diff --git a/templates/icehouse/dhcp_agent.ini b/templates/icehouse/dhcp_agent.ini
index 0ef4acf4..c8d18c05 100644
--- a/templates/icehouse/dhcp_agent.ini
+++ b/templates/icehouse/dhcp_agent.ini
@@ -8,7 +8,7 @@ interface_driver = neutron.agent.linux.interface.OVSInterfaceDriver
 dhcp_driver = neutron.agent.linux.dhcp.Dnsmasq
 root_helper = sudo /usr/bin/neutron-rootwrap /etc/neutron/rootwrap.conf
 
-{% if instance_mtu -%}
+{% if instance_mtu or dnsmasq_flags -%}
 dnsmasq_config_file = /etc/neutron/dnsmasq.conf
 {% endif -%}
 {% if plugin == 'nvp' or plugin == 'nsx' -%}