diff --git a/.changeset/poor-fans-change.md b/.changeset/poor-fans-change.md
new file mode 100644
index 0000000000..18cd474157
--- /dev/null
+++ b/.changeset/poor-fans-change.md
@@ -0,0 +1,18 @@
+---
+"effect": minor
+---
+
+add Effect.timeoutOption
+
+Returns an effect that will return `None` if the effect times out, otherwise it
+will return `Some` of the produced value.
+
+```ts
+import { Effect } from "effect"
+
+// will return `None` after 500 millis
+Effect.succeed("hello").pipe(
+  Effect.delay(1000),
+  Effect.timeoutOption("500 millis")
+)
+```
diff --git a/packages/effect/src/Effect.ts b/packages/effect/src/Effect.ts
index 35484423b4..c5ce1221d5 100644
--- a/packages/effect/src/Effect.ts
+++ b/packages/effect/src/Effect.ts
@@ -2923,9 +2923,8 @@ export const timedWith: {
 } = effect.timedWith
 
 /**
- * Returns an effect that will timeout this effect, returning `None` if the
- * timeout elapses before the effect has produced a value; and returning
- * `Some` of the produced value otherwise.
+ * Returns an effect that will timeout this effect, failing with a `Cause.TimeoutException`
+ * if the timeout elapses before the effect has produced a value.
  *
  * If the timeout elapses without producing a value, the running effect will
  * be safely interrupted.
@@ -2946,6 +2945,30 @@ export const timeout: {
   <A, E, R>(self: Effect<A, E, R>, duration: Duration.DurationInput): Effect<A, Cause.TimeoutException | E, R>
 } = circular.timeout
 
+/**
+ * Returns an effect that will timeout this effect, returning `None` if the
+ * timeout elapses before the effect has produced a value; and returning
+ * `Some` of the produced value otherwise.
+ *
+ * If the timeout elapses without producing a value, the running effect will
+ * be safely interrupted.
+ *
+ * WARNING: The effect returned by this method will not itself return until
+ * the underlying effect is actually interrupted. This leads to more
+ * predictable resource utilization. If early return is desired, then instead
+ * of using `effect.timeout(d)`, use `effect.disconnect.timeout(d)`, which
+ * first disconnects the effect's interruption signal before performing the
+ * timeout, resulting in earliest possible return, before an underlying effect
+ * has been successfully interrupted.
+ *
+ * @since 3.1.0
+ * @category delays & timeouts
+ */
+export const timeoutOption: {
+  (duration: Duration.DurationInput): <A, E, R>(self: Effect<A, E, R>) => Effect<Option.Option<A>, E, R>
+  <A, E, R>(self: Effect<A, E, R>, duration: Duration.DurationInput): Effect<Option.Option<A>, E, R>
+} = circular.timeoutOption
+
 /**
  * The same as `timeout`, but instead of producing a `None` in the event of
  * timeout, it will produce the specified error.
diff --git a/packages/effect/src/internal/effect/circular.ts b/packages/effect/src/internal/effect/circular.ts
index 1bfcb66712..d98904a53b 100644
--- a/packages/effect/src/internal/effect/circular.ts
+++ b/packages/effect/src/internal/effect/circular.ts
@@ -467,6 +467,22 @@ export const timeoutFailCause = dual<
     duration
   })))
 
+/** @internal */
+export const timeoutOption = dual<
+  (
+    duration: Duration.DurationInput
+  ) => <A, E, R>(self: Effect.Effect<A, E, R>) => Effect.Effect<Option.Option<A>, E, R>,
+  <A, E, R>(
+    self: Effect.Effect<A, E, R>,
+    duration: Duration.DurationInput
+  ) => Effect.Effect<Option.Option<A>, E, R>
+>(2, (self, duration) =>
+  timeoutTo(self, {
+    duration,
+    onSuccess: Option.some,
+    onTimeout: Option.none
+  }))
+
 /** @internal */
 export const timeoutTo = dual<
   <A, B, B1>(