diff --git a/changelogs/fragments/yum-unauthenticated-proxy.yaml b/changelogs/fragments/yum-unauthenticated-proxy.yaml
new file mode 100644
index 0000000000..4a0544c934
--- /dev/null
+++ b/changelogs/fragments/yum-unauthenticated-proxy.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+  - yum - properly handle a proxy config in yum.conf for an unauthenticated proxy
diff --git a/lib/ansible/modules/packaging/os/yum.py b/lib/ansible/modules/packaging/os/yum.py
index bfc49995d9..7a180f9a97 100644
--- a/lib/ansible/modules/packaging/os/yum.py
+++ b/lib/ansible/modules/packaging/os/yum.py
@@ -724,6 +724,12 @@ class YumModule(YumDnf):
                             r"(http://)",
                             r"\g<1>" + namepass, proxy_url
                         )
+                else:
+                    for item in scheme:
+                        os.environ[item + "_proxy"] = re.sub(
+                            r"(http://)",
+                            r"\g<1>", proxy_url
+                        )
             yield
         except yum.Errors.YumBaseError:
             raise
diff --git a/test/integration/targets/yum/tasks/proxy.yml b/test/integration/targets/yum/tasks/proxy.yml
index f69181a2ec..969ad1fbdb 100644
--- a/test/integration/targets/yum/tasks/proxy.yml
+++ b/test/integration/targets/yum/tasks/proxy.yml
@@ -1,24 +1,24 @@
 - name: test yum proxy settings
   block:
-    - yum:
+    - name: install tinyproxy
+      yum:
         name: 'https://s3.amazonaws.com/ansible-ci-files/test/integration/targets/yum/tinyproxy-1.10.0-3.el7.x86_64.rpm'
         state: installed
 
-    - lineinfile:
-        path: /etc/tinyproxy/tinyproxy.conf
-        line: "BasicAuth 1testuser 1testpassword"
-        state: present
-
     # systemd doesn't play nice with this in a container for some reason
-    - shell: tinyproxy
+    - name: start tinyproxy (systemd with tiny proxy does not work in container)
+      shell: tinyproxy
       changed_when: false
 
-    - lineinfile:
+    # test proxy without auth
+    - name: set unauthenticated proxy in yum.conf
+      lineinfile:
         path: /etc/yum.conf
-        line: "proxy=http://1testuser:1testpassword@127.0.0.1:8888"
+        line: "proxy=http://127.0.0.1:8888"
         state: present
 
-    - yum:
+    - name: install ninvaders with unauthenticated proxy
+      yum:
         name: 'https://s3.amazonaws.com/ansible-ci-files/test/integration/targets/yum/ninvaders-0.1.1-18.el7.x86_64.rpm'
         state: installed
       register: yum_proxy_result
@@ -29,31 +29,87 @@
           - "'msg' in yum_proxy_result"
           - "'rc' in yum_proxy_result"
 
-    - yum:
+    - name: uninstall ninvaders with unauthenticated proxy
+      yum:
+        name: ninvaders
+        state: absent
+      register: yum_proxy_result
+
+    - assert:
+        that:
+          - "yum_proxy_result.changed"
+          - "'msg' in yum_proxy_result"
+          - "'rc' in yum_proxy_result"
+
+    - name: unset unauthenticated proxy in yum.conf
+      lineinfile:
+        path: /etc/yum.conf
+        line: "proxy=http://127.0.0.1:8888"
+        state: absent
+
+    # test proxy with auth
+    - name: set authenticated proxy config in tinyproxy.conf
+      lineinfile:
+        path: /etc/tinyproxy/tinyproxy.conf
+        line: "BasicAuth 1testuser 1testpassword"
+        state: present
+
+    # systemd doesn't play nice with this in a container for some reason
+    - name: SIGHUP tinyproxy to reload config (workaround because of systemd+tinyproxy in container)
+      shell: kill -HUP $(ps -ef | grep tinyproxy | grep -v grep | awk '{print $2}')
+      changed_when: false
+      args:
+        executable: /usr/bin/bash
+
+    - name: set authenticated proxy config in yum.conf
+      lineinfile:
+        path: /etc/yum.conf
+        line: "proxy=http://1testuser:1testpassword@127.0.0.1:8888"
+        state: present
+
+    - name: install ninvaders with authenticated proxy
+      yum:
+        name: 'https://s3.amazonaws.com/ansible-ci-files/test/integration/targets/yum/ninvaders-0.1.1-18.el7.x86_64.rpm'
+        state: installed
+      register: yum_proxy_result
+
+    - assert:
+        that:
+          - "yum_proxy_result.changed"
+          - "'msg' in yum_proxy_result"
+          - "'rc' in yum_proxy_result"
+
+    - name: uninstall ninvaders with authenticated proxy
+      yum:
         name: ninvaders
         state: absent
 
-    - lineinfile:
+    - name: unset authenticated proxy config in yum.conf
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy=http://1testuser:1testpassword@127.0.0.1:8888"
         state: absent
 
-    - lineinfile:
+    - name: set proxy config in yum.conf
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy=http://127.0.0.1:8888"
         state: present
 
-    - lineinfile:
+    - name: set proxy_username config in yum.conf
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy_username=1testuser"
         state: present
 
-    - lineinfile:
+    - name: set proxy_password config in yum.conf
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy_password=1testpassword"
         state: present
 
-    - yum:
+    - name: install ninvaders with proxy, proxy_username, and proxy_password config in yum.conf
+      yum:
         name: 'https://s3.amazonaws.com/ansible-ci-files/test/integration/targets/yum/ninvaders-0.1.1-18.el7.x86_64.rpm'
         state: installed
       register: yum_proxy_result
@@ -65,30 +121,37 @@
           - "'rc' in yum_proxy_result"
 
   always:
-    - yum:
+    #cleanup
+    - name: uninstall tinyproxy
+      yum:
         name: tinyproxy
         state: absent
 
-    - yum:
+    - name: uninstall ninvaders
+      yum:
         name: ninvaders
         state: absent
 
-    - lineinfile:
+    - name: ensure unset authenticated proxy
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy=http://1testuser:1testpassword@127.0.0.1:8888"
         state: absent
 
-    - lineinfile:
+    - name: ensure unset proxy
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy=http://127.0.0.1:8888"
         state: absent
 
-    - lineinfile:
+    - name: ensure unset proxy_username
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy_username=1testuser"
         state: absent
 
-    - lineinfile:
+    - name: ensure unset proxy_password
+      lineinfile:
         path: /etc/yum.conf
         line: "proxy_password=1testpassword"
         state: absent