diff --git a/app/models/miq_server/update_management.rb b/app/models/miq_server/update_management.rb
index 746c1f9ee3b..0519abbf6f3 100644
--- a/app/models/miq_server/update_management.rb
+++ b/app/models/miq_server/update_management.rb
@@ -60,6 +60,7 @@ def update_registration_status
   def attempt_registration
     return unless register
     attach_products
+    configure_yum_proxy
     # HACK: #enable_repos is not always successful immediately after #attach_products, retry to ensure they are enabled.
     5.times { repos_enabled? ? break : enable_repos }
   end
@@ -102,6 +103,16 @@ def attach_products
     LinuxAdmin::SubscriptionManager.subscribe(assemble_registration_options)
   end
 
+  def configure_yum_proxy
+    registration_options = assemble_registration_options
+    return unless registration_options[:proxy_address]
+    conf = IniFile.load("/etc/yum.conf")
+    conf["main"]["proxy"] = registration_options[:proxy_address]
+    conf["main"]["proxy_username"] = registration_options[:proxy_username] if registration_options[:proxy_username]
+    conf["main"]["proxy_password"] = registration_options[:proxy_password] if registration_options[:proxy_password]
+    conf.save
+  end
+
   def repos_enabled?
     enabled = LinuxAdmin::SubscriptionManager.enabled_repos
     if MiqDatabase.first.update_repo_names.all? { |desired| enabled.include?(desired) }
diff --git a/spec/models/miq_server/update_management_spec.rb b/spec/models/miq_server/update_management_spec.rb
index 672fedee44f..5563cfe12b5 100644
--- a/spec/models/miq_server/update_management_spec.rb
+++ b/spec/models/miq_server/update_management_spec.rb
@@ -139,6 +139,41 @@
     end
   end
 
+  context "#configure_yum_proxy" do
+    it "with no proxy server" do
+      expect(IniFile).not_to receive(:load)
+
+      @server.configure_yum_proxy
+    end
+
+    it "with proxy server but no credentials" do
+      database.update_attributes(:registration_http_proxy_server => "http://my_proxy:port")
+
+      Tempfile.open do |tempfile|
+        stub_inifile = IniFile.new(:filename => tempfile.path)
+        expect(IniFile).to receive(:load).and_return(stub_inifile)
+
+        @server.configure_yum_proxy
+
+        expect(File.read(tempfile)).to eq("[main]\nproxy = http://my_proxy:port\n\n")
+      end
+    end
+
+    it "with proxy server and credentials" do
+      database.update_authentication(:registration_http_proxy => {:userid => "user", :password => "pass"})
+      database.update_attributes(:registration_http_proxy_server => "http://my_proxy:port")
+
+      Tempfile.open do |tempfile|
+        stub_inifile = IniFile.new(:filename => tempfile.path)
+        expect(IniFile).to receive(:load).and_return(stub_inifile)
+
+        @server.configure_yum_proxy
+
+        expect(File.read(tempfile)).to eq("[main]\nproxy = http://my_proxy:port\nproxy_username = user\nproxy_password = pass\n\n")
+      end
+    end
+  end
+
   context "#repo_enabled?" do
     it "true" do
       expect(reg_system).to receive(:enabled_repos).and_return(["abc", database.update_repo_names].flatten)