diff --git a/changelogs/fragments/win-web-request-no_proxy.yaml b/changelogs/fragments/win-web-request-no_proxy.yaml
new file mode 100644
index 00000000000..ddec454de41
--- /dev/null
+++ b/changelogs/fragments/win-web-request-no_proxy.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+- 'Ansible.ModuleUtils.WebRequest - actually set no proxy when ``use_proxy: no`` is set on a Windows module - https://github.com/ansible/ansible/issues/68528'
diff --git a/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.WebRequest.psm1 b/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.WebRequest.psm1
index 1fff7a42ce7..49caf0787f6 100644
--- a/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.WebRequest.psm1
+++ b/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.WebRequest.psm1
@@ -272,10 +272,10 @@ Function Get-AnsibleWebRequest {
         } else {
             $proxy.Credentials = $null
         }
-
-        $web_request.Proxy = $proxy
     }
 
+    $web_request.Proxy = $proxy
+
     # Some parameters only apply when dealing with a HttpWebRequest
     if ($web_request -is [System.Net.HttpWebRequest]) {
         if ($Headers) {
diff --git a/test/integration/targets/module_utils_Ansible.ModuleUtils.WebRequest/library/web_request_test.ps1 b/test/integration/targets/module_utils_Ansible.ModuleUtils.WebRequest/library/web_request_test.ps1
index a1d4db326c5..2a7325b6adc 100644
--- a/test/integration/targets/module_utils_Ansible.ModuleUtils.WebRequest/library/web_request_test.ps1
+++ b/test/integration/targets/module_utils_Ansible.ModuleUtils.WebRequest/library/web_request_test.ps1
@@ -436,6 +436,25 @@ $tests = [Ordered]@{
         } | ConvertFrom-Json
         $actual.headers.'User-Agent' | Assert-Equals -Expected 'actual-agent'
     }
+
+    'Web request with default proxy' = {
+        $params = @{
+            Uri = "https://$httpbin_host/get"
+        }
+        $r = Get-AnsibleWebRequest @params
+
+        $null -ne $r.Proxy | Assert-Equals -Expected $true
+    }
+
+    'Web request with no proxy' = {
+        $params = @{
+            Uri = "https://$httpbin_host/get"
+            UseProxy = $false
+        }
+        $r = Get-AnsibleWebRequest @params
+
+        $null -eq $r.Proxy | Assert-Equals -Expected $true
+    }
 }
 
 # setup and teardown should favour native tools to create and delete the service and not the util we are testing.