Index: Misc/NEWS
===================================================================
--- Misc/NEWS	(revision 66111)
+++ Misc/NEWS	(working copy)
@@ -59,6 +59,8 @@
 - Issue #3703: _fileio.FileIO gave unhelpful error message when trying to open a
   directory.
 
+- Issue #1424152: Changes in urllib2 to work with HTTPS over (Squid) Proxy 
+
 Extension Modules
 -----------------
 
Index: Lib/httplib.py
===================================================================
--- Lib/httplib.py	(revision 66111)
+++ Lib/httplib.py	(working copy)
@@ -651,11 +651,17 @@
         self.__response = None
         self.__state = _CS_IDLE
         self._method = None
+        self._tunnel_host = None
+        self._tunnel_port = None
 
         self._set_hostport(host, port)
         if strict is not None:
             self.strict = strict
 
+    def _set_tunnel(self, host, port=None):
+        self._tunnel_host = host
+        self._tunnel_port = port
+
     def _set_hostport(self, host, port):
         if port is None:
             i = host.rfind(':')
@@ -676,10 +682,24 @@
     def set_debuglevel(self, level):
         self.debuglevel = level
 
+    def _tunnel(self):
+        self._set_hostport(self._tunnel_host, self._tunnel_port)
+        self.send("CONNECT %s:%d HTTP/1.0\r\n\r\n" % (self.host, self.port))
+        response = self.response_class(self.sock, strict = self.strict, method = self._method)
+        (version, code, message) = response._read_status()
+        if code != 200:
+            self.close()
+            raise socket.error, "Tunnel connection failed: %d %s" % (code, message.strip())
+        while True:
+            line = response.fp.readline()
+            if line == '\r\n': break
+
     def connect(self):
         """Connect to the host and port specified in __init__."""
         self.sock = socket.create_connection((self.host,self.port),
                                              self.timeout)
+        if self._tunnel_host:
+            self._tunnel()
 
     def close(self):
         """Close the connection to the HTTP server."""
@@ -1069,6 +1089,9 @@
             "Connect to a host on a given (SSL) port."
 
             sock = socket.create_connection((self.host, self.port), self.timeout)
+            if self._tunnel_host:
+                self.sock = sock
+                self._tunnel()
             self.sock = ssl.wrap_socket(sock, self.key_file, self.cert_file)
 
     __all__.append("HTTPSConnection")
Index: Lib/urllib2.py
===================================================================
--- Lib/urllib2.py	(revision 66111)
+++ Lib/urllib2.py	(working copy)
@@ -192,6 +192,7 @@
         # self.__r_type is what's left after doing the splittype
         self.host = None
         self.port = None
+        self._tunnel_host = None
         self.data = data
         self.headers = {}
         for key, value in headers.items():
@@ -252,9 +253,14 @@
         return self.__r_host
 
     def set_proxy(self, host, type):
-        self.host, self.type = host, type
-        self.__r_host = self.__original
+        if self.type == 'https' and not self._tunnel_host:
+            self._tunnel_host = self.host
+        else:
+            self.type = type
+            self.__r_host = self.__original
+        self.host = host
 
+
     def has_proxy(self):
         return self.__r_host == self.__original
 
@@ -700,7 +706,7 @@
             req.add_header('Proxy-authorization', 'Basic ' + creds)
         hostport = unquote(hostport)
         req.set_proxy(hostport, proxy_type)
-        if orig_type == proxy_type:
+        if orig_type == proxy_type or orig_type == 'https':
             # let other handlers take care of it
             return None
         else:
@@ -1098,6 +1104,9 @@
         headers["Connection"] = "close"
         headers = dict(
             (name.title(), val) for name, val in headers.items())
+
+        if req._tunnel_host:
+            h._set_tunnel(req._tunnel_host)
         try:
             h.request(req.get_method(), req.get_selector(), req.data, headers)
             r = h.getresponse()
Index: Lib/test/test_urllib2.py
===================================================================
--- Lib/test/test_urllib2.py	(revision 66111)
+++ Lib/test/test_urllib2.py	(working copy)
@@ -939,6 +939,23 @@
         self.assertEqual([(handlers[0], "http_open")],
                          [tup[0:2] for tup in o.calls])
 
+    def test_proxy_https(self):
+        o = OpenerDirector()
+        ph = urllib2.ProxyHandler(dict(https="proxy.example.com:3128"))
+        o.add_handler(ph)
+        meth_spec = [
+            [("https_open", "return response")]
+            ]
+        handlers = add_ordered_mock_handlers(o, meth_spec)
+
+        req = Request("https://www.example.com/")
+        self.assertEqual(req.get_host(), "www.example.com")
+        r = o.open(req)
+        self.assertEqual(req.get_host(), "proxy.example.com:3128")
+
+        self.assertEqual([(handlers[0], "https_open")],
+                         [tup[0:2] for tup in o.calls])
+
     def test_basic_auth(self, quote_char='"'):
         opener = OpenerDirector()
         password_manager = MockPasswordManager()