diff --git a/app/actions/SettingsActions.js b/app/actions/SettingsActions.js
index b39cbb99c4..44e2932802 100644
--- a/app/actions/SettingsActions.js
+++ b/app/actions/SettingsActions.js
@@ -93,8 +93,8 @@ export const saveSettings = (settings) => async (dispatch, getState) => {
     wallet.setupProxy();
   }
 
-  if (needNetworkReset) {
-    dispatch(closeWalletRequest());
+  if (needNetworkReset || updatedProxy) {
+    await dispatch(closeWalletRequest());
     await dispatch(closeDaemonRequest());
     dispatch(backToCredentials());
   }
@@ -156,7 +156,9 @@ export function updateStateSettingsChanged(settings, norestart) {
     const networkChange = {
       network: true,
       spvMode: true,
-      daemonStartAdvanced: true
+      daemonStartAdvanced: true,
+      proxyType: true,
+      proxyLocation: true
     };
 
     const newDiffersFromTemp = settingsFields.reduce(
diff --git a/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.jsx b/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.jsx
index 6662aa19a8..1b3a117feb 100644
--- a/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.jsx
+++ b/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.jsx
@@ -8,6 +8,8 @@ import {
 } from "constants";
 import styles from "./ProxySettings.module.css";
 import { Label, Box } from "../../helpers";
+import { useProxySettings } from "./hooks";
+import { Button } from "pi-ui";
 
 const availableProxyTypes = [
   { name: <T id="settings.proxy.type.none" m="No Proxy" />, value: null },
@@ -17,41 +19,57 @@ const availableProxyTypes = [
   { name: "SOCKS5", value: PROXYTYPE_SOCKS5 }
 ];
 
-const ProxySettings = ({ tempSettings, onChangeTempSettings }) => (
-  <Box className={styles.box}>
-    <div>
-      <Label id="proxy-type-input">
-        <T id="settings.proxy.type" m="Proxy Type" />
-      </Label>
-      <SettingsInput
-        selectWithBigFont
-        className={styles.input}
-        value={tempSettings.proxyType}
-        onChange={(newProxyType) =>
-          onChangeTempSettings({ proxyType: newProxyType.value })
-        }
-        valueKey="value"
-        labelKey="name"
-        ariaLabelledBy="proxy-type-input"
-        options={availableProxyTypes}
-      />
-    </div>
-
-    <div>
-      <Label id="proxy-location">
-        <T id="settings.proxy.location" m="Proxy Location" />
-      </Label>
-      <SettingsTextInput
-        newBiggerFontStyle
-        inputClassNames={styles.settingsTextInput}
-        id="proxyLocationInput"
-        value={tempSettings.proxyLocation}
-        ariaLabelledBy="proxy-location"
-        onChange={(value) => onChangeTempSettings({ proxyLocation: value })}
-      />
-    </div>
-  </Box>
-);
+const ProxySettings = ({ tempSettings, onChangeTempSettings }) => {
+  const { proxyType, proxyLocation, setProxyType, setProxyLocation } =
+    useProxySettings(tempSettings);
+
+  const isProxySettingsChanged =
+    proxyType !== tempSettings.proxyType ||
+    proxyLocation !== tempSettings.proxyLocation;
+
+  return (
+    <Box className={styles.box}>
+      <div>
+        <Label id="proxy-type-input">
+          <T id="settings.proxy.type" m="Proxy Type" />
+        </Label>
+        <SettingsInput
+          selectWithBigFont
+          className={styles.input}
+          value={proxyType}
+          onChange={(newProxyType) => setProxyType(newProxyType.value)}
+          valueKey="value"
+          labelKey="name"
+          ariaLabelledBy="proxy-type-input"
+          options={availableProxyTypes}
+        />
+      </div>
+
+      <div>
+        <Label id="proxy-location">
+          <T id="settings.proxy.location" m="Proxy Location" />
+        </Label>
+        <SettingsTextInput
+          newBiggerFontStyle
+          inputClassNames={styles.settingsTextInput}
+          id="proxyLocationInput"
+          value={proxyLocation}
+          ariaLabelledBy="proxy-location"
+          onChange={(value) => setProxyLocation(value)}
+        />
+      </div>
+
+      {isProxySettingsChanged && (
+        <Button
+          className={styles.submitButton}
+          size="sm"
+          onClick={() => onChangeTempSettings({ proxyType, proxyLocation })}>
+          <T id="settings.proxy.save" m="Save proxy settings" />
+        </Button>
+      )}
+    </Box>
+  );
+};
 
