diff --git a/lib/vagrant/bundler.rb b/lib/vagrant/bundler.rb
index b9739ffb0..e78ff0180 100644
--- a/lib/vagrant/bundler.rb
+++ b/lib/vagrant/bundler.rb
@@ -1,4 +1,5 @@
 require "pathname"
+require "set"
 require "tempfile"
 
 require "bundler"
@@ -94,9 +95,15 @@ module Vagrant
       f.tap do |gemfile|
         gemfile.puts(%Q[source "https://rubygems.org"])
         gemfile.puts(%Q[source "http://gems.hashicorp.com"])
-        gemfile.puts(%Q[gem "vagrant", "= #{Vagrant::VERSION}"])
-        gemfile.puts("group :plugins do")
+        sources = plugins.values.map { |p| p["sources"] }.flatten.compact.uniq
+        sources.each do |source|
+          next if source == ""
+          gemfile.puts(%Q[source "#{source}"])
+        end
 
+        gemfile.puts(%Q[gem "vagrant", "= #{Vagrant::VERSION}"])
+
+        gemfile.puts("group :plugins do")
         plugins.each do |name, plugin|
           version = plugin["gem_version"]
           version = nil if version == ""
@@ -108,9 +115,11 @@ module Vagrant
 
           gemfile.puts(%Q[gem "#{name}", #{version.inspect}, #{opts.inspect}])
         end
-
         gemfile.puts("end")
+
         gemfile.close
+
+        puts File.read(gemfile.path)
       end
     end
 
diff --git a/lib/vagrant/errors.rb b/lib/vagrant/errors.rb
index f78dd9b63..ce21aef7b 100644
--- a/lib/vagrant/errors.rb
+++ b/lib/vagrant/errors.rb
@@ -168,6 +168,10 @@ module Vagrant
       error_key(:failed, "vagrant.actions.box.verify")
     end
 
+    class BundlerError < VagrantError
+      error_key(:bundler_error)
+    end
+
     class CFEngineBootstrapFailed < VagrantError
       error_key(:cfengine_bootstrap_failed)
     end
diff --git a/lib/vagrant/plugin/manager.rb b/lib/vagrant/plugin/manager.rb
index 9cb016411..db37423ba 100644
--- a/lib/vagrant/plugin/manager.rb
+++ b/lib/vagrant/plugin/manager.rb
@@ -33,6 +33,7 @@ module Vagrant
         plugins[name] = {
           "require"     => opts[:require],
           "gem_version" => opts[:version],
+          "sources"     => opts[:sources],
         }
 
         result = nil
@@ -44,11 +45,17 @@ module Vagrant
 
         # Add the plugin to the state file
         @global_file.add_plugin(
-          result.name, version: opts[:version], require: opts[:require])
+          result.name,
+          version: opts[:version],
+          require: opts[:require],
+          sources: opts[:sources],
+        )
 
         result
       rescue ::Bundler::GemNotFound
         raise Errors::PluginGemNotFound, name: name
+      rescue ::Bundler::BundlerError => e
+        raise Errors::BundlerError, message: e.to_s
       end
 
       # Uninstalls the plugin with the given name.
@@ -59,11 +66,15 @@ module Vagrant
 
         # Clean the environment, removing any old plugins
         Vagrant::Bundler.instance.clean(installed_plugins)
+      rescue ::Bundler::BundlerError => e
+        raise Errors::BundlerError, message: e.to_s
       end
 
       # Updates all or a specific set of plugins.
       def update_plugins(specific)
         Vagrant::Bundler.instance.update(installed_plugins, specific)
+      rescue ::Bundler::BundlerError => e
+        raise Errors::BundlerError, message: e.to_s
       end
 
