_network_and_networks tests/agent/test_docker_agent.py::test_docker_agent_deploy_with_interface_check_linux tests/agent/test_docker_agent.py::test_docker_agent_deploy_with_no_interface_check_linux