diff --git a/README.md b/README.md
index 82c158a4..af4d8d85 100644
--- a/README.md
+++ b/README.md
@@ -66,6 +66,31 @@ os-{admin,internal,public}-hostname(s) are set
 
 This charm only support deployment with OpenStack Icehouse or better.
 
+# Internal DNS for Cloud Guests
+
+The charm supports enabling internal DNS resolution for cloud guests in
+accordance with the OpenStack DNS integration guide. To enable internal
+DNS resolution, the 'enable-ml2-dns' option must be set to True. When
+enabled, the domain name specified in the 'dns-domain' will be advertised
+as the nameserver search path by the dhcp agents.
+
+The Nova compute service will leverage this functionality when enabled.
+When ports are allocated by the compute service, the dns_name of the port
+is populated with a DNS sanitized version of the instance's display name.
+The Neutron DHCP agents will then create host entries in the dnsmasq's
+configuration files matching the dns_name of the port to the IP address
+associated with the port.
+
+Note that the DNS nameserver provided to the instance by the DHCP agent
+depends on the tenant's network setup. The Neutron DHCP agent only advertises
+itself as a nameserver when the Neutron subnet does not have nameservers
+configured. If additional nameservers are needed and internal DNS is desired,
+then the IP address of the DHCP port should be added to the subnet's
+list of configured nameservers.
+
+For more information refer to the OpenStack documentation on
+[DNS Integration](https://docs.openstack.org/ocata/networking-guide/config-dns-int.html).
+
 # Network Space support
 
 This charm supports the use of Juju Network Spaces, allowing the charm
diff --git a/config.yaml b/config.yaml
index cf791548..2b487e3c 100755
--- a/config.yaml
+++ b/config.yaml
@@ -550,6 +550,13 @@ options:
     type: boolean
     default: False
     description: Enable port security extension for ML2 plugin (>= kilo).
+  enable-ml2-dns:
+    type: boolean
+    default: False
+    description: |
+      Enables the Neutron DNS extension driver (>= mitaka). When enabled,
+      ports attached to Nova instances will have DNS names assigned based
+      on the instance name.
   haproxy-server-timeout:
     type: int
     default:
@@ -649,3 +656,12 @@ options:
       when using an overlay/tunnel protocol. This option allows
       specifying a physical network MTU value that differs from the
       default global-physnet-mtu value.
+  dns-domain:
+    type: string
+    default: openstack.example.
+    description: |
+      Specifies the dns domain name that should be used for building instance
+      hostnames. An empty option or the value of 'openstacklocal' will cause
+      the dhcp agents to broadcast the default domain of openstacklocal and
+      will not enable internal cloud dns resolution. This value should end
+      with a '.', e.g. 'cloud.example.org.'.
diff --git a/hooks/neutron_api_context.py b/hooks/neutron_api_context.py
index cde51a26..0484fba9 100644
--- a/hooks/neutron_api_context.py
+++ b/hooks/neutron_api_context.py
@@ -13,6 +13,7 @@
 # limitations under the License.
 
 import ast
+import re
 
 from collections import OrderedDict
 
@@ -22,6 +23,8 @@ from charmhelpers.core.hookenv import (
     related_units,
     relation_get,
     log,
+    DEBUG,
+    ERROR,
 )
 from charmhelpers.contrib.openstack import context
 from charmhelpers.contrib.hahelpers.cluster import (
@@ -42,6 +45,16 @@ OVERLAY_NET_TYPES = [VXLAN, GRE]
 NON_OVERLAY_NET_TYPES = [VLAN, FLAT, LOCAL]
 TENANT_NET_TYPES = [VXLAN, GRE, VLAN, FLAT, LOCAL]
 
