diff --git a/bin/configure-sqoop b/bin/configure-sqoop
index ee1dd7bd..cc5f7434 100755
--- a/bin/configure-sqoop
+++ b/bin/configure-sqoop
@@ -113,6 +113,14 @@ if [ ! -z "$SQOOP_USER_CLASSPATH" ]; then
   export HADOOP_CLASSPATH="${SQOOP_USER_CLASSPATH}:${HADOOP_CLASSPATH}"
 fi
 
+#Sqoop execution faces Class loading issue due to conflicting hsqldb 
+#jar versions in Sqoop(hsqldb-2.2.8) and Hadoop(hsqldb-1.8.0.10). 
+#Setting HADOOP_USER_CLASSPATH_FIRST to true adds Sqoop's classpath
+#(consequently, hsqldb-2.2.8.jar) before Hadoop's and resolves the issue. 
+#Refer SQOOP-524 JIRA for more details. 
+HADOOP_USER_CLASSPATH_FIRST=true
+
+export HADOOP_USER_CLASSPATH_FIRST
 export SQOOP_CLASSPATH
 export SQOOP_CONF_DIR
 export SQOOP_JAR_DIR
diff --git a/ivy.xml b/ivy.xml
index dd75d5d5..49904de4 100644
--- a/ivy.xml
+++ b/ivy.xml
@@ -74,7 +74,6 @@ under the License.
       rev="${hadoop.version}" conf="hadoop23->default">
       <artifact name="hadoop-common" type="jar" />
       <artifact name="hadoop-common" type="jar" m:classifier="tests"/>
-      <exclude org="hsqldb" module="hsqldb"/>
     </dependency>
     <dependency org="org.apache.hadoop" name="hadoop-hdfs"
       rev="${hadoop.version}" conf="hadoop23->default">
@@ -150,6 +149,7 @@ under the License.
       <exclude org="com.cloudera.cdh" module="zookeeper-ant" />
     </dependency>
 
+    <exclude org="hsqldb" module="hsqldb"/>
     <exclude org="org.apache.hadoop" module="avro"/>
     <exclude org="commons-daemon" module="commons-daemon" />