diff --git a/packages/vscode-ide-companion/src/services/qwenConnectionHandler.test.ts b/packages/vscode-ide-companion/src/services/qwenConnectionHandler.test.ts
new file mode 100644
index 0000000000..21f2f4b0f4
--- /dev/null
+++ b/packages/vscode-ide-companion/src/services/qwenConnectionHandler.test.ts
@@ -0,0 +1,136 @@
+/**
+ * @license
+ * Copyright 2025 Qwen Team
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { describe, expect, it, vi, beforeEach, afterEach } from 'vitest';
+
+vi.mock('vscode', () => ({
+  workspace: {
+    getConfiguration: vi.fn(),
+  },
+}));
+
+import { QwenConnectionHandler } from './qwenConnectionHandler.js';
+import type { AcpConnection } from './acpConnection.js';
+
+describe('QwenConnectionHandler', () => {
+  let handler: QwenConnectionHandler;
+  let mockConnection: AcpConnection;
+  let mockGetConfiguration: ReturnType<typeof vi.fn>;
+
+  beforeEach(async () => {
+    const vscode = await import('vscode');
+    mockGetConfiguration = vscode.workspace.getConfiguration as ReturnType<
+      typeof vi.fn
+    >;
+    mockGetConfiguration.mockReset();
+
+    handler = new QwenConnectionHandler();
+    mockConnection = {
+      connect: vi.fn().mockResolvedValue(undefined),
+      newSession: vi.fn().mockResolvedValue({ sessionId: 'test-session' }),
+      authenticate: vi.fn().mockResolvedValue({}),
+    } as unknown as AcpConnection;
+  });
+
+  afterEach(() => {
+    vi.clearAllMocks();
+  });
+
+  describe('proxy configuration', () => {
+    it('passes --proxy argument when http.proxy is set', async () => {
+      mockGetConfiguration.mockReturnValue({
+        get: (key: string) => {
+          if (key === 'proxy') {
+            return 'http://proxy.example.com:8080';
+          }
+          return undefined;
+        },
+      });
+
+      await handler.connect(mockConnection, '/workspace', '/path/to/cli.js');
+
+      expect(mockConnection.connect).toHaveBeenCalled();
+      const connectArgs = (mockConnection.connect as ReturnType<typeof vi.fn>)
+        .mock.calls[0];
+      expect(connectArgs[2]).toContain('--proxy');
+      expect(connectArgs[2]).toContain('http://proxy.example.com:8080');
+    });
+
+    it('passes --proxy argument when https.proxy is set (fallback)', async () => {
+      mockGetConfiguration.mockReturnValue({
+        get: (key: string) => {
+          if (key === 'proxy') {
+            return undefined;
+          }
+          if (key === 'https.proxy') {
+            return 'http://https-proxy.example.com:8080';
+          }
+          return undefined;
+        },
+      });
+
+      await handler.connect(mockConnection, '/workspace', '/path/to/cli.js');
+
+      expect(mockConnection.connect).toHaveBeenCalled();
+      const connectArgs = (mockConnection.connect as ReturnType<typeof vi.fn>)
+        .mock.calls[0];
+      expect(connectArgs[2]).toContain('--proxy');
+      expect(connectArgs[2]).toContain('http://https-proxy.example.com:8080');
+    });
+
+    it('prefers http.proxy over https.proxy', async () => {
+      mockGetConfiguration.mockReturnValue({
+        get: (key: string) => {
+          if (key === 'proxy') {
+            return 'http://http-proxy.example.com:8080';
+          }
+          if (key === 'https.proxy') {
+            return 'http://https-proxy.example.com:8080';
+          }
+          return undefined;
+        },
+      });
+
+      await handler.connect(mockConnection, '/workspace', '/path/to/cli.js');
+
+      const connectArgs = (mockConnection.connect as ReturnType<typeof vi.fn>)
+        .mock.calls[0];
+      expect(connectArgs[2]).toContain('http://http-proxy.example.com:8080');
+      expect(connectArgs[2]).not.toContain(
+        'http://https-proxy.example.com:8080',
+      );
+    });
+
+    it('does not pass --proxy argument when no proxy is configured', async () => {
+      mockGetConfiguration.mockReturnValue({
+        get: () => undefined,
+      });
+
+      await handler.connect(mockConnection, '/workspace', '/path/to/cli.js');
+
+      const connectArgs = (mockConnection.connect as ReturnType<typeof vi.fn>)
+        .mock.calls[0];
+      expect(connectArgs[2]).not.toContain('--proxy');
+    });
+
+    it('does not pass --proxy argument when proxy is empty string', async () => {
+      mockGetConfiguration.mockReturnValue({
+        get: (key: string) => {
+          if (key === 'proxy') {
+            return '';
+          }
+          return undefined;
+        },
+      });
+
+      await handler.connect(mockConnection, '/workspace', '/path/to/cli.js');
+
+      const connectArgs = (mockConnection.connect as ReturnType<typeof vi.fn>)
+        .mock.calls[0];
+      expect(connectArgs[2]).not.toContain('--proxy');
+    });
+  });
+});
diff --git a/packages/vscode-ide-companion/src/services/qwenConnectionHandler.ts b/packages/vscode-ide-companion/src/services/qwenConnectionHandler.ts
index 60c0b3ac57..6ba990317f 100644
--- a/packages/vscode-ide-companion/src/services/qwenConnectionHandler.ts
+++ b/packages/vscode-ide-companion/src/services/qwenConnectionHandler.ts
@@ -10,6 +10,7 @@
  * Handles Qwen Agent connection establishment, authentication, and session creation
  */
 
+import * as vscode from 'vscode';
 import type { AcpConnection } from './acpConnection.js';
 import { isAuthenticationRequiredError } from '../utils/authErrors.js';
 import { authMethod } from '../types/acpTypes.js';
@@ -73,6 +74,16 @@ export class QwenConnectionHandler {
 
     // Build extra CLI arguments (only essential parameters)
     const extraArgs: string[] = [];
+    const httpConfig = vscode.workspace.getConfiguration('http');
+    const proxyUrl =
+      httpConfig.get<string>('proxy') || httpConfig.get<string>('https.proxy');
+    if (proxyUrl) {
+      extraArgs.push('--proxy', proxyUrl);
+      console.log(
+        '[QwenAgentManager] Using proxy from VSCode settings:',
+        proxyUrl,
+      );
+    }
 
     await connection.connect(cliEntryPath!, workingDir, extraArgs);