+EXTENSION_DRIVER_PORT_SECURITY = 'port_security'
+EXTENSION_DRIVER_DNS = 'dns'
+
+# Domain name validation regex which is used to certify that
+# the domain-name consists only of valid characters, is not
+# longer than 63 characters in length for any name segment,
+# and each segment does not begin or end with a hyphen.
+DOMAIN_NAME_REGEX = re.compile(r'^(?!-)[A-Z\d-]{1,63}(?<!-)$',
+                               re.IGNORECASE)
+
 
 def get_l2population():
     plugin = config('neutron-plugin')
@@ -121,6 +134,44 @@ def get_dvr():
         return False
 
 
+def get_dns_domain():
+    if not config('enable-ml2-dns'):
+        log('ML2 DNS Extensions are not enabled.', DEBUG)
+        return ""
+
+    dns_domain = config('dns-domain')
+    if not dns_domain:
+        log('No dns-domain has been configured', DEBUG)
+        return dns_domain
+
+    release = os_release('neutron-server')
+    if CompareOpenStackReleases(release) < 'mitaka':
+        log('Internal DNS resolution is not supported before Mitaka')
+        return ""
+
+    # Strip any trailing . at the end
+    if dns_domain[-1] == '.':
+        dns_domain = dns_domain[:-1]
+
+    # Ensure that the dns name is only a valid name. Valid entries include
+    # a-z, A-Z, 0-9, ., and -. No particular name may be longer than 63
+    # characters, each part cannot begin/end with a -. Validate this here in
+    # order to prevent other chaos which may prevent neutron services from
+    # functioning properly.
+    # Note: intentionally not validating the length of the domain name because
+    # this is practically difficult to validate reasonably well.
+    for level in dns_domain.split('.'):
+        if not DOMAIN_NAME_REGEX.match(level):
+            msg = "dns-domain '%s' is an invalid domain name." % dns_domain
+            log(msg, ERROR)
+            raise ValueError(msg)
+
+    # Make sure it ends with a .
+    dns_domain += '.'
+
+    return dns_domain
+
+
 class ApacheSSLContext(context.ApacheSSLContext):
 
     interfaces = ['https']
@@ -303,7 +354,17 @@ class NeutronCCContext(context.NeutronContext):
         if vni_ranges:
             ctxt['vni_ranges'] = ','.join(vni_ranges.split())
 
-        ctxt['enable_ml2_port_security'] = config('enable-ml2-port-security')
+        extension_drivers = []
+        if config('enable-ml2-port-security'):
+            extension_drivers.append(EXTENSION_DRIVER_PORT_SECURITY)
+
+        dns_domain = get_dns_domain()
+        if dns_domain:
+            extension_drivers.append(EXTENSION_DRIVER_DNS)
+            ctxt['dns_domain'] = dns_domain
+        if extension_drivers:
+            ctxt['extension_drivers'] = ','.join(extension_drivers)
+
         ctxt['enable_sriov'] = config('enable-sriov')
 
         if cmp_release == 'kilo' or cmp_release >= 'mitaka':
diff --git a/hooks/neutron_api_hooks.py b/hooks/neutron_api_hooks.py
index e5fe66f3..36a9a3cb 100755
--- a/hooks/neutron_api_hooks.py
+++ b/hooks/neutron_api_hooks.py
@@ -87,6 +87,7 @@ from neutron_api_utils import (
     setup_ipv6,
 )
 from neutron_api_context import (
+    get_dns_domain,
     get_dvr,
     get_l3ha,
     get_l2population,
@@ -502,6 +503,10 @@ def neutron_plugin_api_relation_joined(rid=None):
         'region': config('region'),
     })
 
+    dns_domain = get_dns_domain()
+    if dns_domain:
+        relation_data['dns-domain'] = dns_domain
+
     if is_api_ready(CONFIGS):
         relation_data['neutron-api-ready'] = "yes"
     else:
diff --git a/templates/kilo/ml2_conf.ini b/templates/kilo/ml2_conf.ini
index 8b06d39f..8981f5e7 100644
--- a/templates/kilo/ml2_conf.ini
+++ b/templates/kilo/ml2_conf.ini
@@ -4,8 +4,8 @@
 # Configuration file maintained by Juju. Local changes may be overwritten.  
 ###############################################################################
 [ml2]
-{% if enable_ml2_port_security -%}
-extension_drivers=port_security
+{% if extension_drivers -%}
+extension_drivers={{ extension_drivers }}
 {% endif -%}
 
