diff --git a/src/Microsoft.SqlTools.Authentication/Authenticator.cs b/src/Microsoft.SqlTools.Authentication/Authenticator.cs
index aef00541..ae43b5f8 100644
--- a/src/Microsoft.SqlTools.Authentication/Authenticator.cs
+++ b/src/Microsoft.SqlTools.Authentication/Authenticator.cs
@@ -162,6 +162,7 @@ namespace Microsoft.SqlTools.Authentication
         private IPublicClientApplication CreatePublicClientAppInstance(string authority, string audience) =>
             PublicClientApplicationBuilder.Create(this.configuration.AppClientId)
                 .WithAuthority(authority, audience)
+                .WithHttpClientFactory(new HttpClientProxyFactory(this.configuration.HttpProxyUrl, this.configuration.HttpProxyStrictSSL))
                 .WithClientName(this.configuration.AppName)
                 .WithLogging(Utils.MSALLogCallback)
                 .WithDefaultRedirectUri()
diff --git a/src/Microsoft.SqlTools.Authentication/Utility/AuthenticatorConfiguration.cs b/src/Microsoft.SqlTools.Authentication/Utility/AuthenticatorConfiguration.cs
index 3e73ed62..02ca9709 100644
--- a/src/Microsoft.SqlTools.Authentication/Utility/AuthenticatorConfiguration.cs
+++ b/src/Microsoft.SqlTools.Authentication/Utility/AuthenticatorConfiguration.cs
@@ -31,11 +31,23 @@ namespace Microsoft.SqlTools.Authentication.Utility
         /// </summary>
         public string CacheFileName { get; set; }
 
-        public AuthenticatorConfiguration(string appClientId, string appName, string cacheFolderPath, string cacheFileName) {
+        /// <summary>
+        /// Proxy URL defined by end user.
+        /// </summary>
+        public string? HttpProxyUrl { get; set; }
+
+        /// <summary>
+        /// Whether the proxy server certificate must be verified against list of configured CAs.
+        /// </summary>
+        public bool HttpProxyStrictSSL { get; set; }
+
+        public AuthenticatorConfiguration(string appClientId, string appName, string cacheFolderPath, string cacheFileName, string? httpProxyUrl = null, bool httpProxyStrictSSL = true) {
             AppClientId = appClientId;
             AppName = appName;
             CacheFolderPath = cacheFolderPath;
             CacheFileName = cacheFileName;
+            HttpProxyUrl = httpProxyUrl;
+            HttpProxyStrictSSL = httpProxyStrictSSL;
         }
     }
 }
diff --git a/src/Microsoft.SqlTools.Authentication/Utility/ProxyHttpClientFactory.cs b/src/Microsoft.SqlTools.Authentication/Utility/ProxyHttpClientFactory.cs
new file mode 100644
index 00000000..4e279ae4
--- /dev/null
+++ b/src/Microsoft.SqlTools.Authentication/Utility/ProxyHttpClientFactory.cs
@@ -0,0 +1,75 @@
+//
+// Copyright (c) Microsoft. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for full license information.
+//
+
+using System.Net;
+using System.Net.Security;
+using Microsoft.Identity.Client;
+using SqlToolsLogger = Microsoft.SqlTools.Utility.Logger;
+
+namespace Microsoft.SqlTools.Authentication.Utility
+{
+    /// <summary>
+    /// Implements Http Client Factory for Microsoft Identity Client to support proxy authentication.
+    /// </summary>
+    public class HttpClientProxyFactory : IMsalHttpClientFactory
+    {
+        private readonly HttpClient s_httpClient;
+
+        /// <summary>
+        /// Default constructor to construct instance with proxy URL provided.
+        /// </summary>
+        /// <param name="proxyUrl">Proxy URL to be used for network access.</param>
+        /// <param name="proxyStrictSSL">Whether or not proxy server certficate must be strictly validated.</param>
+        public HttpClientProxyFactory(string? proxyUrl, bool proxyStrictSSL)
+        {
+            if (proxyUrl != null)
+            {
+                var webProxy = new WebProxy(
+                    new Uri(proxyUrl),
+                    BypassOnLocal: false);
+
+                var proxyHttpClientHandler = new HttpClientHandler
+                {
+                    Proxy = webProxy,
+                    UseProxy = true,
+                    ServerCertificateCustomValidationCallback = (request, certs, chain, policyErrors) =>
+                    {
+                        if (policyErrors != SslPolicyErrors.None)
+                        {
+                            SqlToolsLogger.Error("Proxy Server Certificate Validation failed with error: " + policyErrors.ToString());
+                        }
+
+                        if (proxyStrictSSL)
+                        {
+                            return policyErrors != SslPolicyErrors.None;
+                        }
+                        // Bypass Proxy server certificate validation.
+                        else
+                        {
+                            SqlToolsLogger.Information("Proxy Server Certificate Validation bypassed as requested.");
+                            return true;
+                        }
+                    }
+                };
+
+                s_httpClient = new HttpClient(proxyHttpClientHandler);
+                SqlToolsLogger.Verbose($"Received Http Proxy URL is used to instantiate HttpClientFactory");
+            }
+            else
+            {
+                s_httpClient = new HttpClient();
+            }
+        }
+
+        /// <summary>
+        /// Gets Http Client instance
+        /// </summary>
+        /// <returns></returns>
+        public HttpClient GetHttpClient()
+        {
+            return s_httpClient;
+        }
+    }
+}
diff --git a/src/Microsoft.SqlTools.Hosting/Utility/CommandOptions.cs b/src/Microsoft.SqlTools.Hosting/Utility/CommandOptions.cs
index 6229815f..df1ecbb6 100644
--- a/src/Microsoft.SqlTools.Hosting/Utility/CommandOptions.cs
+++ b/src/Microsoft.SqlTools.Hosting/Utility/CommandOptions.cs
@@ -70,6 +70,12 @@ namespace Microsoft.SqlTools.Utility
                             case "-help":
                                 ShouldExit = true;
                                 return;
+                            case "-http-proxy-url":
+                                HttpProxyUrl = args[++i];
+                                break;
+                            case "-http-proxy-strict-ssl":
+                                HttpProxyStrictSSL = true;
+                                break;
                             case "-service-name":
                                 ServiceName = args[++i];
                                 break;
@@ -136,6 +142,16 @@ namespace Microsoft.SqlTools.Utility
         /// </summary>
         public string Locale { get; private set; }
 
