diff --git a/.changeset/silly-seals-care.md b/.changeset/silly-seals-care.md
new file mode 100644
index 0000000000..e2316cf1ab
--- /dev/null
+++ b/.changeset/silly-seals-care.md
@@ -0,0 +1,5 @@
+---
+"gradio": patch
+---
+
+fix:Patch `async_save_url_to_cache` for Lite
diff --git a/.config/playwright.config.js b/.config/playwright.config.js
index 0d5f432fd7..04865fba4d 100644
--- a/.config/playwright.config.js
+++ b/.config/playwright.config.js
@@ -39,7 +39,8 @@ const lite = defineConfig(base, {
 		"**/file_component_events.spec.ts",
 		"**/chatbot_multimodal.spec.ts",
 		"**/kitchen_sink.spec.ts",
-		"**/gallery_component_events.spec.ts"
+		"**/gallery_component_events.spec.ts",
+		"**/image_remote_url.spec.ts" // To detect the bugs on Lite fixed in https://github.com/gradio-app/gradio/pull/8011 and https://github.com/gradio-app/gradio/pull/8026
 	],
 	workers: 1,
 	retries: 3
diff --git a/demo/image_remote_url/run.ipynb b/demo/image_remote_url/run.ipynb
new file mode 100644
index 0000000000..599928e1ed
--- /dev/null
+++ b/demo/image_remote_url/run.ipynb
@@ -0,0 +1 @@
+{"cells": [{"cell_type": "markdown", "id": "302934307671667531413257853548643485645", "metadata": {}, "source": ["# Gradio Demo: image_remote_url"]}, {"cell_type": "code", "execution_count": null, "id": "272996653310673477252411125948039410165", "metadata": {}, "outputs": [], "source": ["!pip install -q gradio "]}, {"cell_type": "code", "execution_count": null, "id": "288918539441861185822528903084949547379", "metadata": {}, "outputs": [], "source": ["import gradio as gr\n", "\n", "\n", "def fn(im):\n", "    return im, \"https://picsum.photos/400/300\"\n", "\n", "\n", "demo = gr.Interface(\n", "    fn=fn,\n", "    inputs=gr.Image(\"https://picsum.photos/300/200\", label=\"InputImage\"),\n", "    outputs=[gr.Image(label=\"Loopback\"), gr.Image(label=\"RemoteImage\")],\n", "    examples=[\n", "        [\"https://picsum.photos/640/480\"]\n", "    ]\n", ")\n", "\n", "\n", "if __name__ == \"__main__\":\n", "    demo.launch()\n"]}], "metadata": {}, "nbformat": 4, "nbformat_minor": 5}
\ No newline at end of file
diff --git a/demo/image_remote_url/run.py b/demo/image_remote_url/run.py
new file mode 100644
index 0000000000..60de8f9cb5
--- /dev/null
+++ b/demo/image_remote_url/run.py
@@ -0,0 +1,19 @@
+import gradio as gr
+
+
+def fn(im):
+    return im, "https://picsum.photos/400/300"
+
+
+demo = gr.Interface(
+    fn=fn,
+    inputs=gr.Image("https://picsum.photos/300/200", label="InputImage"),
+    outputs=[gr.Image(label="Loopback"), gr.Image(label="RemoteImage")],
+    examples=[
+        ["https://picsum.photos/640/480"]
+    ]
+)
+
+
+if __name__ == "__main__":
+    demo.launch()
diff --git a/gradio/processing_utils.py b/gradio/processing_utils.py
index 119555d4d8..d82cc37f10 100644
--- a/gradio/processing_utils.py
+++ b/gradio/processing_utils.py
@@ -16,7 +16,6 @@ from typing import TYPE_CHECKING, Any
 import aiofiles
 import httpx
 import numpy as np
-import urllib3
 from gradio_client import utils as client_utils
 from PIL import Image, ImageOps, PngImagePlugin
 
@@ -28,7 +27,76 @@ with warnings.catch_warnings():
     warnings.simplefilter("ignore")  # Ignore pydub warning if ffmpeg is not installed
     from pydub import AudioSegment
 