 {% if neutron_plugin == 'Calico' -%}
diff --git a/templates/mitaka/ml2_conf.ini b/templates/mitaka/ml2_conf.ini
index 022b1723..bd4bd5e6 100644
--- a/templates/mitaka/ml2_conf.ini
+++ b/templates/mitaka/ml2_conf.ini
@@ -4,8 +4,8 @@
 # Configuration file maintained by Juju. Local changes may be overwritten.  
 ###############################################################################
 [ml2]
-{% if enable_ml2_port_security -%}
-extension_drivers=port_security
+{% if extension_drivers -%}
+extension_drivers={{ extension_drivers }}
 {% endif -%}
 
 {% if neutron_plugin == 'Calico' -%}
diff --git a/templates/mitaka/neutron.conf b/templates/mitaka/neutron.conf
index 3a003a22..ffbee1d3 100644
--- a/templates/mitaka/neutron.conf
+++ b/templates/mitaka/neutron.conf
@@ -18,6 +18,10 @@ rpc_workers = {{ workers }}
 
 router_distributed = {{ enable_dvr }}
 
+{% if dns_domain -%}
+dns_domain = {{ dns_domain }}
+{% endif -%}
+
 l3_ha = {{ l3_ha }}
 {% if l3_ha -%}
 max_l3_agents_per_router = {{ max_l3_agents_per_router }}
diff --git a/templates/newton/neutron.conf b/templates/newton/neutron.conf
index 327127a0..fb0aa89d 100644
--- a/templates/newton/neutron.conf
+++ b/templates/newton/neutron.conf
@@ -18,6 +18,10 @@ rpc_workers = {{ workers }}
 
 router_distributed = {{ enable_dvr }}
 
+{% if dns_domain -%}
+dns_domain = {{ dns_domain }}
+{% endif -%}
+
 l3_ha = {{ l3_ha }}
 {% if l3_ha -%}
 max_l3_agents_per_router = {{ max_l3_agents_per_router }}
diff --git a/unit_tests/test_neutron_api_context.py b/unit_tests/test_neutron_api_context.py
index 2e22ca9a..1c5724c4 100644
--- a/unit_tests/test_neutron_api_context.py
+++ b/unit_tests/test_neutron_api_context.py
@@ -203,6 +203,27 @@ class GeneralTests(CharmTestCase):
         self.os_release.return_value = 'juno'
         self.assertEquals(context.get_dvr(), False)
 
+    def test_get_dns_domain(self):
+        self.test_config.set('dns-domain', 'example.org.')
+        self.test_config.set('enable-ml2-dns', True)
+        self.os_release.return_value = 'mitaka'
+        self.assertEquals(context.get_dns_domain(), 'example.org.')
+
+    def test_get_dns_domain_bad_values(self):
+        self.os_release.return_value = 'mitaka'
+        self.test_config.set('enable-ml2-dns', True)
+        bad_values = ['example@foo.org',
+                      'exclamation!marks.notwelcom.ed',
+                      '%s.way.too.long' % ('x' * 64),
+                      '-hyphen.in.front',
+                      'hypen-.in.back',
+                      'no_.under_scor.es',
+                      ]
+
+        for value in bad_values:
+            self.test_config.set('dns-domain', value)
+            self.assertRaises(ValueError, context.get_dns_domain)
+
 
 class IdentityServiceContext(CharmTestCase):
 
