diff --git a/lib/url.c b/lib/url.c
index b3040b26d4..d0e0eaeb24 100644
--- a/lib/url.c
+++ b/lib/url.c
@@ -4271,11 +4271,20 @@ static CURLcode parse_proxy(struct SessionHandle *data,
     conn->port = strtol(prox_portno, NULL, 10);
   }
   else {
+    if(proxyptr[0]=='/') {
+      /* If the first character in the proxy string is a slash, fail
+         immediately. The following code will otherwise clear the string which
+         will lead to code running as if no proxy was set! */
+      free(proxy); /* free the former proxy string */
+      return CURLE_COULDNT_RESOLVE_PROXY;
+    }
+
     /* without a port number after the host name, some people seem to use
        a slash so we strip everything from the first slash */
     atsign = strchr(proxyptr, '/');
-    if(atsign)
+    if(atsign) {
       *atsign = 0x0; /* cut off path part from host name */
+    }
 
     if(data->set.proxyport)
       /* None given in the proxy string, then get the default one if it is
diff --git a/tests/data/Makefile.am b/tests/data/Makefile.am
index a9391c7021..40ebf252c1 100644
--- a/tests/data/Makefile.am
+++ b/tests/data/Makefile.am
@@ -82,7 +82,7 @@ test1220 \
 test1300 test1301 test1302 test1303 test1304 test1305	\
 test1306 test1307 test1308 test1309 test1310 test1311 test1312 test1313 \
 test1314 test1315 test1316 test1317 test1318 test1319 test1320 test1321 \
-test1322 test1323 test1324 test1325 test1326 test1327 test1328 \
+test1322 test1323 test1324 test1325 test1326 test1327 test1328 test1329 \
 test2000 test2001 test2002 test2003 test2004
 
 EXTRA_DIST = $(TESTCASES) DISABLED
diff --git a/tests/data/test1329 b/tests/data/test1329
new file mode 100644
index 0000000000..3d2d0cb6c5
--- /dev/null
+++ b/tests/data/test1329
@@ -0,0 +1,30 @@
+<testcase>
+<info>
+<keywords>
+HTTP proxy
+</keywords>
+</info>
+
+#
+# Client-side
+<client>
+<server>
+http
+</server>
+ <name>
+/-prefixed proxy name
+ </name>
+ <command>
+http://%HOSTIP:%HTTPPORT/we/want/that/page/1329 -x "/server"
+</command>
+</client>
+
+#
+# Verify data after the test has been "shot"
+<verify>
+# 5 == CURLE_COULDNT_RESOLVE_PROXY
+<errorcode>
+5
+</errorcode>
+</verify>
+</testcase>