diff --git a/hgext/clonebundles.py b/hgext/clonebundles.py
--- a/hgext/clonebundles.py
+++ b/hgext/clonebundles.py
@@ -324,6 +324,7 @@ def capabilities(orig, repo, proto):
     # missing file.
     if repo.vfs.exists(bundlecaches.CB_MANIFEST_FILE):
         caps.append(b'clonebundles')
+        caps.append(b'clonebundles_manifest')
 
     return caps
 
diff --git a/mercurial/wireprotov1peer.py b/mercurial/wireprotov1peer.py
--- a/mercurial/wireprotov1peer.py
+++ b/mercurial/wireprotov1peer.py
@@ -338,8 +338,11 @@ class wirepeer(repository.peer):
     # Begin of ipeercommands interface.
 
     def clonebundles(self):
-        self.requirecap(b'clonebundles', _(b'clone bundles'))
-        return self._call(b'clonebundles')
+        if self.capable(b'clonebundles_manifest'):
+            return self._call(b'clonebundles_manifest')
+        else:
+            self.requirecap(b'clonebundles', _(b'clone bundles'))
+            return self._call(b'clonebundles')
 
     def _finish_inline_clone_bundle(self, stream):
         pass  # allow override for httppeer
diff --git a/mercurial/wireprotov1server.py b/mercurial/wireprotov1server.py
--- a/mercurial/wireprotov1server.py
+++ b/mercurial/wireprotov1server.py
@@ -301,6 +301,23 @@ def get_cached_bundle_inline(repo, proto
 
 @wireprotocommand(b'clonebundles', b'', permission=b'pull')
 def clonebundles(repo, proto):
+    """A legacy version of clonebundles_manifest
+
+    This version filtered out new url scheme (like peer-bundle-cache://) to
+    avoid confusion in older clients.
+    """
+    manifest_contents = bundlecaches.get_manifest(repo)
+    # Filter out peer-bundle-cache:// entries
+    modified_manifest = []
+    for line in manifest_contents.splitlines():
+        if line.startswith(bundlecaches.CLONEBUNDLESCHEME):
+            continue
+        modified_manifest.append(line)
+    return wireprototypes.bytesresponse(b'\n'.join(modified_manifest))
+
+
+@wireprotocommand(b'clonebundles_manifest', b'*', permission=b'pull')
+def clonebundles_2(repo, proto, args):
     """Server command for returning info for available bundles to seed clones.
 
     Clients will parse this response and determine what bundle to fetch.
@@ -314,15 +331,7 @@ def clonebundles(repo, proto):
     Otherwise, older clients would retrieve and error out on those.
     """
     manifest_contents = bundlecaches.get_manifest(repo)
-    clientcapabilities = proto.getprotocaps()
-    if b'inlineclonebundles' in clientcapabilities:
-        return wireprototypes.bytesresponse(manifest_contents)
-    modified_manifest = []
-    for line in manifest_contents.splitlines():
-        if line.startswith(bundlecaches.CLONEBUNDLESCHEME):
-            continue
-        modified_manifest.append(line)
-    return wireprototypes.bytesresponse(b'\n'.join(modified_manifest))
+    return wireprototypes.bytesresponse(manifest_contents)
 
 
 wireprotocaps = [
diff --git a/tests/test-clonebundles.t b/tests/test-clonebundles.t
--- a/tests/test-clonebundles.t
+++ b/tests/test-clonebundles.t
@@ -258,17 +258,16 @@ Feature works over SSH with inline bundl
 HTTP Supports
 -------------
 
-Or lack of it actually
-
-Feature does not use inline bundle over HTTP(S) because there is no protocaps support
-(so no way for the client to announce that it supports inline clonebundles)
   $ hg clone -U http://localhost:$HGPORT http-inline-clone
-  requesting all changes
+  applying clone bundle from peer-bundle-cache://full.hg
   adding changesets
   adding manifests
   adding file changes
   added 2 changesets with 2 changes to 2 files
-  new changesets 53245c60e682:aaff8d2ffbbf
+  finished applying clone bundle
+  searching for changes
+  no changes found
+  2 local changesets published
 
 Pre-transmit Hook
 -----------------
@@ -657,7 +656,7 @@ on a 32MB system.
   $ hg clone -U --debug --config ui.available-memory=16MB http://localhost:$HGPORT gzip-too-large
   using http://localhost:$HGPORT/
   sending capabilities command
-  sending clonebundles command
+  sending clonebundles_manifest command
   filtering http://localhost:$HGPORT1/gz-a.hg as it needs more than 2/3 of system memory
   no compatible clone bundles available on server; falling back to regular clone
   (you may want to report this to the server operator)
@@ -690,7 +689,7 @@ on a 32MB system.
   $ hg clone -U --debug --config ui.available-memory=32MB http://localhost:$HGPORT gzip-too-large2
   using http://localhost:$HGPORT/
   sending capabilities command
-  sending clonebundles command
+  sending clonebundles_manifest command
   applying clone bundle from http://localhost:$HGPORT1/gz-a.hg
   bundle2-input-bundle: 1 params with-transaction
   bundle2-input-part: "changegroup" (params: 1 mandatory 1 advisory) supported
diff --git a/tests/test-stream-bundle-v2.t b/tests/test-stream-bundle-v2.t
--- a/tests/test-stream-bundle-v2.t
+++ b/tests/test-stream-bundle-v2.t
@@ -90,7 +90,7 @@ Test that we can apply the bundle as a s
   $ hg clone http://localhost:$HGPORT stream-clone-implicit --debug
   using http://localhost:$HGPORT/
   sending capabilities command
-  sending clonebundles command
+  sending clonebundles_manifest command
   applying clone bundle from http://localhost:$HGPORT1/bundle.hg
   bundle2-input-bundle: with-transaction
   bundle2-input-part: "stream2" (params: 3 mandatory) supported (stream-v2 !)
@@ -148,7 +148,7 @@ Test that we can apply the bundle as a s
   $ hg clone --stream http://localhost:$HGPORT stream-clone-explicit --debug
   using http://localhost:$HGPORT/
   sending capabilities command
-  sending clonebundles command
+  sending clonebundles_manifest command
   applying clone bundle from http://localhost:$HGPORT1/bundle.hg
   bundle2-input-bundle: with-transaction
   bundle2-input-part: "stream2" (params: 3 mandatory) supported (stream-v2 !)