-async_client = httpx.AsyncClient()
+if wasm_utils.IS_WASM:
+    import pyodide.http  # type: ignore
+    import urllib3
+
+    # NOTE: In the Wasm env, we use urllib3 to make HTTP requests. See https://github.com/gradio-app/gradio/issues/6837.
+    class Urllib3ResponseSyncByteStream(httpx.SyncByteStream):
+        def __init__(self, response) -> None:
+            self.response = response
+
+        def __iter__(self):
+            yield from self.response.stream()
+
+    class Urllib3Transport(httpx.BaseTransport):
+        def __init__(self):
+            self.pool = urllib3.PoolManager()
+
+        def handle_request(self, request: httpx.Request) -> httpx.Response:
+            url = str(request.url)
+            method = request.method
+            headers = dict(request.headers)
+            body = None if method in ["GET", "HEAD"] else request.read()
+
+            response = self.pool.request(
+                headers=headers,
+                method=method,
+                url=url,
+                body=body,
+                preload_content=False,  # Stream the content
+            )
+
+            return httpx.Response(
+                status_code=response.status,
+                headers=response.headers,
+                stream=Urllib3ResponseSyncByteStream(response),
+            )
+
+    sync_transport = Urllib3Transport()
+
+    class PyodideHttpResponseAsyncByteStream(httpx.AsyncByteStream):
+        def __init__(self, response) -> None:
+            self.response = response
+
+        async def __aiter__(self):
+            yield await self.response.bytes()
+
+    class PyodideHttpTransport(httpx.AsyncBaseTransport):
+        async def handle_async_request(
+            self,
+            request: httpx.Request,
+        ) -> httpx.Response:
+            url = str(request.url)
+            method = request.method
+            headers = dict(request.headers)
+            body = None if method in ["GET", "HEAD"] else await request.aread()
+            response = await pyodide.http.pyfetch(
+                url, method=method, headers=headers, body=body
+            )
+            return httpx.Response(
+                status_code=response.status,
+                headers=response.headers,
+                stream=PyodideHttpResponseAsyncByteStream(response),
+            )
+
+    async_transport = PyodideHttpTransport()
+else:
+    sync_transport = None
+    async_transport = None
+
+sync_client = httpx.Client(transport=sync_transport)
+async_client = httpx.AsyncClient(transport=async_transport)
 
 log = logging.getLogger(__name__)
 
@@ -209,15 +277,10 @@ def save_url_to_cache(url: str, cache_dir: str) -> str:
     full_temp_file_path = str(abspath(temp_dir / name))
 
     if not Path(full_temp_file_path).exists():
-        # NOTE: We use urllib3 instead of httpx because it works in the Wasm environment. See https://github.com/gradio-app/gradio/issues/6837.
-        http = urllib3.PoolManager()
-        response = http.request(
-            "GET",
-            url,
-            preload_content=False,
-        )
-        with open(full_temp_file_path, "wb") as f:
-            for chunk in response.stream():
+        with sync_client.stream("GET", url, follow_redirects=True) as r, open(
+            full_temp_file_path, "wb"
+        ) as f:
+            for chunk in r.iter_raw():
                 f.write(chunk)
 
     return full_temp_file_path
diff --git a/js/app/test/image_remote_url.spec.ts b/js/app/test/image_remote_url.spec.ts
new file mode 100644
index 0000000000..179d770314
--- /dev/null
+++ b/js/app/test/image_remote_url.spec.ts
@@ -0,0 +1,30 @@
+import { test, expect } from "@gradio/tootils";
+
+test("Image displays remote image correctly", async ({ page }) => {
+	const example_image = page.locator(
+		'div.block:has(div.label:has-text("Examples")) img'
+	);
+	const input_image = page.locator(
+		'div.block:has(label:has-text("InputImage")) img'
+	);
+	const loopback_image = page.locator(
+		'div.block:has(label:has-text("Loopback")) img'
+	);
+	const remote_output_image = page.locator(
+		'div.block:has(label:has-text("RemoteImage")) img'
+	);
+	const submit_button = page.locator('button:has-text("Submit")');
+
+	await expect(example_image).toHaveJSProperty("complete", true);
+	await expect(example_image).not.toHaveJSProperty("naturalWidth", 0);
+
+	await expect(input_image).toHaveJSProperty("complete", true);
+	await expect(input_image).not.toHaveJSProperty("naturalWidth", 0);
+
+	await submit_button.click();
+
+	await expect(loopback_image).toHaveJSProperty("complete", true);
+	await expect(loopback_image).not.toHaveJSProperty("naturalWidth", 0);
+	await expect(remote_output_image).toHaveJSProperty("complete", true);
+	await expect(remote_output_image).not.toHaveJSProperty("naturalWidth", 0);
+});