diff --git a/lib/install.js b/lib/install.js
index fa2e1c5430..76fe4b9f46 100644
--- a/lib/install.js
+++ b/lib/install.js
@@ -22,6 +22,7 @@ var fs = require('graceful-fs')
   , request = require('request')
   , minimatch = require('minimatch')
   , mkdir = require('mkdirp')
+  , url = require('url')
   , processRelease = require('./process-release')
   , win = process.platform == 'win32'
 
@@ -423,6 +424,44 @@ function install (gyp, argv, callback) {
 
 }
 
+function formatHostname (hostname) {
+  // canonicalize the hostname, so that 'oogle.com' won't match 'google.com'
+  return hostname.replace(/^\.*/, '.').toLowerCase()
+}
+
+function parseNoProxyZone (zone) {
+  zone = zone.trim().toLowerCase()
+
+  var zoneParts = zone.split(':', 2)
+  var zoneHost = formatHostname(zoneParts[0])
+  var zonePort = zoneParts[1]
+  var hasPort = zone.indexOf(':') > -1
+
+  return {hostname: zoneHost, port: zonePort, hasPort: hasPort}
+}
+
+function uriInNoProxy (uri, noProxy) {
+  var parsedUri = url.parse(uri);
+  var port = parsedUri.port || (parsedUri.protocol === 'https:' ? '443' : '80')
+  var hostname = formatHostname(parsedUri.hostname)
+  var noProxyList = noProxy.split(',')
+
+  // iterate through the noProxyList until it finds a match.
+  return noProxyList.map(parseNoProxyZone).some(function (noProxyZone) {
+    var isMatchedAt = hostname.indexOf(noProxyZone.hostname)
+    var hostnameMatched = (
+      isMatchedAt > -1 &&
+      (isMatchedAt === hostname.length - noProxyZone.hostname.length)
+    )
+
+    if (noProxyZone.hasPort) {
+      return (port === noProxyZone.port) && hostnameMatched
+    }
+
+    return hostnameMatched
+  })
+}
+
 function download (gyp, env, url) {
   log.http('GET', url)
 
@@ -438,18 +477,32 @@ function download (gyp, env, url) {
     requestOpts.ca = readCAFile(cafile)
   }
 
-  // basic support for a proxy server
-  var proxyUrl = gyp.opts.proxy
-              || env.http_proxy
-              || env.HTTP_PROXY
-              || env.npm_config_proxy
-  if (proxyUrl) {
-    if (/^https?:\/\//i.test(proxyUrl)) {
-      log.verbose('download', 'using proxy url: "%s"', proxyUrl)
-      requestOpts.proxy = proxyUrl
-    } else {
-      log.warn('download', 'ignoring invalid "proxy" config setting: "%s"', proxyUrl)
+  var noProxyUrl = gyp.opts.no_proxy
+    || env.no_proxy
+    || env.NO_PROXY
+    || env.npm_config_no_proxy
+    || ''
+
+  if (noProxyUrl === '*' || (noProxyUrl !== '' && uriInNoProxy(url, noProxyUrl))) {
+    log.warn('download', 'ignoring proxy for url: "%s"', url)
+  } else {
+
+    // basic support for a proxy server
+    var proxyUrl = gyp.opts.proxy
+      || env.http_proxy
+      || env.HTTP_PROXY
+      || env.npm_config_proxy
+
+    if (proxyUrl) {
+      if (/^https?:\/\//i.test(proxyUrl)) {
+        log.verbose('download', 'using proxy url: "%s"', proxyUrl)
+        requestOpts.proxy = proxyUrl
+      } else {
+        log.warn('download', 'ignoring invalid "proxy" config setting: "%s"', proxyUrl)
+      }
     }
+
+
   }
 
   var req = request(requestOpts)
diff --git a/test/test-download-options.js b/test/test-download-options.js
new file mode 100644
index 0000000000..44daec5335
--- /dev/null
+++ b/test/test-download-options.js
@@ -0,0 +1,63 @@
+var test = require('tape')
+var requireInject = require('require-inject');
+var install = requireInject('../lib/install', {
+  'request': function(opts) {
+    return {
+      opts: opts,
+      on: function () {}
+    };
+  }
+})
+
+test('add proxy property when proxy is specified', function (t) {
+  t.plan(2)
+
+  var url = 'http://www.xyz.com';
+  var gyp = {
+    opts: {
+      proxy: 'http://www.test.com'
+    }
+  }
+
+  var req = install.test.download(gyp, {}, url)
+
+  t.equal(req.opts.proxy, gyp.opts.proxy)
+  t.equal(req.opts.uri, url)
+
+})
+
+test('when no_proxy = * omit proxy property', function (t) {
+  t.plan(2)
+
+  var url = 'http://www.xyz.com';
+  var gyp = {
+    opts: {
+      proxy: 'http://www.test.com',
+      no_proxy: '*'
+    }
+  }
+
+  var req = install.test.download(gyp, {}, url)
+
+  t.equal(req.opts.proxy, undefined)
+  t.equal(req.opts.uri, url)
+
+})
+
+test('when no_proxy matches url omit proxy property', function (t) {
+  t.plan(2)
+
+  var url = 'http://www.xyz.com';
+  var gyp = {
+    opts: {
+      proxy: 'http://www.test.com',
+      no_proxy: 'xyz.com'
+    }
+  }
+
+  var req = install.test.download(gyp, {}, url)
+
+  t.equal(req.opts.proxy, undefined)
+  t.equal(req.opts.uri, url)
+
+})