diff --git a/defaults/main.yml b/defaults/main.yml
index 5031a4a3..5a7bc30e 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -529,7 +529,7 @@ neutron_vxlan_enabled: true
 
 neutron_sriov_excluded_devices: ""
 
-neutron_dhcp_domain: openstacklocal
+neutron_dns_domain: openstacklocal
 # Comma-separated list of DNS servers which will be used by dnsmasq as forwarders.
 neutron_dnsmasq_dns_servers: ""
 # Limit number of leases to prevent a denial-of-service.
diff --git a/releasenotes/notes/os-neutron-deprecate-dhcp-domain-63b4c4dfbccd3a3a.yaml b/releasenotes/notes/os-neutron-deprecate-dhcp-domain-63b4c4dfbccd3a3a.yaml
new file mode 100644
index 00000000..82cd8c21
--- /dev/null
+++ b/releasenotes/notes/os-neutron-deprecate-dhcp-domain-63b4c4dfbccd3a3a.yaml
@@ -0,0 +1,4 @@
+---
+upgrade:
+  - The variable ``neutron_dhcp_domain`` has been renamed to
+    ``neutron_dns_domain``.
diff --git a/templates/dhcp_agent.ini.j2 b/templates/dhcp_agent.ini.j2
index 80195a0a..1ca172b0 100644
--- a/templates/dhcp_agent.ini.j2
+++ b/templates/dhcp_agent.ini.j2
@@ -13,9 +13,6 @@ num_sync_threads = {{ neutron_num_sync_threads | default(api_threads) }}
 interface_driver = {{ neutron_plugins[neutron_plugin_type].driver_interface }}
 dhcp_driver = {{ neutron_driver_dhcp }}
 
-# Default domain for DHCP leases
-dhcp_domain = {{ neutron_dhcp_domain }}
-
 # Dnsmasq options
 dnsmasq_config_file = {{ neutron_conf_dir }}/dnsmasq-neutron.conf
 dnsmasq_dns_servers = {{ neutron_dnsmasq_dns_servers }}
diff --git a/templates/neutron.conf.j2 b/templates/neutron.conf.j2
index bee1958b..bf163769 100644
--- a/templates/neutron.conf.j2
+++ b/templates/neutron.conf.j2
@@ -16,6 +16,9 @@ executor_thread_pool_size = {{ neutron_rpc_thread_pool_size }}
 rpc_response_timeout = {{ neutron_rpc_response_timeout }}
 transport_url = rabbit://{% for host in neutron_rabbitmq_servers.split(',') %}{{ neutron_rabbitmq_userid }}:{{ neutron_rabbitmq_password }}@{{ host }}:{{ neutron_rabbitmq_port }}{% if not loop.last %},{% else %}/{{ neutron_rabbitmq_vhost }}{% endif %}{% endfor %}
 
+# Domain to use for building hostnames
+dns_domain = {{ neutron_dns_domain }}
+
 {% if neutron_services['neutron-server']['group'] in group_names %}
 
 # General, only applies to neutron server host group