diff --git a/src/libsystemd-network/dhcp-option.c b/src/libsystemd-network/dhcp-option.c
index 4a6fa462f1..e4ba77ae29 100644
--- a/src/libsystemd-network/dhcp-option.c
+++ b/src/libsystemd-network/dhcp-option.c
@@ -10,6 +10,8 @@
 #include "alloc-util.h"
 #include "dhcp-option.h"
 #include "dhcp-server-internal.h"
+#include "dns-domain.h"
+#include "hostname-util.h"
 #include "memory-util.h"
 #include "ordered-set.h"
 #include "strv.h"
@@ -420,6 +422,35 @@ int dhcp_option_parse_string(const uint8_t *option, size_t len, char **ret) {
         return 0;
 }
 
+int dhcp_option_parse_hostname(const uint8_t *option, size_t len, char **ret) {
+        _cleanup_free_ char *hostname = NULL;
+        int r;
+
+        assert(option);
+        assert(ret);
+
+        r = dhcp_option_parse_string(option, len, &hostname);
+        if (r < 0)
+                return r;
+
+        if (!hostname) {
+                *ret = NULL;
+                return 0;
+        }
+
+        if (!hostname_is_valid(hostname, 0))
+                return -EINVAL;
+
+        r = dns_name_is_valid(hostname);
+        if (r < 0)
+                return r;
+        if (r == 0)
+                return -EINVAL;
+
+        *ret = TAKE_PTR(hostname);
+        return 0;
+}
+
 static sd_dhcp_option* dhcp_option_free(sd_dhcp_option *i) {
         if (!i)
                 return NULL;
diff --git a/src/libsystemd-network/dhcp-option.h b/src/libsystemd-network/dhcp-option.h
index 425f5b5016..aaa8f847b1 100644
--- a/src/libsystemd-network/dhcp-option.h
+++ b/src/libsystemd-network/dhcp-option.h
@@ -44,3 +44,4 @@ int dhcp_option_parse(
                 char **ret_error_message);
 
 int dhcp_option_parse_string(const uint8_t *option, size_t len, char **ret);
+int dhcp_option_parse_hostname(const uint8_t *option, size_t len, char **ret);
diff --git a/src/libsystemd-network/sd-dhcp-server.c b/src/libsystemd-network/sd-dhcp-server.c
index d59bf430d7..dd4cbd3064 100644
--- a/src/libsystemd-network/sd-dhcp-server.c
+++ b/src/libsystemd-network/sd-dhcp-server.c
@@ -746,14 +746,16 @@ static int parse_request(uint8_t code, uint8_t len, const void *option, void *us
                 req->agent_info_option = (uint8_t*)option - 2;
 
                 break;
-        case SD_DHCP_OPTION_HOST_NAME:
-                r = dhcp_option_parse_string(option, len, &req->hostname);
-                if (r < 0) {
-                        log_debug_errno(r, "Failed to parse hostname, ignoring: %m");
-                        return 0;
-                }
+        case SD_DHCP_OPTION_HOST_NAME: {
+                _cleanup_free_ char *p = NULL;
 
+                r = dhcp_option_parse_hostname(option, len, &p);
+                if (r < 0)
+                        log_debug_errno(r, "Failed to parse hostname, ignoring: %m");
+                else
+                        free_and_replace(req->hostname, p);
                 break;
+        }
         case SD_DHCP_OPTION_PARAMETER_REQUEST_LIST:
                 req->parameter_request_list = option;
                 req->parameter_request_list_len = len;