diff --git a/notebook/gateway/managers.py b/notebook/gateway/managers.py
index d4996075385..fb53f044ab5 100644
--- a/notebook/gateway/managers.py
+++ b/notebook/gateway/managers.py
@@ -102,7 +102,7 @@ def _kernelspecs_endpoint_default(self):
     def _kernelspecs_resource_endpoint_default(self):
         return os.environ.get(self.kernelspecs_resource_endpoint_env, self.kernelspecs_resource_endpoint_default_value)
 
-    connect_timeout_default_value = 60.0
+    connect_timeout_default_value = 40.0
     connect_timeout_env = 'JUPYTER_GATEWAY_CONNECT_TIMEOUT'
     connect_timeout = Float(default_value=connect_timeout_default_value, config=True,
         help="""The time allowed for HTTP connection establishment with the Gateway server.
@@ -112,7 +112,7 @@ def _kernelspecs_resource_endpoint_default(self):
     def connect_timeout_default(self):
         return float(os.environ.get('JUPYTER_GATEWAY_CONNECT_TIMEOUT', self.connect_timeout_default_value))
 
-    request_timeout_default_value = 60.0
+    request_timeout_default_value = 40.0
     request_timeout_env = 'JUPYTER_GATEWAY_REQUEST_TIMEOUT'
     request_timeout = Float(default_value=request_timeout_default_value, config=True,
         help="""The time allowed for HTTP request completion. (JUPYTER_GATEWAY_REQUEST_TIMEOUT env var)""")
@@ -226,18 +226,20 @@ def gateway_enabled(self):
 
     # Ensure KERNEL_LAUNCH_TIMEOUT has a default value.
     KERNEL_LAUNCH_TIMEOUT = int(os.environ.get('KERNEL_LAUNCH_TIMEOUT', 40))
-    os.environ['KERNEL_LAUNCH_TIMEOUT'] = str(KERNEL_LAUNCH_TIMEOUT)
-
-    LAUNCH_TIMEOUT_PAD = int(os.environ.get('LAUNCH_TIMEOUT_PAD', 2))
 
     def init_static_args(self):
         """Initialize arguments used on every request.  Since these are static values, we'll
         perform this operation once.
 
         """
-        # Ensure that request timeout is at least "pad" greater than launch timeout.
-        if self.request_timeout < float(GatewayClient.KERNEL_LAUNCH_TIMEOUT + GatewayClient.LAUNCH_TIMEOUT_PAD):
-            self.request_timeout = float(GatewayClient.KERNEL_LAUNCH_TIMEOUT + GatewayClient.LAUNCH_TIMEOUT_PAD)
+        # Ensure that request timeout and KERNEL_LAUNCH_TIMEOUT are the same, taking the
+        #  greater value of the two.
+        if self.request_timeout < float(GatewayClient.KERNEL_LAUNCH_TIMEOUT):
+            self.request_timeout = float(GatewayClient.KERNEL_LAUNCH_TIMEOUT)
+        elif self.request_timeout > float(GatewayClient.KERNEL_LAUNCH_TIMEOUT):
+            GatewayClient.KERNEL_LAUNCH_TIMEOUT = int(self.request_timeout)
+        # Ensure any adjustments are reflected in env.
+        os.environ['KERNEL_LAUNCH_TIMEOUT'] = str(GatewayClient.KERNEL_LAUNCH_TIMEOUT)
 
         self._static_args['headers'] = json.loads(self.headers)
         if 'Authorization' not in self._static_args['headers'].keys():
diff --git a/notebook/tests/test_gateway.py b/notebook/tests/test_gateway.py
index 116b3db6731..bc42014e449 100644
--- a/notebook/tests/test_gateway.py
+++ b/notebook/tests/test_gateway.py
@@ -117,8 +117,8 @@ def mock_gateway_request(url, **kwargs):
         raise gen.Return(response)
 
     # Fetch existing kernel
-    if endpoint.rfind('/api/kernels/') >= 0  and method == 'GET':
-        requested_kernel_id =  endpoint.rpartition('/')[2]
+    if endpoint.rfind('/api/kernels/') >= 0 and method == 'GET':
+        requested_kernel_id = endpoint.rpartition('/')[2]
         if requested_kernel_id in running_kernels:
             response_buf = StringIO(json.dumps(running_kernels.get(requested_kernel_id)))
             response = yield maybe_future(HTTPResponse(request, 200, buffer=response_buf))
@@ -149,21 +149,28 @@ def teardown_class(cls):
     def get_patch_env(cls):
         test_env = super(TestGateway, cls).get_patch_env()
         test_env.update({'JUPYTER_GATEWAY_URL': TestGateway.mock_gateway_url,
-                         'JUPYTER_GATEWAY_REQUEST_TIMEOUT': '44.4'})
+                         'JUPYTER_GATEWAY_CONNECT_TIMEOUT': '44.4'})
         return test_env
 
     @classmethod
     def get_argv(cls):
         argv = super(TestGateway, cls).get_argv()
-        argv.extend(['--GatewayClient.connect_timeout=44.4', '--GatewayClient.http_user=' + TestGateway.mock_http_user])
+        argv.extend(['--GatewayClient.request_timeout=96.0', '--GatewayClient.http_user=' + TestGateway.mock_http_user])
         return argv
 
+    def setUp(self):
+        kwargs = dict()
+        GatewayClient.instance().load_connection_args(**kwargs)
+        super(TestGateway, self).setUp()
+
     def test_gateway_options(self):
         nt.assert_equal(self.notebook.gateway_config.gateway_enabled, True)
         nt.assert_equal(self.notebook.gateway_config.url, TestGateway.mock_gateway_url)
         nt.assert_equal(self.notebook.gateway_config.http_user, TestGateway.mock_http_user)
         nt.assert_equal(self.notebook.gateway_config.connect_timeout, self.notebook.gateway_config.connect_timeout)
         nt.assert_equal(self.notebook.gateway_config.connect_timeout, 44.4)
+        nt.assert_equal(self.notebook.gateway_config.request_timeout, 96.0)
+        nt.assert_equal(os.environ['KERNEL_LAUNCH_TIMEOUT'], str(96))  # Ensure KLT gets set from request-timeout
 
     def test_gateway_class_mappings(self):
         # Ensure appropriate class mappings are in place.