diff --git a/dnsmasq-2.85-lease-hostname.patch b/dnsmasq-2.85-lease-hostname.patch
new file mode 100644
index 0000000..849ae7c
--- /dev/null
+++ b/dnsmasq-2.85-lease-hostname.patch
@@ -0,0 +1,26 @@
+From bea12dc31409180f6cb3a0578c2340c0116ef003 Mon Sep 17 00:00:00 2001
+From: =?UTF-8?q?Petr=20Men=C5=A1=C3=ADk?= <pemensik@redhat.com>
+Date: Fri, 2 Jul 2021 10:03:47 +0200
+Subject: [PATCH] Modify and propagate changed lease
+
+If hostname is reset on existing lease, propagate such change to leases
+file and script.
+---
+ src/lease.c | 1 +
+ 1 file changed, 1 insertion(+)
+
+diff --git a/src/lease.c b/src/lease.c
+index b56647d..1a9f1c6 100644
+--- a/src/lease.c
++++ b/src/lease.c
+@@ -1021,6 +1021,7 @@ void lease_set_hostname(struct dhcp_lease *lease, const char *name, int auth, ch
+ 	    }
+ 	
+ 	  kill_name(lease_tmp);
++	  lease_tmp->flags |= LEASE_CHANGED; /* run script on change */
+ 	  break;
+ 	}
+     }
+-- 
+2.31.1
+
diff --git a/dnsmasq.spec b/dnsmasq.spec
index cf732bc..07eede0 100644
--- a/dnsmasq.spec
+++ b/dnsmasq.spec
@@ -20,7 +20,7 @@
 
 Name:           dnsmasq
 Version:        2.85
-Release:        3%{?extraversion:.%{extraversion}}%{?dist}
+Release:        4%{?extraversion:.%{extraversion}}%{?dist}
 Summary:        A lightweight DHCP/caching DNS server
 
 License:        GPLv2 or GPLv3
@@ -41,6 +41,8 @@ Patch1:         dnsmasq-2.77-underflow.patch
 # https://bugzilla.redhat.com/show_bug.cgi?id=1852373
 Patch2:         dnsmasq-2.81-configuration.patch
 Patch3:         dnsmasq-2.78-fips.patch
+# https://bugzilla.redhat.com/show_bug.cgi?id=1978718
+Patch4:         dnsmasq-2.85-lease-hostname.patch
 
 Requires:       nettle
 
@@ -182,6 +184,9 @@ install -Dpm 644 %{SOURCE2} %{buildroot}%{_sysusersdir}/%{name}.conf
 %{_mandir}/man1/dhcp_*
 
 %changelog
+* Thu Jul 22 2021 Petr Menšík <pemensik@redhat.com> - 2.85-4
+- Update lease if hostname is assigned to a new lease (#1978718)
+
 * Wed Jul 21 2021 Fedora Release Engineering <releng@fedoraproject.org> - 2.85-3
 - Rebuilt for https://fedoraproject.org/wiki/Fedora_35_Mass_Rebuild