diff --git a/package/dnsmasq/Makefile b/package/dnsmasq/Makefile
index abf0962c3..77b8f82a6 100644
--- a/package/dnsmasq/Makefile
+++ b/package/dnsmasq/Makefile
@@ -9,7 +9,7 @@ include $(TOPDIR)/rules.mk
 
 PKG_NAME:=dnsmasq
 PKG_VERSION:=2.52
-PKG_RELEASE:=3
+PKG_RELEASE:=4
 
 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 47c4c2d2e..15f856d4e 100644
--- a/package/dnsmasq/files/dnsmasq.init
+++ b/package/dnsmasq/files/dnsmasq.init
@@ -296,9 +296,17 @@ dhcp_domain_add() {
 	local raddr="${4:+$4.$3.$2.$1.in-addr.arpa}"
 
 	for name in $names; do
-		append args "-A /$name/$ip"
-		[ -n "$raddr" ] && \
-			append args "--ptr-record=$raddr,$name"
+		local fqdn="$name"
+
+		[ "${fqdn%.*}" == "$fqdn" ] && \
+			fqdn="$fqdn${DOMAIN:+.$DOMAIN}"
+
+		append args "-A /$fqdn/$ip"
+		
+		[ -n "$raddr" ] && {
+			append args "--ptr-record=$raddr,$fqdn"
+			raddr=""
+		}
 	done
 }