diff --git a/tools/sdkmanager/app/src/com/android/sdkmanager/internal/repository/SettingsPage.java b/tools/sdkmanager/app/src/com/android/sdkmanager/internal/repository/SettingsPage.java
index df72cf92b..5e11973ed 100755
--- a/tools/sdkmanager/app/src/com/android/sdkmanager/internal/repository/SettingsPage.java
+++ b/tools/sdkmanager/app/src/com/android/sdkmanager/internal/repository/SettingsPage.java
@@ -16,6 +16,10 @@
 
 package com.android.sdkmanager.internal.repository;
 
+import com.android.prefs.AndroidLocation;
+import com.android.prefs.AndroidLocation.AndroidLocationException;
+import com.android.sdkuilib.internal.repository.ISettingsPage;
+
 import org.eclipse.swt.SWT;
 import org.eclipse.swt.layout.GridData;
 import org.eclipse.swt.layout.GridLayout;
@@ -24,6 +28,15 @@ import org.eclipse.swt.widgets.Composite;
 import org.eclipse.swt.widgets.Group;
 import org.eclipse.swt.widgets.Label;
 import org.eclipse.swt.widgets.Text;
+import org.eclipse.swt.events.SelectionAdapter;
+import org.eclipse.swt.events.SelectionEvent;
+
+import java.io.File;
+import java.io.FileReader;
+import java.io.FileWriter;
+import java.io.IOException;
+import java.net.URL;
+import java.util.Properties;
 
 /*
  * TODO list
@@ -31,7 +44,14 @@ import org.eclipse.swt.widgets.Text;
  * - Actually use the settings.
  */
 
-public class SettingsPage extends Composite {
+public class SettingsPage extends Composite implements ISettingsPage {
+
+    private static final String SETTINGS_FILENAME = "androidtool.cfg"; //$NON-NLS-1$
+
+    /** Java system setting picked up by {@link URL} for http proxy port */
+    private static final String JAVA_HTTP_PROXY_PORT = "http.proxyPort";        //$NON-NLS-1$
+    /** Java system setting picked up by {@link URL} for http proxy host */
+    private static final String JAVA_HTTP_PROXY_HOST = "http.proxyHost";        //$NON-NLS-1$
 
     private Group mProxySettingsGroup;
     private Group mPlaceholderGroup;
@@ -79,8 +99,14 @@ public class SettingsPage extends Composite {
         mSomeMoreSettings.setText("Some more settings here");
 
         mApplyButton = new Button(this, SWT.NONE);
+        mApplyButton.addSelectionListener(new SelectionAdapter() {
+            @Override
+            public void widgetSelected(SelectionEvent e) {
+                onApplySelected(); //$hide$
+            }
+        });
         mApplyButton.setLayoutData(new GridData(SWT.RIGHT, SWT.CENTER, false, false, 1, 1));
-        mApplyButton.setText("Apply");
+        mApplyButton.setText("Save && Apply");
 
         postCreate();  //$hide$
     }
@@ -104,6 +130,83 @@ public class SettingsPage extends Composite {
     private void postCreate() {
     }
 