@@ -385,7 +406,7 @@ class NeutronCCContextTest(CharmTestCase):
             'quota_vip': 10,
             'vlan_ranges': 'physnet1:1000:2000',
             'vni_ranges': '1001:2000',
-            'enable_ml2_port_security': True,
+            'extension_drivers': 'port_security',
             'enable_hyperv': False
         }
         napi_ctxt = context.NeutronCCContext()
@@ -393,6 +414,50 @@ class NeutronCCContextTest(CharmTestCase):
         with patch.object(napi_ctxt, '_ensure_packages'):
             self.assertEquals(ctxt_data, napi_ctxt())
 
+    @patch.object(context.NeutronCCContext, 'network_manager')
+    @patch.object(context.NeutronCCContext, 'plugin')
+    def test_neutroncc_context_dns_setting(self, plugin, nm):
+        plugin.return_value = None
+        self.test_config.set('enable-ml2-dns', True)
+        self.test_config.set('dns-domain', 'example.org.')
+        self.os_release.return_value = 'mitaka'
+        napi_ctxt = context.NeutronCCContext()
+        with patch.object(napi_ctxt, '_ensure_packages'):
+            ctxt = napi_ctxt()
+            self.assertEqual('example.org.', ctxt['dns_domain'])
+            self.assertEqual('port_security,dns', ctxt['extension_drivers'])
+
+    @patch.object(context.NeutronCCContext, 'network_manager')
+    @patch.object(context.NeutronCCContext, 'plugin')
+    def test_neutroncc_context_dns_no_port_security_setting(self,
+                                                            plugin, nm):
+        """Verify extension drivers without port security."""
+        plugin.return_value = None
+        self.test_config.set('enable-ml2-port-security', False)
+        self.test_config.set('enable-ml2-dns', True)
+        self.test_config.set('dns-domain', 'example.org.')
+        self.os_release.return_value = 'mitaka'
+        napi_ctxt = context.NeutronCCContext()
+        with patch.object(napi_ctxt, '_ensure_packages'):
+            ctxt = napi_ctxt()
+            self.assertEquals('example.org.', ctxt['dns_domain'])
+            self.assertEquals('dns', ctxt['extension_drivers'])
+
+    @patch.object(context.NeutronCCContext, 'network_manager')
+    @patch.object(context.NeutronCCContext, 'plugin')
+    def test_neutroncc_context_dns_kilo(self, plugin, nm):
+        """Verify dns extension and domain are not specified in kilo."""
+        plugin.return_value = None
+        self.test_config.set('enable-ml2-port-security', False)
+        self.test_config.set('enable-ml2-dns', True)
+        self.test_config.set('dns-domain', 'example.org.')
+        self.os_release.return_value = 'kilo'
+        napi_ctxt = context.NeutronCCContext()
+        with patch.object(napi_ctxt, '_ensure_packages'):
+            ctxt = napi_ctxt()
+            self.assertFalse('dns_domain' in ctxt)
+            self.assertFalse('extension_drivers' in ctxt)
+
     @patch.object(context.NeutronCCContext, 'network_manager')
     @patch.object(context.NeutronCCContext, 'plugin')
     @patch('__builtin__.__import__')
@@ -427,7 +492,7 @@ class NeutronCCContextTest(CharmTestCase):
             'vlan_ranges': 'physnet1:1000:2000',
             'vni_ranges': '1001:2000,3001:4000',
             'network_providers': 'physnet2,physnet3',
-            'enable_ml2_port_security': True,
+            'extension_drivers': 'port_security',
             'enable_hyperv': False
         }
         napi_ctxt = context.NeutronCCContext()
@@ -472,7 +537,7 @@ class NeutronCCContextTest(CharmTestCase):
             'quota_vip': 10,
             'vlan_ranges': 'physnet1:1000:2000',
             'vni_ranges': '1001:2000',
-            'enable_ml2_port_security': True,
+            'extension_drivers': 'port_security',
             'enable_hyperv': False
         }
         napi_ctxt = context.NeutronCCContext()
@@ -524,7 +589,7 @@ class NeutronCCContextTest(CharmTestCase):
             'quota_vip': 10,
             'vlan_ranges': 'physnet1:1000:2000',
             'vni_ranges': '1001:2000',
