diff --git a/package/dnsmasq/Makefile b/package/dnsmasq/Makefile
index eeaad10e4..393f0f014 100644
--- a/package/dnsmasq/Makefile
+++ b/package/dnsmasq/Makefile
@@ -3,9 +3,9 @@
 include $(TOPDIR)/rules.mk
 
 PKG_NAME:=dnsmasq
-PKG_VERSION:=2.26
+PKG_VERSION:=2.27
 PKG_RELEASE:=1
-PKG_MD5SUM:=ae04abb5db4a8cc43c24f432f0c44d5c
+PKG_MD5SUM:=489198ec87101087043adc98bbe062dc
 
 PKG_SOURCE_URL:=http://thekelleys.org.uk/dnsmasq
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.gz
diff --git a/package/dnsmasq/patches/102-domain_wildcard_fix.patch b/package/dnsmasq/patches/102-domain_wildcard_fix.patch
deleted file mode 100644
index 041cd67cf..000000000
--- a/package/dnsmasq/patches/102-domain_wildcard_fix.patch
+++ /dev/null
@@ -1,12 +0,0 @@
-diff -urN dnsmasq.old/src/forward.c dnsmasq.dev/src/forward.c
---- dnsmasq.old/src/forward.c	2006-01-16 20:34:04.000000000 +0100
-+++ dnsmasq.dev/src/forward.c	2006-02-05 04:41:37.148190000 +0100
-@@ -164,7 +164,7 @@
- 	if (namelen >= domainlen &&
- 	    hostname_isequal(matchstart, serv->domain) &&
- 	    domainlen >= matchlen &&
--	    (namelen == domainlen || *(serv->domain) == '.' || *(matchstart-1) == '.' ))
-+	    (namelen == domainlen || *(serv->domain) == '.' || *(matchstart-1) == '.' || domainlen == 0))
- 	  {
- 	    unsigned short sflag = serv->addr.sa.sa_family == AF_INET ? F_IPV4 : F_IPV6;
- 	    *type = SERV_HAS_DOMAIN;