diff --git a/pkg/nmlite/hostname.go b/pkg/nmlite/hostname.go
index 146aad0b6..88f35330c 100644
--- a/pkg/nmlite/hostname.go
+++ b/pkg/nmlite/hostname.go
@@ -67,7 +67,7 @@ func (hm *ResolvConfManager) getHostname() string {
 }
 
 func (hm *ResolvConfManager) getDomain() string {
-	if hm.domain != "" {
+	if hm.domain != "" && hm.domain != "dhcp" {
 		return hm.domain
 	}
 
diff --git a/pkg/nmlite/interface.go b/pkg/nmlite/interface.go
index 58bd73537..a9111a645 100644
--- a/pkg/nmlite/interface.go
+++ b/pkg/nmlite/interface.go
@@ -787,6 +787,7 @@ func (im *InterfaceManager) updateStateFromDHCPLease(lease *types.DHCPLease) {
 		NameServers: lease.DNS,
 		SearchList:  lease.SearchList,
 		Source:      "dhcp",
+		Domain:      lease.Domain,
 	}); err != nil {
 		im.logger.Warn().Err(err).Msg("failed to update resolv.conf")
 	}
diff --git a/pkg/nmlite/resolvconf.go b/pkg/nmlite/resolvconf.go
index 1bacee7a9..b94f5c3db 100644
--- a/pkg/nmlite/resolvconf.go
+++ b/pkg/nmlite/resolvconf.go
@@ -192,6 +192,11 @@ func (rcm *ResolvConfManager) generateResolvConf(conf *types.ResolvConf) ([]byte
 	mergeConfig(&nameservers, &searchList, &conf.ConfigIPv4)
 	mergeConfig(&nameservers, &searchList, &conf.ConfigIPv6)
 
+	rcm.logger.Info().
+		Interface("nameservers", nameservers).
+		Interface("searchList", searchList).
+		Msg("merged config")
+
 	flattenedSearchList := []string{}
 	for search := range searchList {
 		flattenedSearchList = append(flattenedSearchList, search)
@@ -199,6 +204,7 @@ func (rcm *ResolvConfManager) generateResolvConf(conf *types.ResolvConf) ([]byte
 
 	var buf bytes.Buffer
 	if err := tmpl.Execute(&buf, map[string]any{
+		"domain":      rcm.getDomain(),
 		"nameservers": nameservers,
 		"searchList":  flattenedSearchList,
 	}); err != nil {
diff --git a/ui/src/routes/devices.$id.settings.network.tsx b/ui/src/routes/devices.$id.settings.network.tsx
index 8fdece8b5..e34011ac3 100644
--- a/ui/src/routes/devices.$id.settings.network.tsx
+++ b/ui/src/routes/devices.$id.settings.network.tsx
@@ -77,6 +77,8 @@ export function LifeTimeLabel({ lifetime }: Readonly<{ lifetime: string }>) {
   );
 }
 
+const NonCustomDomainOptions = ["dhcp", "local"];
+
 export default function SettingsNetworkRoute() {
   const { send } = useJsonRpc();
 
@@ -128,13 +130,18 @@ export default function SettingsNetworkRoute() {
         },
       };
 
+      if (!NonCustomDomainOptions.includes(settingsWithDefaults.domain)) {
+        setCustomDomain(settingsWithDefaults.domain);
+        settingsWithDefaults.domain = "custom";
+      }
+
       initialSettingsRef.current = settingsWithDefaults;
       return { settings: settingsWithDefaults, state };
     } catch (err) {
       notifications.error(m.network_settings_load_error({ error: err instanceof Error ? err.message : m.unknown_error() }));
       throw err;
     }
-  }, [setNetworkState]);
+  }, [setNetworkState, setCustomDomain]);
 
   const formMethods = useForm<NetworkSettings>({
     mode: "onBlur",
@@ -406,6 +413,7 @@ export default function SettingsNetworkRoute() {
                       type="text"
                       label={m.network_custom_domain()}
                       placeholder="home.example.com"
+                      value={customDomain}
                       onChange={e => {
                         setCustomDomain(e.target.value);
                       }}