       # This returns the list of plugins that should be enabled.
diff --git a/lib/vagrant/plugin/state_file.rb b/lib/vagrant/plugin/state_file.rb
index d8d7ecb0d..b9161672f 100644
--- a/lib/vagrant/plugin/state_file.rb
+++ b/lib/vagrant/plugin/state_file.rb
@@ -33,6 +33,7 @@ module Vagrant
           "vagrant_version" => Vagrant::VERSION,
           "gem_version"     => opts[:version] || "",
           "require"         => opts[:require] || "",
+          "sources"         => opts[:sources] || [],
         }
 
         save!
diff --git a/plugins/commands/plugin/action/install_gem.rb b/plugins/commands/plugin/action/install_gem.rb
index c9e6e967a..a6295ad6b 100644
--- a/plugins/commands/plugin/action/install_gem.rb
+++ b/plugins/commands/plugin/action/install_gem.rb
@@ -24,6 +24,7 @@ module VagrantPlugins
         def call(env)
           entrypoint  = env[:plugin_entry_point]
           plugin_name = env[:plugin_name]
+          sources     = env[:plugin_sources]
           version     = env[:plugin_version]
 
           # Determine the plugin name we'll look for in the installed set
@@ -52,7 +53,10 @@ module VagrantPlugins
 
           manager = Vagrant::Plugin::Manager.instance
           plugin_spec = manager.install_plugin(
-            plugin_name, version: version, require: entrypoint)
+            plugin_name,
+            version: version,
+            require: entrypoint,
+            sources: sources,)
 
           # Record it so we can uninstall if something goes wrong
           @installed_plugin_name = plugin_spec.name
diff --git a/templates/locales/en.yml b/templates/locales/en.yml
index b0c3a4b82..384d1220d 100644
--- a/templates/locales/en.yml
+++ b/templates/locales/en.yml
@@ -254,6 +254,13 @@ en:
         The box '%{name}' is still stored on disk in the Vagrant 1.0.x
         format. This box must be upgraded in order to work properly with
         this version of Vagrant.
+      bundler_error: |-
+        Bundler, the underlying system Vagrant uses to install plugins,
+        reported an error. The error is shown below. These errors are usually
+        caused by misconfigured plugin installations or transient network
+        issues. The error from Bundler is:
+
+        %{message}
       cfengine_bootstrap_failed: |-
         Failed to bootstrap CFEngine. Please see the output above to
         see what went wrong and address the issue.
diff --git a/test/unit/plugins/commands/plugin/action/install_gem_test.rb b/test/unit/plugins/commands/plugin/action/install_gem_test.rb
index 918c63cdc..5b046b434 100644
--- a/test/unit/plugins/commands/plugin/action/install_gem_test.rb
+++ b/test/unit/plugins/commands/plugin/action/install_gem_test.rb
@@ -18,7 +18,7 @@ describe VagrantPlugins::CommandPlugin::Action::InstallGem do
     it "should install the plugin" do
       spec = Gem::Specification.new
       manager.should_receive(:install_plugin).with(
-        "foo", version: nil, require: nil).once.and_return(spec)
+        "foo", version: nil, require: nil, sources: nil).once.and_return(spec)
 
       app.should_receive(:call).with(env).once
 
@@ -29,7 +29,7 @@ describe VagrantPlugins::CommandPlugin::Action::InstallGem do
     it "should specify the version if given" do
       spec = Gem::Specification.new
       manager.should_receive(:install_plugin).with(
-        "foo", version: "bar", require: nil).once.and_return(spec)
+        "foo", version: "bar", require: nil, sources: nil).once.and_return(spec)
 
       app.should_receive(:call).with(env).once
 
@@ -41,7 +41,7 @@ describe VagrantPlugins::CommandPlugin::Action::InstallGem do
     it "should specify the entrypoint if given" do
       spec = Gem::Specification.new
       manager.should_receive(:install_plugin).with(
-        "foo", version: "bar", require: "baz").once.and_return(spec)
+        "foo", version: "bar", require: "baz", sources: nil).once.and_return(spec)
 
       app.should_receive(:call).with(env).once
 
@@ -50,6 +50,18 @@ describe VagrantPlugins::CommandPlugin::Action::InstallGem do
       env[:plugin_version] = "bar"
       subject.call(env)
     end
+
+    it "should specify the sources if given" do
+      spec = Gem::Specification.new
+      manager.should_receive(:install_plugin).with(
+        "foo", version: nil, require: nil, sources: ["foo"]).once.and_return(spec)
+
+      app.should_receive(:call).with(env).once
+
+      env[:plugin_name] = "foo"
+      env[:plugin_sources] = ["foo"]
+      subject.call(env)
+    end
   end
 
