diff --git a/bootstrap/vagrant-onap/lib/functions b/bootstrap/vagrant-onap/lib/functions
index c2c6d76..47966f1 100755
--- a/bootstrap/vagrant-onap/lib/functions
+++ b/bootstrap/vagrant-onap/lib/functions
@@ -382,3 +382,17 @@
     mount ${dev_name}1 $mount_dir
     echo "${dev_name}1  $mount_dir           ext4    errors=remount-ro,noatime,barrier=0 0       1" >> /etc/fstab
 }
+
+# add no_proxy values to environment, used for internal IPs generated at deploy time
+function add_no_proxy_value {
+    if [[ `grep "no_proxy" /etc/environment` ]]; then
+        sed -i.bak "s/^no_proxy.*$/&,$1/" /etc/environment
+    else
+        echo "no_proxy=$1" >> /etc/environment
+    fi
+    if [[ `grep "NO_PROXY" /etc/environment` ]]; then
+        sed -i.bak "s/^NO_PROXY.*$/&,$1/" /etc/environment
+    else
+        echo "NO_PROXY=$1" >> /etc/environment
+    fi
+}
diff --git a/bootstrap/vagrant-onap/lib/openstack b/bootstrap/vagrant-onap/lib/openstack
index 205d7ae..5e51890 100755
--- a/bootstrap/vagrant-onap/lib/openstack
+++ b/bootstrap/vagrant-onap/lib/openstack
@@ -32,6 +32,10 @@
     ip_address=$(ip route get $network_id | awk '{ print $6; exit }')
     internal_vip_address=$(get_next_ip $ip_address)
 
+    if [[ `env | grep -i "proxy"` ]]; then
+        add_no_proxy_value $internal_vip_address
+    fi
+
     mkdir -p $kolla_config
     cp /var/onap/files/globals.yml $kolla_globals
     cp /var/onap/files/passwords.yml $kolla_passwords
diff --git a/bootstrap/vagrant-onap/tests/asserts b/bootstrap/vagrant-onap/tests/asserts
index 8eda3ce..441b9f0 100755
--- a/bootstrap/vagrant-onap/tests/asserts
+++ b/bootstrap/vagrant-onap/tests/asserts
@@ -77,6 +77,16 @@
     fi
 }
 
+# asserts_env_set() - Function that verities that an environment variable is set
+function asserts_env_set {
+    local variable=$1
+    local error_msg=${2:-"$variable wasn't set"}
+
+    if [ -z ${variable+x} ]; then
+        raise_error $error_msg
+    fi
+}
+
 # raise_error() - Function that prints and exits the execution
 function raise_error {
     echo $@
diff --git a/bootstrap/vagrant-onap/tests/test_functions b/bootstrap/vagrant-onap/tests/test_functions
index 9411b46..dd48215 100755
--- a/bootstrap/vagrant-onap/tests/test_functions
+++ b/bootstrap/vagrant-onap/tests/test_functions
@@ -8,7 +8,7 @@
 "configure_bind" "install_java" "install_maven" "install_nodejs" "install_python"
 "install_docker" "pull_docker_image" "install_docker_compose" "configure_service"
 "start_ODL" "compile_src" "build_docker_image" "docker_openecomp_login"
-"pull_openecomp_image" "pull_onap_image" "coverity_repos"
+"pull_openecomp_image" "pull_onap_image" "coverity_repos" "add_no_proxy_value"
 )
 
 # test_create_configuration_files() - Verify the creation of a configuration files
@@ -176,6 +176,14 @@
     popd
 }
 
+# test_add_no_proxy_value - Verify that the no_proxy value is correctly set
+function test_add_no_proxy_value {
+    local ip="172.16.0.3"
+    add_no_proxy_value $ip
+
+    asserts_env_set no_proxy
+}
+
 if [ "$1" != '*' ]; then
     unset covered_functions
     covered_functions=$1