diff --git a/src/vs/platform/remote/browser/remoteAuthorityResolverService.ts b/src/vs/platform/remote/browser/remoteAuthorityResolverService.ts
index a50828715f2e2..07412c7c28062 100644
--- a/src/vs/platform/remote/browser/remoteAuthorityResolverService.ts
+++ b/src/vs/platform/remote/browser/remoteAuthorityResolverService.ts
@@ -20,7 +20,11 @@ export class RemoteAuthorityResolverService extends Disposable implements IRemot
 	private readonly _connectionToken: string | undefined;
 	private readonly _connectionTokens: Map<string, string>;
 
-	constructor(connectionToken: string | undefined, resourceUriProvider: ((uri: URI) => URI) | undefined) {
+	/**
+	 * Add proxy endpoint template.
+	 * @author coder
+	 */
+	constructor(connectionToken: string | undefined, resourceUriProvider: ((uri: URI) => URI) | undefined, private readonly proxyEndpointUrlTemplate?: string) {
 		super();
 		this._cache = new Map<string, ResolverResult>();
 		this._connectionToken = connectionToken;
@@ -59,12 +63,21 @@ export class RemoteAuthorityResolverService extends Disposable implements IRemot
 
 	private _doResolveAuthority(authority: string): ResolverResult {
 		const connectionToken = this._connectionTokens.get(authority) || this._connectionToken;
+		/**
+		 * Add VSCODE_PROXY_URI to the environment.
+		 * @author coder
+		 */
+		const options = {}
+		if (this.proxyEndpointUrlTemplate) {
+			const proxyUrl = new URL(this.proxyEndpointUrlTemplate, window.location.href);
+			options.extensionHostEnv = { VSCODE_PROXY_URI: decodeURIComponent(proxyUrl.toString()) }
+		}
 		if (authority.indexOf(':') >= 0) {
 			const pieces = authority.split(':');
-			return { authority: { authority, host: pieces[0], port: parseInt(pieces[1], 10), connectionToken } };
+			return { authority: { authority, host: pieces[0], port: parseInt(pieces[1], 10), connectionToken }, options };
 		}
 		const port = (/^https:/.test(window.location.href) ? 443 : 80);
-		return { authority: { authority, host: authority, port: port, connectionToken } };
+		return { authority: { authority, host: authority, port: port, connectionToken }, options };
 	}
 
 	_clearResolvedAuthority(authority: string): void {
diff --git a/src/vs/server/webClientServer.ts b/src/vs/server/webClientServer.ts
index 9978c375f0e16..9c0f0e1cf8f98 100644
--- a/src/vs/server/webClientServer.ts
+++ b/src/vs/server/webClientServer.ts
@@ -320,10 +320,11 @@ export class WebClientServer {
 					// Endpoints
 					base,
 					logoutEndpointUrl: base + '/logout',
+					proxyEndpointUrlTemplate: base + '/proxy/{{port}}',
 					webEndpointUrl: vscodeBase + '/static',
 					webEndpointUrlTemplate: vscodeBase + '/static',
 					webviewContentExternalBaseUrlTemplate: vscodeBase + '/webview/{{uuid}}/',
-					updateUrl: base + '/update/check'
+					updateUrl: base + '/update/check',
 				},
 				folderUri: (workspacePath && isFolder) ? transformer.transformOutgoing(URI.file(workspacePath)) : undefined,
 				workspaceUri: (workspacePath && !isFolder) ? transformer.transformOutgoing(URI.file(workspacePath)) : undefined,
diff --git a/src/vs/workbench/browser/web.main.ts b/src/vs/workbench/browser/web.main.ts
index 14f649b11af0d..0709ce5d408a3 100644
--- a/src/vs/workbench/browser/web.main.ts
+++ b/src/vs/workbench/browser/web.main.ts
@@ -179,7 +179,11 @@ class BrowserMain extends Disposable {
 
 		// Remote
 		const connectionToken = environmentService.options.connectionToken || getCookieValue('vscode-tkn');
-		const remoteAuthorityResolverService = new RemoteAuthorityResolverService(connectionToken, this.configuration.resourceUriProvider);
+		/**
+		 * Add proxy URL template to the resolver.
+		 * @author coder
+		 */
+		const remoteAuthorityResolverService = new RemoteAuthorityResolverService(connectionToken, this.configuration.resourceUriProvider, this.configuration.productConfiguration?.proxyEndpointUrlTemplate);
 		serviceCollection.set(IRemoteAuthorityResolverService, remoteAuthorityResolverService);
 
 		// Signing
diff --git a/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts b/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
index 4fb4083829414..469dd8871ead4 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
@@ -388,7 +388,11 @@ export function createTerminalEnvironment(
 
 		// Sanitize the environment, removing any undesirable VS Code and Electron environment
 		// variables
-		sanitizeProcessEnvironment(env, 'VSCODE_IPC_HOOK_CLI');
+		/**
+		 * Do not remove the proxy URI.
+		 * @author coder
+		 */
+		sanitizeProcessEnvironment(env, 'VSCODE_IPC_HOOK_CLI', 'VSCODE_PROXY_URI');
 
 		// Merge config (settings) and ShellLaunchConfig environments
 		mergeEnvironments(env, allowedEnvFromConfig);