   describe "#recover" do
diff --git a/test/unit/vagrant/plugin/manager_test.rb b/test/unit/vagrant/plugin/manager_test.rb
index c32c0ce90..3d6e728b4 100644
--- a/test/unit/vagrant/plugin/manager_test.rb
+++ b/test/unit/vagrant/plugin/manager_test.rb
@@ -16,12 +16,83 @@ describe Vagrant::Plugin::Manager do
     Pathname.new(p)
   end
 
+  let(:bundler) { double("bundler") }
+
   after do
     path.unlink if path.file?
   end
 
+  before do
+    Vagrant::Bundler.stub(instance: bundler)
+  end
+
   subject { described_class.new(path) }
 
+  describe "#install_plugin" do
+    it "installs the plugin and adds it to the state file" do
+      specs = Array.new(5) { Gem::Specification.new }
+      specs[3].name = "foo"
+      bundler.should_receive(:install).once.with do |plugins|
+        expect(plugins).to have_key("foo")
+      end.and_return(specs)
+
+      result = subject.install_plugin("foo")
+
+      # It should return the spec of the installed plugin
+      expect(result).to eql(specs[3])
+
+      # It should've added the plugin to the state
+      expect(subject.installed_plugins).to have_key("foo")
+    end
+
+    it "masks GemNotFound with our error" do
+      bundler.should_receive(:install).and_raise(Bundler::GemNotFound)
+
+      expect { subject.install_plugin("foo") }.
+        to raise_error(Vagrant::Errors::PluginGemNotFound)
+    end
+
+    it "masks bundler errors with our own error" do
+      bundler.should_receive(:install).and_raise(Bundler::InstallError)
+
+      expect { subject.install_plugin("foo") }.
+        to raise_error(Vagrant::Errors::BundlerError)
+    end
+  end
+
+  describe "#uninstall_plugin" do
+    it "removes the plugin from the state" do
+      sf = Vagrant::Plugin::StateFile.new(path)
+      sf.add_plugin("foo")
+
+      # Sanity
+      expect(subject.installed_plugins).to have_key("foo")
+
+      # Test
+      bundler.should_receive(:clean).once.with({})
+
+      # Remove it
+      subject.uninstall_plugin("foo")
+      expect(subject.installed_plugins).to_not have_key("foo")
+    end
+
+    it "masks bundler errors with our own error" do
+      bundler.should_receive(:clean).and_raise(Bundler::InstallError)
+
+      expect { subject.uninstall_plugin("foo") }.
+        to raise_error(Vagrant::Errors::BundlerError)
+    end
+  end
+
+  describe "#update_plugins" do
+    it "masks bundler errors with our own error" do
+      bundler.should_receive(:update).and_raise(Bundler::InstallError)
+
+      expect { subject.update_plugins([]) }.
+        to raise_error(Vagrant::Errors::BundlerError)
+    end
+  end
+
   context "without state" do
     describe "#installed_plugins" do
       it "is empty initially" do
@@ -30,7 +101,6 @@ describe Vagrant::Plugin::Manager do
     end
   end
 
-
   context "with state" do
     before do
       sf = Vagrant::Plugin::StateFile.new(path)
diff --git a/test/unit/vagrant/plugin/state_file_test.rb b/test/unit/vagrant/plugin/state_file_test.rb
index 993d2c415..6b37198ef 100644
--- a/test/unit/vagrant/plugin/state_file_test.rb
+++ b/test/unit/vagrant/plugin/state_file_test.rb
@@ -34,6 +34,7 @@ describe Vagrant::Plugin::StateFile do
         "vagrant_version" => Vagrant::VERSION,
         "gem_version"     => "",
         "require"         => "",
+        "sources"         => [],
       })
     end