+        /// <summary>
+        /// Custom Http Proxy URL as specified in Azure Data Studio
+        /// </summary>
+        public string? HttpProxyUrl { get; private set; }
+
+        /// <summary>
+        /// Specifies whether the proxy server certificate should be verified against the list of supplied CAs.
+        /// </summary>
+        public bool HttpProxyStrictSSL {  get; private set; }
+
         /// <summary>
         /// Name of service that is receiving command options
         /// </summary>
diff --git a/src/Microsoft.SqlTools.ServiceLayer/Connection/ConnectionService.cs b/src/Microsoft.SqlTools.ServiceLayer/Connection/ConnectionService.cs
index 0a0b6609..4f0bef28 100644
--- a/src/Microsoft.SqlTools.ServiceLayer/Connection/ConnectionService.cs
+++ b/src/Microsoft.SqlTools.ServiceLayer/Connection/ConnectionService.cs
@@ -1190,7 +1190,7 @@ namespace Microsoft.SqlTools.ServiceLayer.Connection
             }
 
             var cachePath = Path.Combine(applicationPath, applicationName, AzureTokenFolder);
-            return new Authenticator(new(ApplicationClientId, applicationName, cachePath, MsalCacheName), () => this.encryptionKeys);
+            return new Authenticator(new(ApplicationClientId, applicationName, cachePath, MsalCacheName, commandOptions.HttpProxyUrl, commandOptions.HttpProxyStrictSSL), () => this.encryptionKeys);
         }
 
         private Task HandleEncryptionKeysNotificationEvent(EncryptionKeysChangeParams @params, EventContext context)
diff --git a/src/Microsoft.SqlTools.ServiceLayer/ObjectManagement/ObjectTypes/Database/DatabaseHandler.cs b/src/Microsoft.SqlTools.ServiceLayer/ObjectManagement/ObjectTypes/Database/DatabaseHandler.cs
index 818abe1e..3dd47ffd 100644
--- a/src/Microsoft.SqlTools.ServiceLayer/ObjectManagement/ObjectTypes/Database/DatabaseHandler.cs
+++ b/src/Microsoft.SqlTools.ServiceLayer/ObjectManagement/ObjectTypes/Database/DatabaseHandler.cs
@@ -302,11 +302,11 @@ namespace Microsoft.SqlTools.ServiceLayer.ObjectManagement
                                     ((DatabaseInfo)databaseViewInfo.ObjectInfo).IsFilesTabSupported = true;
                                     ((DatabaseInfo)databaseViewInfo.ObjectInfo).Filegroups = GetFileGroups(smoDatabase, databaseViewInfo);
                                 }
+                            }
 
-                                if (prototype is DatabasePrototype160)
-                                {
-                                    ((DatabaseInfo)databaseViewInfo.ObjectInfo).IsLedgerDatabase = smoDatabase.IsLedger;
-                                }
+                            if (prototype is DatabasePrototype160)
+                            {
+                                ((DatabaseInfo)databaseViewInfo.ObjectInfo).IsLedgerDatabase = smoDatabase.IsLedger;
                             }
                             databaseScopedConfigurationsCollection = smoDatabase.IsSupportedObject<DatabaseScopedConfiguration>() ? smoDatabase.DatabaseScopedConfigurations : null;
                             databaseViewInfo.FileTypesOptions = displayFileTypes.Values.ToArray();