diff --git a/README.md b/README.md
index b7e366ee7..f7ae16734 100644
--- a/README.md
+++ b/README.md
@@ -17,8 +17,7 @@ Features
 * Safely relays Web Socket requests over HTTP
 * Support mutual SSL authentication
 * Fully asynchronous proxy
-* Supports proxy authentication
-
+* Supports proxy authentication & automatic proxy detection
 
 Usage
 =====
@@ -204,10 +203,8 @@ public Task OnCertificateSelection(object sender, CertificateSelectionEventArgs
 ```
 Future road map (Pull requests are welcome!)
 ============
+* Implement Kerberos/NTLM authentication over HTTP protocols for windows domain
 * Support Server Name Indication (SNI) for transparent endpoints
 * Support HTTP 2.0 
-* Support upstream AutoProxy detection
 * Support SOCKS protocol
-* Implement Kerberos/NTLM authentication over HTTP protocols for windows domain
-
 
diff --git a/Titanium.Web.Proxy/Models/ExternalProxy.cs b/Titanium.Web.Proxy/Models/ExternalProxy.cs
index e1516a477..5922c3a47 100644
--- a/Titanium.Web.Proxy/Models/ExternalProxy.cs
+++ b/Titanium.Web.Proxy/Models/ExternalProxy.cs
@@ -21,7 +21,7 @@ public class ExternalProxy
         /// <summary>
         /// Bypass this proxy for connections to localhost?
         /// </summary>
-        public bool BypassForLocalhost { get; set; }
+        public bool BypassLocalhost { get; set; }
 
         /// <summary>
         /// Username.
diff --git a/Titanium.Web.Proxy/Network/Tcp/TcpConnectionFactory.cs b/Titanium.Web.Proxy/Network/Tcp/TcpConnectionFactory.cs
index 4567dff61..7940afb19 100644
--- a/Titanium.Web.Proxy/Network/Tcp/TcpConnectionFactory.cs
+++ b/Titanium.Web.Proxy/Network/Tcp/TcpConnectionFactory.cs
@@ -39,10 +39,37 @@ internal async Task<TcpConnection> CreateClient(ProxyServer server,
             TcpClient client;
             CustomBufferedStream stream;
 
-            bool isLocalhost = (externalHttpsProxy != null || externalHttpProxy != null) && NetworkHelper.IsLocalIpAddress(remoteHostName);
+          
+            bool useHttpProxy = false;
+           
+            //check if external proxy is set for HTTP
+            if (!isHttps && externalHttpProxy != null
+                && externalHttpProxy.HostName != remoteHostName)
+            {
+                useHttpProxy = true;
+
+                //check if we need to ByPass
+                if (externalHttpProxy.BypassLocalhost
+                    && NetworkHelper.IsLocalIpAddress(remoteHostName))
+                {
+                    useHttpProxy = false;
+                }
+            }
 
-            bool useHttpsProxy = externalHttpsProxy != null && externalHttpsProxy.HostName != remoteHostName && externalHttpsProxy.BypassForLocalhost && !isLocalhost;
-            bool useHttpProxy = externalHttpProxy != null && externalHttpProxy.HostName != remoteHostName && externalHttpProxy.BypassForLocalhost && !isLocalhost;
+            bool useHttpsProxy = false;
+            //check if external proxy is set for HTTPS
+            if (isHttps && externalHttpsProxy != null
+                && externalHttpsProxy.HostName != remoteHostName)
+            {
+                useHttpsProxy = true;
+
+                //check if we need to ByPass
+                if (externalHttpsProxy.BypassLocalhost
+                    && NetworkHelper.IsLocalIpAddress(remoteHostName))
+                {
+                    useHttpsProxy = false;
+                }
+            }
 
             if (isHttps)
             {