diff --git a/src/network/networkd-conf.c b/src/network/networkd-conf.c
index 0f7015eb25..a84b5ce18b 100644
--- a/src/network/networkd-conf.c
+++ b/src/network/networkd-conf.c
@@ -19,6 +19,7 @@ int manager_parse_config_file(Manager *m) {
                         "Network\0"
                         "DHCPv4\0"
                         "DHCPv6\0"
+                        "DHCPServer\0"
                         "DHCP\0",
                         config_item_perf_lookup, networkd_gperf_lookup,
                         CONFIG_PARSE_WARN,
diff --git a/src/network/networkd-network-gperf.gperf b/src/network/networkd-network-gperf.gperf
index 34c81a0747..9b37000bff 100644
--- a/src/network/networkd-network-gperf.gperf
+++ b/src/network/networkd-network-gperf.gperf
@@ -350,7 +350,7 @@ DHCPServer.BootServerAddress,                config_parse_in_addr_non_null,
 DHCPServer.BootServerName,                   config_parse_dns_name,                                    0,                             offsetof(Network, dhcp_server_boot_server_name)
 DHCPServer.BootFilename,                     config_parse_string,                                      CONFIG_PARSE_STRING_SAFE_AND_ASCII, offsetof(Network, dhcp_server_boot_filename)
 DHCPServer.RapidCommit,                      config_parse_bool,                                        0,                             offsetof(Network, dhcp_server_rapid_commit)
-SHCPServer.PersistLeases,                    config_parse_tristate,                                    0,                             offsetof(Network, dhcp_server_persist_leases)
+DHCPServer.PersistLeases,                    config_parse_tristate,                                    0,                             offsetof(Network, dhcp_server_persist_leases)
 DHCPServerStaticLease.Address,               config_parse_dhcp_static_lease_address,                   0,                             0
 DHCPServerStaticLease.MACAddress,            config_parse_dhcp_static_lease_hwaddr,                    0,                             0
 Bridge.Cost,                                 config_parse_uint32,                                      0,                             offsetof(Network, cost)
diff --git a/test/test-network/conf/persist-leases-no.conf b/test/test-network/conf/persist-leases-no.conf
new file mode 100644
index 0000000000..5025265153
--- /dev/null
+++ b/test/test-network/conf/persist-leases-no.conf
@@ -0,0 +1,3 @@
+# SPDX-License-Identifier: LGPL-2.1-or-later
+[DHCPServer]
+PersistLeases=no
diff --git a/test/test-network/systemd-networkd-tests.py b/test/test-network/systemd-networkd-tests.py
index 866c548fbe..d3ee0e7c77 100755
--- a/test/test-network/systemd-networkd-tests.py
+++ b/test/test-network/systemd-networkd-tests.py
@@ -5721,11 +5721,7 @@ class NetworkdDHCPServerTests(unittest.TestCase, Utilities):
     def tearDown(self):
         tear_down_common()
 
-    def test_dhcp_server(self):
-        copy_network_unit('25-veth.netdev', '25-dhcp-client.network', '25-dhcp-server.network')
-        start_networkd()
-        self.wait_online('veth99:routable', 'veth-peer:routable')
-
+    def check_dhcp_server(self, persist_leases=True):
         output = networkctl_status('veth99')
         print(output)
         self.assertRegex(output, r'Address: 192.168.5.[0-9]* \(DHCP4 via 192.168.5.1\)')
@@ -5737,6 +5733,19 @@ class NetworkdDHCPServerTests(unittest.TestCase, Utilities):
         print(output)
         self.assertRegex(output, "Offered DHCP leases: 192.168.5.[0-9]*")
 
+        if persist_leases:
+            with open('/var/lib/systemd/network/dhcp-server-lease/veth-peer', encoding='utf-8') as f:
+                check_json(f.read())
+        else:
+            self.assertFalse(os.path.exists('/var/lib/systemd/network/dhcp-server-lease/veth-peer'))
+
+    def test_dhcp_server(self):
+        copy_network_unit('25-veth.netdev', '25-dhcp-client.network', '25-dhcp-server.network')
+        start_networkd()
+        self.wait_online('veth99:routable', 'veth-peer:routable')
+
+        self.check_dhcp_server()
+
         networkctl_reconfigure('veth-peer')
         self.wait_online('veth-peer:routable')
 
@@ -5748,6 +5757,22 @@ class NetworkdDHCPServerTests(unittest.TestCase, Utilities):
         else:
             self.fail()
 
+    def test_dhcp_server_persist_leases_no(self):
+        copy_networkd_conf_dropin('persist-leases-no.conf')
+        copy_network_unit('25-veth.netdev', '25-dhcp-client.network', '25-dhcp-server.network')
+        start_networkd()
+        self.wait_online('veth99:routable', 'veth-peer:routable')
+
+        self.check_dhcp_server(persist_leases=False)
+
+        remove_networkd_conf_dropin('persist-leases-no.conf')
+        with open(os.path.join(network_unit_dir, '25-dhcp-server.network'), mode='a', encoding='utf-8') as f:
+            f.write('[DHCPServer]\nPersistLeases=no')
+        restart_networkd()
+        self.wait_online('veth99:routable', 'veth-peer:routable')
+
+        self.check_dhcp_server(persist_leases=False)
+
     def test_dhcp_server_null_server_address(self):
         copy_network_unit('25-veth.netdev', '25-dhcp-client.network', '25-dhcp-server-null-server-address.network')
         start_networkd()