diff --git a/lib/remote-storage.js b/lib/remote-storage.js
index 0481539..d69bbba 100644
--- a/lib/remote-storage.js
+++ b/lib/remote-storage.js
@@ -17,6 +17,9 @@ const fs = require('fs-extra')
 const joi = require('joi')
 const klaw = require('klaw')
 const http = require('http')
+// Proxy support for AWS SDK v3 (inspired by PR #224 by pat-lego, with compatibility fixes)
+const { NodeHttpHandler } = require('@smithy/node-http-handler')
+const { ProxyAgent } = require('proxy-agent')
 const { codes, logAndThrow } = require('./StorageError')
 
 const fileExtensionPattern = /\*\.[0-9a-zA-Z]+$/
@@ -71,8 +74,20 @@ module.exports = class RemoteStorage {
     }
     this.bucket = creds.params.Bucket
 
+    // Configure proxy support for AWS SDK v3
+    // ProxyAgent automatically handles proxy environment variables via proxy-from-env
+    const agent = new ProxyAgent()
+    const s3Config = {
+      credentials,
+      region,
+      requestHandler: new NodeHttpHandler({
+        httpAgent: agent,
+        httpsAgent: agent
+      })
+    }
+
     // https://docs.aws.amazon.com/AWSJavaScriptSDK/v3/latest/clients/client-s3/classes/s3.html#constructor
-    this.s3 = new S3({ credentials, region })
+    this.s3 = new S3(s3Config)
   }
 
   /**
diff --git a/package.json b/package.json
index baa5944..95e93cc 100644
--- a/package.json
+++ b/package.json
@@ -33,6 +33,7 @@
     "@adobe/aio-lib-core-logging": "^3",
     "@adobe/aio-lib-core-tvm": "^4",
     "@aws-sdk/client-s3": "^3.624.0",
+    "@smithy/node-http-handler": "^3.0.0",
     "core-js": "^3.25.1",
     "fs-extra": "^11",
     "joi": "^17.2.1",
@@ -40,6 +41,7 @@
     "lodash.clonedeep": "^4.5.0",
     "mime-types": "^2.1.24",
     "parcel": "^2.7.0",
+    "proxy-agent": "^6.3.0",
     "regenerator-runtime": "^0.13.7"
   },
   "devDependencies": {
diff --git a/test/lib/remote-storage.test.js b/test/lib/remote-storage.test.js
index a7ece8c..abae930 100644
--- a/test/lib/remote-storage.test.js
+++ b/test/lib/remote-storage.test.js
@@ -49,7 +49,8 @@ describe('RemoteStorage', () => {
         sessionToken: global.fakeTVMResponse.sessionToken,
         expiration: new Date(global.fakeTVMResponse.expiration)
       },
-      region: 'us-east-1'
+      region: 'us-east-1',
+      requestHandler: expect.any(Object)
     })
     rs.bucket = global.fakeTVMResponse.Bucket
   })
@@ -59,13 +60,122 @@ describe('RemoteStorage', () => {
     expect(S3).toHaveBeenCalledWith({
       credentials: {
         accessKeyId: global.fakeTVMResponse.accessKeyId,
-        secretAccessKey: global.fakeTVMResponse.secretAccessKey
+        secretAccessKey: global.fakeTVMResponse.secretAccessKey,
+        sessionToken: undefined,
+        expiration: undefined
       },
-      region: 'us-east-1'
+      region: 'us-east-1',
+      requestHandler: expect.any(Object)
     })
     rs.bucket = global.fakeTVMResponse.Bucket
   })
 