 ProxySettings.propTypes = {
   tempSettings: PropTypes.object.isRequired,
diff --git a/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.module.css b/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.module.css
index 3151a9ce6a..80cc95faff 100644
--- a/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.module.css
+++ b/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/ProxySettings.module.css
@@ -1,6 +1,6 @@
 .box {
   display: grid;
-  grid-gap: 3rem;
+  grid-gap: 1rem 3rem;
   grid-template-columns: repeat(2, 1fr);
 }
 
@@ -8,8 +8,16 @@
   color: var(--main-dark-blue) !important;
 }
 
+.submitButton {
+  grid-column: 2;
+}
+
 @media (--sm-viewport) {
   .box {
     grid-template-columns: 1fr;
   }
+
+  .submitButton {
+    grid-column: 1;
+  }
 }
diff --git a/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/hooks.js b/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/hooks.js
new file mode 100644
index 0000000000..a12a3b746b
--- /dev/null
+++ b/app/components/views/SettingsPage/ConnectivitySettingsTab/ProxySettings/hooks.js
@@ -0,0 +1,15 @@
+import { useState } from "react";
+
+export const useProxySettings = (tempSettings) => {
+  const [proxyType, setProxyType] = useState(tempSettings.proxyType);
+  const [proxyLocation, setProxyLocation] = useState(
+    tempSettings.proxyLocation
+  );
+
+  return {
+    proxyType,
+    proxyLocation,
+    setProxyType,
+    setProxyLocation
+  };
+};
diff --git a/app/main_dev/launch.js b/app/main_dev/launch.js
index bcd5bc5f44..e72abfacb9 100644
--- a/app/main_dev/launch.js
+++ b/app/main_dev/launch.js
@@ -28,7 +28,8 @@ import {
   UPGD_ELECTRON8,
   CSPP_URL,
   CSPP_PORT_TESTNET,
-  CSPP_PORT_MAINNET
+  CSPP_PORT_MAINNET,
+  PROXYTYPE_SOCKS5
 } from "constants";
 import * as cfgConstants from "constants/config";
 import os from "os";
@@ -43,6 +44,7 @@ import ini from "ini";
 import { makeRandomString, isPlainString as isString } from "helpers/strings";
 import { makeFileBackup } from "helpers/files";
 import { DEX_LOCALPAGE } from "./externalRequests";
+import { getProxyTypeAndLocation } from "./proxy";
 
 const argv = parseArgs(process.argv.slice(1), OPTIONS);
 const debug = argv.debug || process.env.NODE_ENV === "development";
@@ -390,6 +392,15 @@ export const launchDCRD = (reactIPC, testnet, appdata) =>
       args.push("--testnet");
     }
 
+    const { proxyType, proxyLocation } = getProxyTypeAndLocation();
+    logger.log(
+      "info",
+      `ProxyType: ${proxyType}, ProxyLocation: ${proxyLocation}`
+    );
+    if (proxyType === PROXYTYPE_SOCKS5 && proxyLocation) {
+      args.push(`--proxy=${proxyLocation}`);
+    }
+
     rpcuser = rpc_user;
     rpcpass = rpc_pass;
     rpccert = rpc_cert;
@@ -644,6 +655,15 @@ export const launchDCRWallet = async (
       : "--csppserver=" + CSPP_URL + ":" + CSPP_PORT_TESTNET
   );
 
+  const { proxyType, proxyLocation } = getProxyTypeAndLocation();
+  logger.log(
+    "info",
+    `ProxyType: ${proxyType}, ProxyLocation: ${proxyLocation}`
+  );
+  if (proxyType === PROXYTYPE_SOCKS5 && proxyLocation) {
+    args.push(`--proxy=${proxyLocation}`);
+  }
+
   const dcrwExe = getExecutablePath("dcrwallet", argv.custombinpath);
   if (!fs.existsSync(dcrwExe)) {
     const msg = `The dcrwallet executable does not exist. Expected to find it at ${dcrwExe}`;
diff --git a/app/main_dev/proxy.js b/app/main_dev/proxy.js
index d0276fe42e..5683e969e3 100644
--- a/app/main_dev/proxy.js
+++ b/app/main_dev/proxy.js
@@ -11,10 +11,7 @@ import {
 
