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My initial 3 years H-1B is about to expire. I will have to start the extension process for my H-1B in the upcoming months. I'm thinking about traveling internationally and it might not be easy to return to the US from abroad. Hence, I wonder if my employer can file H-1B extension when I'm abroad.

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The employer can apply for your H1b petition with I-129 no matter if you are inside the US or outside. On the I-129, they can optionally request an Extension of Stay or Change of Status for you if you are in the US.

So if you are in the US and remain in the US, and they apply for an H1b petition with EOS/COS, then generally the approval will come as an I-797A with both H1b petition approval and EOS/COS approval with a new I-94. On the other hand, if you are outside the US, you have no status to extend or change, and the approval will come as an I-797B with the H1b petition approval but no EOS/COS. You would take the petition approval to a US consulate to get an H1b visa.

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