diff --git a/doc/manual/installation/env-variables.xml b/doc/manual/installation/env-variables.xml
index d1ee0bb2e..e2b8fc867 100644
--- a/doc/manual/installation/env-variables.xml
+++ b/doc/manual/installation/env-variables.xml
@@ -67,5 +67,23 @@ $ sudo launchctl kickstart -k system/org.nixos.nix-daemon
 </screen>
 </section>
 
+<section xml:id="sec-installer-proxy-settings">
+
+<title>Proxy Environment Variables</title>
+
+<para>The Nix installer has special handling for these proxy-related
+environment variables:
+<varname>http_proxy</varname>, <varname>https_proxy</varname>,
+<varname>ftp_proxy</varname>, <varname>no_proxy</varname>,
+<varname>HTTP_PROXY</varname>, <varname>HTTPS_PROXY</varname>,
+<varname>FTP_PROXY</varname>, <varname>NO_PROXY</varname>.
+</para>
+<para>If any of these variables are set when running the Nix installer,
+then the installer will create an override file at
+<filename>/etc/systemd/system/nix-daemon.service.d/override.conf</filename>
+so <command>nix-daemon</command> will use them.
+</para>
+</section>
+
 </section>
 </chapter>
diff --git a/scripts/install-systemd-multi-user.sh b/scripts/install-systemd-multi-user.sh
old mode 100644
new mode 100755
index 04bc539a1..bef3ac4f9
--- a/scripts/install-systemd-multi-user.sh
+++ b/scripts/install-systemd-multi-user.sh
@@ -9,6 +9,38 @@ readonly SERVICE_DEST=/etc/systemd/system/nix-daemon.service
 readonly SOCKET_SRC=/lib/systemd/system/nix-daemon.socket
 readonly SOCKET_DEST=/etc/systemd/system/nix-daemon.socket
 
+
+# Path for the systemd override unit file to contain the proxy settings
+readonly SERVICE_OVERRIDE=${SERVICE_DEST}.d/override.conf
+
+create_systemd_override() {
+     header "Configuring proxy for the nix-daemon service"
+    _sudo "create directory for systemd unit override" mkdir -p "$(dirname $SERVICE_OVERRIDE)"
+    cat <<EOF | _sudo "create systemd unit override" tee "$SERVICE_OVERRIDE"
+[Service]
+$1
+EOF
+}
+
+# Gather all non-empty proxy environment variables into a string
+create_systemd_proxy_env() {
+    vars="http_proxy https_proxy ftp_proxy no_proxy HTTP_PROXY HTTPS_PROXY FTP_PROXY NO_PROXY"
+    for v in $vars; do
+        if [ "x${!v:-}" != "x" ]; then
+            echo "Environment=${v}=${!v}"
+        fi
+    done
+}
+
+handle_network_proxy() {
+    # Create a systemd unit override with proxy environment variables
+    # if any proxy environment variables are not empty.
+    PROXY_ENV_STRING=$(create_systemd_proxy_env)
+    if [ -n "${PROXY_ENV_STRING}" ]; then
+        create_systemd_override "${PROXY_ENV_STRING}"
+    fi
+}
+
 poly_validate_assumptions() {
     if [ "$(uname -s)" != "Linux" ]; then
         failure "This script is for use with Linux!"
@@ -47,6 +79,8 @@ poly_configure_nix_daemon_service() {
     _sudo "to set up the nix-daemon socket service" \
           systemctl enable "/nix/var/nix/profiles/default$SOCKET_SRC"
 
+    handle_network_proxy
+
     _sudo "to load the systemd unit for nix-daemon" \
           systemctl daemon-reload