diff --git a/src/network/networkd-route-util.c b/src/network/networkd-route-util.c
index a204fb9631..d49a0b9512 100644
--- a/src/network/networkd-route-util.c
+++ b/src/network/networkd-route-util.c
@@ -162,9 +162,9 @@ bool gateway_is_ready(Link *link, bool onlink, int family, const union in_addr_u
                         continue;
                 if (FLAGS_SET(a->flags, IFA_F_NOPREFIXROUTE))
                         continue;
-                if (in_addr_is_set(a->family, &a->in_addr_peer))
-                        continue;
-                if (in_addr_prefix_covers(family, &a->in_addr, a->prefixlen, gw) > 0)
+                if (in_addr_prefix_covers(a->family,
+                                          in_addr_is_set(a->family, &a->in_addr_peer) ? &a->in_addr_peer : &a->in_addr,
+                                          a->prefixlen, gw) > 0)
                         return true;
         }
 
diff --git a/test/test-network/conf/25-route-static.network b/test/test-network/conf/25-route-static.network
index 3574f021b0..7ef211d410 100644
--- a/test/test-network/conf/25-route-static.network
+++ b/test/test-network/conf/25-route-static.network
@@ -108,3 +108,10 @@ MultiPathRoute=2001:1234:5:6fff:ff:ff:ff:ff@test1 20
 MultiPathRoute=2001:1234:5:7fff:ff:ff:ff:ff@test1 30
 MultiPathRoute=2001:1234:5:8fff:ff:ff:ff:ff@dummy98 10
 MultiPathRoute=2001:1234:5:9fff:ff:ff:ff:ff@dummy98 5
+
+[Address]
+Address=1.1.8.105/31
+Peer=1.1.8.104/31
+
+[Route]
+Gateway=1.1.8.104
diff --git a/test/test-network/systemd-networkd-tests.py b/test/test-network/systemd-networkd-tests.py
index fb9cf25c02..ea4f8d4b15 100755
--- a/test/test-network/systemd-networkd-tests.py
+++ b/test/test-network/systemd-networkd-tests.py
@@ -3097,6 +3097,7 @@ class NetworkdNetworkTests(unittest.TestCase, Utilities):
         self.assertIn('default via 149.10.125.65 proto static onlink', output)
         self.assertIn('default via 149.10.124.64 proto static', output)
         self.assertIn('default proto static', output)
+        self.assertIn('default via 1.1.8.104 proto static', output)
 
         print('### ip -4 route show table local dev dummy98')
         output = check_output('ip -4 route show table local dev dummy98')