diff --git a/openstackclient/tests/functional/compute/v2/test_server.py b/openstackclient/tests/functional/compute/v2/test_server.py
index 37183a7916..5ae96c3344 100644
--- a/openstackclient/tests/functional/compute/v2/test_server.py
+++ b/openstackclient/tests/functional/compute/v2/test_server.py
@@ -1050,6 +1050,24 @@ class ServerTests(common.ComputeTestCase):
         # check the volume is in 'available' status
         self.assertEqual('available', cmd_output['status'])
 
+    def test_server_create_with_fqdn_hostname(self):
+        server_name = uuid.uuid4().hex
+        server = self.openstack(
+            '--os-compute-api-version 2.94 ' +
+            'server create ' +
+            '--flavor ' + self.flavor_name + ' ' +
+            '--image ' + self.image_name + ' ' +
+            '--nic none ' +
+            '--hostname test.example.com' +
+            server_name,
+            parse_output=True,
+        )
+        self.assertIsNotNone(server["id"])
+        self.addCleanup(self.openstack, 'server delete --wait ' + server_name)
+        self.wait_for_status(server_name, "ACTIVE")
+        self.assertEqual('test.example.com',
+                         server['OS-EXT-SRV-ATTR:hostname'])
+
     def test_server_create_with_none_network(self):
         """Test server create with none network option."""
         server_name = uuid.uuid4().hex