diff --git a/CHANGELOG.md b/CHANGELOG.md
index 183a21e68..9451e8ce4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -34,6 +34,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/).
 - Docker compose up instead of docker compose run [PR #1442](https://github.com/3scale/APIcast/pull/1442)
 
 - Fix integration of upstream connection policy with camel policy [PR #1443](https://github.com/3scale/APIcast/pull/1443) [THREESCALE-10582](https://issues.redhat.com/browse/THREESCALE-10582)
+
 - Upgrade lua-resty-http to 0.17.1 to fix 100 response header are not handled when using `HTTPS_PROXY` [PR #1434](https://github.com/3scale/APIcast/pull/1434) [THREESCALE-10278](https://issues.redhat.com/browse/THREESCALE-10278)
 
 ### Added
diff --git a/gateway/src/resty/http/proxy.lua b/gateway/src/resty/http/proxy.lua
index fb88bb79f..40ea28c88 100644
--- a/gateway/src/resty/http/proxy.lua
+++ b/gateway/src/resty/http/proxy.lua
@@ -75,12 +75,12 @@ local function connect(request)
             proxy_uri.port = default_port(proxy_uri)
         end
 
-        -- Resolve the proxy IP/Port
-        local proxy_host, proxy_port = httpc:resolve(proxy_uri.host, proxy_uri.port)
-        local proxy_url = format("%s://%s:%s", proxy_uri.scheme, proxy_host, proxy_port)
+        local proxy_url = format("%s://%s:%s", proxy_uri.scheme, proxy_uri.host, proxy_uri.port)
         local proxy_auth = request.proxy_auth
 
         if scheme == 'http' then
+            -- Used by http_ng module to send request to 3scale backend through proxy.
+
             -- http proxy needs absolute URL as the request path, lua-resty-http 1.17.1 will
             -- construct a path_prefix based on host and port so we only set request path here
             --
@@ -128,6 +128,7 @@ local function connect(request)
         ngx.log(ngx.DEBUG, 'targeting server ', host, ':', port)
     else
         -- Connect direct
+        -- Mostly used by http_ng module to connect 3scale backend module.
         local ok, err = httpc:connect(options)
         if not ok then return nil, err end
 
diff --git a/gateway/src/resty/resolver/http.lua b/gateway/src/resty/resolver/http.lua
index c08db8263..4f646ffbc 100644
--- a/gateway/src/resty/resolver/http.lua
+++ b/gateway/src/resty/resolver/http.lua
@@ -1,6 +1,8 @@
 local resty_http = require 'resty.http'
 local resty_resolver = require 'resty.resolver'
 local round_robin = require 'resty.balancer.round_robin'
+local url_helper = require('resty.url_helper')
+local format = string.format
 
 local setmetatable = setmetatable
 
@@ -53,6 +55,21 @@ function _M.connect(self, options, ...)
     ip, real_port = self:resolve(options.host, options.port)
     options.host = ip
     options.port = real_port
+  else
+    local proxy_uri, err = url_helper.parse_url(proxy)
+    if not proxy_uri then
+      return nil, 'invalid proxy: ' .. err
+    end
+
+    -- Resolve the proxy IP/Port
+    local proxy_host, proxy_port = self:resolve(proxy_uri.host, proxy_uri.port)
+    local proxy_url = format("%s://%s:%s", proxy_uri.scheme, proxy_host, proxy_port)
+
+    if proxy_opts.http_proxy then
+      options.proxy_opts.http_proxy =  proxy_url
+    elseif proxy_opts.https_proxy then
+      options.proxy_opts.https_proxy =  proxy_url
+    end
   end
 
   local ok, err = resty_http.connect(self, options, ...)