diff --git a/commands/env.go b/commands/env.go
index e15dbe1369..f8f4643ae0 100644
--- a/commands/env.go
+++ b/commands/env.go
@@ -4,6 +4,7 @@ import (
 	"errors"
 	"fmt"
 	"os"
+	"strings"
 	"text/template"
 
 	"github.com/codegangsta/cli"
@@ -11,7 +12,7 @@ import (
 )
 
 const (
-	envTmpl = `{{ .Prefix }}DOCKER_TLS_VERIFY{{ .Delimiter }}{{ .DockerTLSVerify }}{{ .Suffix }}{{ .Prefix }}DOCKER_HOST{{ .Delimiter }}{{ .DockerHost }}{{ .Suffix }}{{ .Prefix }}DOCKER_CERT_PATH{{ .Delimiter }}{{ .DockerCertPath }}{{ .Suffix }}{{ .Prefix }}DOCKER_MACHINE_NAME{{ .Delimiter }}{{ .MachineName }}{{ .Suffix }}{{ .UsageHint }}`
+	envTmpl = `{{ .Prefix }}DOCKER_TLS_VERIFY{{ .Delimiter }}{{ .DockerTLSVerify }}{{ .Suffix }}{{ .Prefix }}DOCKER_HOST{{ .Delimiter }}{{ .DockerHost }}{{ .Suffix }}{{ .Prefix }}DOCKER_CERT_PATH{{ .Delimiter }}{{ .DockerCertPath }}{{ .Suffix }}{{ .Prefix }}DOCKER_MACHINE_NAME{{ .Delimiter }}{{ .MachineName }}{{ .Suffix }}{{ if .NoProxyVar }}{{ .Prefix }}{{ .NoProxyVar }}{{ .Delimiter }}{{ .NoProxyValue }}{{ .Suffix }}{{end}}{{ .UsageHint }}`
 )
 
 var (
@@ -27,6 +28,8 @@ type ShellConfig struct {
 	DockerTLSVerify string
 	UsageHint       string
 	MachineName     string
+	NoProxyVar      string
+	NoProxyValue    string
 }
 
 func cmdEnv(c *cli.Context) {
@@ -54,11 +57,42 @@ func cmdEnv(c *cli.Context) {
 
 	usageHint := generateUsageHint(c.App.Name, c.Args().First(), userShell)
 
-	shellCfg := ShellConfig{
-		DockerCertPath:  "",
-		DockerHost:      "",
-		DockerTLSVerify: "",
-		MachineName:     "",
+	shellCfg := &ShellConfig{
+		DockerCertPath:  authOptions.CertDir,
+		DockerHost:      dockerHost,
+		DockerTLSVerify: "1",
+		UsageHint:       usageHint,
+		MachineName:     h.Name,
+	}
+
+	if c.Bool("no-proxy") {
+		ip, err := h.Driver.GetIP()
+		if err != nil {
+			log.Fatalf("Error getting host IP: %s", err)
+		}
+
+		// first check for an existing lower case no_proxy var
+		noProxyVar := "no_proxy"
+		noProxyValue := os.Getenv("no_proxy")
+
+		// otherwise default to allcaps HTTP_PROXY
+		if noProxyValue == "" {
+			noProxyVar = "NO_PROXY"
+			noProxyValue = os.Getenv("NO_PROXY")
+		}
+
+		// add the docker host to the no_proxy list idempotently
+		switch {
+		case noProxyValue == "":
+			noProxyValue = ip
+		case strings.Contains(noProxyValue, ip):
+			//ip already in no_proxy list, nothing to do
+		default:
+			noProxyValue = fmt.Sprintf("%s,%s", noProxyValue, ip)
+		}
+
+		shellCfg.NoProxyVar = noProxyVar
+		shellCfg.NoProxyValue = noProxyValue
 	}
 
