diff --git a/package/dnsmasq/Makefile b/package/dnsmasq/Makefile
index 1f99b5014b..a2084a616c 100644
--- a/package/dnsmasq/Makefile
+++ b/package/dnsmasq/Makefile
@@ -9,7 +9,7 @@ include $(TOPDIR)/rules.mk
 
 PKG_NAME:=dnsmasq
 PKG_VERSION:=2.59
-PKG_RELEASE:=1
+PKG_RELEASE:=2
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.gz
 PKG_SOURCE_URL:=http://thekelleys.org.uk/dnsmasq
diff --git a/package/dnsmasq/files/dnsmasq.init b/package/dnsmasq/files/dnsmasq.init
index 80ab250baa..b0c2cd226f 100644
--- a/package/dnsmasq/files/dnsmasq.init
+++ b/package/dnsmasq/files/dnsmasq.init
@@ -326,10 +326,10 @@ dhcp_domain_add() {
 	local cfg="$1"
 	local ip name names
 
-	config_get names "$cfg" name
+	config_get names "$cfg" name "$2"
 	[ -n "$names" ] || return 0
 
-	config_get ip "$cfg" ip
+	config_get ip "$cfg" ip "$3"
 	[ -n "$ip" ] || return 0
 
 	local oIFS="$IFS"; IFS="."; set -- $ip; IFS="$oIFS"
@@ -342,7 +342,7 @@ dhcp_domain_add() {
 			fqdn="$fqdn${DOMAIN:+.$DOMAIN}"
 
 		append args "-A /$fqdn/$ip"
-		
+
 		[ -n "$raddr" ] && {
 			append args "--ptr-record=$raddr,$fqdn"
 			raddr=""
@@ -383,6 +383,10 @@ dhcp_cname_add() {
 start() {
 	include /lib/network
 	scan_interfaces
+
+	local lanaddr
+	config_get lanaddr "lan" ipaddr
+
 	config_load dhcp
 
 	args=""
@@ -400,6 +404,12 @@ start() {
 	config_foreach dhcp_add dhcp
 	config_foreach dhcp_cname_add cname
 
+	# add own hostname
+	[ -z "$lanaddr" ] || {
+		local hostname="$(uci_get system.@system[0].hostname)"
+		dhcp_domain_add "" "${hostname:-OpenWrt}" "$lanaddr"
+	}
+
 	service_start /usr/sbin/dnsmasq $args && {
 		rm -f /tmp/resolv.conf
 		[ -n "$DOMAIN" ] && echo "search $DOMAIN" >> /tmp/resolv.conf