+    private void onApplySelected() {
+        applySettings();
+        saveSettings();
+    }
+
+    /**
+     * Update Java system properties for the HTTP proxy.
+     */
+    public void applySettings() {
+        Properties props = System.getProperties();
+        props.put(JAVA_HTTP_PROXY_HOST, mProxyServerText.getText());
+        props.put(JAVA_HTTP_PROXY_PORT, mProxyPortText.getText());
+    }
+
+    /**
+     * Saves settings.
+     */
+    private void saveSettings() {
+        Properties props = new Properties();
+        props.put(JAVA_HTTP_PROXY_HOST, mProxyServerText.getText());
+        props.put(JAVA_HTTP_PROXY_PORT, mProxyPortText.getText());
+
+        FileWriter fw = null;
+        try {
+            String folder = AndroidLocation.getFolder();
+            File f = new File(folder, SETTINGS_FILENAME);
+            fw = new FileWriter(f);
+
+            props.store(fw, "## Settings for SdkManager");  //$NON-NLS-1$
+
+        } catch (AndroidLocationException e) {
+            e.printStackTrace();
+        } catch (IOException e) {
+            e.printStackTrace();
+        } finally {
+            if (fw != null) {
+                try {
+                    fw.close();
+                } catch (IOException e) {
+                }
+            }
+        }
+    }
+
+    /**
+     * Load settings and puts them in the UI.
+     */
+    public void loadSettings() {
+        FileReader fr = null;
+        try {
+            String folder = AndroidLocation.getFolder();
+            File f = new File(folder, SETTINGS_FILENAME);
+            if (f.exists()) {
+                fr = new FileReader(f);
+
+                Properties props = new Properties();
+                props.load(fr);
+
+                mProxyServerText.setText(props.getProperty(JAVA_HTTP_PROXY_HOST, "")); //$NON-NLS-1$
+                mProxyPortText.setText(props.getProperty(JAVA_HTTP_PROXY_PORT, ""));   //$NON-NLS-1$
+            }
+
+        } catch (AndroidLocationException e) {
+            e.printStackTrace();
+        } catch (IOException e) {
+            e.printStackTrace();
+        } finally {
+            if (fr != null) {
+                try {
+                    fr.close();
+                } catch (IOException e) {
+                }
+            }
+        }
+    }
+
+
     // End of hiding from SWT Designer
     //$hide<<$
 }
diff --git a/tools/sdkmanager/libs/sdkuilib/src/com/android/sdkuilib/internal/repository/ISettingsPage.java b/tools/sdkmanager/libs/sdkuilib/src/com/android/sdkuilib/internal/repository/ISettingsPage.java
new file mode 100755
index 000000000..bf2471d94
--- /dev/null
+++ b/tools/sdkmanager/libs/sdkuilib/src/com/android/sdkuilib/internal/repository/ISettingsPage.java
@@ -0,0 +1,30 @@
+/*
+ * Copyright (C) 2009 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.android.sdkuilib.internal.repository;
+
+/**
+ * Interface that a settings page must implement.
+ */
+public interface ISettingsPage {
+
+    /** Loads settings. Does not apply them. */
+    public abstract void loadSettings();
+
+    /** Applies current settings. */
+    public abstract void applySettings();
+
+}
diff --git a/tools/sdkmanager/libs/sdkuilib/src/com/android/sdkuilib/internal/repository/UpdaterWindowImpl.java b/tools/sdkmanager/libs/sdkuilib/src/com/android/sdkuilib/internal/repository/UpdaterWindowImpl.java
index 4dc9761ac..cf679c79f 100755
--- a/tools/sdkmanager/libs/sdkuilib/src/com/android/sdkuilib/internal/repository/UpdaterWindowImpl.java
+++ b/tools/sdkmanager/libs/sdkuilib/src/com/android/sdkuilib/internal/repository/UpdaterWindowImpl.java
@@ -23,7 +23,6 @@ import com.android.sdklib.internal.repository.Archive;
 import com.android.sdklib.internal.repository.ITask;
 import com.android.sdklib.internal.repository.ITaskMonitor;
 import com.android.sdklib.internal.repository.RepoSource;
-import com.android.sdklib.internal.repository.RepoSources;
 import com.android.sdklib.repository.SdkRepository;
 
 import org.eclipse.swt.SWT;
@@ -227,6 +226,7 @@ public class UpdaterWindowImpl {
         // TODO read add-on sources from some file
         setupSources();
         scanLocalSdkFolders();
+        initializeSettings();
     }
 
     // --- page switching ---
@@ -334,6 +334,22 @@ public class UpdaterWindowImpl {
         mLocalPackagePage.setInput(mUpdaterData.getLocalSdkAdapter());
     }
 
+    /**
+     * Initializes settings.
+     * Thist must be called after addExtraPages(), which created a settings page.
+     * Iterate through all the pages and it one is a setting page, load and apply these
+     * settings.
+     */
+    private void initializeSettings() {
+        for (Object page : mPages) {
+            if (page instanceof ISettingsPage) {
+                ISettingsPage settingsPage = (ISettingsPage) page;
+                settingsPage.loadSettings();
+                settingsPage.applySettings();
+            }
+        }
+    }
+
     /**
      * Install the list of given {@link Archive}s.
      * @param archives The archives to install. Incompatible ones will be skipped.