 export const setupProxy = (logger) =>
   new Promise((resolve, reject) => {
-    const cfg = getGlobalCfg();
-
-    const proxyType = cfg.get(cfgConstants.PROXY_TYPE);
-    const proxyLocation = cfg.get(cfgConstants.PROXY_LOCATION);
+    const { proxyType, proxyLocation } = getProxyTypeAndLocation();
 
     const proxyConfig = {
       pacScript: null,
@@ -58,3 +55,12 @@ export const setupProxy = (logger) =>
       })
       .catch(reject);
   });
+
+export const getProxyTypeAndLocation = () => {
+  const cfg = getGlobalCfg();
+
+  const proxyType = cfg.get(cfgConstants.PROXY_TYPE);
+  const proxyLocation = cfg.get(cfgConstants.PROXY_LOCATION);
+
+  return { proxyType, proxyLocation };
+};
diff --git a/test/unit/actions/SettingsActions.spec.js b/test/unit/actions/SettingsActions.spec.js
index 8c6781aac2..d2047a2883 100644
--- a/test/unit/actions/SettingsActions.spec.js
+++ b/test/unit/actions/SettingsActions.spec.js
@@ -53,8 +53,6 @@ const testSettings = {
     EXTERNALREQUEST_UPDATE_CHECK,
     EXTERNALREQUEST_DEX
   ],
-  proxyType: "new-proxy-type",
-  proxyLocation: "new-proxy-location",
   spvMode: false,
   spvModeFromCli: false,
   spvConnect: [],
@@ -239,6 +237,74 @@ test("test saveSettings", async () => {
 // locale has not been changed
 // dcrdata is enabled now
 test("test saveSettings - save alternative data", async () => {
+  const testSettingsCopy = {
+    ...testSettings,
+    allowedExternalRequests: [
+      ...testSettings.allowedExternalRequests,
+      EXTERNALREQUEST_POLITEIA,
+      EXTERNALREQUEST_DCRDATA
+    ]
+  };
+  mockGlobalCfgGet = jest.fn((key) => {
+    switch (key) {
+      case ALLOWED_EXTERNAL_REQUESTS:
+        return testSettingsCopy.allowedExternalRequests;
+    }
+  });
+  const store = createStore(
+    cloneDeep({
+      ...initialState,
+      daemon: {},
+      settings: {
+        ...initialState.settings,
+        needNetworkReset: false,
+        currentSettings: {
+          ...initialState.settings.currentSettings,
+          network: TESTNET,
+          locale: testSettingsCopy.locale
+        }
+      }
+    })
+  );
+  await store.dispatch(settingsActions.saveSettings(testSettingsCopy));
+
+  expect(mockGetGlobalCfg).toHaveBeenCalled();
+  // locale has not been changed
+  expect(mockChangeMenuLocale).not.toHaveBeenCalled();
+
+  // politeia is enabled now
+  expect(mockGetTokenAndInitialBatch).toHaveBeenCalled();
+  expect(mockResetInventoryAndProposals).not.toHaveBeenCalled();
+
+  // dcrdata is enabled now
+  expect(mockGetTreasuryBalance).toHaveBeenCalled();
+  expect(mockResetTreasuryBalance).not.toHaveBeenCalled();
+
+  // proxy has been changed, even though just the proxy location has been changed
+  expect(mockSetupProxy).not.toHaveBeenCalled();
+
+  // don't a need network reset
+  expect(mockCloseWalletRequest).not.toHaveBeenCalled();
+  expect(mockCloseDaemonRequest).not.toHaveBeenCalled();
+  expect(mockBackToCredentials).not.toHaveBeenCalled();
+
+  // allowed external requests has not been changed
+  expect(mockReloadAllowedExternalRequests).not.toHaveBeenCalled();
+
+  // wallet is not openned
+  expect(mockGetWalletCfg).not.toHaveBeenCalled();
+  expect(mockWalletCfgSet).not.toHaveBeenCalled();
+
+  expect(
+    isEqual(store.getState().settings.currentSettings, testSettingsCopy)
+  ).toBeTruthy();
+  expect(
+    isEqual(store.getState().settings.tempSettings, testSettingsCopy)
+  ).toBeTruthy();
+  expect(store.getState().settings.settingsChanged).toBeFalsy();
+});
+
+test("test saveSettings - proxy change needs wallet restart", async () => {
   const testSettingsCopy = {
     ...testSettings,
     allowedExternalRequests: [
@@ -267,7 +333,9 @@ test("test saveSettings - save alternative data", async () => {
         currentSettings: {
           ...initialState.settings.currentSettings,
           network: TESTNET,
-          locale: testSettingsCopy.locale
+          locale: testSettingsCopy.locale,
+          proxyType: "new-proxy-type",
+          proxyLocation: "new-proxy-location"
         }
       }
     })
@@ -290,9 +358,9 @@ test("test saveSettings - save alternative data", async () => {
   expect(mockSetupProxy).toHaveBeenCalled();
 
