diff --git a/deploy/docker/cp-edge/validate_proxy_auth.lua b/deploy/docker/cp-edge/validate_proxy_auth.lua
index dae90cede3..dd7d2d4763 100644
--- a/deploy/docker/cp-edge/validate_proxy_auth.lua
+++ b/deploy/docker/cp-edge/validate_proxy_auth.lua
@@ -178,6 +178,9 @@ local function get_basic_token()
     local user = user_pass[1]
     local pass = user_pass[2]
 
+    -- Remove any whitespace/newline from the token (some clients tend to add trailing newline)
+    pass = string.gsub(pass, '%s+', '')
+
     if (is_empty(user) or is_empty(pass)) then
         ngx.log(ngx.WARN, "Basic HTTP Authorization header is set and decoded, but user or pass is missing: " .. authorization)
         return nil
@@ -188,10 +191,10 @@ end
 local token = get_basic_token()
 
 if is_empty(token) then
-    ngx.status = ngx.HTTP_UNAUTHORIZED
     ngx.log(ngx.WARN, "[SECURITY] Request " .. ngx.var.request ..
             " is rejected; Status: Authentication failed; Message: Token is not provided")
-    ngx.exit(ngx.HTTP_UNAUTHORIZED)
+    ngx.header["Proxy-Authenticate"] = "Basic realm=\"Cloud Pipeline EDGE\""
+    ngx.exit(407)
 end
 
 local cert_path = os.getenv("JWT_PUB_KEY")
diff --git a/workflows/pipe-common/resources/linux/template.dcv b/workflows/pipe-common/resources/linux/template.dcv
index e39506cd1c..f26b097b1d 100644
--- a/workflows/pipe-common/resources/linux/template.dcv
+++ b/workflows/pipe-common/resources/linux/template.dcv
@@ -5,6 +5,8 @@ format=1.0
 proxytype=HTTP
 proxyhost={CP_PROXY}
 proxyport={CP_PROXY_PORT}
+proxyuser={CP_PROXY_USER}
+proxypassword={CP_PROXY_TOKEN}
 host={CP_HOST}
 port={CP_HOST_PORT}
-sessionid=session
+sessionid={CP_USERNAME}-session
diff --git a/workflows/pipe-common/resources/windows/template.dcv b/workflows/pipe-common/resources/windows/template.dcv
index cc13c6f7b3..68e6ff5bc4 100644
--- a/workflows/pipe-common/resources/windows/template.dcv
+++ b/workflows/pipe-common/resources/windows/template.dcv
@@ -5,6 +5,8 @@ format=1.0
 proxytype=HTTP
 proxyhost={CP_PROXY}
 proxyport={CP_PROXY_PORT}
+proxyuser={CP_PROXY_USER}
+proxypassword={CP_PROXY_TOKEN}
 host={CP_HOST}
 port={CP_HOST_PORT}
 sessionid=console
diff --git a/workflows/pipe-common/scripts/serve_desktop.py b/workflows/pipe-common/scripts/serve_desktop.py
index 5a9da1cc7c..f10c086137 100644
--- a/workflows/pipe-common/scripts/serve_desktop.py
+++ b/workflows/pipe-common/scripts/serve_desktop.py
@@ -48,6 +48,7 @@ class Config:
     template_path = None
     connection_name = None
     personal = None
+    api_token = ''
 
 
 app = Flask(__name__)
@@ -66,7 +67,9 @@ def get_desktop_file():
                                              CP_HOST=Config.local_ip,
                                              CP_HOST_PORT=Config.local_port,
                                              CP_USERNAME=user_name,
-                                             CP_PASSWORD=Config.user_pass)
+                                             CP_PASSWORD=Config.user_pass,
+                                             CP_PROXY_USER=user_name,
+                                             CP_PROXY_TOKEN=Config.api_token)
     elif template_type == NXS:
         template_data = template_data.format(CP_PROXY=proxy_host,
                                              CP_PROXY_PORT=proxy_port,
@@ -156,6 +159,7 @@ def start(serving_port, desktop_port, template_path):
     user_pass = _extract_parameter('OWNER_PASSWORD', default=user_name)
     if not user_pass:
         raise RuntimeError('Cannot get OWNER_PASSWORD from environment')
+    api_token = _extract_parameter('API_TOKEN')
     personal = _extract_boolean_parameter('CP_CAP_DESKTOP_NM_USER_CONNECTION_FILES', default='true')
 
     logging.basicConfig(level=logging_level, format=logging_format)
@@ -187,6 +191,7 @@ def start(serving_port, desktop_port, template_path):
     Config.template_path = template_path
     Config.connection_name = connection_name
     Config.personal = personal
+    Config.api_token = api_token
 
     logger.info('Starting web server on {} port...'.format(serving_port))
     app.run(port=serving_port, host='0.0.0.0')