diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index 8e58e19c023..0703d7abe9e 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -602,6 +602,9 @@ Release 0.23.8 - UNRELEASED
 
   BUG FIXES
 
+    YARN-363. Add webapps/proxy directory without which YARN proxy-server fails
+    when started in stand-alone mode. (Kenji Kikushima via vinodkv)
+
 Release 0.23.7 - UNRELEASED
 
   INCOMPATIBLE CHANGES
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-web-proxy/src/test/java/org/apache/hadoop/yarn/server/webproxy/TestWebAppProxyServer.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-web-proxy/src/test/java/org/apache/hadoop/yarn/server/webproxy/TestWebAppProxyServer.java
new file mode 100644
index 00000000000..f16575cbc49
--- /dev/null
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-web-proxy/src/test/java/org/apache/hadoop/yarn/server/webproxy/TestWebAppProxyServer.java
@@ -0,0 +1,52 @@
+/**
+* Licensed to the Apache Software Foundation (ASF) under one
+* or more contributor license agreements.  See the NOTICE file
+* distributed with this work for additional information
+* regarding copyright ownership.  The ASF licenses this file
+* to you under the Apache License, Version 2.0 (the
+* "License"); you may not use this file except in compliance
+* with the License.  You may obtain a copy of the License at
+*
+*     http://www.apache.org/licenses/LICENSE-2.0
+*
+* Unless required by applicable law or agreed to in writing, software
+* distributed under the License is distributed on an "AS IS" BASIS,
+* WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+* See the License for the specific language governing permissions and
+* limitations under the License.
+*/
+
+package org.apache.hadoop.yarn.server.webproxy;
+
+import static org.junit.Assert.assertEquals;
+
+import org.apache.hadoop.yarn.conf.YarnConfiguration;
+import org.apache.hadoop.yarn.server.webproxy.WebAppProxyServer;
+import org.apache.hadoop.yarn.service.Service.STATE;
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+
+public class TestWebAppProxyServer {
+  private WebAppProxyServer webAppProxy = null;
+
+  @Before
+  public void setUp() throws Exception {
+    YarnConfiguration conf = new YarnConfiguration();
+    conf.set(YarnConfiguration.PROXY_ADDRESS, "0.0.0.0:8888");
+    webAppProxy = new WebAppProxyServer();
+    webAppProxy.init(conf);
+  }
+
+  @After
+  public void tearDown() throws Exception {
+    webAppProxy.stop();
+  }
+
+  @Test
+  public void testStart() {
+    assertEquals(STATE.INITED, webAppProxy.getServiceState());
+    webAppProxy.start();
+    assertEquals(STATE.STARTED, webAppProxy.getServiceState());
+  }
+}