 	// unset vars
@@ -97,14 +131,6 @@ func cmdEnv(c *cli.Context) {
 		return
 	}
 
-	shellCfg = ShellConfig{
-		DockerCertPath:  authOptions.CertDir,
-		DockerHost:      dockerHost,
-		DockerTLSVerify: "1",
-		UsageHint:       usageHint,
-		MachineName:     h.Name,
-	}
-
 	switch userShell {
 	case "fish":
 		shellCfg.Prefix = "set -x "
diff --git a/docs/reference/env.md b/docs/reference/env.md
index dd547ba1d5..9927c9ee08 100644
--- a/docs/reference/env.md
+++ b/docs/reference/env.md
@@ -75,4 +75,29 @@ set DOCKER_HOST=tcp://192.168.99.101:2376
 set DOCKER_CERT_PATH=C:\Users\captain\.docker\machine\machines\dev
 set DOCKER_MACHINE_NAME=dev
 # Run this command to configure your shell: copy and paste the above values into your command prompt
-```
\ No newline at end of file
+```
+
+## Excluding the created machine from proxies
+
+The env command supports a `--no-proxy` flag which will ensure that the created
+machine's IP address is added to the [`NO_PROXY`/`no_proxy` environment
+variable](https://wiki.archlinux.org/index.php/Proxy_settings).
+
+This is useful when using `docker-machine` with a local VM provider (e.g.
+`virtualbox` or `vmwarefusion`) in network environments where a HTTP proxy is
+required for internet access.
+
+```
+$ docker-machine env --no-proxy default
+export DOCKER_TLS_VERIFY="1"
+export DOCKER_HOST="tcp://192.168.99.104:2376"
+export DOCKER_CERT_PATH="/Users/databus23/.docker/machine/certs"
+export DOCKER_MACHINE_NAME="default"
+export NO_PROXY="192.168.99.104"
+# Run this command to configure your shell:
+# eval "$(docker-machine env default)"
+```
+
+You may also want to visit the [documentation on setting `HTTP_PROXY` for the
+created daemon using the `--engine-env` flag for `docker-machine
+create`](https://docs.docker.com/machine/reference/create/#specifying-configuration-options-for-the-created-docker-engine).
diff --git a/test/integration/core/env_shell.bats b/test/integration/core/env_shell.bats
index 5cc07dc623..5dc9a8505c 100644
--- a/test/integration/core/env_shell.bats
+++ b/test/integration/core/env_shell.bats
@@ -8,33 +8,43 @@ load ${BASE_TEST_DIR}/helpers.bash
 }
 
 @test "$DRIVER: test powershell notation" {
-  run machine env --shell powershell $NAME
+  run machine env --shell powershell --no-proxy $NAME
   [[ ${lines[0]} == "\$Env:DOCKER_TLS_VERIFY = \"1\"" ]]
   [[ ${lines[1]} == "\$Env:DOCKER_HOST = \"$(machine url $NAME)\"" ]]
   [[ ${lines[2]} == "\$Env:DOCKER_CERT_PATH = \"$MACHINE_STORAGE_PATH/certs\"" ]]
   [[ ${lines[3]} == "\$Env:DOCKER_MACHINE_NAME = \"$NAME\"" ]]
+  [[ ${lines[4]} == "\$Env:NO_PROXY = \"$(machine ip $NAME)\"" ]]
 }
 
 @test "$DRIVER: test bash / zsh notation" {
-  run machine env $NAME
+  run machine env --no-proxy $NAME
   [[ ${lines[0]} == "export DOCKER_TLS_VERIFY=\"1\"" ]]
   [[ ${lines[1]} == "export DOCKER_HOST=\"$(machine url $NAME)\"" ]]
   [[ ${lines[2]} == "export DOCKER_CERT_PATH=\"$MACHINE_STORAGE_PATH/certs\"" ]]
   [[ ${lines[3]} == "export DOCKER_MACHINE_NAME=\"$NAME\"" ]]
+  [[ ${lines[4]} == "export NO_PROXY=\"$(machine ip $NAME)\"" ]]
 }
 
 @test "$DRIVER: test cmd.exe notation" {
-  run machine env --shell cmd $NAME
+  run machine env --shell cmd --no-proxy $NAME
   [[ ${lines[0]} == "set DOCKER_TLS_VERIFY=1" ]]
   [[ ${lines[1]} == "set DOCKER_HOST=$(machine url $NAME)" ]]
   [[ ${lines[2]} == "set DOCKER_CERT_PATH=$MACHINE_STORAGE_PATH/certs" ]]
   [[ ${lines[3]} == "set DOCKER_MACHINE_NAME=$NAME" ]]
+  [[ ${lines[4]} == "set NO_PROXY=$(machine ip $NAME)" ]]
 }
 
 @test "$DRIVER: test fish notation" {
-  run machine env --shell fish $NAME
+  run machine env --shell fish --no-proxy $NAME
   [[ ${lines[0]} == "set -x DOCKER_TLS_VERIFY \"1\";" ]]
   [[ ${lines[1]} == "set -x DOCKER_HOST \"$(machine url $NAME)\";" ]]
   [[ ${lines[2]} == "set -x DOCKER_CERT_PATH \"$MACHINE_STORAGE_PATH/certs\";" ]]
   [[ ${lines[3]} == "set -x DOCKER_MACHINE_NAME \"$NAME\";" ]]
+  [[ ${lines[4]} == "set -x NO_PROXY \"$(machine ip $NAME)\";" ]]
+}
+
+@test "$DRIVER: no proxy with NO_PROXY already set" {
+  export NO_PROXY=localhost
+  run machine env --no-proxy $NAME
+  [[ ${lines[4]} == "export NO_PROXY=\"localhost,$(machine ip $NAME)\"" ]]
 }