diff --git a/cms/djangoapps/contentstore/features/video.py b/cms/djangoapps/contentstore/features/video.py
index a19d7c2e67..9e7b2f3151 100644
--- a/cms/djangoapps/contentstore/features/video.py
+++ b/cms/djangoapps/contentstore/features/video.py
@@ -37,8 +37,6 @@ def configure_youtube_api(_step, action):
 @step('I have created a Video component$')
 def i_created_a_video_component(_step):
 
-    assert_less(world.youtube.config['youtube_api_response'].status_code, 400,  "Real Youtube server is unavailable")
-
     world.create_course_with_unit()
     world.create_component_instance(
         step=_step,
diff --git a/cms/envs/bok_choy.py b/cms/envs/bok_choy.py
index a3411dc7a8..526f404d70 100644
--- a/cms/envs/bok_choy.py
+++ b/cms/envs/bok_choy.py
@@ -49,3 +49,9 @@ FEATURES['AUTOMATIC_AUTH_FOR_TESTING'] = True
 
 # Unfortunately, we need to use debug mode to serve staticfiles
 DEBUG = True
+
+# Point the URL used to test YouTube availability to our stub YouTube server
+YOUTUBE_PORT = 9080
+YOUTUBE['API'] = "127.0.0.1:{0}/get_youtube_api/".format(YOUTUBE_PORT)
+YOUTUBE['TEST_URL'] = "127.0.0.1:{0}/test_youtube/".format(YOUTUBE_PORT)
+YOUTUBE['TEXT_API']['url'] = "127.0.0.1:{0}/test_transcripts_youtube/".format(YOUTUBE_PORT)
diff --git a/common/djangoapps/terrain/start_stubs.py b/common/djangoapps/terrain/start_stubs.py
index a4dd93ad4c..f1ce715bcd 100644
--- a/common/djangoapps/terrain/start_stubs.py
+++ b/common/djangoapps/terrain/start_stubs.py
@@ -1,7 +1,6 @@
 """
 Initialize and teardown stub and video HTTP services for use in acceptance tests.
 """
-import requests
 from lettuce import before, after, world
 from django.conf import settings
 from terrain.stubs.youtube import StubYouTubeService
@@ -16,8 +15,6 @@ SERVICES = {
     "lti": {"port": settings.LTI_PORT, "class": StubLtiService},
 }
 
-YOUTUBE_API_RESPONSE = requests.get('http://www.youtube.com/iframe_api')
-
 
 @before.all  # pylint: disable=E1101
 def start_video_server():
@@ -49,8 +46,6 @@ def start_stubs(_scenario):
     """
     for name, service in SERVICES.iteritems():
         fake_server = service['class'](port_num=service['port'])
-        if name == 'youtube':
-            fake_server.config['youtube_api_response'] = YOUTUBE_API_RESPONSE
         setattr(world, name, fake_server)
 
 
diff --git a/common/djangoapps/terrain/stubs/tests/test_youtube_stub.py b/common/djangoapps/terrain/stubs/tests/test_youtube_stub.py
index e2603a82fe..aded4808f0 100644
--- a/common/djangoapps/terrain/stubs/tests/test_youtube_stub.py
+++ b/common/djangoapps/terrain/stubs/tests/test_youtube_stub.py
@@ -60,3 +60,17 @@ class StubYouTubeServiceTest(unittest.TestCase):
     def test_transcript_not_found(self):
         response = requests.get(self.url + 'test_transcripts_youtube/some_id')
         self.assertEqual(404, response.status_code)
+
+    def test_reset_configuration(self):
+
+        reset_config_url = self.url + 'del_config'
+
+        # add some configuration data
+        self.server.config['test_reset'] = 'This is a reset config test'
+
+        # reset server configuration
+        response = requests.delete(reset_config_url)
+        self.assertEqual(response.status_code, 200)
+
+        # ensure that server config dict is empty after successful reset
+        self.assertEqual(self.server.config, {})
diff --git a/common/djangoapps/terrain/stubs/youtube.py b/common/djangoapps/terrain/stubs/youtube.py
index a5b5db8644..d165fdee2c 100644
--- a/common/djangoapps/terrain/stubs/youtube.py
+++ b/common/djangoapps/terrain/stubs/youtube.py
@@ -17,6 +17,7 @@ To start this stub server on its own from Vagrant:
     you get "Unused url" message inside the browser.
 """
 
+import textwrap
 from .http import StubHttpRequestHandler, StubHttpService
 import json
 import time
@@ -25,6 +26,17 @@ from urlparse import urlparse
 from collections import OrderedDict
 
 
+IFRAME_API_RESPONSE = textwrap.dedent(
+    "if (!window['YT']) {var YT = {loading: 0,loaded: 0};}if (!window['YTConfig']) {var YTConfig"
+    " = {};}if (!YT.loading) {YT.loading = 1;(function(){var l = [];YT.ready = function(f) {if ("
+    "YT.loaded) {f();} else {l.push(f);}};window.onYTReady = function() {YT.loaded = 1;for (var "
+    "i = 0; i < l.length; i++) {try {l[i]();} catch (e) {}}};YT.setConfig = function(c) {for (var"
+    " k in c) {if (c.hasOwnProperty(k)) {YTConfig[k] = c[k];}}};var a = document.createElement"
+    "('script');a.id = 'www-widgetapi-script';a.src = 'http:' + '"
+    "//s.ytimg.com/yts/jsbin/www-widgetapi-vflxHr_AR.js';a.async = true;var b = "
+    "document.getElementsByTagName('script')[0];b.parentNode.insertBefore(a, b);})();}")
+
+
 class StubYouTubeHandler(StubHttpRequestHandler):
     """
     A handler for Youtube GET requests.
@@ -33,6 +45,17 @@ class StubYouTubeHandler(StubHttpRequestHandler):
     # Default number of seconds to delay the response to simulate network latency.
     DEFAULT_DELAY_SEC = 0.5
 