-            'enable_ml2_port_security': True,
+            'extension_drivers': 'port_security',
             'enable_hyperv': False
         }
         napi_ctxt = context.NeutronCCContext()
diff --git a/unit_tests/test_neutron_api_hooks.py b/unit_tests/test_neutron_api_hooks.py
index 51361439..9d381e3a 100644
--- a/unit_tests/test_neutron_api_hooks.py
+++ b/unit_tests/test_neutron_api_hooks.py
@@ -60,6 +60,7 @@ TO_PATCH = [
     'l3ha_router_present',
     'execd_preinstall',
     'filter_installed_packages',
+    'get_dns_domain',
     'get_dvr',
     'get_l3ha',
     'get_l2population',
@@ -538,6 +539,7 @@ class NeutronAPIHooksTests(CharmTestCase):
         port = 1234
         _canonical_url.return_value = host
         self.api_port.return_value = port
+        self.get_dns_domain.return_value = ""
         self.is_relation_made = True
         neutron_url = '%s:%s' % (host, port)
         _relation_data = {
@@ -620,6 +622,7 @@ class NeutronAPIHooksTests(CharmTestCase):
         self.get_l3ha.return_value = False
         self.get_l2population.return_value = False
         self.get_overlay_network_type.return_value = 'vxlan'
+        self.get_dns_domain.return_value = ''
         self._call_hook('neutron-plugin-api-relation-joined')
         self.relation_set.assert_called_with(
             relation_id=None,
@@ -653,6 +656,7 @@ class NeutronAPIHooksTests(CharmTestCase):
         self.get_l3ha.return_value = False
         self.get_l2population.return_value = True
         self.get_overlay_network_type.return_value = 'vxlan'
+        self.get_dns_domain.return_value = ''
         self._call_hook('neutron-plugin-api-relation-joined')
         self.relation_set.assert_called_with(
             relation_id=None,
@@ -686,6 +690,7 @@ class NeutronAPIHooksTests(CharmTestCase):
         self.get_l3ha.return_value = True
         self.get_l2population.return_value = False
         self.get_overlay_network_type.return_value = 'vxlan'
+        self.get_dns_domain.return_value = ''
         self._call_hook('neutron-plugin-api-relation-joined')
         self.relation_set.assert_called_with(
             relation_id=None,
@@ -721,6 +726,42 @@ class NeutronAPIHooksTests(CharmTestCase):
         self.get_l3ha.return_value = True
         self.get_l2population.return_value = False
         self.get_overlay_network_type.return_value = 'vxlan'
+        self.get_dns_domain.return_value = ''
+        self._call_hook('neutron-plugin-api-relation-joined')
+        self.relation_set.assert_called_with(
+            relation_id=None,
+            **_relation_data
+        )
+
+    def test_neutron_plugin_api_relation_joined_dns(self):
+        self.unit_get.return_value = '172.18.18.18'
+        self.IdentityServiceContext.return_value = \
+            DummyContext(return_value={})
+        _relation_data = {
+            'neutron-security-groups': False,
+            'enable-dvr': False,
+            'enable-l3ha': False,
+            'addr': '172.18.18.18',
+            'l2-population': False,
+            'overlay-network-type': 'vxlan',
+            'service_protocol': None,
+            'auth_protocol': None,
+            'service_tenant': None,
+            'service_port': None,
+            'region': 'RegionOne',
+            'service_password': None,
+            'auth_port': None,
+            'auth_host': None,
+            'service_username': None,
+            'service_host': None,
+            'neutron-api-ready': 'no',
+            'dns-domain': 'openstack.example.'
+        }
+        self.get_dvr.return_value = False
+        self.get_l3ha.return_value = False
+        self.get_l2population.return_value = False
+        self.get_overlay_network_type.return_value = 'vxlan'
+        self.get_dns_domain.return_value = 'openstack.example.'
         self._call_hook('neutron-plugin-api-relation-joined')
         self.relation_set.assert_called_with(
             relation_id=None,