diff --git a/playbooks/roles/bifrost-ironic-install/README.md b/playbooks/roles/bifrost-ironic-install/README.md
index be36a3d01..9d18c28ca 100644
--- a/playbooks/roles/bifrost-ironic-install/README.md
+++ b/playbooks/roles/bifrost-ironic-install/README.md
@@ -143,6 +143,9 @@ enable_cors_credential_support: Boolean value, default false.  This variable
                                 noauth mode, this realistically should not
                                 be modified.
 
+domain: String value, default to false. If set, domain setting is configured
+        in dnsmasq.
+
 ### Hardware Inspection Support
 
 Bifrost also supports the installation of ironic-inspector in standalone
diff --git a/playbooks/roles/bifrost-ironic-install/templates/dnsmasq.conf.j2 b/playbooks/roles/bifrost-ironic-install/templates/dnsmasq.conf.j2
index 96656bad3..18b1c6626 100644
--- a/playbooks/roles/bifrost-ironic-install/templates/dnsmasq.conf.j2
+++ b/playbooks/roles/bifrost-ironic-install/templates/dnsmasq.conf.j2
@@ -142,6 +142,9 @@ dhcp-hostsfile=/etc/dnsmasq.d/bifrost.dhcp-hosts.d
 #    domain of all systems configured by DHCP
 # 3) Provides the domain part for "expand-hosts"
 #domain=thekelleys.org.uk
+{% if domain is defined %}
+domain={{ domain }}
+{% endif %}
 
 # Set a different domain for a particular subnet
 #domain=wireless.thekelleys.org.uk,192.168.2.0/24
diff --git a/releasenotes/notes/populate_domain_dnsmasq-5408896247eb39b4.yaml b/releasenotes/notes/populate_domain_dnsmasq-5408896247eb39b4.yaml
new file mode 100644
index 000000000..039f7d813
--- /dev/null
+++ b/releasenotes/notes/populate_domain_dnsmasq-5408896247eb39b4.yaml
@@ -0,0 +1,14 @@
+---
+features:
+  - Allow to populate the domain setting of
+    dnsmasq. As shown in documentation: this is optional,
+    but if it is set, it does the following things.
+    1) Allows DHCP hosts to have fully qualified domain
+    names, as long as the domain part matches this setting.
+    2) Sets the "domain" DHCP option thereby potentially
+    setting the domain of all systems configured by DHCP.
+    3) Provides the domain part for "expand-hosts"
+other:
+  - The role will accept the ``domain`` setting. If that's
+    present, it will be populated to equivalent domain
+    setting in dnsmasq.conf