diff --git a/src/connectedk8s/HISTORY.rst b/src/connectedk8s/HISTORY.rst
index 5b4676873cd..55a95ef31ec 100644
--- a/src/connectedk8s/HISTORY.rst
+++ b/src/connectedk8s/HISTORY.rst
@@ -2,6 +2,11 @@
 
 Release History
 ===============
+1.3.4
+++++++
+
+* Fixed a proxy related bug in connectedk8s upgrade
+
 1.3.3
 ++++++
 
diff --git a/src/connectedk8s/azext_connectedk8s/custom.py b/src/connectedk8s/azext_connectedk8s/custom.py
index 2a17277ad62..d7f1a133ae3 100644
--- a/src/connectedk8s/azext_connectedk8s/custom.py
+++ b/src/connectedk8s/azext_connectedk8s/custom.py
@@ -1232,6 +1232,7 @@ def upgrade_agents(cmd, client, resource_group_name, cluster_name, kube_config=N
             if key == "global.isProxyEnabled":
                 proxy_enabled_param_added = True
             if (key == "global.httpProxy" or key == "global.httpsProxy" or key == "global.noProxy"):
+                value = escape_proxy_settings(value)
                 if value and not proxy_enabled_param_added:
                     cmd_helm_upgrade.extend(["--set", "global.isProxyEnabled={}".format(True)])
                     proxy_enabled_param_added = True
diff --git a/src/connectedk8s/setup.py b/src/connectedk8s/setup.py
index 2c128be1fa2..961b610dddf 100644
--- a/src/connectedk8s/setup.py
+++ b/src/connectedk8s/setup.py
@@ -17,7 +17,7 @@
 # TODO: Confirm this is the right version number you want and it matches your
 # HISTORY.rst entry.
 
-VERSION = '1.3.3'
+VERSION = '1.3.4'
 
 # The full list of classifiers is available at
 # https://pypi.python.org/pypi?%3Aaction=list_classifiers