diff --git a/.changes/next-release/bugfix-AWSSDKforJavav2-1054797.json b/.changes/next-release/bugfix-AWSSDKforJavav2-1054797.json
new file mode 100644
index 000000000000..e93b4e453c9e
--- /dev/null
+++ b/.changes/next-release/bugfix-AWSSDKforJavav2-1054797.json
@@ -0,0 +1,6 @@
+{
+    "type": "bugfix",
+    "category": "AWS SDK for Java v2",
+    "contributor": "",
+    "description": "Changed the log level from error to warning when exceptions are found in parsing proxy configuration from system properties/environment variables, as we ignore those exceptions and proceed."
+}
diff --git a/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxyEnvironmentVariableConfigProvider.java b/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxyEnvironmentVariableConfigProvider.java
index f2f4222967a4..084b08f1ef02 100644
--- a/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxyEnvironmentVariableConfigProvider.java
+++ b/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxyEnvironmentVariableConfigProvider.java
@@ -57,7 +57,7 @@ private Optional<URL> silentlyGetUrl() {
             try {
                 return Optional.of(new URL(stringUrl));
             } catch (MalformedURLException e) {
-                log.error(() -> "Malformed proxy config environment variable " + stringUrl, e);
+                log.warn(() -> "Malformed proxy config environment variable.", e);
             }
         }
         return Optional.empty();
diff --git a/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxySystemPropertyConfigProvider.java b/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxySystemPropertyConfigProvider.java
index 0c38a25d2a2a..0cdb8ad922df 100644
--- a/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxySystemPropertyConfigProvider.java
+++ b/utils/src/main/java/software/amazon/awssdk/utils/internal/proxy/ProxySystemPropertyConfigProvider.java
@@ -46,7 +46,7 @@ private static Integer safelyParseInt(String string) {
         try {
             return Integer.parseInt(string);
         } catch (Exception e) {
-            log.error(() -> "Failed to parse string" + string, e);
+            log.warn(() -> "Failed to parse string.", e);
         }
         return null;
     }