In this paper, the authors introduce the concept of h-quasiconvex functions on Carnot groups G. It is shown that the notions of h-quasiconvex functions and h-convex sets are equivalent and the L(infinity) estimates of first derivatives of h-quasiconvex functions are given. For a Carnot group G of step two, it is proved that h-quasiconvex functions are locally bounded from above. Furthermore, the authors obtain that h-convex functions are locally Lipschitz continuous and that an h-convex function is twice differentiable almost everywhere.