+  describe('Proxy configuration', () => {
+    const originalEnv = process.env
+
+    beforeEach(() => {
+      // Clear environment variables before each test
+      delete process.env.https_proxy
+      delete process.env.HTTPS_PROXY
+      delete process.env.http_proxy
+      delete process.env.HTTP_PROXY
+    })
+
+    afterAll(() => {
+      // Restore original environment
+      process.env = originalEnv
+    })
+
+    test('Constructor uses HTTPS_PROXY when set (uppercase)', async () => {
+      process.env.HTTPS_PROXY = 'http://proxy.example.com:8080'
+      // eslint-disable-next-line no-new
+      new RemoteStorage(global.fakeTVMResponse)
+
+      expect(S3).toHaveBeenCalledWith(expect.objectContaining({
+        requestHandler: expect.any(Object),
+        credentials: expect.any(Object),
+        region: 'us-east-1'
+      }))
+    })
+
+    test('Constructor uses https_proxy when set (lowercase)', async () => {
+      process.env.https_proxy = 'http://proxy.example.com:3128'
+      // eslint-disable-next-line no-new
+      new RemoteStorage(global.fakeTVMResponse)
+
+      expect(S3).toHaveBeenCalledWith(expect.objectContaining({
+        requestHandler: expect.any(Object),
+        credentials: expect.any(Object),
+        region: 'us-east-1'
+      }))
+    })
+
+    test('Constructor uses HTTP_PROXY when HTTPS_PROXY not set', async () => {
+      process.env.HTTP_PROXY = 'http://proxy.example.com:8080'
+      // eslint-disable-next-line no-new
+      new RemoteStorage(global.fakeTVMResponse)
+
+      expect(S3).toHaveBeenCalledWith(expect.objectContaining({
+        requestHandler: expect.any(Object),
+        credentials: expect.any(Object),
+        region: 'us-east-1'
+      }))
+    })
+
+    test('Constructor uses http_proxy when other proxy vars not set', async () => {
+      process.env.http_proxy = 'http://proxy.example.com:3128'
+      // eslint-disable-next-line no-new
+      new RemoteStorage(global.fakeTVMResponse)
+
+      expect(S3).toHaveBeenCalledWith(expect.objectContaining({
+        requestHandler: expect.any(Object),
+        credentials: expect.any(Object),
+        region: 'us-east-1'
+      }))
+    })
+
+    test('Constructor prioritizes HTTPS_PROXY over HTTP_PROXY', async () => {
+      process.env.HTTPS_PROXY = 'http://https-proxy.example.com:8080'
+      process.env.HTTP_PROXY = 'http://http-proxy.example.com:8080'
+      // eslint-disable-next-line no-new
+      new RemoteStorage(global.fakeTVMResponse)
+
+      expect(S3).toHaveBeenCalledWith(expect.objectContaining({
+        requestHandler: expect.any(Object),
+        credentials: expect.any(Object),
+        region: 'us-east-1'
+      }))
+    })
+
+    test('Constructor prioritizes https_proxy over HTTP_PROXY', async () => {
+      process.env.https_proxy = 'http://https-proxy.example.com:3128'
+      process.env.HTTP_PROXY = 'http://http-proxy.example.com:8080'
+      // eslint-disable-next-line no-new
+      new RemoteStorage(global.fakeTVMResponse)
+
+      expect(S3).toHaveBeenCalledWith(expect.objectContaining({
+        requestHandler: expect.any(Object),
+        credentials: expect.any(Object),
+        region: 'us-east-1'
+      }))
+    })
+
+    test('Constructor always includes requestHandler with ProxyAgent', async () => {
+      // eslint-disable-next-line no-new
+      new RemoteStorage(global.fakeTVMResponse)
+
+      expect(S3).toHaveBeenCalledWith({
+        credentials: expect.any(Object),
+        region: 'us-east-1',
+        requestHandler: expect.any(Object)
+      })
+
+      // ProxyAgent handles proxy detection automatically via proxy-from-env
+      const s3CallArgs = S3.mock.calls[S3.mock.calls.length - 1][0]
+      expect(s3CallArgs).toHaveProperty('requestHandler')
+    })
+  })
+
   test('folderExists missing prefix', async () => {
     const rs = new RemoteStorage(global.fakeTVMResponse)
     await expect(rs.folderExists()).rejects.toEqual(expect.objectContaining({ message: 'prefix must be a valid string' }))