   // don't a need network reset
-  expect(mockCloseWalletRequest).not.toHaveBeenCalled();
-  expect(mockCloseDaemonRequest).not.toHaveBeenCalled();
-  expect(mockBackToCredentials).not.toHaveBeenCalled();
+  expect(mockCloseWalletRequest).toHaveBeenCalled();
+  expect(mockCloseDaemonRequest).toHaveBeenCalled();
+  expect(mockBackToCredentials).toHaveBeenCalled();
 
   // allowed external requests has not been changed
   expect(mockReloadAllowedExternalRequests).not.toHaveBeenCalled();
diff --git a/test/unit/components/views/SettingsPage/SettingsPage.spec.js b/test/unit/components/views/SettingsPage/SettingsPage.spec.js
index 7e53d4368f..dac090e6cd 100644
--- a/test/unit/components/views/SettingsPage/SettingsPage.spec.js
+++ b/test/unit/components/views/SettingsPage/SettingsPage.spec.js
@@ -393,7 +393,6 @@ test.each([
     { daemonStartAdvanced: true },
     true
   ],
-  ["Proxy Type", "HTTP", "PAC", { proxyType: PROXYTYPE_PAC }, false],
   [
     "Locale",
     testDefaultLocaleLabel,
@@ -468,13 +467,6 @@ test.each([
     testSpvConnectValue.join(","),
     { spvConnect: testSpvConnectValue },
     false
-  ],
-  [
-    "Proxy Location",
-    testDefaultProxyLocation,
-    testProxyLocation,
-    { proxyLocation: testProxyLocation },
-    false
   ]
 ])("change '%s' TextInput from '%s' to '%s' expeced %s", testTextFieldInput);
 
@@ -845,3 +837,43 @@ test("renders settings with trezor is NOT enabled", () => {
   expect(mockIsTrezor).toHaveBeenCalled();
   mockIsTrezor.mockRestore();
 });
+
+test("test proxy settings", async () => {
+  render(<SettingsPage />, { initialState: { settings: testSettings } });
+
+  // set proxy type
+  const inputControl = screen.getByLabelText("Proxy Type");
+  const oldValue = "HTTP";
+  const option = "PAC";
+  const inputValueSpan = getOptionByNameAndType(oldValue, "singleValue");
+  expect(
+    screen.queryByRole("button", {
+      name: "Save proxy settings"
+    })
+  ).not.toBeInTheDocument();
+  expect(inputValueSpan.textContent).toMatch(oldValue);
+  const changeFn = () => {
+    user.click(inputControl);
+    user.click(getOptionByNameAndType(option, "option"));
+  };
+  changeFn();
+
+  // set proxy location
+  const proxyLocationInputControl = screen.getByLabelText("Proxy Location");
+  expect(proxyLocationInputControl.value).toMatch(testDefaultProxyLocation);
+  user.clear(proxyLocationInputControl);
+  user.type(proxyLocationInputControl, testProxyLocation);
+  // press enter
+  fireEvent.keyDown(proxyLocationInputControl, { key: "enter", keyCode: 13 });
+
+  user.click(screen.getByRole("button", { name: "Save proxy settings" }));
+  await wait(() => screen.getByText("Reset required"));
+  user.click(screen.getByRole("button", { name: "Confirm" }));
+
+  await wait(() =>
+    expect(mockSaveSettings).toHaveBeenCalledWith({
+      ...testCurrentSettings,
+      ...{ proxyType: PROXYTYPE_PAC, proxyLocation: testProxyLocation }
+    })
+  );
+});