+    def do_DELETE(self):  # pylint: disable=C0103
+        """
+        Allow callers to delete all the server configurations using the /del_config URL.
+        """
+        if self.path == "/del_config" or self.path == "/del_config/":
+            self.server.config = dict()
+            self.log_message("Reset Server Configuration.")
+            self.send_response(200)
+        else:
+            self.send_response(404)
+
     def do_GET(self):
         """
         Handle a GET request from the client and sends response back.
@@ -80,8 +103,7 @@ class StubYouTubeHandler(StubHttpRequestHandler):
             if self.server.config.get('youtube_api_blocked'):
                 self.send_response(404, content='', headers={'Content-type': 'text/plain'})
             else:
-                response = self.server.config['youtube_api_response']
-                self.send_response(200, content=response.text, headers={'Content-type': 'text/html'})
+                self.send_response(200, content=IFRAME_API_RESPONSE, headers={'Content-type': 'text/html'})
 
         else:
             self.send_response(
diff --git a/common/test/acceptance/pages/lms/video.py b/common/test/acceptance/pages/lms/video.py
index 0974cea65c..fe07f4d1ba 100644
--- a/common/test/acceptance/pages/lms/video.py
+++ b/common/test/acceptance/pages/lms/video.py
@@ -47,7 +47,6 @@ VIDEO_MENUS = {
 }
 
 
-
 @js_defined('window.Video', 'window.RequireJS.require', 'window.jQuery')
 class VideoPage(PageObject):
     """
diff --git a/lms/djangoapps/courseware/features/video.py b/lms/djangoapps/courseware/features/video.py
index 6bdcadf8d8..f979d72fc6 100644
--- a/lms/djangoapps/courseware/features/video.py
+++ b/lms/djangoapps/courseware/features/video.py
@@ -178,8 +178,6 @@ def add_videos_to_course(course, player_mode=None, display_names=None, hashes=No
 
 def add_video_to_course(course, parent_location=None, player_mode=None, data=None, display_name='Video'):
 
-    assert_less(world.youtube.config['youtube_api_response'].status_code, 400, "Real Youtube server is unavailable")
-
     if not parent_location:
         parent_location = add_vertical_to_course(course)
     kwargs = get_metadata(parent_location, player_mode, data, display_name=display_name)
diff --git a/lms/envs/acceptance.py b/lms/envs/acceptance.py
index fcea155e82..ee6256f5fb 100644
--- a/lms/envs/acceptance.py
+++ b/lms/envs/acceptance.py
@@ -186,6 +186,6 @@ XQUEUE_INTERFACE = {
 }
 
 # Point the URL used to test YouTube availability to our stub YouTube server
-YOUTUBE['API'] = 'youtube.com/iframe_api'
+YOUTUBE['API'] = "127.0.0.1:{0}/get_youtube_api/".format(YOUTUBE_PORT)
 YOUTUBE['TEST_URL'] = "127.0.0.1:{0}/test_youtube/".format(YOUTUBE_PORT)
 YOUTUBE['TEXT_API']['url'] = "127.0.0.1:{0}/test_transcripts_youtube/".format(YOUTUBE_PORT)
diff --git a/lms/envs/bok_choy.py b/lms/envs/bok_choy.py
index 88f7f62c7b..07969726a7 100644
--- a/lms/envs/bok_choy.py
+++ b/lms/envs/bok_choy.py
@@ -5,6 +5,7 @@ Settings for bok choy tests
 import os
 from path import path
 
+
 CONFIG_ROOT = path(__file__).abspath().dirname()  # pylint: disable=E1120
 TEST_ROOT = CONFIG_ROOT.dirname().dirname() / "test_root"
 
@@ -60,3 +61,9 @@ for log_name, log_level in LOG_OVERRIDES:
 
 # Unfortunately, we need to use debug mode to serve staticfiles
 DEBUG = True
+
+# Point the URL used to test YouTube availability to our stub YouTube server
+YOUTUBE_PORT = 9080
+YOUTUBE['API'] = "127.0.0.1:{0}/get_youtube_api/".format(YOUTUBE_PORT)
+YOUTUBE['TEST_URL'] = "127.0.0.1:{0}/test_youtube/".format(YOUTUBE_PORT)
+YOUTUBE['TEXT_API']['url'] = "127.0.0.1:{0}/test_transcripts_youtube/".format(YOUTUBE_PORT)
diff --git a/rakelib/bok_choy.rake b/rakelib/bok_choy.rake
index 06bf342693..758695f1b8 100644
--- a/rakelib/bok_choy.rake
+++ b/rakelib/bok_choy.rake
@@ -54,7 +54,13 @@ BOK_CHOY_STUBS = {
         :port => 8777,
         :log => File.join(BOK_CHOY_LOG_DIR, "bok_choy_video_sources.log"),
         :config => "root_dir=#{VIDEO_SOURCE_DIR}"
+    },
+
+    :youtube => {
+        :port => 9080,
+        :log => File.join(BOK_CHOY_LOG_DIR, "bok_choy_youtube.log")
     }
+
 }
 
 # For the time being, stubs are used by both the bok-choy and lettuce acceptance tests