diff --git a/README.md b/README.md
index 3aa0132..2b7f992 100644
--- a/README.md
+++ b/README.md
@@ -303,9 +303,15 @@ These are the available config options for making requests. Only the `url` is re
   httpsAgent: new https.Agent({ keepAlive: true }),
 
   // 'proxy' defines the hostname and port of the proxy server
+  // `auth` indicates that HTTP Basic auth should be used to connect to the proxy, and supplies credentials.
+  // This will set an `Proxy-Authorization` header, overwriting any existing `Proxy-Authorization` custom headers you have set using `headers`.
   proxy: {
     host: '127.0.0.1',
-    port: 9000
+    port: 9000,
+    auth: : {
+      username: 'mikeymike',
+      password: 'rapunz3l'
+    }
   },
 
   // `cancelToken` specifies a cancel token that can be used to cancel the request
diff --git a/lib/adapters/http.js b/lib/adapters/http.js
index d6908b3..8a2fc57 100644
--- a/lib/adapters/http.js
+++ b/lib/adapters/http.js
@@ -91,15 +91,29 @@ module.exports = function httpAdapter(config) {
           host: parsedProxyUrl.hostname,
           port: parsedProxyUrl.port
         };
+
+        if (parsedProxyUrl.auth) {
+          var proxyUrlAuth = parsedProxyUrl.auth.split(':');
+          proxy.auth = {
+            username: proxyUrlAuth[0],
+            password: proxyUrlAuth[1]
+          };
+        }
       }
     }
 
     if (proxy) {
-      options.host = proxy.host;
       options.hostname = proxy.host;
+      options.host = proxy.host;
       options.headers.host = parsed.hostname + (parsed.port ? ':' + parsed.port : '');
       options.port = proxy.port;
       options.path = protocol + '//' + parsed.hostname + (parsed.port ? ':' + parsed.port : '') + options.path;
+
+      // Basic proxy authorization
+      if (proxy.auth) {
+        var base64 = new Buffer(proxy.auth.username + ':' + proxy.auth.password, 'utf8').toString('base64');
+        options.headers['Proxy-Authorization'] = 'Basic ' + base64;
+      }
     }
 
     var transport;
diff --git a/test/unit/adapters/http.js b/test/unit/adapters/http.js
index 1e41a63..131bce0 100644
--- a/test/unit/adapters/http.js
+++ b/test/unit/adapters/http.js
@@ -248,7 +248,7 @@ module.exports = {
     });
   },
 
-  testProxy: function(test) {
+  testHTTPProxy: function(test) {
     server = http.createServer(function(req, res) {
       res.setHeader('Content-Type', 'text/html; charset=UTF-8');
       res.end('12345');
@@ -322,6 +322,131 @@ module.exports = {
     });
   },
 
+  testHTTPProxyAuth: function(test) {
+    server = http.createServer(function(req, res) {
+      res.end();
+    }).listen(4444, function() {
+      proxy = http.createServer(function(request, response) {
+        var parsed = url.parse(request.url);
+        var opts = {
+          host: parsed.hostname,
+          port: parsed.port,
+          path: parsed.path
+        };
+        var proxyAuth = request.headers['proxy-authorization'];
+
+        http.get(opts, function(res) {
+          var body = '';
+          res.on('data', function(data) {
+            body += data;
+          });
+          res.on('end', function() {
+            response.setHeader('Content-Type', 'text/html; charset=UTF-8');
+            response.end(proxyAuth);
+          });
+        });
+
+      }).listen(4000, function() {
+        axios.get('http://localhost:4444/', {
+          proxy: {
+            host: 'localhost',
+            port: 4000,
+            auth: {
+              username: 'user',
+              password: 'pass'
+            }
+          }
+        }).then(function(res) {
+          var base64 = new Buffer('user:pass', 'utf8').toString('base64');
+          test.equal(res.data, 'Basic ' + base64, 'should authenticate to the proxy');
+          test.done();
+        });
+      });
+    });
+  },
+
+  testHTTPProxyAuthFromEnv: function(test) {
+    server = http.createServer(function(req, res) {
+      res.end();
+    }).listen(4444, function() {
+      proxy = http.createServer(function(request, response) {
+        var parsed = url.parse(request.url);
+        var opts = {
+          host: parsed.hostname,
+          port: parsed.port,
+          path: parsed.path
+        };
+        var proxyAuth = request.headers['proxy-authorization'];
+
+        http.get(opts, function(res) {
+          var body = '';
+          res.on('data', function(data) {
+            body += data;
+          });
+          res.on('end', function() {
+            response.setHeader('Content-Type', 'text/html; charset=UTF-8');
+            response.end(proxyAuth);
+          });
+        });
+
+      }).listen(4000, function() {
+        process.env.http_proxy = 'http://user:pass@localhost:4000/';
+
+        axios.get('http://localhost:4444/').then(function(res) {
+          var base64 = new Buffer('user:pass', 'utf8').toString('base64');
+          test.equal(res.data, 'Basic ' + base64, 'should authenticate to the proxy set by process.env.http_proxy');
+          test.done();
+        });
+      });
+    });
+  },
+
+  testHTTPProxyAuthWithHeader: function (test) {
+    server = http.createServer(function(req, res) {
+      res.end();
+    }).listen(4444, function() {
+      proxy = http.createServer(function(request, response) {
+        var parsed = url.parse(request.url);
+        var opts = {
+          host: parsed.hostname,
+          port: parsed.port,
+          path: parsed.path
+        };
+        var proxyAuth = request.headers['proxy-authorization'];
+
+        http.get(opts, function(res) {
+          var body = '';
+          res.on('data', function(data) {
+            body += data;
+          });
+          res.on('end', function() {
+            response.setHeader('Content-Type', 'text/html; charset=UTF-8');
+            response.end(proxyAuth);
+          });
+        });
+
+      }).listen(4000, function() {
+        axios.get('http://localhost:4444/', {
+          proxy: {
+            host: 'localhost',
+            port: 4000,
+            auth: {
+              username: 'user',
+              password: 'pass'
+            }
+          },
+          headers: {
+            'Proxy-Authorization': 'Basic abc123'
+          }
+        }).then(function(res) {
+          var base64 = new Buffer('user:pass', 'utf8').toString('base64');
+          test.equal(res.data, 'Basic ' + base64, 'should authenticate to the proxy');
+          test.done();
+        });
+      });
+    });
+  },
+
   testCancel: function(test) {
     var source = axios.CancelToken.source();
     server = http.createServer(function (req, res) {